June 2, 2000

Crop insurance, emergency
assistance package reported

A House-Senate Conference Committee has approved a sweeping $8.2 billion reform package to the federal crop insurance program and developed a $7.1 billion economic emergency assistance package for farmers for the 2000 crop.

The emergency package includes $5.5 billion which will be made available to producers in the form of market loss payments that must be distributed before September 30, the end of the 2000 fiscal year. These payments will be distributed using the same Agriculture Market Transition Act (AMTA) distribution mechanism that was used for emergency payments in 1999.

The 2000 market loss payments will be determined using the 1999 AMTA payment rates.

Other significant items in the emergency assistance package include the following:

• For the 2000 crop only, farms which do not have a production flexibility contract under AMTA will be eligible for loan deficiency payments only.

• The requirement that USDA direct loan recipients must graduate to private credit is suspended for this crop year, but the priority for direct loans for beginning farmers is retained.

• $1.6 billion in additional agricultural assistance to be delivered after Sept. 30, including: $100 million to be made available for cottonseed program payments, and to be distributed in the same manner as the 1999 payments; $500 million to be made available for oilseed payments for FY2001; $47 million for assistance to peanut producers; and $340 million for assistance for tobacco producers.

Key provisions agreed upon by the conference committee for crop insurance reform will be reported in the next issue of Texas Agriculture.