    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [October 13, 1994]
    [Pages 1741-1742]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 1741]]

    Statement on Signing the Federal Crop Insurance Reform and Department of
    Agriculture Reorganization Act of 1994
    October 13, 1994

        Today I have signed into law H.R. 4217, the Federal Crop Insurance
    Reform and Department of Agriculture Reorganization Act of 1994. As the
    name implies, this Act has two purposes. The first is to reform Federal
    crop insurance and the second is to reorganize the U.S. Department of
    Agriculture (USDA).
        H.R. 4217 provides the Secretary of Agriculture with the critically
    needed authority to reorganize USDA so that the Department can meet the
    challenges of the 21st century. It will be the most ambitious
    reorganization proposal ever undertaken by the Department. Guided by the
    principles articulated in the Vice President's National Performance
    Review, this legislation grants the Secretary authority to pursue more
    efficiently the goals of improving the prospects for farmers, enhancing
    the quality of life in rural America, better ensuring food safety,
    strengthening conservation efforts, and improving nutritional programs.
        The Secretary will reorganize USDA around six basic missions,
    improve the Department's accountability and service to customers, reform
    its field structure, and reduce personnel and costs. Indeed, during
    1994-1999, USDA will save $2.4 billion in personnel costs and about $1.3
    billion in other costs. The end result will be a more streamlined and
    responsive Department.
        This Act also reforms Federal crop insurance to address the
    frustrations of farmers with the inadequacies of the current system.
    Many farmers have not participated in the program and others have found
    that their losses for prevented planting were not covered. Those who
    relied on ad hoc disaster assistance did not know until weeks or months
    after their loss whether such assistance would be provided, leaving many
    fearful of losing their farms and livelihood.
        The need for reform became apparent during last year's devastating
    flood in the Midwest and drought in the Southeast. Out of that
    experience, the Administration made a commitment to reform the current
    program, and began consultations with Members of the Congress, farmers,
    insurance providers, lenders, and others on developing a legislative
    proposal.
        The Administration proposal was included in the 1995 Budget
    submitted to the Congress last February. The Administration and many
    Members of the Congress have spent several long months fine-tuning this
    proposal so that it would meet budget-scoring requirements and other
    considerations.
        This Act is substantially similar to the Administration proposal. It
    provides for a minimal level of catastrophic coverage for most crops,
    greater incentives for producers to buy additional coverage, payment
    assistance for other crops where insurance is not available, and reforms
    to the disaster payment system that should greatly reduce the incidence
    of fraud. It requires producers who participate in USDA's farm income
    support and credit programs to sign-up for catastrophic coverage on
    their insurable crops, and eliminates the use of emergency legislation
    for agricultural crop disaster assistance. Producers will be able to
    obtain catastrophic insurance coverage for a nominal processing fee.
    Yet, taxpayers will save money compared to the current approach of
    enacting ad hoc disaster assistance year after year.
        I want to thank Secretary Espy for the tremendous and tireless work
    he and his staff have put into developing a reorganization plan that
    will make USDA more farmer-friendly, improve customer service, and save
    taxpayer money. I also wish to thank the chair and ranking member of the
    Senate Committee on Agriculture, Nutrition, and Forestry, Senators
    Patrick Leahy and Richard Lugar, and the chair and ranking member of the
    House Committee on Agriculture, Representative ``Kika'' de la Garza and
    Pat Roberts, as well as Representative Charles Stenholm, for their
    leadership in guiding the bill through to passage.
        The Administration is committed to reinventing the Federal
    Government, so that it works better and costs less for all Americans. By
    authorizing the reinvention of USDA, this Act sets the standard for the
    rest of the Federal Government to follow and is a victory for American
    taxpayers.

                                                          William J. Clinton

    [[Page 1742]]

    The White House,
    October 13, 1994.

    Note: H.R. 4217, approved October 13, was assigned Public Law No. 103-
    354.