they would get the hay where it was needed and bring relief of tha kind. The Presidential order simply is not adequate and does not meet the problem. The other part of the program is to permit a grace period on the repayment of emergency livestock or other emergency direct 5-percent loans. Right now, many farmers are experiencing hardships in repaying these loans. Some because they are young farmers just getting started with a lot of debt and others because they are located in areas that have had successive disasters. In other words, they are just reeling from previous disasters and they get hit with this terrible drought— and the debt accumulation is tremendous. I would like to submit a table for the record that shows the repetitive nature of disaster in several Minnesota counties. I would like to note that three of them have had disasters five times in the last 6 years. Senator HUMPHREY. That will be included at this point in the record. [The following was received for the record:] PRESIDENTIAL OR AGRICULTURAL DECLARATION SINCE 1970 OF DISASTER IN MINNESOTA COUNTIES 5 years designated: Aitkin, Douglas, Polk. 4 years designated: Beltrami, Benton, Crow Wing, Itasca, Marshall, Morrison, Norman, Otter Tail, Pine, Pope, St. Louis, Swift, Todd. 3 years designated: Blue Earth, Carlton, Chippewa, Chisago, Clay, Grant, Isanti, Kandiyohi, Kittson, Lac qui Parle, Lake, Lake of the Woods, Lincoln, Lyon, McLeod, Meeker, Mille Lacs, Murray, Nobles, Pennington, Pipestone, Red Lake, Renville, Rock, Sibley, Stearns, Stevens, Traverse, Wabasha, Washington, Winona, Wilkin, Yellow Medicine. 2 years designated: Anoka, Becker, Big Stone, Brown, Carver, Cass, Clearwater, Cottonwood, Fillmore, Hubbard, Jackson, Kanabec, Koochiching, Le Sueur, Nicollet, Olmsted, Redwood, Roseau, Sherburne, Wadena, Wright. 1 year designated: Cook, Dakota, Dodge, Goodhue, Hennepin, Houston, Mahnomen, Martin, Mower, Rice, Scott, Steele, Waseca. Undesignated counties: Fairbault, Freeborn, Ramsey, Watonwan. Senator MONDALE. It is not just the farmers, but the lending institutions, the business community in those counties-they just can't take any more. And what this bill would do is give up to a 3-year grace period at the discretion of the Secretary for farmers that are suffering undue hardship-and during that grace period they would have to pay neither principal nor interest-to give them some time to work themselves out of this deep hole that hardship and successive disasters have visited upon them. I think both of these proposals are necessary to get hay where it is needed to prevent massive liquidation of herds, and to get some liberalized grace periods for the repayment of disaster loans so that farmers can afford to pay this back on terms that are not so tough and oppressive as to drive them out of farming. And I think both provisions are essential, and I would hope the committee would act on it. Mr. Chairman, I have got to run and vote. Senator HUDDLESTON. Yes. Senator YOUNG. There is never anything so bad but there isn't something good about it. The two Senators from Minnesota have been fighting for higher dairy prices for years. If legislation such as this doesn't pass to help dairy farmers get needed hay at reasonable prices, it will result in the liquidation of herds. This could mean more scarce milk supplies and higher milk prices. Wheat prices did go up when supplies became scarce. I think this legislation is neccessary and appropriate. Senator MONDALE. I must say there is not a single dairy farmer that wants to get high prices that way. [Laughter.] Senator YOUNG. I know that. We went through the same thing in our State. Senator HUDDLESTON. It seems like the only time prices get high is when you don't have any. At this point I will insert copies of S. 3564 and S. 3636 along with the staff explanation of both bills and a report from the Department of Agriculture on S. 3564. [The above-mentioned follows:] [S. 3564, 94th Cong., 2d sess.] A BILL To provide emergency assistance to livestock producers Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. In order to maintain normal livestock herds, the Secretary of Agriculture is authorized to reimburse livestock producers or otherwise pay for the transportation costs they incur for the shipment of hay into counties severely affected by drought, flood, or other natural disaster. SEC. 2. The Secretary of Agriculture may designate any county or substantial portion thereof, as an emergency area for the purposes of this Act if he determines that as a result of a natural disaster the hay crop for that county is not more than 50 per centum of the normal crop as estimated by the Secretary. SEC. 3. The Secretary of Agriculture shall not provide assistance to any producer under this Act unless he is satisfied that such producer cannot obtain, without undue financial hardship, sufficient feed for the livestock owned by him, and unless such producer agrees to use the hay only for feed for such livestock. SEC. 4. The Secretary of Agriculture is authorized to issue such regulations as he determines necessary to carry out this Act. SEC. 5. The Secretary of Agriculture is authorized to utilize the facilities, services, authorities, and funds of the Commodity Credit Corporation in discharging his functions and responsibilities under this Act. SEC. 6. The authority to provide assistance under this Act shall expire on December 31, 1977. SENATE COMMITTEE ON AGRICULTURE AND FORESTRY (Staff Explanation of S. 3564) S. 3564 would authorize the Secretary of Agriculture to pay or otherwise reimburse livestock producers for transportation costs they incur in having to ship hay in from outside their county for use in feeding their livestock, when their county is an emergency area, one severely affected by drought, flood, or other natural disaster. Section 2 would authorize the Secretary to designate a county or a substantial portion thereof as an emergency area for the purpose of this Act if he determines that the hay crop for the county is 50% or less of the normal yield as the result of a natural disaster. Section 3 would prevent the Secretary from providing this assistance unless he is satisfied that the producer cannot obtain sufficient feed for his livestock without undue financial hardship, and the producer agrees to use the hay only to feed his livestock. The Secretary would utilize the facilities, services, authorities, and funds of the Commodity Credit Corporation to implement this Act. Authority under this Act would expire as of December 31, 1977. Hon. HERMAN E. TALMADGE, DEPARTMENT OF AGRICULture, OFFICE OF THE SECRETARY, Chairman, Committee on Agriculture and Forestry, DEAR MR. CHAIRMAN: This replies to your request of June 16 for a report on S. 3564, a bill "To provide emergency assistance to livestock producers". The Department of Agriculture recommends that the bill not be passed. The bill, which would terminate December 31, 1977, provides authority for the Secretary of Agriculture to designate any county as an emergency area if he determines that, as a result of a natural disaster, the hay crop for that county is less than 50 percent of the normal crop. Livestock producers within the area may then be reimbursed for transportation costs incurred in the shipping of hay into the area. However, the Secretary shall not provide assistance to any producer unless he is satisfied that the producer cannot obtain, without undue financial hardship, sufficient feed for livestock owned by him, and the producer must agree to use the hay only for such livestock. The Secretary is authorized to utilize the Commodity Credit Corporation in carrying out the program under this bill. We do not believe that enactment of this bill is necessary, as the existing authority under the Disaster Relief Act of 1974 appears to be adequate. On June 22, the President declared a state of emergency did exist for dairymen and cattle producers in 114 designated counties in Minnesota, South Dakota and Wisconsin, under authority of the Disaster Relief Act of 1974, Public Law 93–288. Under this authority, the government is providing two-thirds (up to $27 per ton) of the actual cost to transport a maximum of 30 days' supply of hay to the affected areas. This hay transportation assistance is being carried out by this Department. Expenditures or outlays could be very large under this proposal in that all transportation costs would be paid; however, we have no way of estimating such costs in view of the many variables involved. The Office of Management and Budget advises that there is no objection to the presentation of this report and enactment of S. 3564 legislation would not be consistent with the Administration's objectives. Sincerely, JOHN A. KNEBEL, Under Secretary. [S. 3636, 94th Cong., 2d sess.] A BILL To provide emergency assistance to livestock producers Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Emergency Livestock Assistance Act of 1976". SEC. 2. The Secretary of Agriculture is authorized to declare any State or political subdivision thereof as an emergency area affected by a flood, drought, or other natural disaster for the purposes of this Act after the Governor has requested such a declaration, and the Secretary has concurred in the evidence provided by the Governor that the combined hay, forage, or pasture losses are 40 per centum below normal State or subdivision production based on applicable production averages over the preceding three years. SEC. 3. The Secretary of Agriculture may provide three-fourths of the actual cost to transport a maximum of ninety days supply of hay or forages to livestock producers in emergency areas: Provided, That the Secretary may, where it finds such action necessary and appropriate, extend the period of time for making assistance available to livestock producers. In computing the assistance to which livestock producers are entitled, the Agricultural Stabilization and Conservation Service shall utilize the formula of forty pounds of hay per brood cow per day and twenty pounds per replacement heifer per day. The Agricultural Stabilization and Conservation Service will develop appropriate feed ratios as required for other livestock. Before the end of the ninety-day period, the Agricultural Stabilization and Conservation Service will evaluate both the immediate and long-term situation facing livestock producers and furnish the Secretary and the Governor recommendations for any additional steps, including an extension of the ninety-day period. SEC. 4. The Secretary of Agriculture is authorized to provide assistance under section 3 of this Act to any livestock producer whose assets do not exceed $100,000 beyond current liabilities or where not providing such assistance would cause a financial hardship to the producer in maintaining his livestock herd. SEC. 5. The Secretary of Agriculture is authorized to issue such regulations as he determines necessary to carry out this Act. SEC. 6. The Secretary of Agriculture is authorized to utilize the facilities, services, authorities, and funds of the Commodity Credit Corporation in discharging his responsibilities under this Act. SEC. 7. Notwithstanding any other provision of law, the Secretary of Agriculture is authorized, through the Commodity Credit Corporation, to purchase hay or other forages and make them available to maintain foundation livestock herds and avoid forced liquidation sales in accordance with the provisions of section 407 of the Agricultural Act of 1949, as amended. SEC. 8. The authority to provide assistance under this Act shall expire on October 1, 1978. SENATE COMMITTEE ON AGRICULTURE AND FORESTRY (Staff Explanation of S. 3636) S. 3636 would authorize the Secretary of Agriculture to: 1) declare any State or political subdivision thereof as any emergency area affected by a flood, drought, or other natural disaster for the purposes of this Act, and provide to livestock producers in the emergency area three-fourths of the actual cost to transport a maximum of 90-days supply of hay or forage; and 2) purchase hay or other forage under the Commodity Credit Act and then make such stocks available for sale as emergency livestock feed at beneficial prices to livestock producers, in accordance with section 407 of the Agricultural Act of 1949, in order to avoid forced liquidation sales and insure the maintenance of foundation livestock herds. Section 2 of the bill provides that the declaration of emergency would be made following a request by the Governor of the State and upon the concurrence of the Secretary in the evidence provided by the Governor that combined hay, forage, or pasture losses are 40% of normal production for the area based on the preceding three years average. Section 3 provides that in computing the assistance to be given a producer, the Agricultural Stabilization and Conservation Service (ASCS) shall use formulae of: 40 pounds of hay per brood cow per day; and 20 pounds of hay per replacement heifer per day. ASCS shall also develop appropriate feed rations for other livestock. Section 3 also provides that the Secretary may, when it is deemed necessary and appropriate, extend the period of time for making this assistance available to livestock producers. Before the end of the 90-day period, ASCS will evaluate the immediate and long-term situations facing livestock producers and furnish the Secretary and Governor recommendations for additional steps to be taken, including an extension of the 90-day period. Section 4 provides that the Secretary may provide this assistance only to livestock producers whose net current assets are under $100,000 or for whom denial of assistance would cause financial hardship to the producer in maintaining his livestock herd. The Secretary would utilize the facilities, services, authorities, and funds of the Commodity Credit Corporation to implement the Act. Authority under this Act would expire as of October 1, 1978. Senator Huddleston. Senator Abourezk have you voted yet? Senator ABOUREZK. Not yet. I want to present a short statement. Senator HUDDLESTON. Do you want to do that before you vote? Senator ABOUREZK. Yes. I have a full statement that I will submit to the reporter.* Senator HUDDLESTON. Very good. STATEMENT OF HON. JAMES ABOUREZK, A U.S. SENATOR FROM SOUTH DAKOTA Senator ABOUREZK. Mr. Chairman, first of all I want to endorse what Senator Mondale has said prior to me about some of the disaster programs. I have just completed sponsoring 20 meetings throughout the drought-stricken counties of South Dakota, which my staff See p. 71 for the prepared statement of Senator Abourezk. conducted. They had Government officials attend each meeting to lay out what the disaster programs were and what they could be under certain designations. What I am presenting in my full statement is a summary of the recommendations provided by the farmers who attended those meetings. First of all, I want to introduce three people from South Dakota who are here-Ben Radcliffe, president of the State Farmers Union. Our Lieutenant Governor, Harvey Wollman; and our secretary of agriculture, Bob Duxbury. And they will be testifying later. Mr. Radcliffe has a proposal on emergency livestock replacement that he has discussed with me, and I want to endorse that heartily. Basically, Mr. Chairman, there are some recommendations for changes that need to be made in the existing disaster laws and in the bills that we have already introduced on a kind of an emergency basis. I talked to a farmer the other day from South Dakota, a fellow who went through the drought in the thirties and with regard to subsidizing shipment of cattle feed, specifically hay, from other States and other parts of the State into South Dakota, his suggestion wasand I think it is a good one-that instead of each farmer trying to find hay to buy in some out-of-State place and having the Government subsidize either part or all of that transportation cost, it would be much easier, simpler and cheaper in the long run if the Government itself were to buy hay, ship it in and then sell it at cost to the farmers who need it. That is the way they did it in the thirties, and there is no reason why they couldn't do it at this point. I think also a very important change should be made regarding disaster payments for crops to allow people to get in and graze the crops where they are short of feed. The payments should be made at the cost of production of the grain rather than the present one-third target price. All the crops in the drought area should be declared zero yield. Right now when the ASCS goes in to estimate what the yield will be they still estimate production at 8 or 9 bushels per acre. However, if the drought continues, that 8 or 9 bushels will be wiped out, except the farmer will not get paid for that. Furthermore, he is afraid to let his cattle come in and graze at this time for fear that he will not be zeroed out. And I think it ought to be an automatic zeroing out to avoid the cost of sending out appraisers and to allow the farmers the immediate opportunity of letting the cattle graze in the fields. I have the full statement which I offer for the official record, Mr. Chairman. I want to thank you for the opportunity to testify. I hope you will excuse me. I have got to get over and vote right away. Senator HUDDLESTON. Thank you, Senator, for coming over. Your testimony will be helpful. At this time I will introduce into the record my prepared statement and the prepared statement of Senator Dole.* We have the Honorable Alvin Baldus from Wisconsin. Glad to have you. STATEMENT OF HON. ALVIN BALDUS, REPRESENTATIVE IN CONGRESS FROM THE THIRD DISTRICT OF WISCONSIN Mr. BALDUS. Thank you, Senator, I certainly appreciate the oppor *See pp. 67, 68 for the prepared statements of Senators Huddleston and Dole. |