The joint hearing of the subcommittee and Risk Management and livestock and aquaculture entitled to review the implementation of the federal farm Disaster Relief will come to order. Thank you and welcome to the joint hearing subcommittees of the general farm commodities Risk Management and livestock and foreign agriculture is a. Im pleased to be joined by my colleague as well as my esteemed Ranking Member into the chairman and fellow Ranking Member mike conaway the first hearing comes at a very important time for farmers. Usda and in particular the Conservation Mission area in Farm Service Agency is in the middle of a huge job. Currently at the helm of three efforts to address the needs of farmers, ranchers and the communities in the country. The Market Facilitation Program which is meant to assist the farmers most directly harmed by the trade war and the expanded wildfires overcame Indemnity Program which will aid in the recovery from the natural disasters and programs like other sports in title i of the bill which provide a Risk Management framework it is our job on the committee to ensure they are structured and implemented in a way that can effectively serve the farmers, ranchers and towns to need them right now. Its also our job to ensure that they are implemented in a way that is fair, transparent and consistent in the wall and we can absolutely give them the help they need while still conducting appropriate oversight. I have concerns about the path especially when it comes to staffing. I hear from farmers about the local offices. Resources are stretched thin and i would like to hear what plans they have to make sure the resources are managed effectively. On top of that there are many stories about Software Glitches and unprepared staff struggling to process the disaster payments. Its clear they want to find efficiencies, but are they prepared to make the changes needed to deliver these Important Services even if that means increasing not decreasing staff and resources. I look forward to hearing the testimony today, mr. Secretary. I now recognize chairman thompson for an opening statement. Having us focus on the way its scoring about the business and trying to help farmers and ranchers across the country but at the juncture where it is difficult it is a process we have gone through the last eight days it is shameful. Its one thing to use Rural America as a weapon against President Trump and the negotiations but it is a Something Else to have the power of this body using the same people as leverage because you simply dont like President Trump. This committee worked to try to make sure that Rural America is protected. Shame on us for allowing that to happen. It is one thing to list to try to harass the businesses and hurt them financially for this body to do the same thing with the funding mechanism that has always gone forward without impediments and mike leaks on the other side of the isle i say that this has been done before. Some restrictions placed on the funding as a result of the financial these promises on the payments into the Disaster Relief have been made and for us to threaten Rural America is terrible. In the face of all things the chairman said had to get done now weve added another report to that workload and weve also not fully funded, we have given certain funding as opposed to moving it to the 30 billion so now on congratulations as the chairman said yesterday on the radio, from now on the process will now be a weapon both sides can use if they think it is to their advantage and shame on us. I yield back. Mr. Chairman, i recognize chairman peterson. The members some history this was put in place by the Republican Party in 2010 and was put in place because at that time they thought he was using the ccc to help lin lincoln whit the time was the chairman of the committee and to the reelection because there was a disaster in arkansas and the senate would do the disaster though so what happens with a different statistical limitations so he couldnt use that to do it so you put it in place, not us. Whats happened ever since his the Appropriations Committee has waived extradition. It didnt come from the house. It came out of the senate. So, whatever it is. My concern about this and what i saw on the radio yesterday is, and this is legitimate, there were a handful of members that understood what it was before this all started and that isnt just the latest dustup. The president using this elevated this and now weve had people talk from the liberal side complaining about it but never knew there was a ccc and how it operated and the Freedom Caucus started to weigh into this thing. It wasnt the house that was wag this, it was the senate. Thats where these troubles usually start so i just want to clear the record. I will now write it in his budget plan from pennsylvania, the Ranking Member of the commodities Risk Management subcommittee mr. Thompson for his opening remarks. Thank you for holding this important hearing regarding implementation of 2018 farm bill provision in the Disaster Assistance and for providing an update on these important policies. Over the past few years it seems like there isnt a single region of the country that isnt immune from others devastation not only are the producers having to grapple with extreme weather but also bad markets and ever changing landscape for the global trade not to mention the policy and the uncertainty coming out of washington. But only have exacerbated from the farm bill programs despite having numerous policies to implement which we will hear more about today. For the farm safety net that shouldnt be overlooked and do not forget in the conference we were having to negotiate against a senate bill that wouldv woule cut 700 million out of the baseline in the critical programs. It is unconscionable to me people would be advocating for the move off the safety net when the producers are looking for any lifeline available to keep their family farms in business. Im proud weve are able to hold the line and produce a conference report that provides improvements to the title i programs to the benefit of all in the country. To act swiftly to improve the United States etc. And Canada Agreement which make the key improvements to provide 2. 2 billion of additional experts for the producers particularly for the main commodity produced in my district. Beyond the access they are currently in talks with the United States has a wherewithal to follow through in the commitments made which will lead to other opportunities just like what we saw in the agreement with japan. Congress wants to prove and failure to do so will result in the relationships and negotiating partners not just for this administration but all future administrations house while. Thanks again for holding this joint hearing and i look forward to hearing from the undersecretary of the actions taken to aid the farmers and ranchers. I recognize the gentleman from california on the foreign agriculture. Thank you very much mr. Chairman. Its important that the subcommittees meet together this morning with the implementation of the federal Fund Disaster program its fitting and appropriate given the challenges we are facing today and for all of the members that are participating, i think you. I also want to note it was important that chairman peterson clarified the history in the record as it relates to these activities that were most recently involved at the continuing resolution that we need to test this week and we need to obviously have a budget because frankly it is responsiblirresponsible to shutn government. I always felt it was to do just that for political agenda is inappropriate, period. And certainly i think that the president learned that lesson the hard way last year. The history as t cman pointed out is really not known by the majority of members of congress and told us last week. Its important to note because frankly, we shouldnt be politicizing this isnt part of the committee and my sense is that it came from the senate as well but we have to deal with it. What we are dealing with today is where the safety net is and where is the safety net for farmers and ranchers and people across the country. The new Dairy Margin Program that would work so hard on the reauthorization of the last farm bill and the administrations Market Facilitation Program is properly implemented and that is why we have the secretary here today. The signup was set to end tomorrow. I think its important that we give the men and women every opportunity to sign up for this program. We will be asking the secretary where we are in terms of the signup and whether or not the members kind of coincide with the numbers that ive heard. This year given that we have a brandnew program, but at the same time i know youve got the challenge because we have to signup for the 2020 program. So, im sympathetic to the challenge that the department is facing in that instance. That is obviously the intention. I have a difference with the administration and the presiden president. The president has said farmers are better off with Market Facilitation Programs before the trade war. In the dairy market is very important from california and new mexico. But yet when i talk to farmers its not just my history and farmers from california they agreed. That it is important that they have access to markets and that is a concern that i have. And those really dont come close. You get between 16 and 18 to stave off bankruptcy or foreclosure 12 cents per 100 so i dont know what the usda leadership thinks i am interested. And how the Market Facilitation Program was set up. But thank you for joining this hearing with me. You have a farm background and how difficult it is and we appreciate your participation to give a sense of your testimony and where we go with this. And with the subcommittee any remarks they wish to make quick. Thank you mister chairman i have a prepared statement i will submit for the record and have a couple of comments but first and just how critical it is. Because so many other colleagues that dont represent those areas that is significant there is a wide gap that is not uncommon around the countryside either we take it for granted every single day of our lives for xhosa we as republicans and democrats on this committee stick together to promote and educate to persuade other members of congress to understand the gravity of what we are doing with production and agriculture. Clearly country that can feed itself is in the enviable position and i have been around agriculture ive been on the senate staff and i never understood why in addition to Crop Insurance there was a Catastrophic Fund we are not waiting on congress for whatever it may be to have a program in place similar to fema and you have it there when a disaster hit and if you need to come back and supplement that so very clearly as valuable as Crop Insurance is you have economic losses year after year the hurricane of economics that farmers have millions and millions of dollars and then the hurricane hits in Early September and they dont have the opportunity to get anything from that investment and meanwhile due to the hardships over a period of time and then it Takes Congress months to get any kind of disaster aid package and i just think this has been an ageold pro problem you have to have a better solution its very helpful but there are so many times we face when its just not quite enough so thats where we are i look forward to your comments and i look forward to questions and answers and i yelled back. Thank you each of you for the Current Conditions facing agriculture in your state i would like to request Opening Statements be submitted for the record to ensure that there is ample time for questions we like to welcome our witness the undersecretary for farm production and conservation for usda fourthgeneration farmer from iowa serving as iowa secretary of agriculture 2006 through 2018 please begin when you are ready. Thank you. Chairman daily think Ranking Members in congress dissing which members of the committee im honored to be with you this morning to discuss the work usda has accomplished and continues to deliver to implement the 2018 farm bill thank you for your leadership to provide the programs and funding to support the nations hardworking farmers and ranchers in forresters i am privileged to be the undersecretary for f pack the farmer facing agencies of fsa are an a and an rcs since signing the farm bill into law last december 1 of the highest priorities is the Dairy Margin Coverage Program fsa was made famous july 11th and as of last evening we had 21000 and load and rolled with the 230 million being paid to ensure that the producers have enough time enrolled and we are extending the deadline from september 20th through september 27th so the fsa offices have and will make that extra to make sure they are notified of the approaching deadline with postcards and emails and additionally cooperatives have been important partners to Share Program information and deadlines and we will work with them to do so. To implement the 2018 farm bill the signup began for the 2019 program and then to implement key Crop Insurance with the enterprise units to provide Insurance Options for harvesting of wheat to provide coverage for hampton the crop year 2020 on the conservation side with continuous enrollment and fsa is planning as signup in september on septd we publish the announcement of funds availability for the Partnership Program and additionally to implement the agriculture appeasement program with existing regulation new regulations will be published soon for the implementation of those programs in 2020 this past year has tested the resilience of americas farmers Crop Insurance supplemental Disaster Assistance program ensures to help producers for those who were unable to plant crops that had significant delays in planting to increase the delivery with earlier harvest with the filing deadline and providing by deferring interest charges we took these actions based on the comments we received from you in farm organizations and producers there is also a lot of interest in the implementation of the supplemental Disaster Relief bill last week fsa plus program which provides payments to producers for natural disasters occurring in 2018 and 2019 and we began accepting payments but also included in that was payments for milk loss for the peach and blueberry freeze losses in addition for moisture related claims to receive payment between ten and 15 percent of their indemnity. Providing relief through the Conservation Program through the Restoration Program the Emergency Watershed Program which were provided with 5 billion in the Disaster Relief bill. With that Facilitation Program to provide 14. 5 billion in direct payments with us farm goods so july 29th 2 run through december 6 the beginning of this week we had more than 300,000 applications and 4 billion have been paid to producers. February 2018 usda launched the website making it easier for producers to access information we can also access the farm loan and the discovery tool and we began accepting debit card payments online as well. And for Agricultural Producers and then to manage their risks and for the hard work with the 2018 farm bill and other programs thank you for the opportunity to testify this morning and we will help you answer any questions. Members will be recognized in those who were here at the start after that they will be recognized in order of arrival. One of the primary concerns all the programs that we paid for our accurately administered. As well as Excellent Customer Service for farmers and ranchers we are aware you made us comprehensive big investment with optimal efficiency with like Office Leases field Office Staffing is down from 11000 from 2003 what is the target number of employees containing the analysis and what the staffing model has allowed us to do those to fill those areas first. We are targeting every dollar we have from appropriations to use that staffing levels. We should have more than we have is with the model suggests. And of we have the funding to get back to the staffing eight or ten years ago youll be as proficient as we can. Of those for each of those agencies we are working hard to get that closer to 100 percent including those in excess of the farm bill activities that these are important programs to deliver we look at trying to improve the software to make sure that works as easy as we can and to make that dad is easy for producers as well as staff to be able to deliver and certainly some online activities to expect all producers to use our Services Online and then allowing them to have some documents and at the counter as well what is that number its about 10000 for fsa and we are around 9000. Fair enough can you explain the rationale of the Price Loss Coverage and enrollment process cracks as i understand it landowners can go to the fsa county office and make the election for 2019 and 2020 but only enrolled in the 2019 program because of the enrollment in 2020 does not begin until october 7th. Is that the best way to describe the situation . It is. We are taking signups 2019 right now. We will sign up for 2020 in the midst of this. It is october. So we will sign up for both but right now we take the 2019 time that will continue through marc march. I now recognize the chairman of the full committee Mister Peterson for five minutes. Did you say madame . [laughter] one of the things you said you got me concerned you will have Crop Insurance a guess that was ordered in the farm bill . I have been investigating this but i dont see how in the world you will come up with a product. Do you thank you will be able to do this and that the inability to include that that is a policy that includes and in that case we typically work with folks who have a history. And to have that previous revenue there are some looking at that are diving in to the information where they have been growing. As i understand and under the budget for Additional Resources and then to have those additional positions or resources. Those working fsa offices. And today we have 8500. We had more today than 2004. I have people now that have a parttime office. Now spending a day or two because they turn into a parttime office a couple days a week. So this county was a completely agriculture county. We dont have the staffing out there that we need. The weather there is another plan going on to go up to speed on. Were to see how this will work is there a magic bullet quick. There is no magic bullet. To serve all the needs. And it is a challenging process. And where you have Funds Available we will gladly use more folks if there were more dollars. Lots of proposals inside and outside at usda to the president s budget and from what you would work through. And getting as far as we can. And we will do some kind of study of your offices. That is ongoing. To understand what programs are taking the most time and what are seeing an increase in time. And those occurred infrequently and then to really be challenged in those areas to be on top of other programs with the workload of each of these offices with the available people that we have. We have to have more people in these offices for the Facilitation Programs. The workload there is a lot of things we did not happen have before but we were up on the northern border of the Customs Border patrol because of the time in then they close my border on us highway at 10 00 oclock to 4 00 oclock p. M. In the afternoon it were at 4 00 oclock in the afternoon. Its crazy and one of the studies did that. They claim they caused them to make those changes theres nine places in north dakota i dont know. But i was skeptical of all the studies. And recognize the Ranking Member or the full committee. To share concerns over hemp and as an example as i understand it if it is stressed through drought or lack of water that thc levels skyrocket we will distribute the illegal product there is Crop Insurance. And with that farm bill that reallocation of an extra hundred Million Dollars specifically for the farm bill. On the last final days of the effort we worked really hard to get up at 15 million and we fought for additional monies. With respect to that implementation what areas you might need some help the 100 million is beneficial mostly used for software and outreach and in this case to have 15 million we have to use the other resources to do the it work and the staffing. We have other activities we are working on to prioritize the farm bill implementation needed to do the it work for that. So we would reallocate resources to get that done. The farm bill was a priority we pulled away from the things we havent slowed that process down but we had some ideas about what we would do to have those resources for the farm bill. It is a priority to get out and thats the number one activity. But those businesses that have suffered as a result of lack of resources. Thank you chairman peterson. Short of 100 plus that was allocated in 2014. Thank you for your work in the team you have in place. They are incredible lawyers. And then to live next door to them. And then to go above and beyond. So that farmers and ranchers are getting access to these program programs. So please convey our thanks to them for their hard work and continued hard work and i yield back. Will the gentlemen yield quirks i forgot to ask what about the Business Center cracks and as i understand it now they use to hire people locally for now as i understand it they said it to a Business Center and theres one person in dc who has to prove that before it sent back to the countys. I dont think any of us here think its a good idea think anybody should be in a local fsa office. Word you look into that quirks. And the state directors. And with that electronic form that is sent to dc. And that doesnt go back to the county. And those who should be in the local county. I now recognize the Ranking Member of the submit mode subcommittee. My appreciation to all the hard work to all those in usda under your responsibility. And the family farms depend on that. And that frankly that the Committee Makes available with the farm bill. About 80 farmers to short right now where we were in the signup in 2018. We think likely will end up by the end of this week and more signup for this program been needed but as you suggested in the question theres others that have participated in the past and maybe they decided not to participate in this. We are trying to reach out to those to make sure they understand the value of this program. They historically have not participated in making sure that we reach out to them. They have been contacted in their marketing organizations if they are part of an organization so weve worked with them so weve done all that we can continue to do that the next week. Weve seen that bump in the next couple of days but its important to get folks another week to make sure its important for the department to exercise, so i think what youre saying is you are exercising that flexibility, but i think its important. Right now we are announcing today that extension for one week and so from the 20th to the 27th we do have to watch because we do need to have signups start for the Coverage Program for 2020 in the first week of october and we need to be able to get folks completed so that is our intention right now. Each of us have a responsibility as well. The month of august. At the allamerican dairy show one saturday in harrisburg 2400, the secretary joined me to just encourage a product that does work for everyone. On the other crop i have in my district, the hardwoods have been hit with this situation. That is a priority but if anything extends as a second round theyve been at the tip of the spea spear of the losses anr those that have contracts, one of the Simple Solutions is to extend the contracts they may have for another 24 months because they are being forced to harvest. Thank you again, mr. Chairman and as i said in my opening comments i dont believe anyone wins the trade for and whether it is a part of their strategy it has chosen and of course asked any point in time i think that the president is correct that he had been bad actors as it relates to industrial and even when we have one in the World Trade Organization theyve complied. Certainly they can buy more Agricultural Products because they needed them and they have the money but this is part of it. Let me just tell you when we are talking about california specialty crops and 50 billion year industry in california is more or less depended on trade is hitting hard throughout the country especially in californ california, they face now over 50 of the exports to china. They estimate that their industry will lose nearly 100 million annually due to the chinese trade. Meanwhile, california Farmers Combine numbers in Facilitation Program and that doesnt cut it. Weve lost about 30 cents per pound on the market. Nationwide the industry represents more than 2. 3 million in revenue since the trade war began and received about 200 million in the first round. Beyond the losses they are losing market share as i said earlier to the competitors and those relationships are tough to rebuild after we get past this. Thats why i mentioned isnt your job to negotiate the treaty is, the president said he was making cars more than the whole. Do you agree with a second round to make farmers more nimbl thane and are they better off with this than they would be to the succesbeat theaccess of chinasr others . Everybody is working for a better situation not only for the products we were exporting that the products we were struggling to export. Thats where the real game will be. Our Market Facilitation Program was a bridge to get to that. Its certainly hard in the Market Facilitation Program to deliver what a producer lost. But 16 billion, is that the current number in the program . 14. 5 billion. And spread around the sorghum, weeks, important commodities. Wheat, important commodities. The California Industries 50 million, 16 billion across the country and you talk about different states. I mean, i know farmers dont want subsidies. Weve gone through this a lot over the last 24 years with farm programs. They want access to markets, fair trade. With 44 depending on trade and it is the reason that we need to get this agreement completed i think because it is so important to the country as well as the neighbors to the north and the south. So, whats the implementation going to be this next round . We are still getting signup for this participation up until december 6. We have told producers the first 50 of this second round is guaranteed to look and see whether the second and third payments are needed. Its a recognition by the administration how important trade is to agriculture. Its a great reminder and appreciation for the world of trade and why there needs to be an active participation to try to get to that deal is better on the other side. Thank you. I now recognize the Ranking Member. Thank you for being with us today to command the entire team and all of those employees working really hard as well as the others that the usda. They do a lot of very important work and in many cases with limited resources. I want to focus on the Disaster Relief act roughly 3 billion. Those of us in the southeast worked really, really hard including my friend here to my left, mr. Scott on getting this Disaster Relief package across the finish line. What do you expect to pay for the losses, do you have an estimate of what that is going to consume, and then the followup to that, how much of the money do you think is going to be brought into the state if you can talk about your plans and faults on that as well. It is a challenge to estimate what the actual losses were as they did in 2017 as well. It is likely between half a billion and a billion dollars and the losses that occurred in 2018 we know there was some coverage covered by the Crop Insurance but this is too top off some of the losses as well as to try to cover some of the others. The block grants we are still in discussions with the state as they continue to bring forward their thoughts on what the block grants should cover as you all helped find in the disaste disal this us and to top off the existing programs come its designed to cover those things that are not covered in existing disaster programs. We are still in conversations and it will be in the several hundred Million Dollar range but it will depend on what their proposals are and what they continue the losses are and of course the proof is when you go out to the producers and how many have losses that are interested in signing up so they dont have a set number of what the dollar amount will be. Certainly its going to be very important to many of the producers. Followup to that when a producer goes in and files an application, how long do you think it is going to take to turn that around . From the Crop Insurance information last years figure able to completed very quickly in other cases we have producers that havent participated befo before. There will be some of the applications that will be more complex or cover things that have more questions or require more information. Making final changes in software on the payment mechanisms should start pretty soon, and once producer completes the application, it should be certainly within two weeks that they would be able to get a payment for the application and hopefully less then that. Just for your awareness and i dont know that this is widespread, but ive gotten some feedback from producers that when they get to the office, they are told they have absolutely no idea what they are going to be eligible for, and maybe that is just a situation as it relates to a the application process itself, but producers walked out when they dont have any idea. I dont know if that is an education issue inside the offices where the employees have not been brought up to speed on exactly what is entailed in the disaster program, but i have heard about so i just want to make you aware. Many of the places where the program has been implemented is about hurricanes and areas we are very familiar with since we are using criteria in the 2017 program. We are able to get more in touch with some of our employees out there with both inline and the person training we need to make sure that its such when the producer comes in they have interested person across the counter to be able to walk in and answer the application. I now recognize ms. Hayes from connecticut. Thank you for holding this hearing and undersecretary for being here. I represent connecticut and my questions are about the Dairy Farmers we have about 80,000 working but account for about 4,000 jobs, so much smaller than the sum of the other districts weve heard about that is the bs the cause for concern in the community. We had about 120 licensed farmers and as of monday only 66 of those have applied for the very margin coverage, so for the program is guaranteed. I dont know how connecticut specifically compares to what its signup was from a year ago and whether some choose not to participate and groups of producers they chose not to participate in any program at all. I dont know specifically i know we have been reaching out to producers go t both by postcardd emails and phone calls to what the producers know about it. We have another to be able to reach out to vote if there are reasons and if you hear of reason or the producers havent been contacted now and are not aware, we certainly want to be able to make sure that they are aware and understand. This is a Great Program committee is going to be very constructive. Right now we know that they will make money in 2019 because of that but most importantly in the longterm it is a great Risk Management program for a small amount of money for the future a producer can know they have a protective margin in the program so we are seeing about half signup for five years of the program, a little short than half of the producers and certainly many of the folks that have signed up for previous programs are signed up and continue to lose some dairy farms in all parts of the country. So compared to the old ago history, we have less participation then what we have instead of those with historical production in some cases some of them are not able to stay in business and we think we have reached out to all the folks. We have seen it in connecticut that some of them have gone under and are not able to stay in production and i agree this is a Great Program but as i am hearing you talk about ways of outreach, i know in my district specifically in connecticut, broadband is tremendously unreliable so we are using email as a method to communicate. I know on my staff weve done roundtables and ive met with farms. I would have loved to join you to talk with people and to say thisay thisis what is availablei feel people are missing out on the opportunity because they dont know that it exists. If there is anything that members of congress can do to help you because it sounded like when the chair man asked about have you asked for increased staff it didnt sound like a yes, but i think that is something we would all be willing to support, because i know it is life and death for my community that there are people to assist in the process. If theres anything we can do i would love to engage in that process, because i think when we have these large conversations, the farmers feel left behind, and are afraid of what the next step is or where they fall in this conversations was critically important. It covers all communities have no as you know. Many members have done a good job in their own communication of the constituents as well as mentioned that the public events. We will give folks another opportunity to remind them the deadline is a week from tomorrow. We have used public radio, but i communicate with them a lot and i know i send out mailers and people dont really read them. So, just thinking of anything we can do to make sure that the information is shared. I would be glad to continue to do whatever we can to make sure the people hear about it. I will now recognize mr. Scott. Thank you mr. Chairman. I suppose my friend and colleague had more from 2018 and i did and i believe in second with a 435 members of the house with regards to the losses. We know the old saying the bigger you are the harder you fall. We recognize that is the case and agriculture. The payment was reduced from 900,000 to 250,000 for the storms that was. Can you tell me why that reduction was made just recently . Certainly in discussions both internal across the government. We dont know the further losses might be for the members knowledge and now that the storms are going to be paid in the 3 billiondollar amount that was allocated in 2018 can you tell me how much you estimate the losses to be. Other crop losses from insurance we see a few payments going there. Most of the payments will go to hurricane areas. It is appropriated for the storms of 18 and 19 they gave an estimate on november 29 of 2018 of the total losses for 2018 to date. From 2018 since november 29, 2018. I am not. When i had the breakdown by the commodity group, they said that the loss was 260 million then it was 111,000,148,000,000 on the loss. According to our institutions the university of georgia the landgrant institutions and economists coming with 260 million in that spot, we show it as 550 million. You show 70 million w alicia wit is 260 million. We have provided this information to the usda and asked for updated estimates on what the losses are. My concern is when we went, when we were arguing for the 3 billion for the storms we had these institutions, georgia, florida, North Carolina and we could end it the usda to move off of the 1 billiondollar request. We effectively forced it will to the 3 billion coming into the state almost a year later, they havent received any payments you from the storm as you know. Not your fault at all, but i dont understand why the estimates haven of intimidatedm november of last year when we know that they are not accurate. And i think that the 3 billion will end up falling very short of what the actual losses were. Im talking about the uninsured losses for the 2018 crop year and now we are talking 2019 wife up at the same time we have 1. 5 billion sitting over there in a lockbox that cant be touched. So, any help from the administration and moving that money into whatever we do in a continuing resolutiothecontinuir appropriations process so that it can be used for the 18 and 19 storms is money that has already been appropriated. Im very concerned. I appreciate you and your experience and i am concerned with the economists estimate. Im concerned and i would suggest this cannot take a year or next time somebody goes through a storm the way the state of georgia did. My people wouldnt be farming today but for the loan program through the charge of development authority, the state legislature into special session and then the state legislature came back in and put more money into the shirt not have had to do that, but for them my people wouldnt be farming today. Thank you, sir. I now recognize mr. Cox from california. Your question regarding the program and did you know that its not eligible for the traditional bowl safety programs in one of the provisions with many california Cotton Producers is the extra competitors program. Just like the majority of the farmers and ranchers in my district, Cotton Producers are being hardened by the trade war with china resulting in lost market. We need those Program Updates as soon as possible. I appreciate that. With those conversations of those activities at omb and the actual proposals but we continue to evaluate other varieties within that formula that would look at the impact of the support for the program. Anything that we can do and that those that should have adjustments to the point of view with organic dairy farms without any. We have reach out to all sorts of trade groups certainly we can get information but the associations have been involved as well and the marketers have been involved to reach out and recognize that they qualify for that program as well. So we get information about what has gone out not personally as familiar with those outreach efforts. Thank you mister chairman and mister undersecretary that Market Facilitation Program so those in southern minnesota as to why the people in my district are receiving 60 or 70 where in other parts of the country could be upwards of 150 an acre with those zip codes and counties different numbers for the same crops can you help us with that and the calculations quick. The formula that was figured out the criteria for the market not incentivize growing of one crop for another for whatever a producer was planting to get the same payment rate we had to look at what those payment rate would be and how those were impacted some are being impacted to the trade tariff and in some cases export to china where we had some issues. So obviously in the first round you see a difference between corn and soybeans, and is one that is impacted greatly others too are a greater degrees so that final payment and the impact on the value of those crops based on the loss of the market of historical nontariff barriers as well. The chief economist look back through the years as well. The difference is there are some places mix in that county have a higher impact per acre than others. I appreciate you pointing that out i know you said these subjects dont necessarily directly impact you but to go back to the secretary what has been going on in farm country for five or six years its tough and it has a cumulative effect has been some good things done and people miss that that the administration with a High Cost Energy and that independence is important the tax reform bill obama care and the Affordable Care act we need to do better there and get that down that they understand china is cheating and we have to do something that we are working on it and everybody elses commitment to that and we will resolve that for the whole country. Second with the biofuels you have to keep working the area will be making announcements in the future but with that program to be implemented that they would reinterpret the statutes and its critically important for the farmers in southern minnesota. That this is a price that you stay on. Obviously demand for soybeans would be down and you cannot have that here. And then to keep it out of the United States but that would be devastating to the farmers and i appreciate your attention to that. Thank you chairman. When secretary perdue told us with the second round of trade payments but obviously we are in the midst of a second round of selling. So from what you hear from the people you are going to have to be ready but is it necessary were back to a better environment that right now we make these payments now for producers i did not believe there was a likelihood it sounded to me that we were very close an agreement and that would be preferable for everybody when that could not be reached to stand up for the producers. There are significant differences between the 2018 and 2019 edition. Most notable how they are calculated is based on actual production last year but this is on a per acre basis can you offer that rationale of why that was done quick. In 2018 that Facilitation Program going on to harvest that they could bring that information into the fsa office to provide that information as you look at 2019 and not even so we needed between the two crops looking at what the market asked for. That could have been different from the first time around if they instituted that in 2019. And then to provide that continuity and that predictability that there was support for those impacted behind the trade situation. That is why we went to the acre payment in 2191 of the criteria was to make a straightforward for a producer to come up with the information they needed to comply to make it a straightforward as possible to deliver it to the work that was being done in our offices. Even though they were delivered differently. You believe by using that combination it is a challenge what Market Impact disruptions and then to analyze that and get the information back with those disagreements if that was enough but i think we did that to deliver at the way that we did what to do that as a commodity payment. Spirit to create a situation in with the fruit and vegetable growlers on growers we have to open the purchase of their products is large enough to move the whole market. Can you share why those commodities receive msp payments while others receive purchases. Looking at the commodities impacted some of them we could replenish that demand and having them offered through food banks to create additional customers in the future and other commodities that was impossible we couldnt do that if it was dairy or pork but we also needed to make direct payments and with a larger commodity with corn oil or are soybeans. It made sense to use the purchases wherever it could make sense to offer that hopefully creating additional customers and provide direct payments to those who are not able to provide purchases. Thank you mister chairman. Thank you for being here today we have already heard of the situation in georgia as a disaster and the crops with the hurricane and the losses from infrastructure and the community is devastated. It took a long time but now we have a Disaster Relief package and through this process i continue to hear from my constituents not only for immediate disaster but the problems they experienced when signing up for the previous program. What has fsa done to ensure the new program is implemented effectively through the local fsa offices x spirit we make sure the staff is well trained with the it improvements the way it operates link directly to the program mechanism that allows a little more efficiency. It is a challenge for producers and thats the way the program was designed we will pay based on the relative loss. Can you decide relative. Are you balancing the loss. We take each individual operation. We dont take a regional los loss, but then we take into account the Crop Insurance payment as well. Then we have a formula to have a higher amount of insurance and Crop Insurance but never more than what it would have been. Even with these payments it would be better especially those had a really good crop coming they will only be insured and only compare against the normal crop. And you did come with the software to be readily availabl available. Its out there now weve seen some applications back wed like to hear about that but we had it available. And the separations making those payments over the next few weeks. In addition to the plus program i worked tirelessly for the blueberry growers who suffer losses over the freeze , when do you think the provision with that Disaster Relief package for the previous 2017 cracks when will growers expect to see how this is distributed quick. That started last week as well i assume we are producers as soon as they are aware of that with the 2017 program the payment limits thats already available and then to sign that right now. Speaking of the trade situation with secretary perdue came to his first hearing i said then before we ever got into trade negotiations what will we do about Commodity Prices . He said we have bad trade deals. I dont know what the answer is. Obviously people have been impacted but the reason we have terrible trade deals we have an election in people who are in Public Service dont want to take the risk to try to fix these things. So this president is taking it on and just pray we can get a quick resolution and have a fair and free trade. The chair will recognize the gentle ladies. Thank you thank you for this joint hearing thank you for secretary northey to be here its great to see you. As a fellow i am when you know as well as i do how devastating severe flooding can be in the recovery process. Southwest iowa is covering from the massive flooding from this spring from my district that was completely underwater and estimated in billions of dollars of damages and agricultural losses throughout iowa. In fact western iowa is experiencing another round of flooding and speaking with minute Emergency Management coordinators but to have the urgency of all we are talking about today traveling the district in working on this together what i was impressed with was the resiliency of iowans. We didnt wait for the government to do when it will to come in and do the job. They had a long road to Recovery Church congregations were putting out meals and those for the cattle to graze. So we need to ensure the federal government does its job i heard from a lot of iowans they didnt know what resources are out there and the deadlines but i invited a producer to testify before a subcommittee hearing with that necessary information and resources throughout the Flood Recovery process so the president was quick to declare a disaster emergency however its very clear we need to do a better job to provide a streamlined process of procedures that can go into effect immediately following a disaster we have talked about this issue. Hoping that the usda can help us with so under secretary northey you have experience with Flood Recovery in iowa during the flood of 2008 and 2011 we Work Together when i was part of the sustainability tax one task force. Do you agree its important for the usda to have prompt communications at those that are affected by flooding quick. I certainly do. Often they are busy doing other things even communication tools are down internet or phones or other things with the checklist to communicate we have to be more aggressive to let them have easy access to information. What steps have you taken to improve communications . Extra outreach and training for staff in a disaster situation. Sometimes in that area dealing with emergency Conservation Programs to help clean up after a flood or debris or to rebuild the fence but those that have not been experienced with that to come in from other areas and that outreach of Community Organizations to sustain that outreach but through Extension Agents and cooperatives and other Business Partners to reach out and to provide it when we held that disaster in the Infrastructure Support Program that is unique we need people with experience of possible. And you and i talked about communication and then talk about male was being sent to them but that doesnt work out when because the cattlemen stepped in and farm bureau. It with ways to streamline the process between usda and folks on the ground we are all sympathetic to those challenges subject to the Mississippi River hardhit those communities. Secretary is great to have you back to the committee at usda we applaud secretary perdue and the team they put together. We appreciate your good work and friendship i dont need to tell you and it has been mentioned several times today the flooding conditions with the season that we had in western kentucky very small counties in the Geographic Area one had over 8000 acres that didnt get planted with anything. And in many areas of the United States along the river that happened. Because of the terrible planting season, no doubt yields will suffer as large amount of acres were not planted. When the august Crop Production report came out to be surprised at the reports that were projected and as a result it went down quite a bit overnight. , farmers and Grain Elevators in response to a sudden change in price quick. It is a big challenge and what those production levels will be we know the season is uneven with production across the country and with 19 million acres across the country as time has worked out that was one of the concerns that folks had and generally that fairly represents the actual amount there was still a lot of discussion with the production levels should be and im not in the production prediction business we are there to respond after that. But Risk Management tools Crop Insurance is one of the most important to participate and it has been very valuable with high levels. And as you know you the first state to implement a program is a huge Success Story we have processors all over the state and we were very happy about that as we move forward to put language in congress to require usda to have him Crop Insurance and i share sherman petersons concerns about what that type of Crop Insurance would look like. And i just wanted to mention two things. And ive had several discussions but i want to go on the record with two things that i hope the final product looks like. But number one i dont want a product that creates apsley no risk for the farmers absolutely no risk for the farmers that the chairman and the Ranking Member have as do i. And a product that is ripe for fraud and i have always said the best federal Crop Insurance one that prevents fraud you can only assure what you have a contract to sell whether thats tobacco or hemp but there are always a few bad actors. And those of 30 or 40 acres of him but they plant 200 thats a very expensive crop. I know what youre doing on Industrial Hemp that is a lot. And thats what you are going through now. But anything that i could do with that final product we are more than willing to do that and i can appreciate the work you are doing and i want to express my concerns. Your concerns are recognized to make that gentle man from california that represents the Central Coast. Thank you mister chairman thank you very much for being here. We appreciate that only your time but also your service. As you heard i come from the Central Coast of california we have a lot of agriculture but we also have wildfires as well. Last year the california delegation and i joined with my colleagues to send a letter to the appropriators requesting to have assistance for growers and producers that were tainted by wildfire smoke and ive got to say i was pleased to hear this year of the reports is getting off to a pretty good start i know my wine Grape Growers in florida that were affected by last years wildfires and were pleased with how it has been going but as we continue to rollout the fsa offices and continue to do that for you and your agency taking any specific steps that are impacted by the what they might be eligible for quick. I do believe there is outreach certainly we can make sure that is true i would be glad to work with you whether the wineries or others. We want to make sure it has not been covered that there is coverage for that. We will take you up on the offer. Another thing that we have in california that a lot of producers in my district face barriers utilizing the Crop Insurance option including the non crop disaster Insurance Program so in an one in participation limited to access Disaster Relief are there any steps taken by your agency to make sure it is more accessible to organic and specialty crop producers quick. We sees him good participation there is not a Crop Insurance product and we see good participation in the specialty crop areas and the whole farm revenue protection is a great option for many of those with a diversified mix of crops to individually account for but they can account for the revenue across that mix so we see participation. And then to encourage folks always looking at ways to be better tools but are a very important mix of products for those that are not producing common commodities. Understood. In regard to that are you implementing any sort of educational requirements or training to make sure they understand exactly how this works quick. Certainly our staff is available to share information about something completely different our staff would share information of course this is delivered through Crop Insurance those are very active in the outreach. They will service and make the connection. It was delivered through the fsa office and county executive directors or others participate in those conversations to outreach field days and other kinds of things. I yield back. The gentle man from kansas. Spring thank you chairman and thank you for being here today. I just want to talk about high quality of health and the Dairy Margin Program. Know anything about farming it is alfalfa. My main job was hauling hay and i always did not look forward to the fl for days. If i remember complaining to my grandfather about the weight he said we grow high quality of alpha and those mama cows that are pregnant will love the high quality protein they are getting is like molasses to them. Thats what got them to the hard winter days in kansas. As i understand it working on this new Dairy Margin Program and the price is a little more expensive how we integrate that information to help have a more accurate. With small squares of alfalfa hay ours would be quality not dairy quality i do know the wonderful smell of alfalfa in the summer. As the farm bill suggeste suggested, the price of dairy of high quality hay and compare that to the price we were using in the margin coverage formula from before everyone is very familiar. So you have the margin is what we are ensuring with the cost of feed to use dairy hay or highquality hay is higher than that is narrower to trigger a payment. We did, after looking at that to see additional cost, we included in the hay portion 50 percent all hay price. That is narrowed the margin a little bit with a fair representation of what a Dairy Producer has seen and that makes it an even better tool we have seen where that premium quality hay will jump in price because of a shortage it was not covered before but of that compensation for those producers that is an improvement. I appreciate your effort and just what my fsa officers are doing they dont complain as much as others but im not getting many complaints and a shout out to other fsa officers who interact with these people once a year they are doing an incredible job and with the Market Program 30000 and applications so i appreciate the great work they are doing it one of the things i asked questions about is that between Risk Management agency and the Foreign Service and that data to be shared across agencies. Can you give an update to streamline the initiative and why that might be available to producers quick. That air able to certify and then to go to the insurance agent. Its not where it needs to be in the longer term. And better in electronic form makes the process but also potentially a number of contexts of fsa making small steps in the meantime and then to make some bigger steps. And then that has to do with the Indemnity Program on farm storage commodities im also hearing about the irrigation pivots underwater. At a cost of several hundred thousand dollars. But within the disaster programs. And what producer had stored that commodity whether hay or green will cover 75 percent of the loss of that. There are some pieces that then we have some cases but mostly dad is covered casually. Your time is expired the chair will recognize the gentleman from south dakota. Thank you mister chairman. I would be remiss talking about time and time again that you were so good to have conversations with us earlier in the spring about moving that grazing day i could tell it took some work to get it done because there are a lot of us who are a lot better off with that flexibility with that leadership that you showed. The last general signup and from that perspective we only got that from thousands of applicants. And then to push acres away from traditional areas. I want to get your thoughts of amendments or evolution with this piece of advice as they look toward the next cycle. We are scheduled for december for the next signup one of the additional challenges those that could be accepted a number of acres available will likely see a lot more acres available and then for signup in december with october 2023 will see a lot larger sign and certainly more room for many producers and that will be available to everybody. The next one will look like this last one so i dont know the specifics so glad to see if there are additional concerns with the environmental benefits would be available publicly then to decide. Also you talk about that being the same or fundamental because it has just been a record south dakota got another eight or 10 inches last week they cannot buy a break but they know they have that continuously what ground is there any type of preference given quick. There is not a preference per se to look back to see the previous years but that would qualify especially for wetland. Through the floodplains Emergency Watershed Program and wetland reserve programs as well. Sometimes connected definitely and also other ways. Would encourage folks to look at the fsa. If they have an area they have lost too too much area over several years. Or if it cost them too much to farm and those for Public Benefit to retain ownership. We will close by noting somebody in this position who really understands what its like to have dirty hands and figure out how you run an operation with those type margins. You are doing a good job. You get it. The gentleman from south dakota some of us still actively farm i appreciate that. The last witness that we will close the hearing following his five minutes is the gentleman from california. Thank you chairman i appreciate it. Thank you for having this hearing today. I appreciate you being here the good work you are doing. We grow a lot of almonds we say it differently. [laughter] but we still have that undistributed fund from last fall there were 63 million set aside by usda for allmond producers 25000 but 28 have not been issued for various reasons some have to do with a particular farm workers that had not been kept. And that there is a remedy for that. But that still on dispersed 38 million that have crept up and those projections of 21 2018. There are reasons that folks did not participate in that program. But certainly those dollars are available to do that. We just encourage them to participate certainly it is easier for some producers. And certainly look forward to having them participate in this years program. If we apply the acre test 22018 to those who do not have for some of that that was left behind. We have no mechanism to go back and we are not looking back to change. It was a challenge to implement the program for producers. Be was still encourage them to. The signup for 2018 has closed. 2018 is open but in particular that producers may not receive a payment until november or december even though the year ends in july, especially since the cash flow can be an issue for us. I dont know when this information is available but to make with the production and the marketing years average price. And we can check and work through that to get that information to you, but im assuming that timing is as early as it can be considering when we are able to get that informatio information. If it can be earlier we would love to do it and i assume thats why its that way but i dont know spirit typically it will end in early to mid fall with those production amounts. So it would seem that taken in context we are looking for ways to speed up the timeline with all that. We can look at it is the marketing year following production so just like the corn and soybean payments in october is based on the prices from last harvest. Its the entire crop but im leslie of the mechanics. The gentleman time is expired please get back to the committee as well. I think we have come to a close but before we adjourn would you like to make any Closing Remarks quick. Thank you for this hearing i appreciate how these came together very timely secretary thank you we work really hard on this committee and i think that is evidenced by the program to be authorized so to have someone with your background with your competency so thank you for what you have done. I know i speak for the congressman with those efforts to bring those committees together and for our staff to work hard as well will recognize her closing comments also thank you for being here we appreciate the work that you do and appreciate the implementation of tester one disaster Resistance Program this is a very fragile time and very precarious particularly those that have been forced to endure multiple natural disasters like Hurricane Matthew in 2016 and low Commodity Prices. Is been one of the most challenging and specifically for those that have been hit hard by those natural disasters so we appreciate your time and attention and we work with you to address those needs and i yelled back. Secretary we appreciate the time you spent with both subcommittees and the testimony you have answered clearly follow up with both subcommittees with secretary perdue as was noted by almost every member there are tough times. And regionally you look across the country from a combination of natural disasters that have taken place with almost every region of the country to Commodity Prices that have been impacted by a lot of factors including the trade war taking place. American farmers and ranchers are trying to survive and clearly everywhere i go it is a National Security item while to take for granted nobody does it better than the American Farmer every day putting food on americas dinner table with the most costeffective price in the world. And we do that so well more than we can consume but the fact of the matter is we must remind ourselves less than 5 percent of the nations population with food and fiber it is a critical issue for all americans we must do everything we can to ensure that all america agriculture can make it through these difficult times because nobody does it better than the American Farmer. So i will close this hearing. The record will remain open for ten calendar days for additional material and supplemental materials. At this point we are adjourned to. Thank you. [inaudible conversations] the