To amend the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to provide emergency loans to poultry producers to rebuild chicken houses destroyed... (Introduced in the Senate)

S 2039 IS

106th CONGRESS

2d Session

S. 2039

To amend the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to provide emergency loans to poultry producers to rebuild chicken houses destroyed by disasters.

IN THE SENATE OF THE UNITED STATES

February 8, 2000

Mr. HUTCHINSON introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to provide emergency loans to poultry producers to rebuild chicken houses destroyed by disasters.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EMERGENCY LOANS FOR POULTRY FARMERS.

Section 321(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(b)) is amended by adding at the end the following:

`(3) LOANS TO POULTRY FARMERS-

`(A) INABILITY TO OBTAIN INSURANCE-

`(i) IN GENERAL- Notwithstanding any other provision of this subtitle, the Secretary may make a loan to a poultry farmer under this subtitle to cover the loss of a chicken house for which the farmer did not have hazard insurance at the time of the loss, if the farmer--

`(I) applied for, but was unable, to obtain hazard insurance for the chicken house;

`(II) uses the loan to rebuild the chicken house in accordance with industry standards in effect on the date the farmer submits an application for the loan (referred to in this paragraph as `current industry standards');

`(III) obtains, for the term of the loan, hazard insurance for the full market value of the chicken house; and

`(IV) meets the other requirements for the loan under this subtitle, other than (if the Secretary finds that the applicant's farming operations have been substantially affected by a major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)) the requirement that an applicant not be able to obtain sufficient credit elsewhere.

`(ii) AMOUNT- The amount of a loan made to a poultry farmer under clause (i) shall be an amount that will allow the farmer to rebuild the chicken house in accordance with current industry standards.

`(B) LOANS TO COMPLY WITH CURRENT INDUSTRY STANDARDS-

`(I) the amount of the hazard insurance is less than the cost of rebuilding the chicken house in accordance with current industry standards;

`(II) the farmer uses the loan to rebuild the chicken house in accordance with current industry standards;

`(III) the farmer obtains, for the term of the loan, hazard insurance for the full market value of the chicken house; and

`(IV) the farmer meets the other requirements for the loan under this subtitle, other than (if the Secretary finds that the applicant's farming operations have been substantially affected by a major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)) the requirement that an applicant not be able to obtain sufficient credit elsewhere.

`(ii) AMOUNT- The amount of a loan made to a poultry farmer under clause (i) shall be the difference between--

`(I) the amount of the hazard insurance obtained by the farmer; and

`(II) the cost of rebuilding the chicken house in accordance with current industry standards.'.