[Congressional Record Volume 143, Number 50 (Thursday, April 24, 1997)]
[Senate]
[Pages S3664-S3665]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Mr. Gregg, and Mr. Lautenberg):
  S. 643. A bill to prohibit the Federal Government from providing 
insurance, reinsurance, or noninsured crop disaster assistance for 
tobacco; to the Committee on Agriculture, Nutrition, and Forestry.


               THE TOBACCO SUBSIDY REDUCTION ACT OF 1997

  Mr. DURBIN. Mr. President, people often ask their elected officials, 
``If smoking is so dangerous, why does Congress subsidize tobacco?'' 
Today, my colleagues Senator Gregg of New Hampshire and Senator 
Lautenberg of New Jersey are joining me in introducing legislation that 
will give my colleagues an answer to this question.
  The Tobacco Subsidy Reduction Act of 1997 ends the largest direct 
federal subsidy of tobacco. Specifically, this legislation prohibits 
the federal government from offering crop insurance or providing crop 
insurance subsidies for tobacco. For consistency, it also prohibits 
payments for tobacco under the Non-Insured Disaster Assistance Program, 
an alternative risk management program created in the 1996 Farm Bill 
for crops not eligible for the crop insurance program. I ask that the 
full text of the legislation appear in the Record following my 
statement.
  Tobacco growing and processing is one of the most lucrative 
industries in America. To protect their profits despite the health 
dangers of their product, tobacco growers created the ``no net cost'' 
price support program. But a variety of taxpayer subsidies to tobacco 
remain, including crop insurance, extension services, and other 
programs assisting tobacco production and sales.
  Last year, the federal government spent $98 million on tobacco-
related subsidies and programs. These costs include $68 million for 
crop insurance losses beyond the premiums tobacco farmers paid, and $11 
million for overhead costs of administering the crop insurance program 
for tobacco crops. This year, federal tobacco-related subsidies are 
estimated to amount to $67 million, including $48 million related to 
crop insurance.
  In an era of tight budgets, there are better uses for this money. It 
makes no budgetary sense to subsidize a crop that causes an enormous 
amount of disease, disability, and death.
  This amendment will not affect the tobacco price support program, so 
it will not drive any tobacco farmers out of business. It will merely 
get the federal government out of the business of paying for these 
specific subsidies for this deadly crop.
  Cigarettes and smokeless tobacco products kill more than 400,000 
Americans every year of cancer, heart disease, and other illnesses. 
These products also disable hundreds of thousands of other Americans 
through emphysema and other respiratory illnesses. It's time to take 
another step toward getting the federal government out of this 
business.
  I invite my colleagues to cosponsor the Tobacco Subsidy Reduction Act 
and tell their constituents that they are working to cut government 
tobacco subsidies.
  I ask unanimous consent that a copy of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 643

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Tobacco Subsidy Reduction 
     Act of 1997''.

     SEC. 2. PROHIBITION OF FEDERAL INSURANCE, REINSURANCE, OR 
                   NONINSURED CROP DISASTER ASSISTANCE FOR 
                   TOBACCO.

       (a) Crop Insurance.--
       (1) Definition of agricultural commodity.--Section 518 of 
     the Federal Crop Insurance Act (7 U.S.C. 1518) is amended--
       (A) by striking the section heading and all that follows 
     through ``as used in this title, means'' and inserting the 
     following:

     ``SEC. 518. DEFINITION OF AGRICULTURAL COMMODITY.

       ``(a) Definition.--In this title, the term `agricultural 
     commodity' means'';
       (B) by striking ``tobacco,''; and
       (C) by adding at the end the following:
       ``(b) Exception.--In this title, the term `agricultural 
     commodity' does not include tobacco. The Corporation may not 
     insure, provide reinsurance for insurers of, or pay any part 
     of the premium related to the coverage of a crop of 
     tobacco.''.
       (2) Conforming amendments.--Section 508 of the Federal Crop 
     Insurance Act (7 U.S.C. 1508) is amended--
       (A) in the first sentence of subsection (a)(2), by striking 
     ``cases of tobacco and'' and inserting ``case of''; and
       (B) in subsection (h)(9)(A), by inserting ``, excluding 
     tobacco,'' after ``commodity''.
       (b) Noninsured Crop Disaster Assistance.--Section 196(a)(2) 
     of Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) 
     is amended by adding at the end the following:
       ``(C) Crops specifically excluded.--The term `eligible 
     crop' does not include tobacco.

[[Page S3665]]

     The Secretary may not make assistance available under this 
     section to cover losses to a crop of tobacco.''.
       (c) Application of Amendments.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by this section shall apply with respect to the 1997 and 
     subsequent crops of tobacco.
       Existing contracts.--The amendments made by this section 
     shall not apply to a contract of insurance of the Federal 
     Crop Insurance Corporation, or a contract of insurance 
     reinsured by the Corporation, in existence on the date of 
     enactment of this Act.
                                 ______