[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 419 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 419

To provide assistance to agricultural producers for crop and livestock 
losses in 2005, 2006, or 2007 as a result of natural disasters, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 11, 2007

  Mr. Lucas introduced the following bill; which was referred to the 
   Committee on Agriculture, and in addition to the Committee on the 
 Budget, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide assistance to agricultural producers for crop and livestock 
losses in 2005, 2006, or 2007 as a result of natural disasters, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Natural Disaster 
Relief Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                TITLE I--AGRICULTURAL PRODUCTION LOSSES

Sec. 101. Crop disaster assistance.
Sec. 102. Livestock assistance.
Sec. 103. Reduction in payments.
                     TITLE II--FARM SERVICE AGENCY

Sec. 201. Funding for additional personnel.
                        TITLE III--MISCELLANEOUS

Sec. 301. Regulations.
Sec. 302. Emergency designation.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Additional coverage.--The term ``additional coverage'' 
        has the meaning given the term in section 502(b)(1) of the 
        Federal Crop Insurance Act (7 U.S.C. 1502(b)(1)).
            (2) Disaster county.--The term ``disaster county'' means--
                    (A) a county included in the geographic area 
                covered by a natural disaster declaration; and
                    (B) each county contiguous to a county described in 
                subparagraph (A).
            (3) Hurricane-affected county.--The term ``hurricane-
        affected county'' means--
                    (A) a county included in the geographic area 
                covered by a natural disaster declaration related to 
                Hurricane Katrina, Hurricane Rita, Hurricane Wilma, or 
                a related condition; and
                    (B) each county contiguous to a county described in 
                subparagraph (A).
            (4) Insurable commodity.--The term ``insurable commodity'' 
        means an agricultural commodity (excluding livestock) for which 
        the producers on a farm are eligible to obtain a policy or plan 
        of insurance under the Federal Crop Insurance Act (7 U.S.C. 
        1501 et seq.).
            (5) Natural disaster declaration.--The term ``natural 
        disaster declaration'' means--
                    (A) a natural disaster declared by the Secretary 
                during calendar year 2005, 2006, or 2007 under section 
                321(a) of the Consolidated Farm and Rural Development 
                Act (7 U.S.C. 1961(a)); or
                    (B) a major disaster or emergency designated by the 
                President during calendar year 2005, 2006, or 2007 
                under the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5121 et seq.).
            (6) Noninsurable commodity.--The term ``noninsurable 
        commodity'' means a crop for which the producers on a farm are 
        eligible to obtain assistance under section 196 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

                TITLE I--AGRICULTURAL PRODUCTION LOSSES

SEC. 101. CROP DISASTER ASSISTANCE.

    (a) Assistance Available.--The Secretary shall use such sums as are 
necessary of funds of the Commodity Credit Corporation to make 
emergency financial assistance available to producers on a farm, other 
than producers of sugar cane or sugar beets, that incurred qualifying 
quantity or quality losses for the 2005, 2006, or 2007 crop due to 
damaging weather or any related condition (including losses due to crop 
diseases, insects, and delayed harvest), as determined by the 
Secretary, with respect to which a natural disaster declaration is 
made.
    (b) Election of Crop Year.--If a producer incurred qualifying crop 
losses in more than one of the 2005, 2006, or 2007 crop years, the 
producer shall elect to receive assistance under this section for 
losses incurred in only one of such crop years. The producer may not 
receive assistance under this section for more than one crop year.
    (c) Administration.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall make assistance available under this section in 
        the same manner as provided under section 815 of the 
        Agriculture, Rural Development, Food and Drug Administration 
        and Related Agencies Appropriations Act, 2001 (Public Law 106-
        387; 114 Stat. 1549A-55), including using the same loss 
        thresholds for quantity and economic losses as were used in 
        administering that section, except that the payment rate shall 
        be 50 percent of the established price, instead of 65 percent.
            (2) Loss thresholds for quality losses.--In the case of a 
        payment for quality loss for a crop under subsection (a), the 
        loss thresholds for quality loss for the crop shall be 
        determined under subsection (d).
    (d) Quality Losses.--
            (1) In general.--Subject to paragraph (3), the amount of a 
        payment made to producers on a farm for a quality loss for a 
        crop under subsection (a) shall be equal to the amount obtained 
        by multiplying--
                    (A) 65 percent of the payment quantity determined 
                under paragraph (2); by
                    (B) 50 percent of the payment rate determined under 
                paragraph (3).
            (2) Payment quantity.--For the purpose of paragraph (1)(A), 
        the payment quantity for quality losses for a crop of a 
        commodity on a farm shall equal the lesser of--
                    (A) the actual production of the crop affected by a 
                quality loss of the commodity on the farm; or
                    (B) the quantity of expected production of the crop 
                affected by a quality loss of the commodity on the 
                farm, using the formula used by the Secretary to 
                determine quantity losses for the crop of the commodity 
                under subsection (a).
            (3) Payment rate.--For the purpose of paragraph (1)(B) and 
        in accordance with paragraphs (5) and (6), the payment rate for 
        quality losses for a crop of a commodity on a farm shall be 
        equal to the difference between--
                    (A) the per unit market value that the units of the 
                crop affected by the quality loss would have had if the 
                crop had not suffered a quality loss; and
                    (B) the per unit market value of the units of the 
                crop affected by the quality loss.
            (4) Eligibility.--For producers on a farm to be eligible to 
        obtain a payment for a quality loss for a crop under subsection 
        (a), the amount obtained by multiplying the per unit loss 
        determined under paragraph (1) by the number of units affected 
        by the quality loss shall be at least 25 percent of the value 
        that all affected production of the crop would have had if the 
        crop had not suffered a quality loss.
            (5) Marketing contracts.--In the case of any production of 
        a commodity that is sold pursuant to 1 or more marketing 
        contracts (regardless of whether the contract is entered into 
        by the producers on the farm before or after harvest) and for 
        which appropriate documentation exists, the quantity designated 
        in the contracts shall be eligible for quality loss assistance 
        based on the 1 or more prices specified in the contracts.
            (6) Other production.--For any additional production of a 
        commodity for which a marketing contract does not exist or for 
        which production continues to be owned by the producer, quality 
        losses shall be based on the average local market discounts for 
        reduced quality, as determined by the appropriate State 
        committee of the Farm Service Agency.
            (7) Quality adjustments and discounts.--The appropriate 
        State committee of the Farm Service Agency shall identify the 
        appropriate quality adjustment and discount factors to be 
        considered in carrying out this subsection, including--
                    (A) the average local discounts actually applied to 
                a crop; and
                    (B) the discount schedules applied to loans made by 
                the Farm Service Agency or crop insurance coverage 
                under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
                seq.).
            (8) Eligible production.--The Secretary shall carry out 
        this subsection in a fair and equitable manner for all eligible 
        production, including the production of fruits and vegetables, 
        other specialty crops, and field crops.
    (e) Payment Limitations.--
            (1) Limit on amount of assistance.--Assistance provided 
        under this section to a producer for losses to a crop, together 
        with the amounts specified in paragraph (2) applicable to the 
        same crop, may not exceed 95 percent of what the value of the 
        crop would have been in the absence of the losses, as estimated 
        by the Secretary.
            (2) Other payments.--In applying the limitation in 
        paragraph (1), the Secretary shall include the following:
                    (A) Any crop insurance payment made under the 
                Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or 
                payment under section 196 of the Federal Agricultural 
                Improvement and Reform Act of 1996 (7 U.S.C. 7333) that 
                the producer receives for losses to the same crop.
                    (B) The value of the crop that was not lost (if 
                any), as estimated by the Secretary
    (f) Eligibility for Assistance.--
            (1) In general.--Except as provided in paragraph (2), the 
        producers on a farm shall not be eligible for assistance under 
        this section with respect to losses to an insurable commodity 
        or noninsurable commodity if the producers on the farm--
                    (A) in the case of an insurable commodity, did not 
                obtain a policy or plan of insurance for the insurable 
                commodity under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.) for the crop incurring the losses;
                    (B) in the case of a noninsurable commodity, did 
                not file the required paperwork, and pay the 
                administrative fee by the applicable State filing 
                deadline, for the noninsurable commodity under section 
                196 of the Federal Agriculture Improvement and Reform 
                Act of 1996 (7 U.S.C. 7333) for the crop incurring the 
                losses;
                    (C) had average adjusted gross income (as defined 
                by section 1001D(a) of the Food Security Act of 1985 (7 
                U.S.C. 1308-3a(a)), of greater than $2,500,000 in 2004; 
                or
                    (D) were not in compliance with highly erodible 
                land conservation and wetland conservation provisions.
            (2) Contract waiver.--The Secretary may waive paragraph (1) 
        with respect to the producers on a farm if the producers enter 
        into a contract with the Secretary under which the producers 
        agree--
                    (A) in the case of an insurable commodity, to 
                obtain a policy or plan of insurance under the Federal 
                Crop Insurance Act (7 U.S.C. 1501 et seq.) providing 
                additional coverage for the insurable commodity for 
                each of the next 2 crops, at a coverage level that 
                provides--
                            (i) not less than 65 percent of the actual 
                        production history for the crop produced on the 
                        farm; and
                            (ii) 100 percent of the expected market 
                        price or a comparable coverage (as determined 
                        by the Federal Crop Insurance Corporation); and
                    (B) in the case of a noninsurable commodity, to 
                file the required paperwork and pay the administrative 
                fee by the applicable State filing deadline, for the 
                noninsurable commodity for each of the next 2 crops 
                under section 196 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 7333).
            (3) Effect of violation.--In the event of the violation of 
        a contract under paragraph (2) by a producer, the producer 
        shall reimburse the Secretary for the full amount of the 
        assistance provided to the producer under this section.
    (g) Timing.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall make payments to producers on a farm for a crop under 
        this section not later than 60 days after the date the 
        producers on the farm submit to the Secretary a completed 
        application for the payments.
            (2) Interest.--If the Secretary does not make payments to 
        the producers on a farm by the date described in paragraph (1), 
        the Secretary shall pay to the producers on a farm interest on 
        the payments at a rate equal to the current (as of the sign-up 
        deadline established by the Secretary) market yield on 
        outstanding, marketable obligations of the United States with 
        maturities of 30 years.

SEC. 102. LIVESTOCK ASSISTANCE.

    (a) Livestock Compensation Program.--
            (1) Use of commodity credit corporation funds.--The 
        Secretary shall use funds of the Commodity Credit Corporation 
        to carry out the 2002 Livestock Compensation Program announced 
        by the Secretary on October 10, 2002 (67 Fed. Reg. 63070), to 
        provide compensation for livestock losses during calendar years 
        2005, 2006, and 2007 for losses that occurred before the date 
        of the enactment of this Act (including wildfire disaster 
        losses in the State of Texas and other States and losses due to 
        blizzard in the States of Colorado, Kansas, Nebraska, New 
        Mexico, and Oklahoma) due to a disaster, as determined by the 
        Secretary, except that the payment rate shall be 75 percent of 
        the payment rate established for the 2002 Livestock 
        Compensation Program.
            (2) Eligible applicants.--In carrying out the program 
        described in paragraph (1), the Secretary shall provide 
        assistance to any applicant that--
                    (A)(i) conducts a livestock operation that is 
                located in a disaster county, including any applicant 
                conducting a livestock operation with eligible 
                livestock (within the meaning of the livestock 
                assistance program under section 101(b) of division B 
                of Public Law 108-324 (118 Stat. 1234)); or
                    (ii) produces an animal described in section 
                10806(a)(1) of the Farm Security and Rural Investment 
                Act of 2002 (21 U.S.C. 321d(a)(1)); and
                    (B) meets all other eligibility requirements 
                established by the Secretary for the program.
            (3) Election of losses.--If a producer incurred livestock 
        losses in more than one of the 2005, 2006, or 2007 calendar 
        years, the producer shall elect to receive payments under this 
        subsection for losses incurred in only one of such calendar 
        years. The producer may not receive payments under this 
        subsection for more than one calendar year.
            (4) Mitigation.--In determining the eligibility for or 
        amount of payments for which a producer is eligible under the 
        livestock compensation program, the Secretary shall not 
        penalize a producer that takes actions (recognizing disaster 
        conditions) that reduce the average number of livestock the 
        producer owned for grazing during the production year for which 
        assistance is being provided.
            (5) Limitation.--The Secretary shall ensure, to the maximum 
        extent practicable, that no producer on a farm receives 
        duplicative payments under this subsection and another Federal 
        program with respect to any loss.
    (b) Livestock Indemnity Payments.--
            (1) In general.--The Secretary shall use such sums as are 
        necessary of funds of the Commodity Credit Corporation to make 
        livestock indemnity payments to producers on farms that have 
        incurred livestock losses during calendar years 2005, 2006, and 
        2007 for losses that occurred prior to the date of enactment of 
        this Act (including wildfire disaster losses in the State of 
        Texas and other States and losses due to blizzard in the States 
        of Colorado, Kansas, Nebraska, New Mexico, and Oklahoma) due to 
        a disaster, as determined by the Secretary, including losses 
        due to hurricanes, floods, anthrax, wildfires, and blizzards.
            (2) Election of losses.--If a producer incurred livestock 
        losses in more than one of the 2005, 2006, or 2007 calendar 
        years, the producer shall elect to receive payments under this 
        subsection for losses incurred in only one of such calendar 
        years. The producer may not receive payments under this 
        subsection for more than one calendar year.
            (3) Payment rates.--Indemnity payments to a producer on a 
        farm under paragraph (1) shall be made at a rate of not less 
        than 30 percent of the market value of the applicable livestock 
        on the day before the date of death of the livestock, as 
        determined by the Secretary.
    (c) Limit on Amount of Assistance.--The Secretary shall ensure, to 
the maximum extent practicable, that no producer on a farm receives 
duplicative payments under this section and any other Federal program 
for the same loss.

SEC. 103. REDUCTION IN PAYMENTS.

    The amount of any payment for which a producer is eligible under 
this title shall be reduced by any amount received by the producer for 
the same loss or any similar loss under--
            (1) the Department of Defense, Emergency Supplemental 
        Appropriations to Address Hurricanes in the Gulf of Mexico, and 
        Pandemic Influenza Act, 2006 (Public Law 109-148; 119 Stat. 
        2680); or
            (2) an agricultural disaster assistance provision contained 
        in the announcement of the Secretary on January 26, 2006.

                     TITLE II--FARM SERVICE AGENCY

SEC. 201. FUNDING FOR ADDITIONAL PERSONNEL.

    The Secretary shall use $23,000,000 of funds of the Commodity 
Credit Corporation to hire additional County Farm Service Agency 
personnel--
            (1) to expedite the implementation of, and delivery under, 
        the agricultural disaster and economic assistance programs 
        under this Act; and
            (2) as the Secretary determines to be necessary to carry 
        out other agriculture and disaster assistance programs.

                        TITLE III--MISCELLANEOUS

SEC. 301. REGULATIONS.

    (a) In General.--The Secretary may promulgate such regulations as 
are necessary to implement this Act.
    (b) Procedure.--The promulgation of the regulations and 
administration of this Act shall be made without regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.

SEC. 302. EMERGENCY DESIGNATION.

    The amounts provided under this Act are designated as an emergency 
requirement pursuant to section 501 of H. Con. Res. 376 (109th 
Congress), as made applicable to the House of Representatives by 
section 511(a)(4) of H. Res. 6 (110th Congress).
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