Ill 



compromised and they often look at bankruptcy as a viable option. We are 

 working with some commercial lenders in our state to see if they too would 

 consider this type of policy for disaster cases. 



We also recommend that this deferral apply to FmHA loan paynieni.s from 

 1992 that weren't able to be made due to the disaster. Some of them are just 

 now receiving their FmHA loan servicing packet, but could avoid alot of 

 headache and personal expense - not to mention the government's expense - 

 if the payment were simply put at the end of the loan by extending the loan. 

 Of all the disaster-related refomis we are seeking, this one is perhaps the 

 most important, in that it would go the farthest to keep fanners on the land 

 and government expenses down. 



A word about federal crop insurance. Many of our members have made 

 suggestions for federal crop insurance reforms, but so far, very little has 

 been done to reform the program for 1994. We want a risk management 

 tool that we can pay for ourselves, that actually protects against losses in a 

 way that makes the premium worth paying. Tlie present program doesTi't do 

 this. If we had a solid federal crop insurance program, we wouldn't need a 

 federal farm disaster program, and we urge you to take steps to change the 

 program soon, before another year goes by. 



I want to emphasize how important this federal disaster relief is. 

 Nationally, billions of dollars has been lost in farm income, which means 

 many rural communities will die. According to the ASCS, as of September 

 10. SouUi Dakota's estimated agricultural losses totalled $725,737,488. 

 Since then, an early frost has occurred and our losses will likely exceed $1 

 billion. In the five county area around me, we have lost four implement 

 dealerships, and a fifth will likely go under next year. We continue to lose 

 mainstreet businesses like the Milbank clothing store which has closed and 

 reopened as a second hand store because there is more of a market for used 

 clothing. 



The failure of our federal farm program to allow America's family farmers 

 to earn a decent living in tlie marketplace is the underlying cause of rural 

 poverty. We want our price from the marketplace, not the government. 

 Farmers and ranchers could weather a natural disaster if they had adequate 

 payment for their production in good years. But wc have no cushion, no 

 reserve, thanks to the 1985 and 1990 farm programs. You have a chance to 

 change this when you write the 1995 farm bill. We urge you to look 

 seriously at how cost effective it is for the federal government to go from 

 disaster to disaster when our nation's food .security is at stake. 

 (Accachment follows:) 



