LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 16, 1999
  
  
          TO:  Honorable Bill Ratliff, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB706 by Ogden ( relating to providing disaster relief to
               agriculture;
               providing penalties), As Introduced
  
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*  The bill would have a significant negative fiscal impact on general   *
*  revenue in the event of an agricultural disaster.                     *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  

Fiscal Analysis

The bill would create an agricultural disaster relief program to provide
reimbursement of an eligible person's feed, seed, seedling and fertilizer
costs incurred in the year following a federal disaster declaration.

A person engaged in agriculture as a commercial endeavor would be
eligible to receive reimbursement if they suffer uninsurable economic
loss and do not receive federal relief funds to address the loss.

Methodology

According to a United States Department of Agriculture 1997 Census of
Agriculture, Texas had 194,301 farms of which 23,167 farms were 1,000
acres or more.

If 1,000 farmers and ranchers were eligible for reimbursement at the
maximum $15,000 per individual, there would be a cost of $15,000,000 to
the General Revenue fund.  If 10,000 farmers and ranchers were eligible,
the cost to general revenue would be $150,000,000.
  
Technology Impact
  
None
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, BB, DM