48 



Mr. MiNGE. Mr. Chairman, I would like to ask, in calculating the 

 maximum combined crop insurance and disaster pajnnents, will 

 you use the yield figures that are in place for Federal crop insur- 

 ance as being the production on the farm, that is, normal produc- 

 tion, or use the yield figures that ASCS assumes to be the produc- 

 tion baseline on the farm or the fields? 



Mr. Weber. We will use the ASCS yield. 



Mr. MiNGE. Is that statutorily required? 



Mr. Weber. That is statutory, yes. 



Mr. Johnson. Mr. Pomeroy. 



Mr. Pomeroy. I have a question for Mr. Witt. 



Farmers opting to enroll in 0/92, as late as September 16, burned 

 the crop off the field, have gotten ready for next year, written off 

 this year with the assistance of that program. 



Some farmers have contacted my office with the concern that, 

 given wet field conditions, there is no way they are going to be able 

 to get their crop off, but they still have not been allowed by the 

 Federal crop insurance adjusting procedures to zero out their crop 

 so that they might bum their fields, dry up the ground a little, pre- 

 pare for next spring; and they are worried that without this type 

 of preparation activity during these critical weeks, they are going 

 to be in tough shape for 1994 as well. 



Can you respond to that concern? 



Mr. Witt. Well, since we are essentially a production-based pro- 

 gram, we are waiting for the crop to either deteriorate to the point 

 that it has no value or that we can make an accurate loss adjust- 

 ment appraisal. And as soon as that occurs, the adjusters are free 

 to adjust and make final pa3rtnent and so on. 



My understanding of the situation is the crop still has some po- 

 tential. There cannot be an accurate assessment made at this 

 point. And so they have deferred appraisals and a determination of 

 loss payment until either the freeze gets it, as many people believe 

 may happen, or they actually can harvest. 



They can go ahead and destroy it if they would like to accept the 

 appraisal. We are allowing them to destroy and leave strips so we 

 can make an appraisal for the strips and, if they can, get in and 

 plow down and destroy the crop. 



Mr. Pomeroy. In particular, in areas like I represent, North Da- 

 kota, the window is going to be very small in terms of concluding 

 the loss is complete and an opportunity to do the necessary 

 fieldwork before the winter weather conditions set in. 



I would just strongly urge you to consider that as you look at 

 these procedures. 



Mr. Witt. We will. And we have contacted the companies as well 

 as our own people, and we have an adequate loss adjustment force; 

 and we are prepared to move more loss adjusters in if needed to 

 timely get in there and take care of the situation. But we will make 

 note of that. 



Mr. Pomeroy. Particularly with grains in North Dakota is that 

 standing as late as September 28, you have to be close to zeroing 

 that out; wouldn't you say? 



Mr. Witt. I would say, yes. On some of those they have to be 

 reaching that window where we can make some decision very 

 quickly. 



