NACIA Farm Bill Update -- House and Senate Searching for Number
2/20/08

We hope you had a nice weekend. In Washington, the 70 degree temperature has given way to blustery winds and near freezing. And just like the weather going back and forth, the House and Senate seem to be playing ping pong with Farm Bill proposals.  

As we mentioned last week, the current negotiations are centering around finding a number—a level of above-the-baseline spending that is acceptable to all parties. On last Tuesday evening, Chairman Peterson and Ranking Member Goodlatte sent to the Senate a House proposal consisting of $6 billion in spending over the baseline. The $6 billion is what was deemed acceptable by the Administration, depending on the source of the offsets for the spending. On Friday, the Senate countered with their offer of $12.3 billion. However, USDA has stated that the Senate proposal is closer to $16.5 billion above the baseline, due to over $4 billion of the offsets come from “timing shifts.” USDA Secretary Schafer and Deputy Secretary Connor issued a release stating their opposition to this proposal, on the grounds that it contains “increases in taxes and significantly grows the size and scope of government while failing to implement much needed reform in our current farm bill programs.” The full text of the release can be found at the end of this email.  

Over the weekend, the House sent back a counter-offer to the Senate, which contained approximately $9-10 billion in spending above the baseline. Many had hoped that the two Chambers would reach a final compromise number over the long weekend, but that has yet to occur.  

Chairman Peterson, along with Senior Committee Staff from both parties, held a meeting yesterday for outside groups. Staff purportedly commented that agreement on the number needed to be reached first, and then groups could weigh in regarding the distribution of spending and the sources of offsets. Chairman Peterson reportedly indicated that a compromise needed to be reached in the next couple of days, and if discussions slip to next week that could potentially pose problems. He stated that he and several other Senators and Representatives would be staying in Washington this week during President’s Day recess to work on these negotiations. Chairman Peterson went on to emphasize that the Farm Bill would not contain an increase in taxes, and would not contain any provisions that would allow Committees other than the Agriculture Committee to hold jurisdiction over the bill. House Ways and Means Committee Chairman Rangel (D-NY) told the press last week that finding revenue sources for the Farm Bill has been frustrating, but indicated that he submitted some proposals for the Agriculture Committee to consider.  

So the situation remains as unclear as it has been, although the discourse may lead to progression towards a final bill. The March 15 deadline is quickly approaching, and the ever-present problem of where the money will come from still looms over the negotiations. The Administration has repeatedly staked out its opposition to tax increases, and has reportedly stated that closing some of the “loopholes” mentioned in the President’s Fiscal Year 2009 Budget Request may not be acceptable. They have also expressed suspicion regarding the timing shifts that have been included in all proposals as sources for revenue.  

It appears that for this bill to come to fruition, the crop insurance program will be further tapped to provide funding. We met with staff working on these negotiations last week, and are continuing to work with the House and the Senate to minimize the cuts to this important safety net. In addition, NACIA and other members of the crop insurance industry sent a letter to the Chairs and Ranking Members of the House and Senate Agriculture Committees urging them to protect the crop insurance safety net and expressing our opposition to the magnitude of cuts contained in some of the proposals. The letter is posted on the NACIA website, click here to view. We will keep you updated on any developments as they occur. If you have any questions, please do not hesitate to contact us.
 
For your convenience, you can pay your 2008 NACIA dues online. To streamline the dues process, we are transitioning to a first quarter annual dues request. If you paid your 2007 dues during the subsequent quarters last year, we apologize. However, this is necessary to continue to improve NACIA as an organization and enhance its ability to better serve crop insurance agents and act as the only voice speaking solely on behalf of agents. Your support is vital during this tenuous time, as the crop insurance program is being looked at as a funding source for other Farm Bill provisions.

If you would prefer to pay by check, the link will also take you the membership form, which can be printed, filled out, and mailed in with your payment. http://www.nacia.org/membership.html

Hope all is well, and again, if you have any questions or concerns, please do not hesitate to contact us.  
 
Brent W. Gattis
NACIA Washington Representative

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USDA
Release No. 0045.08
Contact: SDA Press Office (202) 720-4623

Statement by Secretary Ed Schafer and Deputy Secretary Chuck Conner Regarding the Senate's Farm Bill Proposal
February 15, 2008

The Senate's most recent farm bill proposal recommends increases in taxes and significantly grows the size and scope of government while failing to implement much needed reform in our current farm bill programs. We are disappointed that the Senate has not joined the House in proposing a package that seeks fiscal discipline and real reform while providing a true safety net.

The President has said time and time again that he will not support a bill that raises taxes and uses taxpayer dollars to increase the size of government, and that is exactly what this proposal does.

We believe that, working together, the House, Senate and the Administration can move forward with a true reform minded farm bill that remains at around $6 billion over baseline. The Senate offer looks to increase spending by at least $16.5 billion.

Although we remain encouraged with the efforts of the House and the amount of dialogue put forward in this process, this Senate proposal is a step away from passing a farm bill.

We continue to encourage the House and Senate to work together to quickly agree on a farm bill that the President can sign. This proposal does not reach this goal.