New England floods may be of help to you in noticing what is being done under the several authorities which Congress has given the Department.

The Department of Agriculture takes prompt action when a sudden impact natural disaster, such as a hurricane or a flood, is reported by the Weather Bureau to be headed toward a certain area. Certain designated employees of the Department in the threatened area immediately make use of all media of communication, especially the radio, to warn people of the impending danger and urge them to take detailed precautions to protect themselves and their property.

For example, in North Carolina, the day Hurricane Connie struck the area, several radio broadcasts were made warning people of the approach of the storm and urging them to take prescribed precautions to protect themselves and their property.

Similarly, in Massachusetts, as a result of past experience, packets of pertinent information were prepared early in the summer for use in case of a sudden disaster. These packets contained information for use by people, both before and after the initial impact of the disaster.

Reports of a similar nature could be given for the disaster work done in other areas, including Connecticut, Pennsylvania, Rhode Island, New York, Delaware, Maryland, and Virginia.

Immediately after each of the hurricanes, the Secretary of Agriculture contacted the Governor of each affected State and told him that surplus foods were available for distribution. These surplus foods were already in the stricken areas for distribution as needed. Additional surplus foods were shipped in as circumstances required.

Promptly after the initial impact of any such disaster, the Department's people in the area spread out through the damaged area to make a survey of the damage and to render all assistance possible to those in need and to give counsel and advice toward salvaging damaged crops, repairing damaged buildings, and so forth. They work closely with the American Red Cross, civil defense, and other State and local agencies in locating emergency housing, establishing mass feeding centers, and doing the things which are necessary to return the area to normal condition.

Let me take a few of the agencies of the Department and briefly detail some of the services which they promptly render in any major disaster area: Agricultural Research Service steps up their inspection of meat and other foods to assure their fitness for human consumption. They intensify their inspections of livestock to keep down any contagious diseases.

Agricultural Marketing Service furnishes food for mass-feeding programs. Usually this food is made available to the Red Cross, Salvation Army, civil defense, and other welfare agencies in the State.. As a result of the August and October floods, in the following States, this agency of the Department furnished food for individual recipients: and mass feeding as follows: Connecticut, 7,400 persons; Massachusetts, 3,000 persons; Rhode Island, 2,700 persons; Pennsylvania, 36,000 persons: North Carolina, 2,800 families.

The Federal Extension Service concentrated their efforts in assisting people and communities affected by issuing warnings concerning the use of untreated water supplies, safety and sanitary measures to be

taken concerning the emergency care of livestock, and both harvested and unharvested crops damaged by water. Specialists from this agency were sent to each county to assist the regular staff in processing calls for assistance and to make surveys of the damage done by the storm in order to determine the assistance required and the type of service that would be most useful to the people in the area in the early stages following the storm, the main effort being concentrated to salvage as many crops as possible and to assist farm families in getting their homes back to normal.

Senator BUSH. Mr. Chairman, may I ask a question there?
Senator LEHMAN. Yes, indeed.

Senator BUSH. You speak of the safety measures you have taken concerning the emergency care of livestock. We have had some inquiries concerning the livestock-feed situation. The Department advised us October 14 as follows:

A survey of the livestock feed situation in flooded areas is currently being conducted to determine feasibility of declaring those areas in need of livestock feed as being eligible for assistance under the emergency feed program. It is antici pated this survey will be completed within a few days.

Has it been completed?

Mr. Scorr. I noticed the report, Senator, this morning, that came to my desk before I came up here.

Senator BUSH. Can you give us any information about it?

Mr. Scort. It was indicated that there is quite a variation throughout the respective areas in the extent to which feed is really needed. A good many of the farmers were able to salvage quite a lot of their forage crops, you know, but there is, I noticed in this report, some indication that there is a need up there for some supplemental feed grains, and we will look into that promptly, sir.

The Farmers Home Administration immediately designated, after the President's declaration of a major disaster, areas in which emergency loans would be made available to farmers in the following States and counties: Connecticut, all counties; Massachusetts, 6 counties; Pennsylvania, 11 counties; New York, 7 counties; Maryland, 5 counties; New Jersey, all counties; North Carolina, 28 counties.

These emergency loans are available to farmers who cannot obtain necessary credit from private and cooperative lenders to restore their properties and to continue their farming operations. The loans are made at 3 percent interest and repayment terms are based on the farmers' ability to pay. Funds are advanced for many agricultural purposes, including the restoration of farm buildings, clearing debris from the farm, replacement of livestock or equipment, family subsistence, and other farm operating expenses.

I might say, gentlemen, that these emergency loans under the authorities Congress has given us are administered in a very sympathetic

manner.

As you will recall, no farmer can obtain a loan from the Farmers Home Administration who can obtain necessary credit on reasonable terms and conditions from another established lender. These emergency loans that I have just referred to go beyond the normal credit terms of the regular lending programs of this agency. They are made in a businesslike way, but I want to point out that about the main consideration on those emergency loans is to find a farm family that

wants to stay on the land. If it appears that with help in the amount that they need they can stay on, we then look around and see what kind of liens might be available to look after the Government's interest. Senator LEHMAN. What is the maturity of those loans?

Mr. SCOTT. Normally on these emergency loans-for example, on the amount that they get for fertilizer and labor and the recurring cost, they will be set up for repayment at the time the crops or livestock are sold in the fall.

When we go into restoring buildings, that is a term loan. The note might run for 7, 8, or 10 years, depending on just what the situation might require in the way of a repayment period taking into account their recurring annual costs. It is based entirely, Mr. Chairman, on the expected repayment ability of that particular farmer.

Senator LEHMAN. Is there any limitation on the size of a particular loan?

Mr. Scorr. Not on these emergency loans; no, sir.

These loans, I am sure, are being very helpful, but, of course, we should point out that they don't take care of the losses that are suffered in these disasters. They are very helpful in keeping people in business, letting them go on, but we have no authority to compensate for losses.

Continuing, on the Farmers' Home Administration in the flooded area, the agency immediately sent officials from its national office to each of the flood-stricken States to obtain firsthand information of the needs of farmers and to assist in gearing the agency's program to local needs. It is standard operating procedure in this agency for the State director to make an immediate survey, after the declaration of a major disaster by the President, of the affected area and to promptly make a recommendation to the national office concerning the additional credit needs in such areas.

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A great many inquiries have been received at the office of the county supervisor in each county in the above States concerning loans. plications for loans are promptly processed.

Senator BUSH. Mr. Chairman, I would like to ask the witness this: Right after the flood, we went through the Farmington Valley in Connecticut and would see farms formerly topped with beautiful rich soil, acres, all the soil gone. It is just a rocky beach where there isn't any beach.

Mr. SCOTT. That is right.

Senator BUSH. You see acres and acres of these rocks that have come down and replaced this very beautiful topsoil, and so forth.

What is the Department able to do, the Farmers' Home Administration or any other division of the Department, for men who suffer that kind of a damage?

Mr. Scort. If the topsoil is all washed away, of course, that land certainly has no immediate agriculture production value. If it is covered with debris, as much of that land was up there, we get in there and, for example, we can assist those folks in getting some credit that they need.

We have the Agricultural Conservation Program Service in charge of a cost-sharing program that you are all familiar with that is administered by county committees. These farms cooperating with the agriculture conservation program receive financial assistance in about the

amount which is required in the outlay of cash. The farmer contributes his part of the cost by his labor and use of his equipment.

There is a limitation in our basic law which limits the amount of these cost-sharing payments to $1,500 to any one farm, and that has been brought out during some of the meetings up there, I understand, as being something that the Congress should take another look at in these particular disaster areas.

Senator BUSH. If I could summarize then, is this correct, that the extent to which you are able to help that particular farmer, a typical situation, is to extend him some credit so that he can get some help to clean up that situation and put it back in working order? You can extend him some credit; is that right?

Mr. SCOTT. Yes. And I also pointed out we have the agricultural conservation program which, up to the sum of $1,500 per individual farmer can be made as an outright payment on a cost-sharing basis with the farmer contributing his labor and use of his equipment. this fund is an actual grant to him. That is in addition, Senator, to the credit.

Senator BUSH. Yes. How would he use that $1,500?

But

Mr. SCOTT. He might use it for clearing his land, for rehabilitating his drainage, reseeding his fields, and other measures that are approved first by the county ASC committees, and the farmers in the communities as the kinds of programs that they need. There is some assistance in fencing and various things which are practical under the soil conservation program.

Senator BUSH. Thank you.

Senator LEHMAN. Proceed.

Mr. SCOTT. The Federal Crop Insurance Corporation immediately sent additional personnel into the areas affected to assess the damage to insured crops so that claims could be promptly processed and paid. The Forest Service worked through the State forester's office in each area and furnished equipment and technical assistance as was necessary or required.

The Rural Electrification Administration was ready and made a few additional loans and rendered technical assistance to current REA borrowers in the area. Also gave technical assistance to Small Business Administration.

The Soil Conservation Service immediately dispatched crews of technical personnel to the area to survey and measure the extent of the damage, in order that immediate consideration could be given to requests for financial assistance on an emergency basis to rehabilitate the damage done by the floods. They cooperated with Corps of Army Engineers on channel work, for example.

The Agricultural Conservation Program Service sent representatives to the area to discuss with agricultural stabilization and conservation committees the damage done to the land of individual farmers and the things that would be necessary to counteract the damage and to make an estimate of the cost thereof.

As a result of these surveys and estimates of the costs of rehabilitation, the Secretary procured an initial grant of $500,000 through the Federal Civil Defense Administration, from the President's disaster emergency fund, to supplement the regular funds of the agricultural conservation program for rehabilitation work in the affected areas.

I might point out, gentlemen, that under our authority for these agriculture conservation payments we have to allocate these funds. under a prescribed formula. The funds were, of course, beginning this fiscal year allocated in that manner, and they are then administered by the State and county committees of that service within established policy; so that this fund, this additional grant, was to supplement those funds.

I want to emphasize it was an initial grant and that is a pending matter that is being followed closely to determine what additional may be required.

Of this amount, $300,000 was by the Secretary allocated to the State of North Carolina; $150,000 to the State of Connecticut; and $50,000 to the State of Massachusetts. In the other areas, for the time being, the ACP practices and payments were considered by specialists in the area to be sufficient and return the land to its normal state. Of course, it will not be definitely established until the time for spring planting comes: what the total amount of the damage will be for the reason that farmers are now busy in these areas in attempting to salvage their damaged crops which were harvested and unharvested at the time of the disasters. The Department is keeping in close touch with developments. in all of these States to determine any additional need for assistance in returning the land to its condition before the floods.

In some of the areas, especially those that were inundated by salt water, which, of course, killed all the vegetation, there was need for an emergency feed program, and the Secretary put such a program into effect in those areas.

As you know, the 83d Congress passed Public Law 566 which authorizes the Department to provide technical and financial assistance to qualified local organizations for purposes of flood protection and agricultural uses of water on a watershed basis. The Department will furnish technical assistance and advice to local interests desiring to. plan and carry out such a program.

I thank you, Mr. Chairman, for the opportunity to appear before.

you.

I have three members of the staff here who will gladly join me in attempting to answer any questions that you or members of the committee may have.

Senator BUSH. Mr. Chairman, off the record.

(Discussion off the record.)

Senator LEHMAN. I want to ask you at least two questions.

Can you tell me just exactly what is covered by crop insurance?

Mr. SCOTT. Mr. Chairman, I have with me Carl Fretts, the Deputy Manager. Mr. Laidlaw, the Manager, is confined to his bed today and under doctor's orders. I would be glad to have Mr. Fretts join me here. I am satisfied he could give you more definite response.

Senator LEHMAN. Yes. I would be very glad to have him join you. Mr. SCOTT. Mr. Chairman, this is Carl Fretts, the Deputy Manager of the Federal Crop Insurance Corporation.

Mr. FRETTS. I am sure Mr. Laidlaw is very sorry he was unable to be here today. I wish to express his regrets for being unable to appear, As Mr. Scott has indicated, it was impossible for him to do so.

Your question, I believe, Mr. Chairman, had to do with the extent to which we provided protection in the flood area.

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