As you know, many nursery crops come in containers. A nursery 

 crop may come in different container sizes, each carrying a dif- 

 ferent price. Also, similar nursery crops having the same container 

 sizes may carry similar prices and they may have different prices. 



Clearly, there is a large variety of plants, container sizes, and 

 prices. Because of this, we have attempted to standardize the com- 

 mon units of production to determine expected and actual produc- 

 tion in determining if eligible losses have occurred. 



Our State ASCS committees, with assistance from the nursery 

 industry, divide nursery crops into groupings containing species 

 with like value, yield, and hardiness, the groupings containing indi- 

 vidual species that cannot be grouped with other species. Rates are 

 determined for each of the 5 years before the disaster year by 

 grouping. 



Once a standard unit is determined, expected production is cal- 

 culated as the average of the actual units sold through the previous 

 3 years. Actual production in standard units is compared to this 

 amount to determine if the 40 percent loss threshold has been met. 

 We have been handling nursery crop losses for 1993, 1994, and 

 1995, when such losses are due to Hurricanes Andrew and Iniki or 

 Typhoon Omar, somewhat differently from the procedures just de- 

 scribed. 



In general, nursery crop losses are determined by calculating one 

 loss for the crop years 1993 through 1995. To do this, our county 

 ASCS committees determine what was on hand before the disaster 

 and what was remaining after the disaster. 



The difference between the two inventories is what was de- 

 stroyed by the disaster, that is, the loss. The loss exceeding 40 per- 

 cent is considered an eligible loss. We use the crop-loss payment 

 rate we established for 1992 losses to calculate a gross payment. 



Payment limitations are applied for each year separately by de- 

 termining the production loss that would have been sold in each 

 year 1993 through 1995. The committee makes this determination 

 based on consideration such as types of plants in the nursery's his- 

 tory of sales. 



Finally, we will adjust the claimed payments by factors set forth 

 as has been mentioned earlier by Public Law 103-50. Production 

 losses associated with trees damaged, stunted, or killed by Hurri- 

 canes Andrew and Iniki, and Typhoon Omar are treated under the 

 same rules as applied to losses for crops in general. 



Under Public Law 101-624 producers' production losses are de- 

 termined based on the expected production of the year compared to 

 the actual production of the crop for the year. 



This approach is consistent with our policy that the expected pro- 

 duction for damaged trees is less than the expected production 

 prior to the disaster. 



Beginning with the implementation of the 1988 disaster pro- 

 gram, CCC determined that if trees were destroyed, the loss of pro- 

 duction would be eligible for crop-loss assistance only in the year 

 the trees were killed. We do not believe the basis exists for making 

 crop-loss benefits available for losses from trees that were not capa- 

 ble of producing. 



Now, let me point out that many producers in Florida and Ha- 

 waii had harvested their 1992 crops before the hurricane struck, so 



