NACIA Farm Bill Update – Senate Makes Movement. Not Much!
12/7/07

Last night, Majority Leader Reid (D-NV) and Minority Leader McConnell (R-KY) reached an agreement on the number of amendments to the Farm Bill that will be debated. They came up with a total of 40 amendments, 20 from each side, plus the Substitute Amendment.

It is essential that we remain vigilant and opposed to any amendments that will destroy the crop insurance program, particularly the amendment to be offered by Senator Brown (D-OH) and another by Senator Schumer (D-NY), as well as possibly other amendments. We will notify you as soon as we know.   

They brought up the Farm Bill on the Senate Floor this morning, and Senators that wanted their amendment to be eligible for inclusion in the 20 for their party came down and offered their amendment, and then set it aside. Senator Brown has offered his amendment and set it aside. So currently, the Leaders are trying to get an agreement on the amendments that will be eligible.  Once the 40 amendments are selected, the leaders will try to get an agreement on how to proceed, and a time limit. However, any Senator can object to the inclusion of any amendment, which could slow down the negotiations considerably.  We expect the Senate to go to the Farm Bill Monday, but no votes will be held until Tuesday.  

The outstanding cloture vote on the Farm Bill has been postponed, but remains available as a tool if Senator Reid should choose to use it as the process unfolds. In addition, it is possible that each amendment would be susceptible to a second degree amendment once on the Floor. This could further complicate the process.  

While it may seem that this agreement to 40 amendments signals progress, we still do not expect the Farm Bill to be completed before year’s end. As mentioned above, the agreement is simply on the number of amendments. Still needing to be decided is which amendments are eligible, as well as a time agreement. If the Senate does pass the Farm Bill, congress is still faced with Conference. The 800 pound gorilla in the room during Conference is actually a $15 billion gorilla – the difference in the offsets between the House and Senate versions. If this funding issue is not resolved, Acting USDA Secretary Conner has stated that he will advise the President to veto the bill. Secretary Conner also mentioned several other issues in the Statement of Administrative Policy issued by the White House (this document can be found on our website: www.nacia.org).  

Due to these factors, it seems very likely that the Farm Bill will be extended until 2009, for the following reasons:

• An extension will preserve the budget baseline, preventing the Farm Bill, if not enacted until next year, from being subject to a reduced funding allotment due to the high crop prices in 2007 and other factors.
• An extension will provide farmers and ranchers with stability and security, and the knowledge of program continuity for next year as they start making planting decisions and discussing finances with their bankers and crop insurance agents.  
• Without an extension, the Farm Bill could be caught up in the middle of next year’s budget debates, as well as be subject to a reduced baseline.  Congress is already short of funding for this bill, and should not miss an opportunity to protect the 2002 baseline, as it would further complicate the multibillion dollar shortfall.
• Next year is an election year, and it will be hard to find the political will to write a Farm Bill that is sure to contain cuts for politically sensitive programs.