[House Report 117-124]
[From the U.S. Government Publishing Office]


117th Congress     }                                   {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session       }                                   {      117-124

======================================================================



 
                     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.

                                  [all]