NACIA Farm Bill Update -- Spring Recess Negotiations
March 19, 2008

The Farm Bill continues to be a moving target, with the negotiations in flux. Staff continues to meet while most Representatives and Senators are out of town for the two week recess that began last Friday. While it seems as though some progress has been made, at least among the four principals (House and Senate Agriculture Committee Chairman and Ranking Members), the source for the revenue has still not been found. 

Earlier this week, the four principals reached a tentative agreement on the level of spending and, in general, the areas to which the spending would be directed. As expected, the extra spending level is approximately $10 billion above the baseline, and is mostly directed toward conservation (approximately $4.95 billion), nutrition (approximately $9.5 billion), and permanent disaster relief (approximately $2.2 billion). To help offset the extra spending, cuts to research spending, Title I Programs, and the McGovern-Dole Program are possible. In addition, the crop insurance program could be subjected to additional cuts, possibly up to a 5 point cut in A&O reimbursement on the vast majority of policies.  As a Virginia agent, we encourage you to call Ranking Member Goodlatte's office at (540) 857-2672 and urge him to oppose further cuts to the crop insurance program. 

Even with the possible cuts mentioned above, additional revenue will need to be obtained from outside the Farm Bill.  However, Senate Finance Committee Chairman Baucus (D-MT), who is expected to provide much of the revenue for the additional spending, has declared that the proposal is "dead on arrival." He stated that he will not support it or provide funding for the Farm Bill due to what he believes is insufficient funding for disaster relief.  Senate Budget Chairman Conrad (D-ND) also stated that “this is not going to work,” and that “we are a long way from the end of the story on the numbers here.” In addition to their Chairmanships, both Senators Baucus and Conrad are members of the Senate Agriculture Committee and have been named Farm Bill Conferees. 

In addition to our meetings and conversations with both House and Senate Agriculture Committee Members and staff expressing extreme opposition to further cuts to the crop insurance program, NACIA and other members of the crop insurance industry have sent a second letter to the four principals detailing our position and the need to protect the program. This letter is posted on our website and can be viewed by clicking on the following link: http://www.nacia.org/ 

While an agreement on spending levels is a step toward completion, the facts remain that the source of the revenue is still unknown and the Senator in charge of providing much of that revenue does not support the agreement. In addition, the Administration has made clear that the veto threat still applies to any revenues from tax increases; they are opposed to further short-term extensions; and they support a long-term extension if the situation is not resolved by April 18th. Congressional Leadership also has expressed opposition to further short-term extensions. However, meetings continue to occur, and we will keep you updated on any further developments.  


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 have any questions or concerns, please do not hesitate to contact us.
Brent W. Gattis
NACIA Washington Representative