FARM BILL UPDATE
December 19, 2007

Last week was quite a week, with the defeat of the Brown Amendment and the Senate passage of the Farm Bill. Below is a big-picture outlook going forward, but we also wanted to remind you to pay your 2008 NACIA dues, which can now be done online.

On Friday, December 14, the Senate approved its Farm Bill reauthorization legislation by a vote of 79 yeas to 14 nays. Due to over 150 amendments being incorporated into the Manager’s Package of Amendments passed last, the Senate bill is still in final stages of drafting.

As the bill moves to Conference, significant differences will most likely be obstacles in negotiations. These differences include the Senate’s ACR program and the permanent disaster relief provisions (not in House bill), as well as the $15 billion difference in the funding mechanisms between the House and Senate versions.

Conference will be interesting – whether it will turn out to be a traditional Conference with appointed conferees, or whether a deal will be worked out between a limited number of people, blessed by the Leadership, and sent to the President. The year-end consolidated appropriations legislation, which was passed by the Senate last night and is expected to be passed by the House soon, includes an extension of the 2002 Farm Bill until March 15, 2008. This alleviates some of the timing pressure and gives Congress some breathing room for Conference.

Once a Conference deal is reached, there still remains the President’s veto threat on both the House and Senate bills. Unless significant changes are made and the Administration is involved in Conference negotiations, it is a very real possibility that this bill will be vetoed.

Another year-end issue that may be of interest is the expiring Alternative Minimum Tax (AMT) provisions. If Congress does not address the expiring provisions, it is estimated that 21 million taxpayers will have to pay the AMT, which can affect individuals earning $75,000 and above. The debate over the legislation extending the AMT repeal has not only been between Republican and Democrat, but between House and Senate as well.  The House has insisted that the repeal be paid for under pay-go rules, while the Senate has passed AMT repeal legislation that does not adhere to pay-go. After a continual back and forth, Majority Leader Reid last night attempted to attach the House AMT fix to the year-end consolidated appropriations package, but was rebuffed by Senate Republicans. As a result, this evening the House ended up passing the Senate version, which does not adhere to pay-go.  It is now ready for the President’s signature.

As always, please contact us with questions, and we hope you have a safe and wonderful holiday season!  

Brent W. Gattis
NACIA Representative