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totally inadequate for others. The payments to growers averaged around 

 15% of the cost of actually planting the tree in the ground and no 

 assistance for the ongoing cost of keeping the plant growing. A total 

 of $175,000 was paid to farmers on Kauai under this program. The first 

 payments were received by growers in March of 1993. The second payment 

 was to be made after the national pool was settled. Farmers on Kauai 

 did not receive their second payment until the end of July, a full 2 

 months after Florida. The growers on Kauai were told by Florida 

 farmers that they had already received their second payments and Kauai 

 farmers had to inform the Honolulu ASCS and Senator Inouyes office of 

 the situation before they were paid the second payment. Payments under 

 this program need to reflect the real cost of replanting orchards not 

 just the initial cost of fertilizer and the tree. 



The ECP or "clean up" program was well administered and checks were 

 issued in a timely manner. The program pays for 64% of the first 

 $62250 of costs incurred by the farmer. The question is where does the 

 farmer get the other 36%? 



In summary: farmers are ineligible for SBA loans, 95% of the growers 

 on Kauai received neither FmHA loans or emergency unemployment 

 insurance. Federal Crop Insurance was never offered to any of the 

 growers on Kauai. 2 million dollars were spent under the ECP program, 

 $175,000 was spent under the TAP program and $115,000 was paid farmers 

 under the Crop Disaster Assistance Program. Clearly the TAP and Crop 

 Disaster programs are not designed for helping the grower on Kauai. 



Most farmers on Kauai have been living on their savings, homeowners 

 insurance payments and state and private loans. After Hurricane Iwa 

 ten years ago there was no Crop Disaster Assistance program and the 

 number of full time farmers fell by 60% as they were unable to 

 continue without income. In the Moloaa Papaya Coop membership went 

 from 27 growers in 1982 before Hurricane Iwa to 9 growers at the time 

 of Hurricane Iniki . 



Imagine yourself without unemployment insurance or health insurance, a 

 damaged house insured by a failed insurance company with a family to 

 support and a farm that is going to require $100,00 of money to put 

 back together. There will be no income- of any sort for one year from 

 the time of the disaster and the help from the federal government is 

 about 5% of what you lost. When you look at things in this light you 

 see how the future looks to most farmers on Kauai. 



The good news is that there are some immediate solutions to the Crop 

 Disaster Assistance program which will help farmers on Kauai now. 



Direct the USDA to pay farmers for production for dead trees for the 

 years 1993, 1994 and 1995 as is the intent of the legislation. 



Direct the USDA to use a crop year that reflects the 12 months of crop 

 loss and not use the calendar year. 



Guarantee that the 50% factor used to calculate payments to farmers 

 will be used regardless of the national pool, (transfer unused money 

 from the ECP and TAP programs to the Crop Disaster Assistance 

 program) . 



Use crop production yields and prices that reflect the variety and 

 location of the growers for calculating payments, don't use state 

 averages that are unrealistic in yield and prices. 



