[Congressional Record Volume 144, Number 125 (Friday, September 18, 1998)]
[Senate]
[Pages S10581-S10582]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               LOUISIANA REQUEST FOR DISASTER ASSISTANCE

  Ms. LANDRIEU. Mr. President, over the past several weeks the senior 
Senator from Louisiana, Senator Breaux, and I have expressed grave 
concerns about the pending economic crisis that Louisiana and other 
Southern states face as a result of the worst drought in Louisiana and 
the South's history. Earlier this week, more disturbing information was 
brought to our attention by Terry Smith, a second generation farmer, 
cotton gin manager and marketing consultant from Jonesville, Louisiana 
who testified before a hearing called by Senator Daschle on the farm 
crisis. The plea by Mr. Smith and others in Louisiana is a wake up 
call. If the Congress fails to respond to the natural disaster crisis 
in the South for this crop year, not only will farmers be forced into 
bankruptcy, but banks, hundreds of small businesses and the rural 
economy that is supported by the agriculture industry will suffer 
greatly.
  Mr. President, Louisiana began the year with record rainfall during 
the Winter and early Spring followed by the hottest Summer on record. 
Just during the last three months, Louisiana has had 71 days of 97 
degree or higher temperatures with 36 days higher than 100 degrees. 
Things are not looking any better and we are told that with the past 
and current extreme weather conditions the current loss estimates of 
$450 million are expected to increase even more during the coming 
weeks. This is not good news especially for Louisiana corn, cotton, 
soybean and livestock producers in North Louisiana who have been hit 
hardest.
  To explain the difficulties that Louisiana farmers are experiencing I 
would like to take a few moments to highlight some of the high points 
of Terry's remarks. His recent statement very clearly tells the story 
of the projected impact this natural disaster has had on thousands of 
family farms and the future economy of some of the poorest areas in 
Louisiana. Specifically, his testimony focuses on the economic losses 
projected for Louisiana's major row crops--corn, cotton and soybeans.
  Mr. President, corn farmers in Louisiana under normal weather 
patterns are able to produce about 100-200 bushels per acre for non-
irrigated corn. To date, the best corn yields in Louisiana have been in 
the 40-50 bushel per acre range. In addition, a large percentage of 
Louisiana's corn crop is infested with aflatoxin, a toxic mold that 
results from heat stress and is harmful to humans and animals at 
certain levels. Due to the toxic nature of this mold, corn harvested 
with aflatoxin in excess of 20 parts per billion can not be sold to 
most grain elevators. The grain elevators that will except infested 
corn is only paying $1.00 per bushel--less than half of what is needed 
to cover the farmer's production costs. Therefore, the farmer has two 
options--(1) sell the crop at discounted price of $1.00 an acre or (2) 
leave it in the field to rot and collect about the same amount, if the 
farmer has Catastrophic Crop Insurance. Most farmers with aflatoxin in 
their corn above 20 billion parts per million are finding it 
unpractical to even harvest. Those farmers who are lucky enough to have 
corn without aflatoxin will not be able to cover even half of their 
production costs due to low yields and low prices. What is the result 
of this situation? The Louisiana Cooperative Extension Service recently 
estimated that corn farmers in one North Louisiana Parish will lose 
about $154 per acre or about $3.85 million this year.
  Our cotton farmers just began their harvest last week, but the 
outlook is not much better. Cotton yields in Louisiana generally 
average about 800 to 1000 pounds per acre. As of last week, cotton 
yields have been averaging 100 to 650 pounds per acre, one third to one 
half of normal production yields. Also, the quality has been extremely 
poor due to the hot dry summer and will discount the price the farmer 
gets for his crop by several cents per pound. With production costs of 
cotton in Louisiana ranging from $500 to $600 per acre, it is estimated 
that the average cotton farmer will lose approximately $131,000 this 
year.
  Soybean harvest has also just begun. Yields thus far are less than 10 
bushels per acre, which is down approximately 65% from normal. Most 
fields in North Louisiana are averaging about 4-5 bushels per acre. 
Also, because of the hot, dry weather, chemicals have not been 
preforming and weeds have been a tremendous problem. With the extreme 
low prices of soybeans and low yields, farmers in hardest hit areas can 
expect to lose approximately $85 per acre or about $42,500 this year.
  These are just a few examples of how the major row crops will be 
impacted. In addition, our larger agriculture lending institutions are 
expecting very low repayments this year. One of the larger banks in the 
state says that of $18 million in crop loans, they are expecting to be 
repaid only 30-35% of the outstanding loans. Another bank expects that 
40-50% of the agricultural loans will not be totally paid this year. 
Not only will crop loans not be repaid, but outstanding bills for crop 
inputs such as chemicals, fertilizer and fuel may not be paid in full. 
In the words of one banker ``spendable income will be down 75% of 
normal. This is the money used to buy clothing, household goods and for 
paying the utilities.''
  Mr. President, these are real examples of the economic hardships 
facing farmers, their families and the rural communities they support. 
Many farm families do not know what they are going to do in order to 
make it another year. Many may end up in the local unemployment office. 
I hope that this Congress does not let this happen.
  Farmers in Louisiana and other Southern states need disaster 
assistance, and they need it before the Congress adjourns. They need 
this assistance delivered in a manner that is fair. Thus, this relief 
should only be provided to those farmers with demonstrated crop losses. 
I urge my colleagues on both sides of the aisle to join me in support 
of direct disaster payments to the thousands of farmers who provide us 
with three square meals a day. This source is so often taken for 
granted every day when we feed our families.
  Mr. President, before I conclude my remarks, I would like to talk 
about some specific relief measures needed to address the 1998 crop 
losses in Louisiana and other Southern states that have lost a large 
portion of their crops due to the drought and associated disease. These 
measures include:

       1. The Secretary should deliver direct disaster payments to 
     compensate all farmers for 1998 crop losses through the Farm 
     Service Agency (FSA).
       2. Payments should be based on actual farm yields using the 
     past five years of actual production history, excluding the 
     crop year with the lowest yields per harvested acre and any 
     crop year in which the crop was not planted on the farm. 
     Actual production losses should be adjusted because of 
     quality losses caused by damaging weather and related 
     conditions, including diseases such as aflatoxin. If no five 
     year history is available, the Secretary should use the 
     average county yields.
       3. With respect to livestock producers, direct payments 
     should cover the cost of feed, the establishment of 
     supplemental pastures and other losses due to natural 
     disasters, including livestock and poultry weight losses, 
     poultry mortality and livestock milk production losses.
       4. With respect to tree farmers, direct payments should 
     cover the cost of replanting seedlings and cover production 
     costs of pecan and peach farmers who suffered losses due to a 
     natural disaster during the 1998 crop year.
       5. Presently, any farmer who collected a Catastrophic Crop 
     Insurance Payment (CAT) or Non-Insured Crop Insurance Payment 
     (NAP) is ineligible for a low-interest Emergency Loan. This 
     should be amended.
       6. Also, there is presently a seven year limit on the 
     amount of credit that can be extended through the USDA Farm 
     Service Agency (FSA). On an emergency basis, the Secretary of 
     Agriculture should be granted the authority to waive the 
     current limitation.
       7. Finally, Mr. President, all the farmers that I have 
     spoken with tell me the crop insurance program is not 
     working. I think we do have some serious problems that can 
     not be addressed in three weeks and should be revisited next 
     year. However, one valid problem that can be addressed this 
     year is to require USDA not to exclude from coverage approved 
     existing planting methods. Currently, all broadcast soybeans 
     planted in Louisiana are ineligible for crop insurance 
     coverage due to the fact that they are seeded by broadcasting 
     means such as aerial application. This is wrong and should be 
     amended.

  Mr. President, this concludes my remarks and I ask unanimous consent 
that the crop damages as reported by the Louisiana State University 
Agricultural Center be printed in the Record.

[[Page S10582]]

  There being no objection, the material was ordered to be printed in 
the Record, as follows:


  Louisiana State University (LSU) Agricultural Center's crop damage 
                         estimate for Louisiana

                           [August 14, 1998]

Total state reduction in farm income for the reporting Louisiana 
    parishes:
  Corn......................................................$64,355,717
  Silage......................................................3,026,790
  Cotton Lint................................................45,402,308
    Seed......................................................5,090,964
  Soybeans...................................................72,053,920
  Rice.......................................................14,053,920
  Sugar......................................................44,828,210
  Molasses....................................................1,399,613
  Sorghum.....................................................4,034,161
                                                       ________________
                                                       
      Total crops...........................................254,231,853
  Sweet Potatoes..............................................8,054,100
  Commercial Vegetables.......................................3,995,561
  Est. Pine Seedling Mortality...............................10,000,000
  Pasture....................................................90,000,000
  Hay........................................................24,750,000
Additional damages reported as of September 1, 1998:
  Aflatoxin in Corn..........................................29,000,000
  Livestock..................................................30,000,000
                                                       ________________
                                                       
450,031,514 estimated   total........................................

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