Statement of Administration Policy: H.R. 1157 - Agricultural Disaster Relief Amendments and 0-92 Proposal

(Revision)
(House)
(Rep. English (D) OK and Rep. Johnson (D) SD)

The administration opposes enactment of H.R. 1157. While the administration appreciates the efforts of the House Agriculture Committee to break the link between certain farmers' production decisions and the amount of income support they can receive, known as the "0-92" proposal, the specific 0-92 provisions included in H.R. 1157 are far narrower than the all-crop, nationwide 0-92 provision proposed by the administration. The provisions in H.R. 1157 are specifically targeted tp farmers who have been prevented from planting their crops by sevete weather conditions. As a result, the 0-92 provisions of H.R. 1157 are more accurately characterized as disaster relief measures than as efforts to separate income support from production. Morever, these provisions offer insignificant budgetary savings compared with the $1.8 billion that would be realized over the next five years under the administration proposal.

The other provisions of H.R. 1157, which would further expand the $400 million disaster relief program contained in the Continuing Appropriations Act for Fiscal Year 1987, are seriously objectionable. They would undermine the efforts of the Congress and the administration to encourage farmers to purchase crop insurance as an alternative to costly Federal disaster assistance. They would also cost $136 million. At a time of severe budgetary constraints, the administration believes this unnecessary increase is unacceptable.

The administration will continue to work with Congress to fashion a broader 0-92 provision together with other farm program reforms, which will substantially reduce the cost of the farm programs.