Minutes of the business meetings and hearings of the Committee on Agriculture, House of Representatives (pursuant to Com...

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Material Information

Title:
Minutes of the business meetings and hearings of the Committee on Agriculture, House of Representatives (pursuant to Committee rule IVf)
Added title page title:
Committee print
Physical Description:
v. : 24 cm.
Language:
English
Creator:
United States -- Congress. -- House. -- Committee on Agriculture
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Frequency:
annual[<1987->]
biennial[ former <-1985>]

Subjects

Subjects / Keywords:
Agriculture and state -- Periodicals -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )

Notes

Numbering Peculiarities:
Issued in parts.
General Note:
Monthly Catalog Number: gp 82006731
General Note:
Description based on: Pt. 3 July 1-Nov. 20, 1980
General Note:
At head of title: 97th Congress, 1st session. Committee print.
General Note:
Monthly Catalog Number: gp 2006731

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 020681546
oclc - 05250083
lccn - sn 95027609
System ID:
AA00023971:00002

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Foreword
        Page iii
        Page iv
    Minutes of the business meetings and hearings of the Committee on Agriculture, House of Representatives (July 10-December 29, 1979)
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    Back Cover
        Back Cover 1
        Back Cover 2
Full Text





SCOXXITTEE PRINT








MINUTES

OF THE

BESS MEETINGS AND HEARINGS

OF THE

MMITTEE ON AGRICULTURE H U REPRESENTATIVES

(Pusuat to Committee Rule lVf)

PART 2




FE 2

4












Dw~mER 9, 979-rnted fo the use of the Commifttee on Agriculture
: ..










96th Congress COMMITTEE PRINT 1st Session f












MINUTE S

OF THE

BUSINESS MEETINGS AND HEARINGS

Or THE

COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES

(Pursuant to Committee Rule I/f) PART 2





















DECEMBER 29, 1979.-Printed for the use of the Committee on Agriculture



U.S. GOVERNMENT PRINTING OFFICE 56-383 0 WASHINGTON : 1979














COMMITTEE ON AGRICULTURE THOMAS S. FOLEY, Washington, Chairman
E DE LA GARZA, Texas WILLIAM C. WAMPLER, Virginia
Vice Chairman Ranking Minority Member
WALTER B. JONES, North Carolina KEITH G. SEBELIUS, Kansas ED JONES, Tennessee PAUL FINDLEY, Illinois
DAWSON MATHIS, Georgia STEVEN D. SYMMS, Idaho
GEORGE E. BROWN, JR., California JAMES P. JOHNSON, Colorado DAVID R. BOWEN, Mississippi EDWARD R. MADIGAN, Illinois
CHARLES ROSE, North Carolina MARGARET M. HECKLER, Massachusetts
FREDERICK W. RICHMOND, New York JAMES M. JEFFORDS, Vermont RICHARD NOLAN, Minnesota RICHARD KELLY, Florida
JIM WEAVER, Oregon CHARLES E. GRASSLEY, Iowa
ALVIN BALDUS, Wisconsin TOM HAGEDORN, Minnesota
TOM HARKIN, Iowa E. THOMAS COLEMAN, Missouri
BERKLEY BEDELL, Iowa RON MARLENEE, Montana
GLENN ENGLISH, Oklahoma LARRY J. HOPKINS, Kentucky
FLOYD J. FITHIAN, Indiana WILLIAM M. THOMAS, California
LEON E. PANETTA, California IKE SKELTON, Missouri JERRY HUCKABY, Louisiana DAN GLICKMAN, Kansas DANIEL K. AKAKA, Hawaii CHARLES WHITLEY, North Carolina TONY COELHO, California TOM DASCHLE, South Dakota KENT HANCE, Texas BERYL ANTHONY, JR., Arkansas CHARLES W. STENHOLM, Texas PROFESSIONAL STAFF
FOWLER C. WEST, Staff Director ROBERT M. BOR, Chief Counsel JOHN E. HOGAN, Counsel JOHN R. KRAMIER, Special Counsel
(I)









Rule IVf of the Committee on Agriculture, House of Representatives, requires that the minutes of business meetings and hearings be published on a periodic basis'.
In compliance with that rule, the minutes of business meetings and hearings from July 10, 1979, through December 29, 1979, are contained in this committee print.
The committee rule follows:
f. Publication of Jfinutes.-The Chairman of the Committee, in consultation with the Ranking Minority Member. shall cause to be published as a Committee Print on a periodic basis (and insofar as practicable on a semiannual basis) the minutes of all business meetings and hearings of the Committee and any of its Subcommittees and such minutes shall include a record of the attendance of members, all recorded votes and the action on all amendments and motions relating to legislation.
(III)





















Digitized by the Internet Archive in 2013















http://archive.org/details/mifbusines2961 unit







633



.. Wouse of Representatibes Com mttee on itgrculture Mabington, p.C. 20515

MINUTES

Date Tuesday. Jl1y 10, 1979

(Sub) Committee on Domestic Marketin, is, ad
Nutrition
Meeting: Pbic ear.

Subject: A-icriltniral Bargaining Actr

Bill Nos. H.R. 3535

The Dcmestic Marketing, Consumer Relations, and Nutrition (Sub) Committee

met in op n Session at9:40 a.m. o'clock, in Rooml302 LBOB

The following Members were present:

Mr. Richmand Mr. Syrmns Mr.
Mr. Panetta Mr. Heckler Mr.
Mr. Nolan Mr. Grassley Mr.
Mr. Glickan Mr. Mr.
Mr. Harkin Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:
Bernard Brenner, Press Secretary Bob Franks, Assistant Counsel Gary Norton, Assistant Counsel Jim Culver, Staff Assistant Joe Crapa, Subcammittee Staff Director Glenda Knight, Staff Assistant Jerry Jorgensen, Staff Assistant Linda Miller, Staff Assistant Frank Winston, Staff Assistant Peggy Pecore, Staff Assistant







634



-2


Witnesses:
1. Panel:
Mr. John Scott, President, The National Grange, Washington, D.C.
Mr. John Datt, Secretary, American Farm Bureau Federation, Washington, D.C.
Mr. Tony Dechant, President, National Farmers Union, Washington, D.C.
Mr. Kenneth D. Nadei, President, National Council of Farmer Cooperatives

2. Panel:
Mr. Willis Rmwell, Assistant to the President, National Farmers Organization, Washington, D.C
accompanied by: Mr. Walter Hackney, Director, Livestock Department Mr. Ed Graf, Director Dairy Departnt Mr. Charles Frazier, director, Washington office
3. Mr. Noel W. Stuckman, General Manager, Michigan Agricultural Cooperative Marketing
Association, Lansing, Michigan.

4. Mr. Jack Hayes, Vice President, California Tomato Growers Association, Stockton, Calif.

5. Mr. Orlo Carver, Idaho Farm Bureau Marketing Association, Pocatello, Idaho.

6. Mr. Jack Ashley, Agricultural Bargaining Council, Presque Isle, Maine

7. Mr. Charles C. Kingston, Musselman Fruit Products, Pet Incorporated, Biglerville, Pa.


















Statements Filed:

1. Mr. Tony Dechant, President, National Farmers Union
2. Mr. Walter Hackney, Livestock Department, National Farmers Organization
3. Mr. Jack Hayes, Vice President, California Tomato Grcwers Association
4. Mr. Gary T. Knisely, Counsel, Musselman Fruit Products, Pet Incorporated.





635


-3

Tuesday, July 10, 1979 Subocumittee on Domestic Marketing, cnsmer Relations, and Nutrition Public Hearing
Agricultural Bargaining Act



Acting chairman Panetta called the meeting to order and made a brief opening statement.

The witnesses listed on page two were recognized to present their prepared testimony and answer questions froman Members of the Subcomnittee.
The meeting was adjourned at 12:35 to reconvene at 9:30 a.m. on July 11 to hear further testimony on the Agricultural Bargaining Act.




Iecore





636



0.0. 3bouze ot Repregentatibeo
(Committee on 21riculture Easbington, .C. 20515
MINUTES

Date Tuesday, July 10, 1979

(Sub) Committee Department Investigations, Oversight, and Res c1
Public Hearing
Meeting:
Implementation by USDA of sugar program
Subject:

Bill Nos.

The Depar-meni- Tn-%7,ntitions Oversight, and R. (Sub) Committee

met in -- open Session at o'clock, in Room --3a1

The following Members were present: Members Also Present: Mr. de la Garza Mr. Mr. Huckaby
Mr. Fithian Mr. Mr. Anthony
Mr. Glickman Mr. Mr. Akaka
Mr. Wampler Mr. Mr.
Mr. sHeckler Mr. Mr.
Mr. Grassley Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Fowler C. West, Staff Director
John Hogan, Counsel
Gary Norton, Assistant Counsel
Bob Franks, Assistant Counsel
Glenda Temple, Clerk
Bert Pena, Subcommittee Staff Consultant
Jerry Jorgensen, Staff Assistant
Linda Miller, Staff Assistant







637



-2

Witnesses:


1. Honorable Bob Bergland, Secretary of Agriculture, United
States Department of Agriculture, Washington, D.C.

Acc. by: Mr. Howard Hjort, Director, Budget, Planning and
Evaluation, USDA.

Mr. Bill Motes, Associate Director, Budget,
Planning and Evaluation, USDA.






























Statements Filed:

None







638



-3

Tuesday, July 10, 1979 Department Investigations, Oversight, and Research Subcommittee Public Hearing Implementation by USDA of sugar program


Chairman de la Garza called the meeting to order and
Secretary Bergland discussed a series of measures the USDA has taken to implement the 1979 domestic sugar program. Following his statement, the Secretary was questioned by the Members attending the hearing.

At 3:20 p.m. the meeting was adjourned, subject to the call of the Chair.




Glenda Temple






639



I.0. bouse ot Representatibeg Committee on Agriculture Wajington, ID.C. 20515

MINUTES

Date July 10, 1979 -- morning

SCommittee on-_Agriculture and Committee on Foreign Affairs
Meeting: Joint Public Hearing

Subject: Food- Security Act of 1979

BillNos. H.R. 4489 and related bills

The Agriculture and Foreign Affairs Y Committee S

metini2int_public hearing Sessionat 10:15 a.%clock, inRoom 2172 RHOB

The following Members were present: Foreign Affairs
Mr. de la Garza Mr. Wampler Mr.Zablocki
Mr. Bedell Mr. Sebelius Mr.Fascell
Mr. Fithian Mr. Findley Mr.Hamilton
Mr. Glickman Mr. Madigan Mr.Bingham
Mr. Coelho Mr. Grassley Mr.Pease
Mr. Stenholm Mr. Marlenee Mr.Wolpe
Mr. Foley Mr. Mr.Fithian
Mr. Mr. Mr.Findley
Mr. Mr. Mr.Winn
Mr. Mr. Mr.Gilman
Mr. Mr. Mr.Lagomarsino
Mr. Mr. Mr.Pritchard
Mr. Mr. Mr.s. Fenwick
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Gene Moos, Analyst
Christine Abram, Staff Assistant
Claude Freeman, Subcommittee Staff Consultant
Fowler C. West, Staff Director
Bernard Brenner, Press Secretary






640



-2
Witnesses:



1. Honorable Bob Bergland, Secretary of Agriculture

2. Honorable Dale Hathaway, Undersecretary of Agriculture for International Affairs and Commodity Programs


































Statements Filed:








641




July 10, 1979 -- morning session Full Committee and Committee on Foreign Affairs
Joint Public Hearings Food Security Act of 1979 H.R. 4489 and related bills

Chairman Zablocki opened the hearings at 10:15 a.m., but turned the Chair over to Chairman Foley upon his arrival at 10:25.

The Committees heard and questioned the witnesses listed on page 2 of these Minutes.

The hearing recessed at 12:15 p.m. until 2:00 p.m. the same afternoon.





Christine AAbram Staff Assistant







642



0.. Wouze of Aepresentatibes Committee on agriculture
Wasbington, B.C. 20515

MINUTES

Date July 10, 1979 -- afternoon

13i Committee on_.AgxicnLtur an Cnmmittc on Foreign Affairs
Meeting: Joint Public Hearing___Subject: Food Security Act of 1979

BillNos. H.R. 4489 and related bills

The___qriculture and Foreign Affairs --_~ Committee S

met in .iintpubliclJaeari-ing Session at _-2.I5_pIo'clock, in Room 2.72. RHOB

The following Members were present: Foreign Affairs
Mr. Daschle Mr. Sebelius Mr.Zablocki
Mr. Hance Mr. Johnson Mr.Buchanan
Mr. Stenholm Mr. Madigan Mr.s. Fenwick
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Gene Moos, Analyst
Christine Abram, Staff Assistant
Claude Freeman, Subcommittee Staff Consultant





643


-2

Witnesses:


1. Honorable Benjamin A. Gilman, Member of Congress from
New York

2. Honorable Matthew F. McHugh, Member of Congress from
New York

3. Mr. Brennon Jones, Bread for the World, New York, New York 4. Dr. George Chauncey, Chairman, Interreligious Taskforce on
U.S. Food Policy, Washington, D.C.



























Statements Filed:





644



-3
July 10, 1979 -- afternoon session Full Committee and Committee on Foreign Affairs
Joint Public Hearings Food Security Act of 1979 H.R. 4489 and related bills

Congressman Daschle assumed the Chair at 2:15 p.m. to convene the hearing.

The Committees heard and questioned the witnesses listed on page 2 of these Minutes.

The Chair adjourned the hearing at 3:30 p.m.





Christine Abram Staff Assistant





645



I.*. 30out of Aepre entatibei
Committee on 1gr culture Waobington, O.C. 20515

MINUTES

Date Wednesday, July 11, 1979

4809 Committee -----FullMeeting: Business

Subject: National Aquaculture Act of 1979

Bill Nos. H.R. 20
Full
The Committee

met in open Session at 10 :30 o'clock, in Room 1301

The following Members were present:

Mr. Foley Mr. Coelho Mr. Wampler
Mr. de la Garza Mr. Daschle Mr. Sebelius
Mr. Jones (Tenn.) Mr. Hance Mr. Findley
Mr. Bowen Mr. Anthony Mr. Symms
Mr. Rose Mr. Stenholm Mr. Johnson
Mr. Nolan Mr. Mr. Madigan
Mr. Weaver Mr. M Heckler
Mr. Baldus Mr. Mr. Kelly
Mr. Harkin Mr. Mr. Grassley
Mr. Bedell Mr. Mr. Hagedorn
Mr. English Mr. Mr. Coleman
Mr. Fithian Mr. Mr. Marlenee
Mr. Panetta Mr. Mr. Hopkins
Mr. Huckaby Mr. Mr. Thomas
Mr. Glickman Mr.
Mr. Whitley Mr.


Staff present:
Fowler C. West, Staff Director Bob Bor, Chief Counsel John Hogan, Counsel Tony Imhof, Counsel Bob Franks, Assistant Counsel Gary L. Norton, Assistant Counsel Glenda Temple, Clerk






















56-383 0 80 2





646


-2
Witnesses:


None






































Statements Filed:


None







647



-3

Wednesday, July 11, 1979
Full Committee
Business Meeting
National Aquaculture Act of 1979 H.R. 20


Action Taken:

-- de la Garza motion to discharge Subcommittees from further
consideration of H.R. 20 approved by unanimous voice vote.

-- Without objection de la Garza substitute amendment to H.R.
20 adopted.



Chairman Foley called the meeting to order and directed the Clerk to call the roll. The following Members responded when their names were called:

1. Mr. de la Garza 14. Mr. Thomas
2. Mr. Jones (Tenn.) 15. Mr. Foley
3. Mr. Bowen 16. Mr. Rose
4. Mr. Bedell 17. Mr. Baldus
5. Mr. Enlgish 18. Mr. Glickman
6. Mr. Fithian 19. Mr. Hance
7. Mr. Coelho 20. Mr. Wampler
8. Mr. Daschle 21. Mr. Panetta
9. Mr. Sebelius 22. Mr. Symms
10. Mr. Kelly 23. Mr. Marlenee
11. Mr. Grassley 24. Mr. Madigan
12. Mr. Hagedorn 25. Mr. Nolan
13. Mr. Hopkins 26. Mr. Whitley

Twenty-six Members having responded a quorum was established.

Mr. de la Garza was recognized for a motion to discharge the Subcommittees on Conservation and Credit and Department Investigations, Oversight, and Research from further consideration of the bill, H.R. 20, the National Aquaculture Act of 1979. By a unanimous voice vote the motion was agreed to.

Acting Chairman de la Garza explained the purpose of the pending legislation. Counsel Imhof was recognized to explain the provisions of the bill.

Mr. de la Garza offered the attached substitute amendment
which had been agreed to by the Department. Discussion occurred and without objection the substitute amendment was adopted.







648



-4

Wednesday, July 11, 1979
Full Committee
Business Meeting
National Aquaculture Act of 1979 H.R. 20


The question occurred on reporting H.R. 20, as amended,
to the House and by a voice vote the motion was agreed to. Mr. Bedell requested a recorded vote and there was no objection to taking a recorded vote. The first call of the roll was completed when a pending vote on the House floor caused the Committee to adjourn (See minutes of July 11 p.m. for vote). At 12:00 noon the meeting was adjourned, to reconvene at 2:00 p.m. this date at which time the pending business will be a continuation of the recorded vote on reporting H.R. 20, as amended, and consideration of H.R. 4119. During the proceedings one recess was taken at 11:00 a.m. to enable Members to respond to a recorded vote on the House floor.







Glenda Temple






649



SYNOPSIS OF H.R. 20, THE NATIONAL AQUACULTURE ACT OF
1979 (reported favorably by the Committee on Merchant Marine and Fisheries -May 15, 1979) AND OF AN AMENDMLENT IN THE NATURE OF A SUBSTITUTE PROPOSED BY THE ADMINISTRATION




In broad outline, H.R. 20 would require the Secretary of Commerce to undertake a continuing assessment of aquaculture in the United States and within 18 months after date of enactment to establish by regulation a National Aquaculture Plan. The Plan would include research, development, technical assistance and demonstration programs as needed for each aquatic species determined to have significant potential for culturing on a commercial or other basis. The Secretary of Commerce would be empowered to assign responsibilities to the Secretaries of Agriculture and Interior according to their statutory authority or expertise.

The Secretary of Commerce would also be empowered to guarantee up to 90 percent of loans for aquaculture facilities and stock (up to an aggregate amount of $150 million) and, where private insurance is not available at reasonable rates, to offer insurance covering liability, property damage, and aquatic stock (up to an aggregate amount of $125 million). Both the guaranteed loan and insurance programs would be operated out of a revolving Federal Aquaculture Assistance Fundestablished in the U.S. Treasury.






650



-2


The Secretaries of Commerce, Agriculture, and

Interior would each be authorized to carry out theirresponsibilities by contract or grant and to make grants for demonstration projects. All grants would be on a 50-50 matching basis. .

The bill establishes an Interagency Aquaculture Coordinating Committee chaired by the Secretary of Commerce and including the Secretaries of Agriculture, Interior, and Energy, the Administrators of E.P.A. and S.B.A., the Commissioner of Food and Drugs, the Chief of Engineers, and the Governor of the Farm Credit Administration.

The Secretary of Commerce is required to establish a national information center to facilitate domestic and international exchange of aquaculture information, and beginning in 1981, to submit to Congress a biennial report on the status of U.S. aquaculture.

With the exception of the guaranteed loan program for which no time limit is specified, H.R. 20 is a three year bill. To carry out their responsibilities under the National Plan, aggregate appropriations of $65 million are authorized for fiscal years 1980, 1981, and 1982 (Commerce, $39 million; Agriculture, $13 million; and Interior, $13 million). The bill authorizes appropriation to the revolving Fund of such sums as are necessary to carry out the guaranteed loan and insurance







651



-3


program r and requires that all premiums, f ees, charges, or gif ts received by the Government under the bill be deposited in the Fund. Nothing in the bill would affect the existing authority of any Federal agency.

H.R. 20 is substantially similar to H.R. 9370

which was passed by the Congress last year but vetoed by the President. H.R. 20 differs essentially from

last year's bill in that in H.R. 20 the ceilings on the guaranteed loan and insurance programs have been cut in half and direction of the national aquaculture effort is entrusted to the Secretary of Commerce rather than rotated every two years among the

Secretaries of Commerce, Agriculture,, and Interior. In his veto message, the President expressed support for the purpose of the bill but objected to the broad new financial and technical assistance programs for which in his view no need had been established. He also viewed the bill as unnecessary in view of the many existing Federal aquaculture programs which were being coordinated by the Interagency Subcommittee on Aquaculture of the Federal Council on Science, Engineering, and Technology.

At a joint hearing of the Subcommittee on Department Investigations, Oversight and Research and the Subcommittee on Conservation and Credit last month, the Departments of Agriculture, Commerce, and Interior testified on behalf of







652


-4


the Administration in opposition to H.R. 20 in its present form. However, they expressed Administration support for and have submitted to the Committee a simple bill which would recognize and lend statutory support to ongoing Federal aquaculture research, technical assistance, and coordination efforts. That bill is before t~he Members in the form of an amendment in the nature of a substitute.

The amendment does not include provision for a

Federal guaranteed loan program, insurance program, or revolving Fund. It includes most of the balance of H.R. 20 except that the National Aquaculture Plan and implementing activities would be developed and carried out jointly by the Secretaries of Agriculture, Commerce, and Interior subject to coordination by the Joint Subcommittee on Aquaculture of the Federal Council on Science, Engineering, and Technology. The Subcommittee would include representatives of the Secretaries of

Agriculture, Commerce, Interior, Energy, and H.E.W., the Administrators of A.I.D., E.P.A., and S.B.A., the Chairman of T.V.A., the Director of N.S.F., the chief of Engineers, and the Governor of the Farm Credit Administration. The chairmanship of the Joint Subcommittee would be rotated every two years as agreed by the chairmen of its parent Committees (which are the Committee on Atmosphere and oceans (chaired by a representative of the Department of Commerce) and the Comimittee on Food and Renewable Resources (chaired by a representative of the Department of Agriculture)).





653


-5

H.R. 20 would also provide that in conjunction

with development of the National Aquaculture Development Plan, the Secretaries of Agriculture, Commerce, aid Interior would be required to study both capital requirements of, and regulatory restraints upon, the U.S. aquaculture industry and to recommend legislation if appropriate.







(Note: The 1977 Farm Bill amended the USDA Organic Act to make acquisition and diffusion of information about aquaculture one of the four basic missions of the Department of Agriculture. The Farm Bill also established USDA as the lead Federal agency for aquaculture research and extension, and broadened the authority of the Secretary of Agriculture to make FmHA loans and to support conservation of water for aquacultural purposes. Both FmHA and the Farm Credit Administration have for a number of years made loans for aquaculture purposes.)






654




DEPARTMENT OF AGRICULTURE
I~L\.~I)~)OFFICE OF TH4E SECRETARY WASHINGTON. D. C. 20250


JUL 10 197


Honorable Thomas S. Foley
Chairman, Committee on Agriculture
House of Representatives
Washington, D. C. 20515

Dear Mr. Chairman:

On October 18, 1978, the President withheld approval from H.R. 9370, the National Aquaculture Policy Act of 1978. At that time, he indicated that the Administration recognized the importance of aquaculture and anticipated working with the Congress to agree on additional improvements in the Government's aquaculture program. The President was particularly concerned about offering major new Government subsidies such as loan guarantees and insurance programs unless and until a clear need for them had been established. H.R. 20 contains similar financial programs.

Earlier this year, the Office of Science and Technology Policy, at the President's request, provided the sponsors of H.R. 9370 an update on steps the Administration had taken to increase Federal efforts in aquaculture and presented a conceptual framework of potential aquaculture legislation. The enclosed amended version of H.R. 20 reflects this conceptual framework. It now excludes the questionable financial programs and costly demonstration facilities. It does, however, include a national policy statement on aquaculture and calls for the development of a National Plan for Aquaculture. In addition, the bill provides for studies to investigate the need for further financial programs and to examine how we can reduce undue regulatory constraints that may face the aquaculture industry.

The enclosed bill also recognizes the establishment of the Joint Subcommittee on Aquaculture in the Office of Science and Technology Policy. This Subcommittee is currently developing the National Aquaculture Plan. This coordinating mechanism is working well.

This bill would eliminate premature and duplicative financial programs. Other key provisions of the original vetoed bill are now being carried out. These provisions include a coordinating device for Federal agencies, the development of a National Aquaculture Plan including an assessment of aquaculture in the United States.

It is the policy of this Administration to undertake those research, transfer, and assistance programs and activities necessary and appropriate to facilitate the development of an active and viable U. S. aquaculture








655



Honorable Thomas S. Foley 2



industry. Based on this policy, the Department of Agriculture has increased its activities in aquaculture. An Aquaculture Coordinator has been hired to coordinate aquaculture programs and activities throughout the Department. An Aquaculture Work Group has been established to draft a USDA Plan for Aquaculture. That Plan will be completed this year. The USDA is an active member of the Joint Subcommittee on Aquaculture and is participating in the development of the National Plan.

The attached draft bill would provide a meaningful statement on the importance of aquaculture and underscore the Administration's efforts to facilitate this important industry's development.

The Office of Management and Budget advises that there is no objection to the presentation of this report and that enactment of this proposed legislation would be in accord with the Administration's objectives.

Sincerely,








Secrete'
EnclosureN







656



H.R. 20

Amendment in the nature of a substitute:

Page 1, line 3, strike all after the enacting clause-and insert in lieu thereof the following:

That this Act may be cited as the *National Aquaculture Act of 19 79"

SEC. 2. FINDINGS, PURPOSE, AND POLICY.

(a) FINDINGS.--Congress finds the following:

(1) The harvest of certain species of fish and shellfish

exceeds levels of optimum sustainable yield, thereby making it
'some
more difficult to meet the increasing demand for aquatic food.

(2) To satisfy its extensive market for aquatic food, the

United States imports more than 50 percent of its fish and shellfish, but this dependence on imports adversely

affects the national balance of payments and contributes to the

uncertainty of supplies.

(3) Although aquaculture currently contributes approximately

10 percent of world seafood production, less than three percent of current United States seafood production results from aquaculture.

Domestic aquaculture production, therefore, has the potential for

significant growth.

(4) Aquaculture can provide expanded and new sources of

food, industrial materials, pharmaceuticals, energy, jobs, can

assist in the control and abatement of

pollution, and can improve the quality of rural life.






657



-2


(5) The rehabilitation and enhancement of fish and shellfish resources are potential applications of aquacultural

technology.

(6) The principal responsibility for the development of

aquaculture in the United States must rest with the private sector.

(7) Despite its potential, the development of aquaculture

in the United States appears to have been inhibited by many economic,

legal, and production factors.

(8) Many areas of the United States are suitable for aquaculture, but are subject to land-use or water-use management

policies that may inhibit the development of aquaculture.

(b) PURPOSE.--It is the purpose of this Act to promote aquaculture in the United States by-(1) declaring a national policy for aquaculture;

(2) establishing and implementing a national aquaculture

development plan; and

(3) encouraging activities in both the public and private

sectors of the economy;

that will facilitate increased aquacultural production, the coordination of domestic aquacultural efforts, the conservation and enhancement of aquatic resources, the creation of new industries and job opportunities, and other national benefits.

(c) POLICY.--Congress declares that aquaculture has the potential for augmenting existing commercial and recreational

fisheries, and for producing
other renewable resources, thereby assisting the United States in meeting its future food needs and contributing to the solution of world resource problems. It is, therefore, in the national interest,






658


-3


and it is the national policy, to encourage and enhance the development of aquaculture in the United States.

SEC. 3. DEFINITIONS.

As used in this Act, unless the context otherwise requires-(1) The term "aquaculture" means the propagation and

rearing of aquatic species in controlled or selected environments, including, but not limited to ocean ranching (except

private ocean ranching of Pacific salmon for profit in those

States where such ranching is prohibited by law).

(2) The term "aquaculture facility" means any land,

structure, or other appurtenance that is used for aquaculture and is located in any State. Such term includes, but is not

limited to, any laboratory, hatchery, rearing pond, raceway, pen,

incubator, or other equipment used in aquaculture.

(3) The term "aquatic species" means any species of finfish,

mollusk, crustacean, or other aquatic invertebrate, amphibian,

reptile, or aquatic plant.

(4) The term "Person" means any individual who i-s a citizen

or national of the United States,

any

Indian tribe, any institution of higher education, and any

corporation, partnership, association or other entity (including,

but not limited to, any community development corporation,

producer cooperative, or fishermen's cooperative) organized or

existing under the laws of any State.

(5) The term "Plan" means the National Aquaculture Development

Plan required to be established under section 4.







659



-4


(6) The term "Secretaries" means the Secretary of Agriculture,

the Secretary of Commerce, and the Secretary of Interior.

(7) The term "State" means any of the several States, the

District of Columbia, the Commonwealth of Puerto Rico, American

Samoa, the Virgin Islands of the United States, Guam, and the

Commonwealth of the Northern Mariana Islands.

SEC. 4. NATIONAL AQUACULTURE DEVELOPMENT PLAN.

(a) IN GENERAL.--(l) Within 18 months after the date of the enactment of this Act, the Secretaries shall establish the National Aquaculture Development Plan. Within six months after such date of enactment, the Secretaries shall give interested persons and organizations an opportunity to comment during the development of the Plan.

(2) In developing the Plan, and revisions thereto under subsection (d), the Secretaries shall consult with other appropriate Federal officers, appropriate States, and appropriate Regional Fishery Management Councils established under section 302 of the Fishery Conservation and Management Act of 1976 (16 U.S.C. 1852).

(b) CONTENTS OF PLAN.--The Plan shall:

(1) Identify aquatic species that the Secretaries determine

to have significant potential for culture on a commercial or other basis and recommend actions to be taken by the public and private

sectors (which may include, but is not limited to, research and

development, technical assistance, demonstration, extension education, and training activities) that would achieve such

potential. The plan shall address the following matters as may be

appropriate, taking into account the status of aquaculture regarding

the aquatic species concerned:







660



-5


(A) Aquaculture facility design and operation.

(B) Water quality management.

(C) Use of waste products.

(D) Nutrition and the developing of economical

feeds, including natural food sources.

(E) Life history, genetics, physiology, pathology,

and disease control (including research regarding

organisms that may not be harmful to fish and shellfish

but are injurious to humans).



(2) Identify, as appropriate, research programs on the

effect of aquaculture on estuarine and other water areas and on

the management of such areas for aquaculture.

(3) Identify, as appropriate, programs to analyze, and to

formulate proposed resolutions of, the legal or regulatory

constraints that may affect aquaculture.

(4) Include such other research and development, technical

assistance, demonstration, extension education, and training programs as the Secretaries deem necessary or appropriate to

carry out the purpose and policy of this Act.

In formulating the Plan, the Secretaries shall, to the extent practicable,

take into account any significant action that (i) has been, or is proposed to be, undertaken by any other Federal department or agency, any State agency, or any person; and (ii) may affect the accomplishment of the Plan.

(c) ACTIONS AND IMPLEMENTATION.- With respect to each action

referred to in the Plan, the Secretaries, acting individually, jointly,







661



-6


or collectively, shall have responsibility for implementing the action and shall determine the period of time within which each such action should be completed in order to implement the plan. The specifications of Secretarial responsibilities for implementing actions shall be determined by the Secretaries on the basis of-(A) the responsibilities conferred on the respective

Secretaries by law or by any executive action having the

effect of law (including, but not limited to, Reorganization

Plan Numbered 4 of 1970); and

(B) the experience, expertise, and other appropriate

resources that the department of each such Secretary may

have with respect to the action required under the program

concerned.

(d) REVISION OF PLAN. --The Secretaries shall undertake periodic reviews of the operation and effectiveness of the Plan. If as a result of any such review, or the aquacultural assessment required under subsection (e) the Secretaries determine that-(1) any aquatic species not currently identified in the

Plan has significant potential for aquaculture;

(2) any action specified in the Plan is not being

accomplished on a successful and timely basis; or

(3) any action specified in the Plan should be terminated

because its objectives have been achieved or its projected

benefits do not warrant further support;

the Secretaries shall appropriately amend the Plan.

(e) CONTINUING AQUACULTURE ASSESSMENT.--The Secretaries shall through the Joint Subcommittee on Aquaculture undertake a continuing





















56-383 0 80 3








662



-7


assessment of aquaculture in the United States for the purpose of maintaining on a continuing basis-(1) a complete profile of the aquacultural industry with

respect to the incidence, size, markets, and status of commercial aquacultural enterprises;

(2) the identification of private and public institutions

and organizations involved in aquacultural research, extension,

credit, and market development;

(3) the identification of the various aquatic species being

cultured and a description of the status of commercial development of each such species;

(4) to the extent practicable, the identification of aquacultural production regions, species, and markets that have

significant potential for development;

(5) a catalog describing all Federal programs and activities

that directly or indirectly encourage, support, or assist

aquaculture; and

(6) the identification of the economic, physical, legal,

institutional, and social constraints that inhibit the development of aquaculture in the United States.

SEC, 5. FUNCTIONS AND POWERS OF SECRETARIES.

(a) DISCRETIONARY FUNCTIONS.--In implementing any program unaer the Plan, the Secretaries may-(1) provide advisory, educational, and technical assistance

(including training) with respect to aquaculture to interested

persons, but in providing such assistance, shall, to the maximum







663



-8


extent practicable, avoid duplication of similar assistance provided by other Federal departments and agencies and by State agencies;

(2) consult and cooperate with interested persons, Federal departments and agencies, State agencies, and regional commissions;

(3) encourage the implementation of aquacultural technology in the rehabilitation and enhancement of -publicly owned fish and shellfish stocks (including such rehabilitation and enhancement by private nonprofit enterprises), and in the development of private commercial aquacultural enterprises;

(4) prescribe such regulations as may be necessary to carry out such action.

(5) assess the biological, technical, and economic feasibility of any aquacultural system, including:

(A) tests of the system and, if necessary,

construct, operate, and maintain experimental aquaculture

facilities (not including production-scale facilities) for

testing laboratory results, and

(B) such other tests or analyses as may be

necessary;

(6) develop methods to enhance stocks of aquatic species; and

(7) conduct such other tests or analyses or take such other actions as the Secretaries deem necessary or appropriate.







664



-9


(b) INFORMATION SERVICES.--(l) In addition to performing such other functions that are required under this Act, the Secretaries may-

(A) establish and maintain an information service for

the collection, analysis, and dissemination of scientific,

technical, legal, social, and economic information relating

to aquaculture;

(B) conduct surveys, in coordination with other

Federal departments and agencies, of public and private aquacultural activities being conducted in the United States for the purpose of acquiring information on acreages, water use,

production, markets, culture techniques, and other relevant matters;

(C) provide reporting service on such surveys;

(D) arrange with foreign nations, for the exchange of

information relating to aquaculture;

(E) conduct studies to determine whether exis ting capture

fisheries could be adversely affected by competition from

products produced by commercial aquacultural enterprises and

include in such study-(i) an assessment of any such adverse effect, by

species and by geographical region, on such fisheries, and

(ii) recommended measures to ameliorate any such

effect; and

(E) report to Congress on the findings made under the study

provided for under subparagraph (D) in the biennial status report

required under subsection (d).







665



-10


(2) Any production information submitted to the Secretaries

under paragraph (1) (B) shall be confidential and may only be

disclosed if required under court order. The Secretaries shall prescribe such procedures as may be necessary to preserve such

confidentiality, except that the Secretaries may release or make public any such information in any aggregate or summary form that

does not directly or indirectly disclose the identity, business

transactions, or trade secrets of any person who submits such

information.

(d) BIENNIAL REPORT.--The Secretaries shall through the Joint Subcommittee on Aquaculture prepare on a biennial basis, and submit to Congress, a report on the status of aquaculture in the United States. Each such report shall contain a description and evaluation of the actions undertaken with respect to the Plan during the reporting period, an explanation of any revisions made to the Plan under section (4) (d) during the reporting period, and such other comments and recommendations regarding aquaculture in the United States as the Secretaries deem appropriate. The first report required under this subsection shall be submitted to Congress by September 30, 1981.

SEC. 6. COORDINATION OF NATIONAL ACTIVITIES REGARDING AQUACULTURE.

(a) ESTABLISHMjENT.--There is established the Joint Subcommittee on Aquaculture of the Federal Coordinating Council on Science, Engineering, and Technology (in this section referred to as the "Subcommittee") that shall be composed of the following members or their designees:

(1) The secretary of Agriculture.

(2) The Secretary of Commerce.







666



-11


(3) The Secretary of the Interior.

(4) The Secretary of Energy.

(5) The Secretary of Health, Education and Welfare.,

(6) The Administrator of the Agency for International

Development.

(7) The Chairman of the Tennessee Valley Authority.

(8) The Director of the National Science Foundation.

(9) The Administrator of the Environmental Protection Agency.

(10) The Chief of Engineers.

(11) The Administrator of the Small Business Administration.

(12) The Governor of the Farm Credit Administration.

(13) Other Federal agencies as appropriate.

(b) PURPOSES AND FUNCTIONS.--The purpose of the Joint Subcommittee on Aquaculture is to increase the overall effectiveness and

productivity of Federal aquaculture research, transfer, and assistance programs. In fulfilling this purpose, the Subcommittee shall:

(1) Review national needs for aquaculture research,

transfer, and assistance.

(2) Assess the effectiveness and adequacy of Federal

efforts to meet those national needs.

(3) Undertake planning, coordination, and communication

among Federal agencies engaged in the science, engineering, and

technology of aquaculture.

(4) Collect, compile, and disseminate information.

(5) Encourage joint programs among Federal agencies in

areas of mutual interest.






667



-12


(6) Recommend to the sponsoring Committees (the Committee

on Atmosphere and Oceans and the Committee on Food and Renewable

Resources) and the Federal Council specific actions on issues,

problems, plans, and programs in aquaculture.

(c) CHAIRMAN.--The Chairman of the Joint Subcommittee on Aquaculture shall serve a term of two years and shall be selected by mutual agreement between the Chairmen of the sponsoring Committees of the Federal Council.

(d) REPORTS.--The Subcommittee shall regularly report to the Chairmen of the two sponsoring Committees and through them to the Chairman of the Federal Council, on the Subcommittee's activities and on recommendations concerning Federal policies and programs related to aquaculture.

(e) FEDERAL CONSISTENCY.--Each Federal department and agency

that has functions or responsibilities with respect to aquaculture or has jurisdiction over any activity that affects, or that may affect, the achievement of the purpose and policy of this Act, shall, in consultation with the Subcommittee and to the maximum extent practicable, perform such function, responsibility, or activity in a manner that is consistent with the purpose and policy of this Act.

SEC. 7. CONTRACTS AND GRANTS.

(a) IN GENERAL.--The Secretaries may each carry out any action or program that such Secretary is responsible for implementing under the Plan through grants to, or contracts with, any person, any other Federal department or agency, any State agency, or any regional commission. The grants or contracts under this section shall cover only a portion of the total estimated cost as determined by the Secretary.






668



-13


(b) TERMS AND CONDITIONS. --Any contract entered into, or any grant made, under subsection (a) shall contain such terms and conditions as the Secretary concerned shall by regulation prescribe as being necessary or appropriate to protect the interests of the United States, except that no such contract may be entered into, and no such grant may be made, for any purpose which is in violation of any applicable State or local law.

(c) LIMITATION.--The amount of any grant made under subsection (a) may not exceed an amount equal to one-half the estimated cost of the project for which the grant is made.

(d) AUDIT.--Each recipient of a grant or contract under this section shall make available to the Secretary concerned and to the Comptroller General of the United States, for purposes of audit and examination, any book, document, paper, and record that is pertinent to the funds received under such grant or contract.

SEC. 8. CAPITAL REQUIREMENTS FOR AQUACULTURE.

(a) CAPITAL REQUIREMENTS.--(l) The Secretaries, through the Joint Subcommittee on Aquaculture, shall, within 18 months after the date of enactment of this Act, conduct and report on a special study of the capital requirements of the United States aquaculture industry. The study shall:

(1) document and analyze any capital constraints that

affect the development of aquaculture in the United States; and

(2) evaluate the role that appropriate Federal financial

assistance does or could play in filling gaps in the normal

credit market with respect to aquaculture.








669



-14


The study will identify the capital needs of the United States aquaculture industry, with a focus on needs that are not being filled either in normal credit channels or through government programs for direct loans, loan guarantees, disaster loans, and insurance.

(b) CAPITAL REQUIREMENTS PLAN.--Based on the results of the Capital Requirements Study, the Secretaries shall formulate a Plan for acting on the study's findings. Such Plan shall include:

(1) those Federal actions, if any, found to be necessary

to meet financial needs unmet through normal credit channels

and existing Federal programs; and

(2) recommendations, if any, for legislative actions.

SEC. 9. REGULATORY CONSTRAINTS ON AQUACULTURE.

(a) REGULATORY CONSTRAINTS.--The Secretaries, through the Joint Subcommittee on Aquaculture, shall, within 18 months after the date of enactment of this Act, conduct and report on a special study of the State and Federal regulatory restrictions to aquaculture development in the United States. The study shall:

(1) Include a literature review and a descriptive list

identifying overall parameters of the issue.'

(2) Identify and list relevant current and pending

Federal regulations restricting the development of commercial

aquaculture operations.

(3) Identify and list relevant current State regulations

restricting the development of commercial aquaculture operations

in five States selected randomly in five separate geographic

regions of the United States.








670



-15


(4) Conduct case studies of 10 commercial aquaculture

operations in the United States representing a wide range of marine and freshwater species to determine practical effects

of regulatory restrictions on aquaculture.

(5) Develop a prototypical flow chart time line utilizing

the information obtained in items (l)-(4) to identify~ those

regulations and restrictions that could have the most detrimental

effect in establishing commercial aquaculture operations in the

United States.

(b) REGULATORY CONSTRAINTS PLAN.--Based on the results of the Regulatory Constraints Study, the Secretaries shall formulate a Plan for acting on the study's findings. The Plan will contain specific steps the Federal Government can take to remove unnecessarily burdensome regulatory barriers to the initiation and operation Qf commercial aquaculture ventures.

SEC. 10. AUTHORIZATION FOR APPROPRIATIONS.

There are authorized to be appropriated to the Departments of Agriculture, Commerce, and Interior such sums as may be required to carry out the programs authorized in this Act.

SEC. 11. DISCLAIMER.

Nothing in this Act shall be construed to amend, repeal, or

otherwise modify the authority of any Federal officer or any Federal department or agency to perform any function, responsibility, or activity authorized under any other provision of law.







671



.6. 3ouze at Rpre entatibeg Committee on Zgrirulture Waobington, O.C. 20515

MINUTES

Date Wednesday, July 11, 1979

(Sub) Committee_ Full P.M.

Meeting: Busines s

Subject: Aquaculture and Federal Crop Insurance

BiliNos. H.R. 20 and H.R. 4119
Full
The (uil Committee

met in open Session at 2 00 o'clock in Room 1301

The following Members were present:

Mr. de la Garza Mr. Hance Mr. Wampler
Mr. Jones (Tenn.) Mr. Anthony Mr. Sebelius
Mr. Bowen Mr. Stenholm Mr. Johnson
Mr. Rose Mr. Mr. Madigan
Mr. Nolan Mr. Mr. Grassley
Mr. Baldus Mr. Mr. Hagedorn
Mr. Harkin Mr. Mr. Coleman
Mr. Bedell Mr. Mr. Marlenee
Mr. English Mr. Mr. Hopkins
Mr. Fithian Mr. Mr. Thomas
Mr. Panetta Mr. Mr.
Mr. Huckaby Mr. Mr.
Mr. Glickman Mr. Mr.
Mr. Whitley Mr. Mr.
Mr. Coelho Mr.
Mr. Daschle Mr.


Staff present:

Fowler C. West, Staff Director Bob Bor, Chief Counsel Tony Imhof, Counsel Bob Franks, Assistant Counsel Glenda Temple, Clerk Bob Cashdollar, Subcommittee Staff Consultant Wayne Fletcher, Staff Assistant







672



-2

Witnesses:


The following represented the United States Department of
Agriculture and responded to Member's questions:

1. Mr. James D. Deal, Manager, Federal Crop Insurance
Corporation, USDA.

2. Dr. Ed Schu, Deputy Under Secretary for International
Affairs and Commodity Programs, USDA.































Statements Filed:


None








673




-3

Wednesday, July 11, 1979
Full Committee P.M.
Business Meeting
Aquaculture and Federal Crop Insurance H.R. 20 and H.R. 4119


Action Taken:

-- By a roll call vote of 37 yeas-2 nays H.R. 20, as amended,
ordered reported to the House with a favorably recommendation
in the presence of a quorum.

-- By a show of hands vote of 7 yeas-5 nays Jones (Tenn.) motion
to read and amend H.R. 4119 section by section approved.

-- By unanimous voice vote Johnson amendment to section 4
agreed to.

-- By unanimous voice vote de la Garza amendment to section 4
agreed to.

-- By voice vote motion to adjourn agreed to.



Acting Chairman Jones (Tenn.) called the meeting to order and directed the Clerk to continue the recorded vote begun at the morning meeting (see minutes of July 11 a.m.). The complete vote follows:

YEAS

1. Mr. de la Garza 20. Mr. Huckaby
2. Mr. Jones (Tenn.) 21. Mr. Jones (N.C.) (proxy to Mr.
3. Mr. Bowen Jones) (Tenn.)
4. Mr. Bedell -22. Mr. Panetta
5. Mr. English 23. Mr. Grassley
6. Mr. Hance 24. Mr. Harkin (proxy to Mr. Jones)
7. Mr. Anthony (Tenn.)
8. Mr. Stenholm 25. Mr. Glickman
9. Mr. Wampler 26. Mr. Akaka
10. Mr. Johnson 27. Mr. Findley (proxy to Mr. Wampler)
11. Mrs. Heckler 28. Mr. Madigan
12. Mr. Hopkins 29. Mr. Jeffords (proxy to Mr. Wampler)
13. Mr. Thomas 30. Mr. Fithian
14. Mr. Foley 31. Mr. Daschle
15. Mr. Sebelius 32. Mr. Coleman
16. Mr. Hagedorn 33. Mr. Baldus
17. Mr. Brown (proxy to Mr. 34. Mr. Nolan
Jones) (Tenn.) 35. Mr. Weaver (proxy to Mr. English)
18. Mr. Richmond (proxy to Mr. 36. Mr. Rose
Jones) (Tenn.) 37. Mr. Marlenee
19. Mr. Mathis (proxy to Mr.
Jones) (Tenn.)







674



-4

Wednesday, July 11, 1979
Full Committee P.M.
Business Meeting
Aquaculture and Federal Crop Insurance H.R. 20 and H.R. 4119


N AY S

1. Mr. Symms
2. Mr. Kelly (proxy to Mr. Wampler)

Thus, by a roll call vote of 37 yeas-2 nays (29 Members
present and voting) H.R. 20, as amended, was ordered reported to the House with the recommendation that it do pass in the presence of a quorum. Staff was given permission to make clerical and technical changes and Members were given three legislative days in which to submit views for inclusion in the Committee Report as the report must be filed no later thin midnight, July 16.

Acting Chairman de la Garza recognized Mr. Jones (Tenn.), Chairman of the-Subcommittee on Conservation and Credit for an explanation of the bill, H.R. 4119, to improve and expand the Federal Crop Insurance Program. Mr. Jones (Tenn.) asked unanimous consent that H.R. 4119 be considered as read and open for amendmnent section by section. Mr. English objected and Mr. Jones (Tenn.) made a motion. By a show of hands vote of 7 yeas-S nays the motion was agreed to. Mr. English requested a recorded vote and 2 Members (an insufficient number) voted to sustain the request. Mr. English made a point of order that a quorum was not present. The Committee recessed for a vote on the House Floor and upon reconvening the Clerk was directed to call the roll. The quorum call follows:

1. Mr. de la Garza 11. Mr. Johnson
2. Mr. Jones (Tenn.) 12. Mr. Madigan
3. Mr. Nolan 13. Mr. Grassley
4. Mr. Baldus 14. Mr. Hagedorn
5. Mr. Huckaby 15. Mr. Marlenee
6. Mr. Glickman 16. Mr. Bowen
7. Mr. Daschle 17. Mr. English
8. Mr. Hance 18. Mr. Hopkins
9. Mr. Anthony 19. Mr. Thomas
10. Mr. Stenholm

Nineteen Members having responded a one-third quorum was established pursuant to previous notice under Committee Rules. The Jones (Tenn.) motion to offer amendments to the bill section
by section was considered as approved. (Copy of markup vehicle attached.)

Counsel Bor was recognized to explain the bill by section. Sections 1, 2, and 3 were explained and no amendments were offered. Section 4 tvas explained and discussion occurred.







675



-5

Wednesday, July 11, 1979
Full Committee P.M.
Business Meeting
Aquaculture and Federal Crop Insurance H.R. 20 and H.R. 4119


Mr. Johnson offered an amendment to page 4, line 16, to strike the word "exclusive" and add the following proviso: "Provided, further, That action may be brought by or against the Corporation in State courts with general jurisdiction."

Discussion occurred and by a unanimous voice vote the Johnson amendment was agreed to.

Mr. de la Garza offered the attached amendment to add
aquaculture to the provisions of the legislation. By a unanimous voice vote the motion was approved.

Discussion continued on the section. Mr. Madigan moved to add after "available" on page 5, line 13, the phrase "at reasonable rates". Discussion occurred.

Mr-Coelho moved that the Committee adjourn until the
scheduled meetings at 10:30 a.m. and 2:00 p.m. tomorrow. By a voice vote the motion was agreed to.

During the proceedings two recesses were taken at 2:20
p.m. and 3:17 p.m. to enable Members to respond to recorded votes on the House Floor. At 3:45 p.m. Acting Chairman Jones (Tenn.) adjourned the meeting to reconvene at 10:30 a.m. on Thursday, July 12, at which time the pending business will be further consideration of the pending Madigan amendment.





AGlenda Temp e





676






[COMMITTEE PRINT]
JUNE 25, 1979

[As reported, amended, by the Subcommittee on Conservation
and Credit-June 6, 1979] 96TH CONGRESS H ~ 1


To improve and expand the Federal crop insuran ce program, and for other"
p purposes.




IN TUE HOUSE OF. REPRESENTATIVES MAY 16, 1979
Mr. JONES of Tennessee (for himself and Mr. MADIGAN) introduced the following
bill; which was referred to the Committee on Agriculture JUNE ,1979
[Omit the part struck through and insert the part printed in italic]




A BILL
To improve and expand the. Federal crop insurance program, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Federal Crop Insurance

4 Act of 1979".





677


2
1 CAPITAL STOCK
2 SEC. 2. (a) Effective October 1, 1979, 1980, section
3 504(a) of the Federal Crop Insurance Act is amended by 4 striking out "$200,000,000" and inserting in lieu thereof
5 ",$500t0009000".
4
6 (b) Section 504 of such Act is amended by adding after
7 subsection (c) a new subsection (d) as follows:
8 "(d) The Secretary of the Treasury, within thirty
9 days. after the date of enactment of Aet the Feder10 al Crop Insurance Act of 1979, shall cancel, without
11 consideration, receipts for payments for or on account
12 of the stock of the Federal Crop Insurance Corporation
13 outstanding on the such date of enactment of the Fed
14 eFft4 ifisur-ftfi A-et of 1979 .-and such receipts
15 shall cease to be liabilities of the Corporation."
16 BOARD OF DIRECTORS: MEMBERSHIP AND COMPENSATION 17 SEC. 3. (a) Section 505(a) of the Federal Crop Insur18 ance Act is amended by19 (1) amending the second sentence to read as fol20 lows: "The Board shall consist of the manager of the
21 Corporation, two other persons employed in the De22 apartment of Agriculture, two persons experienced in
23 the crop insurance business who are not otherwise em24 ployed by the Federal Government, and two active





56-383 0 80 4





678


3
farmers who are not otherwise employed by the Feder2 al Goverriment."; and
3 (2) adding at the end thereof a new sentence as
4 follows: "The Secretary, in, appointing the two active
5 farmers who are not employed by the Federal Govern6 ment, shall ensure that such members are policyholders
7 and are from different geographic areas of the United
8 States, in order that diverse. agricultural interests in
9 the United States are at all time s represented on the
10 Board.".:
11 (b) Section 505(b) of such Act. is amended by striking
12 out "three" wherever that word appears therein and insert13 ing in lieu thereof "four".
14 (c) The second sentence of section 5,05(c) of such Act is
15 amended to read as, follows: "The Members of the, Board who 16 are not employed by the Federal Government shall be paid 17 such compensation for their services as directors as the Sec18 rotary of Agriculture shall determine, but such compensation 19 shall not exceed the daily equivalent of the rate currently 20 effective for grade GS-18 pursuant to section 5332 of title 5 21 of the United States Code per day when actually employed 22 anId'actual necessary traveling and subsistence expenses, or a 23 per them allowance in lieu of subsistence expenses, as author24 ized by section 5703 of title 5 of the United States Code for 25 persons in Government service employed intermittently,





679


4
1 when on the business of the Corporation away from their
2 homes or regular places of business.". .3 GENERAL POWERS FOR THE CORPORATION
4 SEC. 4. Section 506 of the Federal Crop Insurance Act
5 is amended by6 (1) in subsection (c), striking out "make contracts
7 and";
8 (2) amending subsection (d) to read as follows:
9 "(d) subject to the provisions of section 508(c),
10 may sue and be sued in its corporate name, but no at11 tachment, injunction, garnishment, or other similar
12 process s, mesn6 or final, shall be issued against the,
13 Corporation or its property. The district courts of the
14 United States, including the district courts of the Dis15 trict of Columbia and of any Commonwealth territory
16 or possession, shall have exclusive jurisdiction, without
17 regard to the amount in controversy, of all suits
18 brought by or against the Corporation: Provided, That
19 the Corporation may intervene in any court in any
20 suit, action, or proceeding in which it has an interest.

21 Any suit against the Corporation shall be brought in
22 the District of Columbia, or in the district 'wherein the
23 plaintiff resides or is engaged in business;";
24 (3) in subsection striking out "free";





680


5
1(4) in subsection (h) by striking the semicolon and 2 adding the following: "and may conduct meaeehefe3 research surveys, pilot programs and investigations re4 lating to Agriculture-related risk and losses including,

5 but not limited to, insurance on livestock poisoning and

6 disease, destruction of bees due to the use of pesti7 cides, and other unique problems of special risk related

8 to, but not limited to, fruits, nuts, vegetables, forest in9 dustry needs including appreciation, and other agricul10 ture products as determined by the Board pe4e

11 hewevethats.4 Provided, That no such programs may 12 be undertaken if insurance protection against such risks

13 is generally available from private companies. The

14 Corporation shall report annually to Congress the re15 sults of its operations, on each pilot program undertak16 en and shall not expand beyond the pilot program

17 without the approval of the House Committee on Agri18 culture and the Senate Committee on Agriculture, Nu19 trition, and Forestry"; and

20 (5) striking the period at the end of subsection()

21 and inserting in lieu thereof a semieeke~" and' and

22 adding at the end of section 506 a new subsection (k)

23 as follows:

24 "(k) may enter into and carry out contracts or

25 agreements necessary in the conduct of its business, as





681


6
1 determined by the Board. State and local laws or rules
2 shall not apply to contracts or agreements of the Cor3 poration or the patties thereto to the extent that such
4 contracts or agreements provide that such laws or
5 rules shall not apply, or to the extent that such laws
6 or rules are inconsistent with such contracts or
7 agreements.".
8 USE OF PRIVATE INSURANCE COMPANIES
9 SEC. '5. Section 507 of the Federal Crop Insurance Act
10 is amended by11 (1) amending subsection (c) to read as follows:
12 "(c) The Board may establish or use committees or as13 sociations of producers, or private insurance companies, or 14 other private companies in the administration of this title and 15 make payments to such committees, associations, or compa16 nies to cover the administrative and program expenses as i7 'determined by the Board in' cooperating 'in carrying out this 18 title."
19 (2) adding a new subsection (f) as follows:
20 "(f) The Board should utilize to 'the fullest extent possi21 ble the resources, data; boards, and the committees of the 22 following: Soil Conservation Service, in assisting in land clas23 sification of risk, production capability and in developing ac24 ceptable conservation practices to be eligible for insurance; 25 Forest Service, in assisting the Board in the development of





682


7
1 a timber insurance plan; Agricultural Stabilization and Con2 servation Service, in assisting in the determination of individ3 ual producer Yields and in serving as a local contact, point for 4 farmers where the Board deems necessary; and other Federal 5 agencies Iin any I way the Board deems necessary in carrying

6 out this Act."

7 FEDERAL CROP INSURANCE, EXPANSION, REINSURANCE,

8 AND COVERAGE'9. SEc. 6. Section 508(a) of the Federal Crop Insurance

10 Act is amended11 (1) in the first sentence by striking out "1948"t

12' and inserting in lieu thereof Vi.~2~ 18'

13 (2) by striking out the -third sentence begining

14 with the words "In -1948 insurance"', the fourth sen15 tence beginning with the "words '"Beginning with

16 crops", the sixth sentence' beginning with' the words

17 "Reinsurance for private", and the ninth sentence be18 ginning with the words "Counties selected by";

19 (3) in the seventh sentence by striking out "Pro20 vided" and inserting in lieu thereof: "Provided, That a

21 minimum of three levels of coverage shall be offered:

22 (1) 50 per cen turn of the recorded or appraised average

23 yield, '(2) 65 per cen turn of the recorded or appraised

24 average yield, and (3) 75 per century of the recorded or

25 app raised average yield: And provided, further"





683


8
( 4 (4) by inserting immediately after the seventh 2 sentence the following new sentences: "The Corpora3 tion shall offer other levels of yield coverage to be se4 lected at the. option of each producer and, as expedi5 tiously as possible, offer insurance coverages to individ6 ual farmers based on the actual production history for
7 the farm when yield data available is acceptable to the
8 Corporation. -.One of the price elections offered shall
9. approximate, but be, Ao less than 90. percent of the pro10 ejected market price for the commodity involved, as dell determined by the Board";
12 (4) (5) by inserting immediately before the period
13 at the end ofthe eighth sentence the following: or to
14 the failure of the producer to follow conservation prac151. tices approved by the Board".. 16 PREMIUM SUBSIDY., REINSURANCE, AND SPECIFIC RISK 17 PROTECTION
18 SEC. 7. Section 508 of the Federal Crop Insurance Act
19 is further amended by-.
20 (1) amending subsection (b) to read as follows:
21 "(b) To fix adequate premiums for insurance at such
22 rates as the Board deems sufficient to cover claims for losses 23 on such insurance and to establish as expeditiously as possi24 ble a reasonable reserve against unforeseen losses. For the 25 purpose of encouraging the broadest. possible participation in





684


9>
1 the insurance program, 30 per centum. of each producer's 2 premium, as calculated by the Corporation on any coverage 3 up to a maximum of 65 per centum of the reg~orded or ap4 praised average yield, shall be paid by the Corporation, 5 except that the total amount of-premiums which the Corpora6 tion may subsidize with respect to agricultural commodities 7 insured by any producer under this Act for any year shall 8 not be for coverage on such commodities. of more than 9 $200,000. The producer's share of such premiums shall be 10 collected at such time or times, or shall be'secured in such 11 manner, as the Board may determine. The Board may enter 12 into agreements with any State or agency of a State pursu13 ant to which such State or agency may pay to the Corpora14 tion additional premium subsidy to further reduce the portion 15 of the premium paid by farmers-in such State., The Board 16 may also require that the Corporation, pay additional and/or 17 graduated premium subsidy to further reduce the portion of 18 the premium paid by operators of small farm: Provided, 19 That eligibility for classification as a small farm shall be 20 based on the maximum potential exposure of the Corporation 21 on all commodities eligible for insurance at a limit deter22 mined by the Board. "

23 (2) in subsection (c) by striking out, the second

24 sentence which begins, "The Corporation shall pro25 vide," and striking from the third sentence which





685


10

1 begins, "In the event that "the words: "or in

2 any court of record of the State having general juris3 diction, sitting in the district or county in which the

4 insured farm is located,"; -.

5 (3) amending subsection (f) to read as follows:

6 "(f) To provide insurance or reinsurance for production

7 of agricultural commodities'in the Commonwealth of Puerto 8 Rico, the Virgin Islands of the United States, Guam, Ameri9 can'Samoa, the Commonwealth of the Northern Marian a Is10 lands, and the Trust Territory of the Pacific Islands -in the 11 same manner as provided under this section for producers in 12 the several States."; and

13 (4) adding at the end thereof new subsections (g),

14 'and (), as follows:

15 "(g) To reinsure, upon such terms and conditions as the 16 Board may determine to be 'consistent with section 508 (a) 17 and (b) 'and sound reinsurance principles, insurers including 18 private insurance companies or pools of such companies, any 19 State or local Governmental entity, including any territory or 20 possession or political subdivision thereof, which insure pro21 ducers of any agricultural co mmodity under a-plan or plans 22 acceptable to the Corporation. 23 "(h) To offer separate protection against specific risks

24 including, but not limited to, prevented planting, wildlife dep25 redation, tree damage and disease, and insect infestation,





686


11
1 under such terms and conditions as the Corporation may de2 termine providing adequate coverage is not available from

3 private companies."

4 DELETION OF AUTHORITY FOR ADVISORY COMMITTEES

5 SEC. 8. Section 515 of the Federal Crop Insurance Act

6 is hereby repealed.

7 APPROPRIATIONS FOR OPERATING AND ADMINISTRATIVE

8 EXPENSES

91 SEC. 9. Effective October 1, 1979,-section 516(a) of t& 10 Federal Crop Insurance Act is amended to read as follows: 11 "SEC. 516. (a) There are hereby authorized to be

12 appropriated such sums Lf efteh fisee year.gmii~

13 after- J***e 80 1988, as may be necessary to cover the

14 operating and administrative costs of the Corporation,

15 including agents' commissions, interest on Treasury

16 notes and other obligations, 'Federal premium pay17 ments, and the direct cost of loss adjusters-for crop in18 spections and'loss adjustments, which shall be allotted

19 to the Corporation in such amounts and at such time

20 or times as the Secretary of Agriculture may deter21 mine: Provided,' That expenses in connection with the

22 purchase, transportation, handling or sale of the agri23 cultural' commodity, agents' commissions, interest on

24 Treasury notes and other obligations, Federal premium

25 payments, and the direct cost of loss adjusters for ;rop





687


12

1 inspections and loss adjustments may be considered by
2 the Corporation as being nonadministrative or'nonoper3 ating expenses and paid from premium income and
other Corporation funds. Any such expenses may be

5 restored by appropriations in subsequent years.".
6 EMERGENCY FUNDING IN CASE OF INSUFFICIENCY
7 SEC. 10. Effective October 1, 1979,1980, 'Section 516

8 of the Federal Crop Insurance Act is amended by adding at
9 the end thereof a new subsection (c) as follows: 10 "(c) If at any time the moneys available to the

11 'Corporation are insufficient to enable the Corporation
12 to discharge its responsibility of indemnifying producers

13 for losses under this title, the Corporation shall issue

14 to the Secretary of the Treasury notes or other obliga15 tions in such forms -and denominations, bearing such
16 maturities, and subject to such terms and conditions, as

17 may-be prescribed by the Secretary of the Treasury.
18 Redemption of such notes or obligations shall be made
19 by the Corporation from moneys available from premi20 ums or the issuance of capital stock under section 504

21 of this title. Such notes or other obligations shall bear
22 interest at a rate determined by the Secretary of the
23 Treasury, which shall be not less than a rate deter24 mined by taking into consideration the average market

25 yield on outstanding marketable obligations of the





688


13
1 United States of comparable ,maturities during the

2 month preceding the issuance of the notes or other ob3 ligations. The Secretary of the Treasury shall purchase

4 any notes or other obligations issued hereunder and for

5 that purpose is authorized to use as a public debt

6 transaction the proceeds from the sale of any securities

7 issued under the Second Liberty Bond Act and the

8 purposes for which securities may be issued'under that

9 Act are 'extended to include any purchase of such notes

10 or obligations. The Secretary of the Treasury may'at

11 any time sell any of the notes or other obligations ac12 quired by the Secretary of the Treasury under this sub13 section. All redemptions, purchases, and sales by the

14 Secretary of the Treasury of such notes or other obli15 gations shall be treated as public debt transactions of

16 the United States.".

17 AGRICULTURAL COMMODITY

18 SEC. 11. Section 518 of the Federal Crop Insurance

19 Act, as amended, is amended to read as follows: 20 SEC. 518. "Agricultural commodity," as used in this

21 title, means wheat, cotton, flax, corn, dry beans, oats, barley, 22 rye, tobacco, rice, peanuts, soybeans, sugar beets, sugar 23 cane, tomatoes, grain sorghum, sunflowers, raisins', oranges, 24 sweet corn, dry peas, freezing and canning peas, forage, 25 apples, grapes, potatoes, timber and forests, citrus, and other





689


14

1 fruits and vegetables, nuts, tame hay, or any other agricul2 tural commodity, excluding livestock and stored grain, deter3. miuned by the Board pursuant to subsection (a) of section 508 4 of this title, or, any one or more of such commodities, as the
5 context may indicate (7 U.s.c. 1518).". 6- EXTENSION OF DISASTER PAYMENT, PROGRAMS;

7 APPLICABILITY

8 .SEC. 12. Section 100(b) 1001(b) of the Food and Agri.9,, culture Act of 19771(7 u.s.c. 1309) is amended by adding at 10 the end of subsection (b) the following: "Notwithstanding any 11 other provision of law,, the farm disaster. payment provisions 12 and the prevented -planting disaster payment provisions for 13 wheat, feed grains, upland cotton, and rice contained in the 14 Agricultural Act of 14,as amended effective for the 1978 15 through 1981 crops,, which are presently effective only for 16 the 1978 and 1979 crops, shall be effective with respect to 17 the 1980 and .1981 crops of wheat, feed grains, upland 18 'cotton, and rice. Notwithstanding any other provision of law, 19 no person shall be eligible to receive farm disaster payments 20 or prevented planting disaster payments for the 1980 a~d 21 498 1 -erep years 1981 crop year in any county in which Fed22 eral crop insurance is generally offered for such agricultural 23 commodity under the provisions of the Federal Crop Insur24 ance Act of 1979.'

0







690



W.. )ouze of Representatibes Committee on agriculture
Wabington, i.C. 20515

MINUTES

Date Wednesay, July 11, 1979

(Sub) Committee -anomesticr Marketingq Cnomer m ions and Nutrition
Meeting: Public H..ring

Subject: gricltral Bargaining Act

Bill Nos. H.R. 3535

The Domestic Marketing. Consumer Relations, & Nutritior(Sub) Committee

met in _pen Sessionat 9 *40 a -m.o'clock, in Room 1 10l2 T.-O.R

The following Members were present: also present

Mr. Panetta Mr. Mr. Findley
Mr. Grassley Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:
Bernard Brenner, Press Secretary Joe Crapa, Subcommittee Staff Director Jerry Jorgensen, Staff Assistant Linda Miller, Staff Assistant Frank Winston, Staff Assistant Peggy Pecore, Staff Assistant







691



-2

Witnesses:

1. Mr. Robert Arndt, Echo, Minnesota, President, Minnesota National
IFarmers Organization

2. Mr. Richard Steffei, Dunkerton, Iowa, President, Iowa National
Farmers Organization

3. Mr. Fritz Friday, Chairman of the Baord, National Food Processors
Association, Washington, D.C.
Accompanied by: Mr. H. Edward Hunkelberger, Counsel

4. Mr. Bruce Eaker, Route 5, Roxboro, N.C., Manager of the North
Carolina Farm Bureau Marketing Association

5. Mr. Jack Anderson, Bonanza Valley, Minnesota, Minnesota Irrigators
Association

6. Mr. Jerry Heilig, Vice President, Washington Potato Growers
Association, Othello, Washington.

7. Mr. Ernest Phillips, farmer, Williamson, New York
Accompanied by: Mr. Gerrard Bourgeois, farmer Mr. David Sharp, farmer Mr. George Mueller,farmer















Statements Filed:







692



-3

Wednesday, July 11, 1979-A.M. Subcommittee on Domestic Marketing Consumer Relations, and Nutrition Public Hearing
Agricultural Bargaining Act






Chairman Panetta called the meeting to order and the witnesses listed on page two were recognized for their prepared statements After each witness presented his testimony, he answered questions from Members of the Subcommittee as appearing in the record.

During the meeting, recesses were taken from 10:25 to 10:35;
11:05 to 11:25; and 11:00 to noon to enable Members to answer rollcall votes in the full Committee and on the House Floor.

The meeting was adjourned at 12:40 to reconvene at 2:00 p.m. this date to hear further witnesses' views on the Agricultural Bargaining Act.,





ZZ core







693



0.0. *ouze of. eprezentatibe Committee on agriculture Wuwbington, s.C. 20515

MINUTES

DateWednesday, July 11, 1979

(Sub) Committee oDist ic Marketing -Cnsumer Relations and Nutrition
Meeting: Public HearKin ........

Subject: Agricultural Bargaining Act

Bill Nos. H.R. 3535

The Domestic Marketing, Consumer Relations and Nutrition (Sub) Committee

met in Open Session at 2:08 p m. o'clock, in Room 1302 LHOB

The following Members were present:

Mr. Panetta Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Jerry Jorgensen, Staff Assistant Linda Miller, Staff Assistant Glenda Knight, Staff Assistant Frank Winston, Staff Assistant Peggy Pecore, Staff Assistant




























56-383 0 80 5







694



-2


Witnesses:

1. Mr. Neal P. Gillen, Vice President and General Counsel, American
Cotton Shippers Association, Washington, D.C.

2. Mr. Clarence Palmby of Continental Grain for U.S. Chamber of Commerce,
Washington, D.C.
accompanied by: Mr. E. Clinton Stokes, Director, Food and Agriculture U.S. Chamber of Commerce

3. Mr. Edward Covell, Past Chairman, National Broiler Counsel,
Washington, D.C.
Accompanied by: Mr. George Watts, President Mr. James Rill, Counsel

4. Mr. Michael Brown, Vice President, American Frozen Food Institute,
Washington, D.C.
Accompanied by: Mr. James H. Brian, President, Smeltzer orchard Co., Frankfort, Michigan

Ms. Kathleen McDermott, Counsel

5. Mr. William F. Brooks, National Grain Trade Council, Washington, D.C.

6. Mr. W. J. Keating, Counsel for Public Affairs, National Grain and
Feed Association, Washington, D.C.














Statements Filed:

1. Mr. Kenneth A. Davis, General Manager for the Pruce Bargaining Assoc.
2. Frozen Food Pack Statistics, American Frozen Food Institute
3. Reprint of paper from Harvard Journal on Legislation "Antitrust,
Bargaining, and Cooperatives: ABC's of the National Agricultural
Marketing and Bargaining Act of 1971"






695





Wednesday, Junly 11, 1979 P.M. Subcommittee on Domestic Marketing, Consumer Relations, and Nutrition Public Hearing
Agricultural Bargaining Act




Acting chairman Panetta called the meeting to order and
recognized the witnesses listed on page two for their prepared testimony and questioning as appearing in the record.

During the meeting, two recesses were taken at 2:20-2:35 and 3:20-3:30 to enable Members to respond to rollcall votes on the House Floor.

The meeting was adjourned at 3:57 to reconvene subject to the call of the chair.







696




0.0. 34ouze of Repreantatibes Committee on Ogrkcuriwe Wabington, O.C. 20515 MINUTES

Date Thursday, July 12, 1979

( Committee Full

Meing: Business

Subject: Federal Crop Insurance Act

BillNos.-H.R. 4119
Full
The Full Committee

met in open Session at 10 3 0 o'clock, in Room 13 01

The following Members were present:

Mr. de la Garza Mr. Stenholm Mr. Wampler
Mr. Jones (N.C.) Mr. Mr. Sebelius
Mr. Jones (Tenn.) Mr. Mr. Findley
Mr. Bowen Mr. Mr. Symns
Mr. Weaver Mr. Mr. Johnson
Mr. Baldus Mr. Mr. Madigan
Mr. Bedell Mr. Mr. Kelly
Mr. English Mr. Mr. Grassley
Mr. Fithian Mr. Mr. Hagedorn
Mr. Panetta Mr. Mr. Coleman
Mr. Huckaby Mr. Mr. Marlenee
Mr. Glickman Mr. Mr. Hopkins
Mr. Coelho Mr. Mr. Thomas
Mr. Daschle Mr. Mr.
Mr. Hance Mr.
Mr. Anthony Mr.


Staff present:

Fowler C. West, Staff Director Bob Bor, Chief Counsel Tony Imhof, Counsel John Hogan, Counsel Bob Franks, Assistant Counsel Glenda Temple, Clerk Bob Cashdollar, Subcommittee Staff Consultant Wayne Fletcher, Staff Assistant







697



-2
Witnesses:

The following represented the Administration and responded to
Member's questions concerning the legislation and administration
of the program:

1. Dr-. Ed Schu, Deputy Under Secretary for International
Affairs and Commodity Programs, U.S. Department of
Agriculture.

2. Mr. James D. Deal, Manager, Federal Crop Insurance
Corporation, U.S. Department of Agriculture.




























Statements Filed:

None







698



-3

Thursday, July 12, 1979
Full Committee
Business Meeting
Federal Crop Insurance Act H.R. 4119


Action Taken:

-- By a roll call vote of 13 yeas-24 nays Daschle amendment
re ASCS not adopted.

-- By unanimous voice vote Stenhoim amendment clarifying
criteria for coverage agreed to.


Acting Chairman de la Garza called the meeting to order for the continued consideration of legislation to improve and expand the Federal Crop Insurance Act and recognized Counsel Imhof to explain the provisions of section 5. Discussion occurred.

Mr. Daschle offered the attached amendment which would
utilize the Agricultural Stabilization and Conservation Service in administering the program. Discussion occurred on the amendment. By a show of hands vote of 9 yeas-13 nays the amendment was not agreed to. Mr. Daschle requested a recorded vote and 8 Members sustained the request. The vote follows:

Y EA S

1. Mr. English 8. Mr. Coleman
2. Mr. Fithian 9. Mr. Marlenee
3. Mr. Coelho 10. Mr. Nolan (proxy to Mr. English)
4. Mr. Daschle 11. Mr. Weaver (proxy to Mr. English)
5. Mr. Hance 12. Mr. Bedell
6. Mr. Stenholm 13. Mr. Anthony
7. Mr. Grassley

N AY S

1. Mr. de la Garza 16. Mr. Mathis (proxy to Mr. Jones)
2. Mr. Jones CN.C.) (Ten~n.)
3. Mr. Jones CTenn.) 17. Mr. Brown (proxy to Mr. Jones)
4. Mr. Bowen (Tenn.)
5. Mr. Baldus 18. Mr. Rose (proxy to Mr. Jones)
6. Mr. Panetta (Tenn.)
7. Mr. Huckaby 19. Mr. Richmond (proxy to Mr. Jones)
8. Mr. Glickman (Tenn.)
9. Mr. Wampler 20. Mr. Harkin (proxy to Mr. Jones)
10. Mr. Sebelius (Tenn.)
11. Mr. Johnson 21. Mr. Akaka (proxy to Mr. Jones)
12. Mr. Madigan (Tenn.)
13. Mr. Kelly 22. Mr. Findley (proxy to Mr. Madigan'
14. Mr. Hopkins 23. Mr. Jef fords (proxy to Mr.
15. Mr. Thomas Madigan)
24. Mrs. Heckler (proxy t r Madigan)






699


-4

Thursday, July 12, 1979 Full Committee
Business Meeting
Federal Crop Insurance Act H.R. 4119


Thus, by a roll call vote of 13 yeas-24 nays the Daschle amendment was not agreed to.

Discussion continued on the legislation. Mr. Stenholm
moved to amend page 6, line 24, by striking the phrase "to be eligible for insurance"'. Mr. Stenhoim. offered the amendment to clarify the criteria for coverage under the program. Discussion occurred on the amendment and by a unanimous voice vote the Stenhoim amendment was adopted.

The Members continued discussing section 5 and at 11:45 a.m. the meeting was adjourned to reconvene at 1:30 p.m. this date to continue consideration of the pending legislation.





Agenda Temple






700



AMENDMENT TO H.R. 4119 COMMITTEEE PRINT), TO BE OFFERED BY MR. DASCHLE

strike lines 20 through 25 on page 6 and lines 1 through 6 on page 7'.

insert in lieu thereof:

"(f) The Board should utilize the Agricultural Statilization and Conservation Service in determining individual producer yields and in administering the program on the local level. In certain cases, where the Board deems it necessary, the Board may utilize other Federal agencies in carrying out this Act."







701



o.. Iona ot Repregentatibrg Committee on Ogriulture Mabington, 3D.C. 20515

MINUTES

Date Thursday, July 12, 1979

( ) Committee Full P.M.
Business......
Meeting:

Subject: Federal Crop Insurance Act of 1979; grain sales
H.R. 4119;
Bill Nos. _ _ __ _ _ _ _ _ _ _ _

The Full Committee

met in op e n -- Session at 1 3 0 o'clock, in Room 13 01

The following Members were present:

Mr. de la Garza Mr. Coelho Mr. Wampler
Mr. Jones (N.C.) Mr. Daschle Mr. Sebelius
Mr. Jones (Tenn.) Mr. Hance Mr. Findley
Mr. Bowen Mr. Anthony Mr. Symms
Mr. Richmond Mr. Stenholm Mr. Johnson
Mr. Nolan Mr. Foley Mr. Madigan
Mr. Weaver Mr. Mr. Kelly
Mr. Baldus Mr. Mr. Grassley
Mr. Harkin Mr. Mr. Hagedorn
Mr. Bedell Mr. Mr. Coleman
Mr. English Mr. Mr. Marlenee
Mr. Fithian Mr. Mr. Hopkins
Mr. Panetta Mr. Mr. Thomas
Mr. Huckaby Mr. Mr.
Mr. Glickman Mr.
Mr. Whitley Mr.


Staff present:

Fowler C. West, Staff Director
Bob Bor, Chief Counsel
Tony Imhof, Counsel John Hogan, Counsel
Bob Franks, Assistant Counsel
Glenda Temple, Clerk
Bob Cashdollar, Subcommittee Staff Consultant
Wayne Fletcher, Staff Assistant







702



-2
Witnesses:

Representing the United States Department and responded
to questions on the legislation and administration of the
program were:

1. Dr. Ed Schu, Deputy Under Secretary for International
Affairs and Commodity Programs.

2. Mr. James D. Deal, Manager, Federal Crop Insurance
Corporation.






























Statements Filed:

None







703



-3

Thursday, July 12, 1979
Full Committee P.M.
Business Meeting
Federal Crop Insurance Act of 1979; grain sales to foreign countries H.R. 4119


Action Taken:

Without objection Grassley reservation to offer an amendment
agreed to.

By unanimous voice vote Huckaby amendment re three levels of
coverage adopted.

English unanimous consent request to write Secretary on grain sales approved and staff directed to draft letter for approval
of Committee.

Stenholm substitute amendment to Fithian amendment agreed to
by show of hands vote of 12 yeas-7 nays.

By voice vote Fithian amendment, as amended, approved.

Without objection Jones (Tenn.) substitute amendment to Grassley
amendment revised..



Acting Chairman de la Garza called the meeting to order for he purpose of continuing consideration of legislation to expand and improve the Federal Crop Insurance Program. Without objection Mr. Grassley reserved the right to offer an amendment to section 6 at a later time.

Counsel Imhof was recognized to explain the provisions of section 6. Discussion occurred.

Mr. Huckaby offered the attached amendment and without objection it was revised to become a new section 6. The amendment would mandate that three levels of coverage be offered. Discussion occurred and by a unanimous voice vote the Huckaby amendment was agreed to.

Mr. English asked unanimous consent that the Chairman be
instructed to draft a letter from the Committee to the Secretary of Agriculture reflecting the view that the Committee was on record as supporting activities that would increase our sales of wheat to foreign countries. Mr. English asked that the attached be made a part of the record. He explained that the Secretary had advised that the Soviet Union was interested in buying a significant amount of additional grains above their previous agreement. Discussion






704



-4

Thursday, July 12, 1979
Full Committee P.M.
Business Meeting
Federal Crop Insurance Act of 1979; grain sales to foreign countries H.R. 4119

occurred on the proposal and without objection staff was directed to prepare a draft letter and report back to the Committee for final approval at the next meeting.

Discussion resumed on the provisions of the pending legislation. Mr. Fithian moved to amend page 8, line 14, by adding after the word "follow" the words "previously approved" and on line 15 by striking the phrase "approved by the Board". Mr. Fithian offered the amendment to reduce costs to those farmers practicing good conservation practices.

Discussion occurred and Mr. Stenholm moved a substitute amendment to strike lines 12 through 15 on page 8. Discussion continued and by a show of hands vote of 12 yeas-7 nays the Stenholm amendment was agreed to. Mr. Harkin requested a roll call vote and 4 Members voted to sustain the request (an insufficient number). By a voice vote the Fithian amendment, as amended, was adopted.

Mr. Grassley offered the attached amendment to offer a producer the option to purchase hail insurance in the private sector.

Discussion occurred and Mr. Jones (Tenn.) offered the attached substitute amendment. Mr. Baldus suggested that the Jones (Tenn.) substitute be revised by adding at the end thereof the following language: "if the producer obtains a hail, lightning or fire policy from a private insurer", Without objection the Jones (Tenn.) substitute was reformed.

Discussion continued on the pending amendments and at 4:30 p.m. the meeting was adjourned to reconvene at 10:30 a.m. on Friday, July 13, to continue consideration of H.R. 4119 and amendments thereto. During the proceedings one recess was taken at 2:50 p.m. to enable Members to respond to a recorded vote on the House Floor.




AGlenda Temple







705



Thursday,-July 12
Full Committee


AMENDMENT OFFERED BY MR. HUCKABY



H.R. 4119 is amended by adding at the end thereof a new section as follows:

"SEC. 13. Section 508(a) of the Federal Crop Insurance

Act is amended by substituting a period for the colon in th e seventh sentence and deleting the proviso at the end of the seventh sentence which reads as follows: 'Provided, That if

seventy five per centun of the average yield represents

generally more protection than the investment iii the crop in any-area, taking into consideration recognized farming practices, the Board shall reduce such maximum percentage

so as more nearly to reflect the investment in the crop

in such area."'






706



FOR THE RECORD--Mr. English


It is the policy of Secretary Bergland that farm programs be designed to provide maximum benefits to the family sized farm. Therefore, we

are revising our insurance unit structure to provide that:

1. Separate units are established where different entities

share in the crop.

2. Guidelines on file in the county provide for further

division of units where:

a. Land is owned by separate legal entities or

b. Land is owned by the same legal entity, and operated as two or more units with separate yield records for each. Providing the land in such units are not contiguous.

3. Written agreements provide further unit division of contiguous

land that is owned by. the same 1.egal entity but managed and

operated as separate operations provided:

a. Separate written records are maintained for each of production and yield data. b. The risk is not increased unduly.

c. That such agreements- are prepared by the final acreage reporting date.






707



AMENDMENT TO H.R. 4119

Offered by Mr. Grassley


Page 7, line 12, immediately after the semicolon, insert:

11(2) by changing the period at the end of the second sentence to a colon and adding the following proviso:

'Provided, That insurance against losses due to hail,

lightning or fire offered by the Corporation to the producers of agricultural commodities shall be offered only at the option of such producer and in the event the producer does not desire such coverage in the all-peril policy offered by the Corporation a deduction shall be made from the total premium cost of that portion of the total cost attributable to.the hail, lightning or fire coverage; however, the premium subsidy on such limited-peril policy offered by the Corporation and provided for elsewhere in this section for the all-peril policy shall not be reduced by reason of the exercise of such option by the producer if the producer obtains a hail, lightning or fire policy from a private insurer.'"


Explanation

This amends section 508(a) of the Federal Crop Insurance Act by offering a producer the option to purchase his hail insurance in the private sector while receiving the same premium subsidy as those producers who do not exercise such option.

Conforming technical amendment: Renumber the following paragraphs in section 6.






708



AMENDMENT TO H. R. 4119

Offered by Mr. Jones



Page 7, line 12, immediately after the semicolon, insert:

"(2) by changing the period at the end of the second sentence to a colon and adding the following proviso:

'Provided, That in the discretion of the Board.insurance against losses due to hail, lightning, or fire offered by the Corporation to the producers of agricultural commodities shall not be offered if the producer does not desire such coverage in the policy offered by the Corporation in which event a deduction shall be made from the total premium cost of that portion of the total cost attributable to the hail, lightning or fire coverage; however, the premium subsidy on such policy offered by the Corporation and provided for elsewhere in this section shall not be reduced by reason of the exercise of such option by the producer."'






709



W 3ouge of Aepregentatibes
Committee on 21grttculture eagbington, 3.C. 20515

MINUTES

Date Friday. July 13, 1979

EM) Committee FullMeeting: Business
Subject: Federal Crop Insurance Act

H.R. 4119
Bill Nos.

The __ 1 __ kCommittee

met in open Session at _i:30... o'clock, in Room -130 1

The following Members were present:

Mr. Foley Mr. Mr.
Mr. Jones (N.C.) Mr. Mr.
Mr. Jones (Tenn.) Mr. Mr.
Mr. English Mr. Mr.
Mr. Johnson Mr. Mr.
Mr. Grassley Mr. Mr.
Mr. Coleman Mr. Mr.
Mr. Marlenee Mr. Mr.
Mr. Hopkins Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Fowler C. West, Staff Director
Bob Bor, Chief Counsel
John Hogan, Counsel Tony Imhof, Counsel
Bob Franks, Assistant Counsel
Glenda Temple, Clerk
Bob Cashdollar, Subcommittee Staff Consultant



























56-383 0 80 6





710


-2

Witnesses:


None







































Statements Filed:

None







711



-3

Friday, July 13, 1979
Full Committee
Business Meeting
Federal Crop Insurance Act H.R. 4119


Chairman Foley called the meeting to order for the purpose of considering legislation to improve and expand the Federal crop insurance program. The Clerk was directed to call the roll, and the following Members responded when their names were called:

1. Mr. Jones (N.C.) 6. Mr. English
2. Mr. Jones (Tenn.) 7. Mr. Grassley
3. Mr. Johnson 8. Mr. Marlenee
4. Mr. Coleman 9. Mr. Hopkins
5. Mr. Foley

Nine Members having responded, a quorum was not established, and at 10:40 a.m. the meeting was adjourned to reconvene at 10:30 a.m. on Wednesday, July 18, for further consideration of the Federal Crop Insurance Act.




Glenda Temple







712



NI.. 3 ouze of Repre ntatibeg Committee on Ogriculture
Waobington, ;D.C. 20515

MINUTES

Date Tuesday, July 17, 1979

(Sub) Committee Dairy and Pou

Meeting: Public Hearin

Subject: Federal Milk Marketing Orders

Bill Nos.

The Dairy and Poultry (Sub) Committee

met in ope --- Session at 10:00 o'clock, in Room 1302

The following Members were present:

Mr. Baldus Mr. Mr.
Mr. Akaka Mr. Mr.
Mr. Coelho Mr. Mr.
Mr. Stenholm Mr. Mr.
Mr. Hagedorn Mr. Mr.
Mr. Hopkins Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Glenda Temple, Clerk
Al Zepp, Subcommittee Staff Consultant
George Dunsmore, Staff Assistant







713



-2

Witnesses:

1. Mr. Herbert L. Forest, Director, Dairy Division,
Agricultural Marketing Service, U.S. Department of
Agriculture.

Acc. by: Mr. John H. Sandor, Office of General Counsel, USDA.

































Statements Ffed:

None






714


-3

Tuesday, July 17, 1979 Dairy and Poultry Subcommittee Public Hearing
Federal Milk Marketing Orders



Chairman Baldus called the meeting to order and recognized Mr. Forest for a discussion of the milk marketing order program. Following his presentation, Mr. Forest was questioned by the Members of the Subcommittee.

At 11:42 a.m. the meeting was adjourned to reconvene
on Wednesday, July 18, at 10:00 a.m. to hear public witnesses on the same subject.





Glenda Temple:







715



0 3Eouzc of Repretentatibet
Committee on ftriculture la~bingon, D.C. 20515

MINUTES

Date Tuesday, July 17, 1979 Joint
(Sub) Committee on Conservation and Credit, and Forests
Meeting: Public Hearing ......

Subject: .... _Q_rjty1 Loan Act of 1979

BilINos. H.R. 4718

The Joint (Sub) Committees

met in Open Sesion at0:00 a.m. 'cock, in Room __1301

The following Members were present:
Conservation and Credit Forests Mr. Jones, Tenn., Chrm Mr. Weaver, Chrm Mr.
Mr. Huckaby Mr. Anthony Mr.
Mr. Hance Mr. Huckaby Mr.
Mr. Bedell Mr. Coelho Mr.
Mr. Hopkins Mr. Nolan Mr.
Mr. Mr. Johnson Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:

Fowler C. West, Staff Director Robert M. Bor, Chief Counsel Bob Franks, Associate Counsel Gary Norton, Assistant Counsel Bernard Brenner, Press Secretary Peggy T hmson, Subcommittee Staff Consultant Bob Cashdollar, Subcommittee Staff Consultant Rita DiSimone, Staff Assistant Jim Jones, Staff Assistant Nick Ashmore, Staff Assistant Eleanor Walsh, Staff Assistant







716



-2

Witnesses:

1. Mr. Philip Thornton, Deputy Chief, State and Private Forestry,
U.S. Forest Service, Department of Agriculture

Acc. by: Mr. Bob Garrett, Program Specialist, Farmers
Home Administration, De!partment of Agriculture

2. Mr. J. Walter Myers, Executive Vice President, Forest Farmers
Association, Atlanta, Georgia

3. Mr. Clark Cosse, Southern Forest Products Association, New
Orleans, Louisiana

4. Mr. William H. Mathews, Executive Director, Louisiana Forestry
Association, Alexandria, Louisiana

5. Mr. Rexford A. Resler, American Forestry Association,
Washington, D. C.

6. Mr. Don Powell, National Forest Products Association, Washington,
D.C.

7. Mr. Charles Callison, Public Lands Institute, Denver, Colorado
















Statements Filed:

1. Section-by-section analysis of H.R. 4718 and a comparison
between H.R. 3049 and H.R. 4718







717



-3

Tuesday, July 17, 1979 Subcommittee on Conservation and Credit, and Forests Public Hearing Forestry Loan Act of 1979 H.R. 4718



Chairman Weaver called the meeting to order and presented an opening statement. Mr. Huckaby was then recognized for his comments.

Upon completion of the statements by the Members, the witnesses listed on page two of these minutes were recognized for their prepared testimony. Following presentation of their testimony, the witnesses were questioned by the Members of the Subcommittees.

Chairman Weaver recessed the meeting at 12:20 p.m. to reconvene at 2:00 p.m. this date.




n



Eleanor Walsh







718



I.&. ouze of Representatibez Committee on Agriculture
iabington, IB.C. 20515

MINUTES

Date Tuesday, July 17. 1979

(Sub) Committee ._..s.. s.. _e~.Y.t lAndCredit.

Meeting: Joint Public Hearin

Subject: Forestry Loan Act of 1979

Bill Nos. H.R. 4718 and related bills
Forests and Conservation and Credit
The (Sub) Committees

met in opn Session at 2.LQ_ o'clock, in Room 1301

The following Members were present: Forests Conservation and Credit
Mr. Weaver Mr. Jones (Tenn.) Mr.
Mr. Anthony Mr. Harkin Mr.
Mr. Huckaby Mr. Huckaby Mr.
Mr. Johnson Mr. Brown Mr.
Mr. Mr. Marlenee Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr. Mr.
Mr. Mr.
Mr. Mr.


Staff present:



Glenda Temple, Clerk
Peggy Thomson, Subcommittee Staff Consultant
Bob Cashdollar, Subcommittee Staff Consultant
Rita DiSimone, Staff Assistant







719



-2
Witnesses:

1. Mr. Arthur Mitchell of Baton Rouge, Louisiana, for
the Independent Bankers of America.

2. Mr. Vondal S. Gravlee of Birmingham, Alabama, for the
National Association of Homebuilders.

Acc. by: Mr. Robert D. Bannister, Senior Vice President for Government Affairs, National Association of Homebuilders.

3. Mr.Charles L. Boothby, Executive Secretary, National
Association of Conservation Districts, Washington, D.C.

























Statement~ Filed:

None







720



-3

Tuesday, July 17, 1979 Forests and Conservation and Credit Subcommittees
Joint Public Hearing Forestry Loan Act of 1979 H.R. 4718 and related bills



Acting Chairman Huckaby called the meeting to order and recognized the witnesses listed on page 2 of these minutes for their prepared testimony on the Forestry Loan Act of 1979. Following presentation of their statements, the witnesses were questioned by the Members of the
Subcommittees.

The Acting Chairman announced that field hearings would be held on the legislation on July 20 and 21. At 3:12 p.m. the meeting was adjourned, subject to the call of the Chair.





/Glenda Temple







721



01.0. 34ouze of Aepregentatibeg Committee on 9griculturt Wagbington, 3.C. 20515

MINUTES

Date Wednesday, July 18, 1979

(Y) Committee Full
Business
Meeting:
Federal Crop Insurance Program; Wheat Sales S u b je ct : _
H.R. 4119
Bill Nos.
Full
The 4 Committee

met in pen Session at I QL 0 o'clock, in Room 1.J...0 1

The following Members were present:

Mr. Foley Mr. Whitley Mr. Wampler
Mr. de la Garza Mr. Coelho Mr. Sebelius
Mr. Jones (Tenn.) Mr. Daschle Mr. Symms
Mr. Bowen Mr. Hance Mr. Johnson
Mr. Rose Mr. Anthony Mr. Madigan
Mr. Weaver Mr. Stenholm Mr. Jeffords
Mr. Baldus Mr. Mr. Kelly
Mr. Harkin Mr. Mr. Grassley
Mr. Bedell Mr. Mr. Coleman
Mr. English Mr. Mr. Marlenee
Mr. Fithian Mr. Mr. Hopkins
Mr. Panetta Mr. Mr. Thomas
Mr. Skelton Mr. Mr.
Mr. *Huckaby Mr. Mr.
Mr. Glickman Mr.
Mr. Akaka Mr.


Staff present:
Fowler C. West, Staff Director Bob Bor, Chief Counsel Tony Imhof, Counsel John Hogan, Counsel Bob Franks, Assistant Counsel Glenda Temple, Clerk Bob Cashdollar, Subcommittee Staff Consultant Gene Moos, Staff Analyst







722



-2

Witnesses:

The following represented the United States Department
of Agriculture and responded to questions concerning
the Federal CropInsurance Program:

1. Dr. Ed Schu, Deputy Under Secretary for International
Affairs and Commodity Programs.

2. Mr. James D. Deal, Manager, Federal Crop Insurance
Corporation.






























Statements Filed:



None







723



-3

Wednesday, July 18, 1979 Full Committee
Business Meeting
Federal Crop Insurance Program H.R. 4119


Action Taken:

-- Mr. English and Mr. Sebelius appointed as a Committee to
draft letter to Secretary concerning wheat sales.

-- Thomas substitute amendment to Bedell amendment agreed to
by a voice vote.

-- By show of hands vote of 16 yeas-3 nays Bedell amendment, as
amended, adopted.

-- By voice vote Fithian amendment to Jones (Tenn.) substitute
amendment to Grassley amendment not approved.

-- By roll call vote of 23 yeas-14 nays Jones (Tenn.) substitute
amendment agreed to.

-- By voice vote Grassley amendment, as amended, adopted.
9

Chairman Foley called the meeting to order and directed the Clerk to call the roll. The following Members responded when their names were called:

1. Mr. de la Garza 13. Mr. Madigan
2. Mr. Jones (Tenn.) 14. Mr. Hopkins
3. Mr. Weaver 15. Mr. Thomas
4. Mr. Bedell 16. Mr. Foley
5. Mr. English 17. Mr. Daschle
6. Mr. Whitley 18. Mr. Baldus
7. Mr. Coelho 19. Mr. Akaka
8. Mr. Hance 20. Mr. Sebelius
9. Mr. Anthony 21. Mr. Marlenee
10. Mr. Stenholm 22. Mr. Symms
11. Mr. Wampler 23. Mr. Skelton
12. Mr. Johnson 24. Mr. Huckaby


Twenty-four Members having responded, a quorum was established.

The first item of business was consideration of a draft letter to the Secretary concerning sales of wheat to foreign nations (copy attached). Discussion occurred on the proposal. Mr. English and Mr. Sebelius were appointed to serve as a Committee to draft a letter and submit it to the Committee for approval.







724



-4

Wednesday, July 18, 1979
Full Committee
Business Meeting
Federal Crop Insurance Program H.R. 4119


The Committee turned to further consideration of H.R. 4119, to expand and improve the Federal Crop Insurance Program. The pending business was the amendment by Mr. Grassley and substitute amendment by Mr. Jones (Tenn.), copies attached. (See also minutes of July 12). Due to a conflict Mr. Grassley was delayed in arriving at Committee and the amendments were passed over without prejudice.

Mr. Bedell offered an amendment to section 7 to limit the amount of coverage on which a subsidy was paid to $200,000 per crop, as follows:

On page 9, line 6, insert "any" after "to", and change
'Icommodities" on lines 6 and 9 to "commodity".

Discussion occurred on the amendment.

Mr. Thomas offered the following substitute amendment which would delete language adopted by the Subcommittee:

Page 9, line 4, strike the comma and all that follows
in the sentence after the word "Corporation" and insert
a period.

Discussion continued. By a voice vote-the Thomas substitute
amendment was agreed to. By a show of hands vote of 16 yeas-3 nays, the Bedell amendment, as amended, was approved.

Without objection the Committee returned to consideration
of the Grassley amendment and Jones (Tenn.) substitute amendment thereto. Discussion occurred on the amendments.

Mr. Fithian offered the following amendment to the Jones (Tenn.) substitute amendment:

Strike out the semicolon on the fifth from the last line and all that follows and insert a period in lieu thereof.

The Fithian amendment would delete the subsidy contained
in the Jones CTenn.) substitute amendment for wind, fire, and hail damage. Discussion continued.

By a voice vote the Fithian amendment to the Jones (Tenn.)
substitute amendment was not agreed to. By a show of hands vote of 13 yeas-10 nays the Jones CTenn.) substitute was agreed to. Mr. Grassley requested a recorded vote and 8 Members voted to sustain the request. The vote follows:







725



-5

Wednesday, July 18, 1979
Full Committee
Business Meeting
Federal Crop Insurance Program H.R. 4119


YEAS

1. Mr. de la Garza 16. Mr. Rose (proxy to Mr. Jones)
2. Mr. Jones (Tenn.) (Tenn.)
3. Mr. Bowen 17. Mr. Richmond (proxy to Mr. Jones)
4. Mr. Harkin (Tenn.)
5. Mr. Bedell 18. Mr. Baldus
6. Mr. Fithian 19. Mr. Akaka (proxy to Mr. Jones)
7. Mr. Panetta (Tenn.)
8. Mr. Whitley 20. Mrs. Heckler (proxy to Mr. Madigan)
9. Mr. Coelho 21. Mr. Jeffords
10. Mr. Daschle 22. Mr. Madigan
11. Mr. Hance 23. Mr. Foley (proxy to Mr.
12. Mr. Stenholm de la Garza)
13. Mr. Jones (N.C.) (proxy
to Mr. Jones) (Tenn.)
14. Mr. Mathis (proxy to Mr.
Jones) (Tenn.)
15. Mr. Brown (proxy to Mr.
Jones) (Tenn.)

NAYS

1. Mr. English 8. Mr. Coleman
2. Mr. Glickman 9. Mr. Marlenee
3. Mr. Wampler 10. Mr. Hopkins
4. Mr. Sebelius 11. Mr. Findley (proxy to Mr. Madigan)
5. Mr. Johnson 12. Mr. Symms (proxy to Mr. Wampler)
6. Mr. Kelly 13. Mr. Hagedorn (proxy to Mr. Wampler)
7. Mr. Grassley 14. Mr. Thomas (proxy to Mr. Wampler)

Thus, by a roll call vote of 23, yeas-14 nays the Jones (Tenn.) substitute amendment to the Grassley amendment was adopted. By a voice vote the Grassley amendment, as amended, was approved.

At 12:07 p.m. the meeting was adjourned, to reconvene at 10:30 a.m. on Thursday, July 19, to continue consideration of the bill, H.R. 4119.



Glenda Temple































56-383 0 80 7







726



(DRAFT)
Dear Mr. Secretary:

Recently, you have been quoted as saying that you believe the Soviet Union has already purchased, in the fourth year of the US-USSR grain agreements, all the wheat and corn -- 8 million metric tons (M.M.T.) -- that they are allowed to purchase in any one year without prior consultation with-our government. You went on to say that, although the Soviets at this time have not requested approval for additional purchases,-you did expect-such-approval would be under discussion at the US-USSR grain pact meeting scheduled-for this autumn.- Further, you stated that delaying any decision on such approval until this fall has the added benefit of allowing our government officials additional time to properly assess total US grain production for this year.

The Committee commends you for-'taking-this practical approach to approving any additional-sales to the-Soviets;. however, it also would-bring to your attention the fact-that the United States is presently harvesting a bumper, if not a record, wheat crop. Under these circumstances, it.would appear that the US might encourage the Soviets to take another 2 to 3 M.M.T. of wheat during the interim period before a more precise decision is made regarding additional grain availabilities.

During the first three years of the grains agreement, the Soviets purchased in 1976-1977 -- 3.064 M.M.T. of wheat and 3.052 M.M.T. of corn, in 1977-1978 -- 3.453 M.M.T. of

wheat and 11.132 M.M.T. of corn and in 1978-1979, thus far, -- 3.365 M.M.T. of wheat and 11.322 M.M.T. of corn.

Given this kind of purchase record, it would appear that the Soviets may not buy more than the minimum requirement of wheat in the fourth year of the agreement unless they receive additional encouragement from the United States.

The Committee thanks you in advance for consideration of its views.

Sincerely,