43 



Is there a difference between those lowland areas? 



Mr. Witt. I don't think there is any distinct differences because 

 those areas are rated much higher for the risk involved, and people 

 do have the opportunity to opt out if they so choose. 



So I would say that I don't think our participation there is that 

 much different, based on what I know. 



Mr. English. It wouldn't be less? 



Mr. Witt. It may very well be less because of the higher risk 

 areas and the higher rates that are charged for those more risky 

 areas. 



Mr. English. The quality aspect, Mr. Weber, can you give us 

 some kind of feel from a cost standpoint how much additional cost 

 would that add to the program over and above what it would nor- 

 mally be before we got into dealing with quality? 



Mr. Weber. Given the quality factors that we have this year, we 

 don't have a good fix on it right now; but where we are expecting 

 to pay out upwards of $2.5 billion. 



Mr. English. Just on agriculture? 



Mr. Weber. On crop losses. Possibly $300 to $500 million of that 

 could be associated with quality losses. 



Mr. English. Is the quality 



Mr. Weber. Simply a guess at this point. 



Mr. English. The quality under the disaster aspect of it, is this 

 something that the Department is suggesting we extend across the 

 board irregardless of how big the disaster may be? 



If, in my county, I have a problem with the quality on a crop, 

 is the Department now advocating that my farmers should be able 

 to receive some kind of disaster assistance for quality problems? 



After all, that doesn't have anything to do with disaster much 

 from a natural disaster, such as a flood or an earthquake or some- 

 thing like that. 



Mr. Weber. Certainly the Department, I think, supports quality 

 losses as long as those quality losses can be associated with an ad- 

 verse weather factor. 



If the quality losses are for reasons other than that, then cer- 

 tainly it is my understanding the Department would not support 

 quality adjustments there. 



But if it is weather related, certainly they would support 



Mr. English. Irregardless of the size? 



Mr. Weber. I would have to assume that is true, yes. 



Mr. English. Thank you, Mr. Chairman. 



Mr. Johnson. Mr. Stenholm. 



Mr. Stenholm. Following up on that, with the cotton harvest 

 about to begin — or it has already begun in portions of the coun- 

 try — ^but you get the situation where you have quality deterioration 

 in modules that have been harvested, because of excessive rain. 

 Will they be covered this year for quality loss? 



Mr. Weber. As long as it can be tied to weather, yes. 



Mr. Stenholm. If it is tied to weather? 



Mr. Weber. Yes. 



Mr. Stenholm. Too much rain, quality loss? 



Mr. Weber. Yes. 



Mr. Stenholm. Next favorite subject we have been discussing, de 

 minimis yields. 



