NACIA Farm Bill Update -- House to Name Conferees
2/8/08

As we mentioned in our last update, the Senate named Farm Bill Conferees on Monday evening.

We have heard from Chairman Peterson that the House intends to name its Conferees on Tuesday of next week. Conference negotiations on the Farm Bill are expected to begin on Wednesday, February 13. House Agriculture Committee Members met this week, and have reportedly come up with a package that, although it has not yet been committed to writing, is acceptable to Members of the House Committee and addresses some of the Administration’s concerns regarding payment limitations. The package is reportedly $6 billion over the baseline. Indications are that the Administration would be open to accepting the House package, but would need to further examine the sources of the funding.

It has been reported that the Senate also has a package, but theirs is $12 billion over baseline. However, as has been the case throughout this process, the source of funding could possibly be a problem. Ranking Member Chambliss of the Senate Agriculture Committee has been adamant throughout the Farm Bill process that there will be “no new taxes” imposed to help finance the legislation. Senate Budget Committee Chairman Conrad and Senate Finance Committee Chairman Baucus are purportedly working on a list of tax “loopholes” that they are hopeful that the Administration would be supportive of closing, although the President has said repeatedly and forcefully that he will veto any bill with tax increases.

With Conference negotiations expected to start Wednesday, timing also could be an issue. Chairman Peterson has previously said that he wanted the Farm Bill to be completed before President’s Day Recess, which starts the week of February 18, just days after negations start. Chairman Harkin has been quoted as saying the he wanted to send the Farm Bill to the President before mid-March. Mid-March holds significance, as March 15 is when the current Farm Bill extension expires, and the last two weeks of March are also a recess.

Just a quick reminder that the crop insurance program will not be affected if the Farm Bill is not reauthorized, as the program is authorized through separate legislation that does not expire. However, both the House and Senate bills tap into the crop insurance program to provide funding for other provision in the Farm Bill. We are working to protect the program as much as possible, and fighting against any further reductions in funding for this vital safety net for farmers and ranchers.

We are in consistent contact with both House and Senate staff, and will continue to monitor and keep you updated on any additional developments regarding the Farm Bill reauthorization as the situation progresses.

As always, if you have any questions or need our assistance with anything, please do not hesitate to let us know.

Brent W. Gattis
NACIA Washington Representative