The Easter Bunny Won't Bring a Farm Bill
March 13, 2008

On Wednesday morning, the Senate passed S. 2745, another Farm Bill extension. This extension will expire on April 18. The House passed the extension later Wednesday evening. The extension is needed due to the fact that the current extension expires March 15, following which Congress leaves for a two-week recess.

This week, meetings have been occurring at both the staff level and at the Committee leadership level. While no official, exact number of over the baseline spending has been agreed to, it is looking as though it will end up close to $10 billion. Staff has been meeting to discuss title-by- title allocations and other policy issues that do not involve revenue.

As always, the source of funding is still a major roadblock to getting a bill finalized. Senate Finance Committee Chairman Baucus and Ranking Member Grassley continue to look for offsets, as well as House Ways and Means Committee Chairman Rangel.  However, that process received a setback when Chairman Rangel was hospitalized last week, and is not expected to return to Washington this week prior to the recess. In addition, jurisdictional issues continue to serve as a hindrance, with the Senate Finance Committee leadership wanting permanent disaster relief and for it to be under the Finance Committee control. House Agriculture Committee Chairman Peterson has repeatedly stated that he is opposed to any Farm Bill provisions falling under another Committee’s jurisdiction. On top of those two major roadblocks, the Administration’s opposition to tax increases or closing tax “loopholes” to provide funding still hangs over the negotiations.

While nothing has been substantiated yet, there is a distinct possibility that the crop insurance program will suffer further cuts as the negotiators desperately seek funding. 

If the Farm Bill gets to the President, and he does veto it, an override is possible, but will depend upon House Republican support for the bill. Ranking Member Goodlatte of the House Agriculture Committee plays a key role, and any package that goes to the President will need his support if there is any chance of a veto and a subsequent override. Due to the current political situation, an override involving subsidies could be a very heavy lift.

While Congressional Leaders have stated their intention to have the Farm Bill completed, it still looks to be a very challenging task. House Minority Leader John A. Boehner (R-OH) stated that “We are not going to let the farm bill die,” and Senate Majority Leader Harry Reid (D-NV) proclaimed that “We can’t leave here without doing a farm bill,” but it is unclear how much staff can complete over the two week recess without funding. After the recess, there is only two more weeks prior to expiration of the newly passed extension, and as we have seen, the negotiations have been very challenging. 

If a deal cannot be reached, another short term extension (one month) to work on a long-term extension (until September 30, 2009) is a distinct possibility. 

While it has been a long and winding path, we will continue to track the Farm Bill and let you know of any significant developments as they occur. 

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.

Hope all is well, and if you have any questions or concerns, please do not hesitate to contact us.

Brent W. Gattis
NACIA Washington Representative