Ready well. In terms of the intensity of the drought, remember 1988 that came out with no corn and all things considered, we took 4 billion bushels off of our corn crop estimate by the end, but that was about the size of the 1988 crop. To me, because of no till practices and a lot of that helped by biotech varieties and because those developments and seed varieties and were able to get a better crop than i wouldve had otherwise. For senator stabenow, you just answered your question about livestock problems. Id like to continue if you could discuss problems for the renewable fuel industry raised by the lesson production, higher prices, et cetera you see ahead for that. I think that clearly this past year because of corn prices weve seen reductions in margins economic producers. If you look at the weekly levels of ethanol Production Company took a big tip and has been remaining buffalo that cabs under the renewable fuel standard for conventional fuels. We have revised estimates downward to 4. 5 billion bushels. We anticipate they will remain while over the course of the next year. The other major thing with renewable fuel standard of course is the socalled wall refers to how much ethanol can be put into the gasoline supply. Because of declining fuel consumption, improve fuel efficiency, other factors, that is good ethanol as well. I think the main thing driving a over the past year or so has been higher corn prices. The real challenge to the industry. My last question if i could use, you know, just 1 or 2 , and its not as much understanding of agriculture and you always read about food prices going not. Speak to me as best you can with direct correlation there is between Consumer Prices and problems of drought in which causes the price to go up . I get this all the time because people often talk about Commodity Prices as food prices. Youre a very long way away from a plate of food that you might purchase. Most of that, for some products obviously the difference between a farm level price and the retail price is closer. For things like corn, you look at what goes into an animal that then gets process and sold as meat to consumers. If you look at the retail food dollar we spend, thats about 14 cents. They are small impacts on agriculture is not to say they arent significant. If you look at 2007, 2008, the most recent period 2011, 2012, and my testimony surcharge on that with the monthly inflation rates looking at the year before to the change from december 2012 b. C. 2011. You can see weve come down to a low level of inflation. The most recent levels reported its about 1. 3 and thats well below what we saw of the last 20 years. Back in 2007, two dozen eight, we will see increased due to the current food prices forecasting food inflation around 3 to 4 . A far cry from the 40 increases in Commodity Prices we saw this summer. In closing, let me give you an admonition from economists in the department of agriculture, dont let people get away with saying that 40 of corn crop grocer at the mall when considering one third of the bushel of corn Still Available for animal feed, which bring that down to 20 to 25 to choose for ethanol. Youre absolutely right. The byproducts from ethanol production have become essential portion of the diet of a number of these livestock groups. Thanks. Thank you, madam chairman. Youre welcome. Thank you, madam chair. To mr. Glauber. I apologize i had to go to the hearing. You mentioned the debt to asset ratio for those of Crop Insurance. Do you have any idea what the tattoo data ratio is not available . Actually the debt to asset ratio i mention was for the entire u. S. Farm sector. As i said earlier, you have to be careful of the aggregate. Let me see if we can coax out of the numbers and i can go back and see if we can get a breakout for those numbers and get back to you. Obviously this year theres no question if you are a field crop producer with high rebels, a revenue product of Crop Insurance is a big news and help you maintain, you know, ive set lassies. Thank you. And to dr. Pulwarty, imagine the collaboration between 79 and usda to better handle drought and drought situation. Are there any other tools you can think of that would help us in minimizing the impact of these drought . Thank you for the question. Theres several practices that are there, people that have been doing for a long time. Thats why theyre still there. From the standpoint of an understanding, theres a lot that can be learned from this event are going through that can help us save up longerterm risks. I think other mentioned knowing the facts things we put into place up front for a long time, weve learned you can save 3 to 4 in the longterm. If you are effectively at observation, satellitebased operations aware there might be a risk to crop, but fans might be followed to the price of the water can be used by the firemen are for other purposes as an avenue we first two, simply because of looking at the price find, a higher price for the water, will also be able to sell what he or she can. From that standpoint, we projects in the state of california and what areas might be likely to be followed during a drought such that up front one can be theres an amount of water that can be sold somewhere else. There is quite a debt of Early Warning information at least make them as decisions and if i can be clear about it, the idea of having better improved monitoring is really the missing piece court made it across all of our agencies. We have good pieces of data, but coordinating what we know about is extremely critical. From that standpoint, we can also point to the idea said shes heard today unlucky not where where we have programs as to how to affect the late design programs for extended drought. We are really good at the onset. But as is mentioned when you get to places like texas, when we get into deep throat and purchasing feed, all of a sudden we work closely with the state and others on what is the likelihood of meeting the specials. So from our standpoint, training out of the thresholds make decisions are and how best to provide information from an economic standpoint to secure the investment. As the last statement, that is the basis for the western Governors Association to learning from how they look or to place investment over the long term. Thank you to both of you for a very important discussion about challenges facing forward. We look forward to working with you. This would conclude our first panel. We ask our second panel to come forward. Thank you. [inaudible conversations] [inaudible conversations] well, good morning again. We are so pleased to have this panel with us. I know as others have been here in the past understand the multiple commitments that members are trying to be able to meet this morning. Cloning might be good for the Committee Structure here. Senator cochran had to step back to the appropriations meeting, but its interesting others will be coming and going as well. We so appreciate all of you being here. We will introduce all of our witnesses and then ask you each to speak for five minutes am i welcome any other written testimony you have. I am first going to turn in my senator baucus to introduce the distinguished first mls, leon lasalle. Thank you, madam chairwoman. Its an honor for me to introduce leon. Leon is a native american rancher, the real deal. Several generations is a grandfather in Chippewa Creek reservation in montana. Weve got seven reservations in montana and one of the reservation by the tribal members. Around the mountains between montana. Had a real stand out as landmark in our state. Leon was featured in the book. The book was called the escape routes for the montana cowboy. He said that he thinks there is a growing disconnect between the general public. The same thing is true in washington d. C. The disconnect between the people here are the people that represent the rest of the country. Maybe you can help connect. Were really honored to have you here. The state of montana into industry. Thank you very much. s thank you, senator baucus. This has given us a similar keep it here in a place of honor and look forward to having a chance to look at it as well. Nobody fights for Montana Agriculture than senator baucus. Thank you. Im going to turn to senator donnelly and ask them to introduce a second witness. Thank you, madam chair. Ranking member stabenow another says the committee, and looking forward working together to address issues facing our nations farmers. We are fortunate today to have with us, Angie Steinbach are. The hoosier corn from tel aviv county to share her divine Conservation Park says, Crop Insurance and Risk Management techniques critical to operating the firemen the 21st century. As the folks testified today in a Clear Company to find the appropriate balance between Disaster Assistance programs. As angela tae yoo, lesters growing season was extraordinarily challenging. We had a very, very significant trout situation in indiana. Angie and her family feasted on their farm and shes going to share some of that with this today. Angie and her husband had dreamed to firemen through their hard work, dedication to administer cooperation to 1500 acres. She and her has been a great example to us here in the committee. We are to those glaubers to roll up our sleeves and to get a farm bill as soon as possible as well, madam chairwoman. Thank you very much. We are pleased to have you and i want to now introduce from michigan and, jeff send a lifelong cherry farmer. Hes given us chocolate covered cherries that will not remain in the committee longer than the end of this day. Ill be gone. So thank you very much for bringing that. A lifelong cherry farmer who grew up working on his grandfathers 40 acres. He and his wife have now expanded that to 800 acres. Also operating a receiving station for over 35 years to 35 growers bringing cherries to the station. He is currently vice chairman of the Marketing Institute or the direct heirs and vicechairman of the National Cherry growers and industry foundation. For so pleased to have your today. Last is simply least, mr. Steffen was introduced earlier by senator johanns. He is president and coowner of the production operation, which amounts to 135 cows come by racist cops on 1900 acres and has six fulltime employees. He currently sits on the president s Advisory Board of his Alma Mater University of nebraska and Services President elect of the builders and formerly Richardson County farm bureau, so we welcome each of you and will ask mr. La salle to begin his testimony. Thank you, chairwoman stabenow, montana senator baucus for this opportunity to share it or insist regarding the life Disaster Programs. Writing is leon lasalle and im a native american rancher approximately 100 miles northeast of montana. And president of the fall ranch inc. , including my wife shannon, my parents, jenny and my Brother Robert w. And his wife susie. Together we raised black angus cattle in the reservation. I Service Board of director for the montana Stockholders Association president of the cattlemens association. My maternal grandfather and his sons were among the first resident to become cattle ranchers and today is in the past the manager ranching operation for generations in mind. Weve installed numerous conservation practices specifically designed to preserve and protect natural resources. Even though weve implemented conservation measures come into his times in my family ranch has been struck so hard by weatherrelated disasters that we cite assistance. The better life Disaster Program has been that assistance. We participate in the federal Disaster Programs since the mid1980s. One thing listening to Congress Passed legislation for these programs to proceed. That changed in the 2008 find out where for the first time i disaster was included. In a series of these programs to offset the financial sting of a drought or blizzard archive years. Ive known this is especially true for native american ranchers common Deceit Program is a great example of a program that helped feed was shorter. In drought years and theres little or no hay to feed livestock, ranchers like a must purchase a premium, sometimes by the time they hay reaches range rate is more than the cost of pay itself. Our families used Emergency Livestock Assistance Program in 2008 when i rants qualified for payment to purchase replacement hay. We currently have Livestock Indemnity Program application pending, a loss resulting from a blizzard for 2010, 2011. These programs provide the only financially but available in a ranch was faced with loss of livestock to feed them. There is no insurance for catastrophic livestock losses such as those experienced by southeastern montana ranchers during the horrific wildfires in 2012. I have help neighbors prepare applications and on one occasion participated as a thirdparty witness. But several fell through the ice and ground was trying to shelter themselves from a stinging montana blizzard. While the programs are welcome relief company, frustration. Producers like me do not work with that they say in and the fsa offices and unfamiliar experience with unfamiliar rules. For example, a ranch family offered 150 tons of hay and lightning struck the haystack. Application was denied because the rancher that purchase Crop Insurance on a small field of hay barley. To report a loss within 30 days this time. Needs to be extended. Losses may have not even been assessed in 30 days. When the disasters occurring, seldom has the to and 90 document losses. Im currently struggling to keep my cats are freezing to death. I will count them later. I believe programs should be continuous programs that have a stability to benefit both livestock reducer have to say. Many problems we have stemmed from processes documentation requirement and the feeling of livestock producers to gather data required. Program consistency would help with this. Mother nature flows a variety of event in the path of a rancher. Whether is uncertain and severe wifi markets are vulnerable to the effects of drought as well. Journalist reduce the number of cattle available and processing facilities have closed as a result, the suspect enterprise. If markets are not the issue, many of my ranchers are challenged by the creditor losses. In summary, i suggest the following changes. One, the crisis then for japanese to be revised. Two, the whole Crop Insurance is to be chopped from my sick eligibility criteria. Three, Program State to be handled differently from other programs and in most cases are working with an entirely different crowd than those historically served by fsa. Four, streamlined process encouraging Program Participation would be a welcome change. Five, consistency. The Program Needs to be permanent. And six, the 30 day reporting deadline needs to be extended. In closing, and what you want to know i am proud my family and native American Heritage and equally proud to be a montana rancher working everyday to deliver safe, healthy, environmentally wholesome beef to your families and families throughout the world. Thank you. Thank you very much. Mrs. Steinbarger. Affected thank you, chairman stabenow and donnelly for that nice introduction and Committee Members for allowing me the opportunity to comment. My husband and i began the family farm in 1989 after the last big weather event of 1988, which is the drought thanks to the ability to manage financial risk and income corn and soybeans in the state. We find her association such as the Indiana Soybean Alliance invaluable to success of our operation. The Indiana Soybean Alliance is an arm of the americans they been association, he traded organization that represents 600,000 soybean farmers on a national and International Policy issue. Its always been our dream to farm. My husband and i both knew the only way to make our dreams a reality port to save pennies and more crossing times. And hope one day my father give us the opportunity to participate in the farming operation. Mike worked in the book milk transfer business collaborative fertilizer, chemicals and Crop Insurance businesses. The dreaded 1988 took it on my father for no Crop Insurance and no crop letters to the ability to participate in the family farms. Restarter fairman 600 acres and increase the operation of 1500 acres. Roughly one half furnisher arrangement with our landlords. They continue to work as it is still not selfsupporting. Thanks so the milk truck to buy a school bus and i continue to work in the Crop Insurance and do farm recordkeeping. To manage me started farming operation with tillage techniques can be used in such programs of cost share funding. To this day, we still abdicate affirming as a way to preserve our foil and my share as a result of affairs, average joe 750 bushels of corn. For me as very risky wisher prayer for the worstcase scenario. We did not anticipate the drought on the planet at 2012 crop. The crop is timely and appeared on 35 acres of really sandy soil in hopes of raising 200bushel corn per acre and have it in 170 bushels on are not irrigat