STATEMENT OF BRUCE R. WEBER, ACTING ADMINISTRATOR, 

 AGRICULTURAL STABILIZATION AND CONSERVATION SERV- 

 ICE, U.S. DEPARTMENT OF AGRICULTURE, ACCOMPANIED 

 BY WILDA H. MARTINEZ, ASSOCIATE DEPUTY ADMINIS- 

 TRATOR, AGRICULTURAL PRODUCTS AND HUMAN NUTRI- 

 TION SCIENCES, AGRICULTURAL RESEARCH SERVICE; TIMO- 

 THY B. WITT, ASSISTANT MANAGER, RESEARCH AND DEVEL- 

 OPMENT, FEDERAL CROP INSURANCE CORPORATION; AND 

 DAVID SHIPMAN, DIRECTOR, FIELD MANAGEMENT DIVI- 

 SION, FEDERAL GRAIN INSPECTION SERVICE 



Mr. Weber. Thank you, Mr. Chairman, and I appreciate the kind 

 comments of the other members. 



Mr. Chairman and members of the subcommittee, I am happy to 

 be here with you today to give a general overview of the 1993 dis- 

 aster program, with specific emphasis on quaUty issues. 



The 1993 disaster program was recently mandated by Public 

 Law 103-75. ASCS began accepting applications on July 22, and 

 the application period will end March 4, 1994. 



The current program operates much like the previous disaster 

 programs: If you have crop insurance, you must have a loss greater 

 than 35 percent — 40 percent without crop insurance — program and 

 nonprogram crops are included; and payments per person are lim- 

 ited to $100,000. 



One of the big differences in the 1993 disaster program is the 

 fact that quality losses are covered for major crops, program and 

 nonprogram alike. The Department has taken steps to assist pro- 

 ducers suffering from other quality-related problems brought about 

 by this year's unusual weather. 



Several States have reported the incidence of vomitoxin which 

 thrives under cool, wet conditions and causes a disease in wheat 

 commonly known as pink scab. The FDA has recently announced 

 advisory levels for wheat containing vomitoxin. 



Ordinarily, CCC does not allow contaminated grain to be pledged 

 as collateral for a price support loan. However, as an aid to affected 

 producers, we have decided that wheat and barley that is otherwise 

 eligible to be pledged as collateral for a price support loan but con- 

 tains vomitoxin may be pledged as collateral for a nonrecourse loan 

 if the level of vomitoxin is five parts per million or less and, as a 

 recourse loan, at a reduced rate if the level is greater than five 

 parts per million. 



The loan rate is not reduced for cases where the level of 

 vomitoxin is less than five, but it is reduced by 30 percent where 

 the levels are above 5 percent. 



The unprecedented rain and flooding in the Midwest and drought 

 in the Southeast has brought about untold devastation for the af- 

 fected producers. I have personally witnessed the devastation first- 

 hand in my five visits to the Midwest and to the Southeast. 



USDA has made, and will continue to make, every effort to use 

 our discretionary authority to ease the financial burden these dis- 

 asters have brought about. 



As stipulated by Secretary Espy, all eligible disaster assistance 

 claims will be paid, and are being paid, within 2 weeks of the time 

 producers have their applications approved. As of September 26, 



