8 



disaster payments totaling $56.4 million have been paid on 1993 

 disaster claims to just under 11,000 producers. 



This concludes my statement, Mr. Chairman. And we will be 

 happy to answer any questions that you have. 



[The prepared statement of Mr. Weber appears at the conclusion 

 of the hearing.] 



Mr. Johnson. Thank you, Mr. Weber. 



If a producer puts his wheat acres into 0/92 with the intention 

 of planting minor oilseeds but is prevented from planting those oil- 

 seeds or they fail, is it true, then, that the producer is not eligible 

 for disaster assistance on those oilseeds? 



Mr. Weber. If he is also earning disaster payments on wheat, 

 that is true, yes. 



Mr. Johnson. I have heard from a number of producers who feel 

 that they are being penalized on their soybean acreage because of 

 the use of previous planting history. And I would wonder if you 

 could explain to me how you determine acreage for soybean produc- 

 ers who traditionally have a corn and soybean rotation. 



Mr. Weber. We normally determine that history based on the re- 

 ports of the producers. For the most part, most producers do report 

 their acreage on an annual basis, so we generally have their histor- 

 ical plantings. 



Mr. Johnson. It is my understanding that producers who in- 

 tended to plant additional acres of soybeans this year and have — 

 even if they have the verification of their intent such as records of 

 seed purchased and forward contracts and so on can't use that in- 

 tent as part of the basis for determining their soybean acreage. 



Mr. Weber. Granted, I understand that happening; however, the 

 statute does provide a specific formula for which we determine pre- 

 vented planted acreage. And it is based on either the previous 

 year's plantings or the average of the previous 3 years. And if the 

 producer was planning to plant greater than those levels, we don't 

 have the statutory authority to consider that. 



Mr. Johnson. And that is a statutory 



Mr. Weber. That is a statutory prohibition, yes. 



Mr. Johnson. All right. 



Are final 1993 wheat deficiency payment calculations going to re- 

 flect the discounts to prices received as well as the nonmilling or 

 unfarmed use that may have happened? 



It is my understanding that you utilize surveys to determine 

 market prices. And I would hope you would find some way to meas- 

 ure the unusual circumstances encountered by producers this sea- 

 son. 



Mr. Weber. To the extent that producers have received lower 

 prices, especially in those areas hurt with the disasters, those will 

 be reflected in the national average price; and so we expect the 

 overall price to be less. 



Certainly with regard to an individual producer, that price is 

 going to be much lower. However, again by statute, we determine 

 the deficiency payments based on a national average price. 



Mr. Johnson. I know that you offered recourse loans to wheat 

 producers who have vomitoxin in their wheat, and I am wondering 

 if recourse loans will also be available to com producers this fall 



