[House Report 117-124]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 117-124
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2020 WHIP+ REAUTHORIZATION ACT
_______
September 20, 2021.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. David Scott of Georgia, from the Committee on Agriculture,
submitted the following
R E P O R T
[To accompany H.R. 267]
The Committee on Agriculture, to whom was referred the bill
(H.R. 267) to extend the wildfire and hurricane indemnity
program to cover certain crop losses in calendar year 2020, and
for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``2020 WHIP+ Reauthorization Act''.
SEC. 2. DISASTER INDEMNITY PROGRAM.
(a) In General.--Except as otherwise provided in this section, with
respect to the coverage period, the Secretary shall carry out--
(1) a disaster indemnity program in the same manner as the
WHIP+ program is carried out under subpart O of part 760 of
title 7, Code of Federal Regulations (as in effect on the date
of the enactment of this section);
(2) an on-farm storage loss program in the same manner as the
program carried out under subpart P of part 760 of title 7,
Code of Federal Regulations (as in effect on the date of the
enactment of this section); and
(3) a milk loss program in the same manner as the program
carried out under subpart Q of part 760 of title 7, Code of
Federal Regulations (as in effect on the date of the enactment
of this section).
(b) Covered Losses.--In carrying out the programs under this section,
the Secretary shall make payments to producers in accordance with
subsection (c) for qualified losses of covered crops, including milk,
that occurred during the coverage period.
(c) Payments.--
(1) In general.--Payments to producers for qualified losses
of covered crops, including milk, under the programs under this
section shall be administered, except as provided in paragraph
(2), in the same manner as payments under the relevant programs
in subsection (a).
(2) Exceptions.--
(A) Direct payments required.--The Secretary shall
make payments under the programs under paragraphs (1),
(2), and (3) of subsection (a) as direct payments to
producers or processors, at the election of the
processor.
(B) Special rule for unharvested acres.--The
Secretary shall make payments under this section with
respect to qualified losses of unharvested acres of a
covered crop in the same manner as payments are made
with respect to eligible crop losses under the
noninsured crop assistance program under section 196 of
the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7333).
(C) Payment limitations.--
(i) In general.--Except as provided in
clauses (ii), (iii), (iv), and (v), the
Secretary shall impose payment limitations
consistent with section 760.1507 of title 7,
Code of Federal Regulations (as in effect on
the date of the enactment of this section).
(ii) Exception for specialty crops or high
value crops.--In the case of specialty crops or
high value crops, as determined by the
Secretary, the Secretary shall impose payment
limitations consistent with section
760.1507(a)(2) of title 7, Code of Federal
Regulations (as in effect on January 1, 2019).
(iii) Tax year basis.--In applying the
payment limitations under this subparagraph,
the Secretary shall determine a person or legal
entity's average adjusted gross income and
average adjusted gross farm income based on the
2017, 2018, and 2019 tax years.
(iv) Annual renewal.--With respect to the
payment limitations described under this
subparagraph, the Secretary shall apply
separate payment limits for each of the years
under the covered period.
(v) Entity rules.--With respect to payments
to a corporation, limited liability company,
limited partnership, trust, or estate under
this section, the Secretary shall--
(I) determine average adjusted gross
income and average adjusted gross farm
income in accordance with clause (iii);
and
(II) apply rules in the same manner
as subsections (d) and (e) of section
9.7 of title 7, Code of Federal
Regulations.
(D) Net indemnities.--In calculating payments under
the programs under paragraphs (1), (2), and (3) of
subsection (a), the Secretary shall net out crop
insurance indemnities, less any insurance premiums paid
by the producer.
(E) Payments to sugar and dairy processors.--
(i) In general.--At the election of a
processor eligible for a loan under section 156
of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272) or a
cooperative processor of dairy, in lieu of
payments to producers provided under a program
described in subsection (a), the Secretary
shall make payments to a processor to be paid
to producer members, as determined by such
processors under the same terms and conditions
as payments made to processors pursuant to
section 791(c) of title VII of division B of
the Further Consolidated Appropriations Act,
2020 (Public Law 116-94).
(ii) Non-election.--Notwithstanding section
760.1503(j) of title 7 of the Code of Federal
Regulations, in the event that a processor
described in clause (i) does not elect to
receive payments under such clause, the
Secretary shall make direct payments to
producers under a program described in
subsection (a).
(F) Block grants.--The Secretary may provide payments
in the form of block grants to States and processors
described in subparagraph (E).
(d) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $8,500,000,000.
(2) Administration.--The Secretary may use not more than 1
percent of the funds appropriated pursuant to paragraph (1) to
carry out the following:
(A) Streamlining the application process.
(B) Utilizing information technology to enable the
electronic transfer of data used in such application
process between the Risk Management Agency and the Farm
Service Agency.
(C) Activities that with respect to county office
employees, reduce the workload of such employees in
carrying out this section.
(D) To the maximum extent practicable, providing the
necessary information to, and assisting crop insurance
agents with, providing application information on
behalf of insured producers.
(e) Exemption.--Notwithstanding the Federal Funding Accountability
and Transparency Act of 2006 (Public Law 109-282; 31 U.S.C. 6101 note),
the requirements of parts 25 and 170 of title 2, Code of Federal
Regulations (or successor regulations), shall not apply with respect to
assistance received under this section.
(f) Definitions.--In this section:
(1) Coverage period.--In this section, the term ``coverage
period'' means, with respect to a covered crop, including milk,
and a qualifying disaster event described in paragraph
(6)(A)(i), calendar years 2020 and 2021.
(2) Covered crop.--The term ``covered crop'' means a crop,
tree, bush, or vine described in section 760.1503 of title 7,
Code of Federal Regulations (as in effect on the date of the
enactment of this section), including wine grapes, which shall
include all insured acreage (regardless of whether such acreage
is the initial acreage or not).
(3) Milk loss program.--The term ``milk loss program'' means
the milk loss program under subpart Q of part 760 of title 7,
Code of Federal Regulations (as in effect on the date of the
enactment of this section).
(4) On-farm storage loss program.--The term ``on-farm storage
loss program'' means the on-farm storage loss program under
subpart P of part 760 of title 7, Code of Federal Regulations
(as in effect on the date of the enactment of this section)
(5) State.--In this section, the term ``State'' has the
meaning given the term in section 1111(20) of the Agricultural
Act of 2014.
(6) Qualified loss.--The term ``qualified loss''--
(A) with respect to a covered crop not described in
subparagraph (B), the loss of such crop during the
coverage period--
(i) due to a qualifying disaster event
described in the definition of ``qualifying
disaster event'' in section 760.1802 of title
7, Code of Federal Regulations (as in effect on
the date of the enactment of this section);
(ii) due to high winds, derechos, excessive
heat, or freeze (including a polar vortex);
(iii) due to a drought in--
(I) a county the Secretary designated
for drought; or
(II) a county contiguous to a county
described in subclause (I); or
(iv) due to other disruptions (including
power outages or curtailments) that are
associated with the effects of a qualified
disaster event under this section; and
(B) with respect to smoke tainted wine grapes, the
loss (including a quality loss) of such crop during the
coverage period due to wildfire, as determined by the
Secretary.
(7) Secretary.--The term ``Secretary'' means the Secretary of
Agriculture.
(8) Whip+ program.--The term ``WHIP+ program'' means the
WHIP+ program under subpart O of part 760 of title 7, Code of
Federal Regulations (as in effect on the date of the enactment
of this section).
BRIEF EXPLANATION
This legislation, as reported out of Committee, provides
for an authorization of appropriations and extends
authorization of three disaster programs to provide assistance
for agricultural production losses experienced as a result of
qualifying weather events in 2020 and 2021. This includes the
Wildfire and Hurricane Indemnity Program Plus (WHIP+), the On-
Farm Storage Loss Program, and the Milk Loss Program. The
authorization of these programs includes several updates to the
administration of these programs as well as the causes of loss
that would be covered.
PURPOSE AND NEED FOR LEGISLATION
Severe weather events in 2020 and 2021 have resulted in
significant agricultural losses for producers across the
country. The widespread nature and severity of losses has
necessitated supplemental assistance for producers to partially
address the economic impact of those weather events.
The Bipartisan Budget Act of 2018 provided the original
authorization for the U.S. Department of Agriculture (USDA) to
provide disaster assistance to producers impacted by certain
weather events in 2017. This aid was delivered through the
Wildfire and Hurricane Indemnity Program (WHIP) for crop, tree,
bush, and vine losses from wildfires and hurricanes. The
program was expanded to WHIP+ via funding and authorization
provided in the Additional Supplemental Appropriations for
Disaster Relief Act of 2019. This assistance was made available
for losses resulting from weather events in 2018 and 2019 and
expanded the assistance to cover losses resulting from flooding
and other natural disasters, including crops prevented from
planting in 2019, on-farm stored commodities, adulterated wine
grapes, milk losses, sugar beet losses, and quality losses.
Severe weather events occurred in 2020 and 2021, but WHIP+
is not currently authorized or funded to provide assistance for
those losses. Disaster events that occurred in 2020 included
wildfires in California, Oregon, Washington, and Colorado, and
hurricane, drought, and derecho events that impacted Louisiana,
Alabama, Texas, and Iowa, among other events. In 2021, a polar
vortex and freeze events affected much of the country, and
extreme heat and drought conditions have caused direct losses
along with significant wildfires that have also caused
agricultural losses. Such losses require authorization for
disaster assistance, as well as an expansion of the eligible
causes of loss in order to enable sufficient support.
Additionally, implementation of earlier iterations of WHIP+ was
cumbersome for USDA as well as for producers, and so
improvements to the administration of the program are
necessary.
H.R. 267, as amended during consideration by the House
Agriculture Committee, would provide authority, pending
appropriation, for USDA to provide expanded and improved
assistance to producers through WHIP+, the On-Farm Storage Loss
Program, and the Milk Loss Program for losses resulting from
eligible disaster events in 2020 and 2021.
H.R. 267, 2020 WHIP+ REAUTHORIZATION ACT
SECTION-BY-SECTION
Section 1. Disaster indemnity program
Subsection (a). In general
Subsection (a) requires the Secretary to carry out a
disaster indemnity program, an on-farm storage loss program,
and a milk loss program for 2020 and 2021.
Subsection (b). Covered losses
Subsection (b) requires the Secretary to make payments to
producers for qualified losses of covered crops and milk.
Subsection (c). Payments
Subsection (c) requires the Secretary to distribute
payments to producers for qualified losses of covered crops and
milk in the same way that the already-established WHIP+
Program, On-Farm Storage Loss Program, and WHIP+ Milk Loss
Program payments are made (paragraph (1)). Payments are to be
direct payments to producers and certain processors, if the
processors so choose (paragraph (2)(A)). If the sugar
processors and dairy cooperatives elect to participate, the
payments are to be determined under the same terms and
conditions as already established in the Further Consolidated
Appropriations Act, 2020 (subparagraph (E)(i)). If the
cooperative processors do not elect to participate, then the
Secretary will make payments directly to farmers under this
program (subparagraph (E)(ii)). It also allows the Secretary to
provide block grants to States or to sugar processors and dairy
cooperatives (subparagraph (F)).
Payments for qualified losses of unharvested acres of a
covered crop are to be paid the same way that payments are made
under the already-established non-insured crop assistance
program (NAP) (paragraph (2)(B)).
Payment limitations are to be consistent with the WHIP+
program (subparagraph (C)(i)) with the exception that payment
limitations for specialty crops or high value crops, as defined
by the Secretary, will be subject to the same payment
limitations that were in effect for the initial 2017 WHIP
(subparagraph (C)(ii)). It also provides that the Secretary
determine the average adjusted gross income and average
adjusted gross farm income for payment limitations based on
2017, 2018, and 2019 tax years (subparagraph (C)(iii)). Payment
limitations are to be applied separately for each year
(subparagraph (C)(iv)). It also provides that the Secretary
apply rules for payment limits for joint entities as done under
the Coronavirus Food Assistance Program (CFAP) (subparagraph
(C)(v)).
It requires the Secretary to account for insurance premiums
paid by producers and crop insurance indemnities when
distributing payments for the disaster indemnity program
(subparagraph (D)).
Subsection (d). Authorization of appropriations
Subsection (d) authorizes $8.5 billion in appropriations.
It also allows the Secretary to use not more than 1 percent of
appropriated funds to streamline the application process,
utilize information technology to electronically transfer data
between the Risk Management Agency and the Farm Service Agency,
reduce workload in county offices related to implementation,
and allow crop insurance agents to provide application
information on behalf of insured producers.
Subsection (e). Exemption
This subsection provides for an exemption under this
program for producers from needing to obtain a Data Universal
Numbering System (DUNS) number or to be registered in the
System for Award Management (SAM) for participation. This is a
similar exemption that was provided in the Consolidated
Appropriations Act of 2018 for participation in NRCS programs.
Subsection (f). Definitions
Subsection (f) defines ``coverage period'' as calendar
years 2020 and 2021 (paragraph (1)) and ``covered crop'' means
a crop, tree, bush, or vine as described in WHIP+ and
specifically includes wine grapes as well as clarifies
eligibility insured acreage (paragraph (2)). Paragraphs (3) and
(4) provide for definitions of the Milk Loss Program and the
On-Farm Storage Loss Program by defining them as the
regulations for those programs as in effect on the date of
enactment. It also defines a ``State'' as including all States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Northern Mariana Islands, and any other territory or possession
of the United States (paragraph (5)).
It also defines the ways in which the loss of a covered
crop qualifies as a ``qualified loss.'' This includes all
qualifying disaster events included in WHIP+, along with losses
due to high winds, derechos, excessive heat, freeze (including
a polar vortex), and counties the Secretary has designated for
drought (which is D2 on the Drought Monitor for eight
consecutive weeks) as well as contiguous counties, along with
losses due to other disruptions (including power outages or
curtailments) resulting from a qualified disaster event
(subparagraph (6)(A)(i-iv)). It specifies that losses,
including quality losses, of smoke-tainted wine grapes due to
wildfires during the coverage period are included (subparagraph
(6)(B)).
It also clarifies that ``Secretary'' means the Secretary of
Agriculture (paragraph (7), and ``WHIP+ program'' means the
program under subpart O of part 760 of title 7, Code of Federal
Regulations (paragraph (8)).
COMMITTEE CONSIDERATION
I. Hearing
The Committee on Agriculture and Subcommittee on General
Farm Commodities and Risk Management held one hearing in the
117th Congress to gather input from agricultural producers and
other stakeholders about the impacts of disaster events and the
functioning of existing programs, among other input.
On June 23, 2021, the Subcommittee on General Farm
Commodities and Risk Management held a hearing titled ``A
Hearing to Review the Efficacy of the Farm Safety Net'' where
the following witnesses testified on some matters that were
subsequently addressed in H.R. 267:
Mr. Jeff Kirwan, Owner, Kirwan Farms, New
Windsor, IL
Mr. Brian Talley, President and Chief
Executive Officer, Talley Farms and Talley Vineyards,
Arroyo Grande, CA
Mr. Wayne E. ``Wes''' Shannon, Farmer,
Shannon Farms, Tifton, GA
Mr. Robert Tate, Crop Insurance Agent, Crop
Revenue Consultants, Cannon Falls, MN
Dr. Gary D. Schnitkey, Professor, Department
of Agricultural and Consumer Economics, University of
Illinois, Urbana, IL
This hearing examined the importance of farm safety net
programs, risk management tools, and other programs in good
times and in bad. Members of the Committee heard testimony
about how conditions in recent years have economically impacted
farming operations as well as how programs have functioned in
helping them through those challenges.
II. Full Committee
On July 27, 2021, the Committee on Agriculture met pursuant
to notice, with a quorum present, to consider H.R. 267, 2020
WHIP+ Reauthorization Act. Chairman Scott made an opening
statement as did Ranking Member Thompson. Chairman Scott
requested other Members submit their opening statements for the
record. Without objection, the 2020 WHIP+ Reauthorization Act
was placed before the Committee for consideration, a first
reading of the bill was waived, and it was opened for amendment
at any point.
Chairman Scott offered an amendment in the nature of a
substitute, and without objection, the reading of the amendment
was waived, and the substitute was considered as original text
for the purposes of further amendment. Discussion occurred and
there being no further amendments, a voice vote was conducted
and the amendment in the nature of a substitute was approved.
Mr. Thompson moved that H.R. 267, as amended, be reported
favorably to the House with an amendment in the nature of a
substitute consisting of the amendment agreed to in the markup
with the recommendation that the amendment be agreed to and the
bill pass. The motion was subsequently approved by voice vote.
At the conclusion of the meeting, Chairman Scott advised
members that pursuant to the Rules of the House of
Representatives, Members had until July 30, 2021, to file any
supplemental, additional, dissenting, or minority views with
the Committee. Without objection, staff was given permission to
make any necessary technical, clarifying, or conforming changes
to reflect the intent of the Committee. Chairman Scott thanked
all the Members and adjourned the meeting.
COMMITTEE VOTES
In compliance with clause 3(b) of rule XIII of the House of
Representatives, H.R. 267 was reported by voice vote with a
majority quorum present. There was no request for a recorded
vote.
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(d)(2) of rule XIII of the Rules of the
House of Representatives, the Committee report incorporates the
cost estimates prepared by the Direction of the Congressional
Office pursuant to sections 402 and 423 of the Congressional
Budget Act of 1974.
COST OF LEGISLATION AND THE CONGRESSIONAL BUDGET ACT
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received a cost estimate for this bill from the
Director of Congressional Budget Office. The Committee adopts
as its own cost estimate the forthcoming cost estimate of the
Director of the Congressional Budget Office, should such cost
estimate be made available before House passage of the bill.
The Committee has requested but not received from the
Director of the Congressional Budget Office a statement as to
whether this bill contains any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
CONSTITUTIONAL AUTHORITY STATEMENT
The Committee finds the Constitutional authority for this
legislation in Article I, section 8, clause 18, that grants
Congress the power to make all laws necessary and proper for
carrying out the powers vested by Congress in the consideration
of the United States or in any department or officer thereof.
The Committee further finds the Constitutional authority for
this legislation in Article I, section 8, clause 3, that grants
Congress the authority to regulate foreign and interstate
commerce.
PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII of the House of
Representatives, the performance goals and objectives of this
measure are to extend the wildfire and hurricane indemnity
program to cover certain crop losses in calendar 2020, and for
other purposes.
ADVISORY COMMITTEE STATEMENT
No advisory committee within the meaning of section 5(b) of
the Federal Advisory Committee Act was created by this
legislation.
APPLICABILITY TO THE LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
FEDERAL MANDATES STATEMENT
An estimate of Federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chair of
the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
EARMARK STATEMENT
This measure does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(e), 9(f), or 9(g) of rule XXI of the House of
Representatives.
DUPLICATION OF FEDERAL PROGRAMS
This measure does not establish or reauthorize a program of
the Federal Government known to be duplicative of another
Federal program, a program that was included in any report from
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program in the most recent Catalog of Federal Domestic
Assistance.
DISCLOSURE OF DIRECTED RULE MAKINGS
The Committee does not believe that the legislation directs
an Executive Branch official to conduct any specific rule
making proceedings within the meaning of 5 U.S.C. 551.
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