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The $7.1 billion relief plan that's part of the crop insurance
reform conference report is divvied up as $5.5 billion that's to be
paid in fiscal year (FY) 2000 via AMTA-plus payments. These dollars
can't go out before Sept. 1, 2000, but have to be made no later than
Sept. 30, 2000. Another $1.64 billion is to be paid out in FY 2001.
As for details of other components, here are the latest:
* $500 million for 2000-crop oilseed producers (up from the $475
million payout for 1999 crop, which still has not been paid - those
payments will be made shortly after OMB signs off on the regulations
and they are published in the Federal Register).
* $100 million to producers or first-handlers of the 2000 crop of
cottonseed (the 1999 crop cottonseed payments have not yet been
made). The estimated payout of around $80 (average rate of $12.25 to
$12.50 per ton) will be made in late June or July.
* LDP/grazing payments in lieu of LDPs: Something producers have
requested for several years. Current language says for producers
eligible for a loan deficiency payment (LDP) for wheat, barley or
oats, but who elect to use acreage planted for the grazing of
livestock, the ag secretary "shall" make a payment if the
producers enters into an agreement to forgo any other harvesting of
the wheat, barley or oats on those acres during crop years 2001 and
2002.
* Expansion of producers eligible for LDPs: Producers of each of
the 2000 and subsequent crops, although not eligible to obtain
marketing assistance loans, but produce a "contract"
commodity (those who signed up for the seven-year Freedom to Farm
contracts) would be eligible for LDPs.
* Ethanol research pilot plant: For FY 2001, $14 million for the
ag secretary to provide a grant to the State of Illinois to complete
the construction of a corn-based ethanol research pilot plant in
Edwardsville, Illinois.
* Mandatory livestock price reporting: For FY 2001, $1.35 million
for mandatory livestock price-reporting activities of USDA.
* Agricultural marketing equity capital fund: Details not yet
complete on this one, but it looks like it will be funded at less
than $35 million. It would establish a capital fund to be used by
the ag secretary to assist producers and processors of ag
commodities to develop and maintain markets for value-added ag
commodities and products of agricultural commodities.
* Temporary suspension of authority to combine certain offices:
From the date of enactment until April 1, 2001, the ag secretary may
not combine state-level offices of the Farm Service Agency; Natural
Resources Conservation Service; Rural Utilities Service; Rural
Housing Service; or Rural Business-Cooperative Service.
* Crop and pasture flood compensation program: Funding details
not available.
© 1999 Professional Farmers of America, Inc.
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