19 



Mr. Barrett. Thank you. 



Mr. Weber. Thank you. 



Mr. Barrett. Thank you, Mr. Chairman. 



Mr. Johnson. Mr. Minge. 



Mr. MiNGE. Mr. Chairman, I would Hke to start by asking a cou- 

 ple of questions concerning Federal crop insurance. And basically 

 the first is: Did you become involved in any consideration of wheth- 

 er there should be some modifications with respect to Federal crop 

 insurance or improvements in the disaster program that is directly 

 administered by ASCS? 



Mr. Weber. With regard to 93 or with regard to the reform of 

 crop insurance? 



Mr. MiNGE. No, with regard to 93, such as covering preventive 

 planting as one way of administering the disaster program or in- 

 creasing the level of payments directly within the disaster pro- 

 gram. 



Mr. Weber. There was certainly discussion early on. And I would 

 like Mr. Witt to address that. 



Mr. MiNGE. There has been some concern that increasing prices 

 for corn and any other program commodity will affect the obliga- 

 tion to repay advanced deficiency payments, or will trigger an obli- 

 gation to repay advanced deficiency payments, or reduce the second 

 installment of the deficiency payments and that this will strike 

 particularly hard on those farmers who have a very low yield and, 

 as a consequence, will have perhaps an obligation to repay a sub- 

 stantial amount of an advanced deficiency. 



Could you comment on what, if anything, the Department is con- 

 sidering doing to relieve those farmers of what would be a double 

 hit, one, losing some crops, and two, losing the benefits of the pro- 

 gram? 



Mr. Weber. By statute, we cannot pay a deficiency payment and 

 a disaster payment on the same bushel. So we are required to 

 make appropriate adjustments. 



Given the fact that, especially for com, market prices have risen 

 and the deficiency payment is expected to be considerably less than 

 the 72 cents that we estimated, certainly there will be instances 

 where producers — when we make the final payment next March we 

 will find that the final payment, especially if they have had, for all 

 practical purposes, a total loss on the crop, that they will find 

 themselves in a position that they likely will owe part of that ad- 

 vanced payment back. 



At that point, we will notify the producer that moneys are due 

 and payable. However, we will work with the producer, if he is not 

 able to make repayment of those funds immediately, we will work 

 with him as far as setting up some level of installment payment. 



Mr. Minge. Are you required to do that by law, or could you 

 waive the obligation to repay the advanced deficiency payment? 



Mr. Weber. We do not have the statutory authority to waive the 

 obligation to repay. So the only thing we can offer is extend the 

 terms for repayments. 



Mr. Minge. The 0/92 program has been extended until Septem- 

 ber 17 — or was extended until September 17. 



Is there any further extension that is currently under discussion? 



Mr. Weber. No, there is not. 



