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

(Senate)
(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 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 to farmers who have been prevented from planting their crops by severe 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 $450 million that would be realized for each crop year if the 0-92 provision were extended to all wheat, feed grains, cotton, and rice. Such an extension would also grant producers far more flexibility in making planting decisions.

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 cron 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.

If H.R. 1157 were presented to the President as it passed the House, the President's Senior Advisors would recommend that it be vetoed. The administration would support H.R. 1157, however, if it were amended to extend the 0-92 provision to all wheat, feed grains, cotton, and rice, at least for 1987 crops, although the administration would strongly prefer a broad 0-92 provision for all 1988-90 crops, together with other necessary reforms of the Food Security Act of 1985.

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(Not to be Distributed Outside Executive Office of the President)