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Grain pledged as collateral for a nonrecourse loan may be forfeited to 

 CCC at maturity in settlement of the loan, even though the grain contains 

 vomitoxin. However, if the vomitoxin level is greater than 5 parts per million 

 the settlement value will be considered zero. Consequently, producers would 

 be required to repay these loans in an amount equal to the loan principal and 

 charges, plus interest. Recourse loans must be repaid at this same amount. 



The unprecedented rain and flooding in the MidWest and drought in the 

 Southeast has brought about untold devastation for the affected producers. 

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

 discretionary authority to ease the financial burden these disasters have brought 

 about. As stipulated by Secretary Espy, all eligible disaster assistance claims 

 are being paid within 2 weeks of the time producers have their application 

 approved. As of September 15, 1993, disaster payments totalling $18.7 million 

 have been paid on 1993 disaster claims. 



This concludes my statement, Mr. Chairman, and we would be happy to 

 answer any questions you may have. 



