66 



Further, Federal crop insurance doesn't have a de minimis yield, 

 such as the ASCS de minimis yield of four bushels, that is needed 

 to help producers determine whether to harvest. 



Aside from those problems to be worked out, we have several rec- 

 ommendations in light of this year's scab problem. Assimilate qual- 

 ity adjustment factors. We would like to know why ASCS does not 

 use quality adjustment procedures similar to Federal crop insur- 

 ance. 



Further, why is there a difference in grade adjustment factors for 

 wheat and corn? Sample grade wheat has an adjustment factor of 

 75 percent, while com has a grade factor of 60 percent for sample 

 grade. 



We question whether Northern Plains wheat growers would have 

 received quality loss adjustments if the Corn Belt had not been 

 flooded. 



Once again, the debate over Federal crop insurance and disaster 

 insurance assistance is resurrected. Would 1993 be the impetus for 

 Federal crop insurance reform? 



We strongly urge Congress to enact a viable, attractive Federal 

 crop insurance program using the savings derived from eliminating 

 disaster assistance programs. Participation should be made vol- 

 untary and should not be required for participation in farm pro- 

 grams, including conservation compliance. 



Implement a study of this year's grain discounts. Most infected 

 grain we farmers sold at feed prices will not end up in feed chan- 

 nels. It will be sold into milling channels. 



Wheat growers should be interested in knowing what the real 

 value of their wheat is when milled. We must not allow scab dam- 

 age disease to steer United States wheat down the same road as 

 the Irish potato famine of the 1840's. 



Federal research on scab and vomitoxin is needed, including the 

 development of resisting wheat varieties, production management 

 practices to minimize the risk, and the effect of vomitoxin in ani- 

 mal rations, also, the use of it for use in ethanol. 



Create a feed wheat program for growing seasons such as this, 

 to isolate poor grain. This would prevent discounts at the farmgate 

 and protect our export reputation with overseas wheat buyers. 



Finally, we are concerned that the United States is subject to 

 grain infected with scab and vomitoxin coming from Canada. 



When U.S. marketing channels are burdened with our own in- 

 fected wheat, measures must be taken to assure similar quality 

 and inspection standards, as well as to insure that our marketing 

 system will not be swollen by poor quality grain from Canada in 

 years such as this which may result in price injury to our own pro- 

 ducers. 



Thank you, Mr. Chairman and members of the subcommittee, for 

 allowing me this opportunity. 



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

 of the hearing.] 



Mr. Johnson [resuming chair]. Thank you, Mr. Kappes. 



Mrs. Hendricks. 



