NACIA Farm Bill Update -- This Week's Wrap Up
March 28, 2008
In Washington, things continue to be relatively quiet as we are coming to the close of Congressional Recess. However, while most of the Hill is in recess mode, action seems to be occurring on the Farm Bill.
It seemed as though after last week’s “dead on arrival” spending plan the House offered the Senate (see NACIA Farm Bill Update 3-19-08 at http://www.nacia.org/farmbill25.html), Farm Bill reauthorization was back to square one. However, even though the principals and other key Farm Bill negotiators are spread across the country, staff continues to meet and it has been reported that House Chairman Peterson (D-MN) and Senate Budget Committee Chairman Conrad (D-ND) have reached a preliminary agreement on funding levels. It is unclear whether or not House Agriculture Committee Ranking Member Goodlatte has endorsed this spending framework, and reports state that he is withholding endorsement until the funding offsets are determined. This tentative agreement allegedly funds permanent disaster relief at a higher level than last week’s offer, while still funding the House priorities of conservation, specialty crops, and nutrition. Possible funding levels are as follows: $9.5 billion for nutrition, $4 billion net for conservation, and $4.05 billion for the standing disaster assistance package. Allegedly, the agreement is still $855 million short of the amount needed, even if the extra $10 billion in funding from Senate Finance Committee and House Ways and Means Committee comes to fruition. It is reported that the commodity programs, especially loan rates, target prices, and direct payments, will be the areas that see reduced spending levels. The framework also includes cuts to the crop insurance program amounting to $5.9 billion, with the largest portion coming from A&O.
NACIA and other members of the crop insurance industry were invited to meet with Senate Agriculture Committee Republican staff Wednesday afternoon to discuss the proposal. All crop insurance groups were united in stating their opposition to such drastic cuts, and explained how they could destroy the program.
At 7:00 p.m. Wednesday evening, the main negotiators held a conference call to discuss the proposal. Reports have alleged that they will move ahead with this proposal, despite the objections of some key Republicans and despite others who have withheld support, pending offset sources. It is reported that offsets will need to be determined by noon next Tuesday, the day most members will be back in town.
Other factors to consider:
- To our knowledge, House Ways and Means Committee Chairman Rangel has not been involved, and it is his Committee along with the Senate Finance Committee that will have to provide the $10 billion in extra spending.
- Ranking Member Goodlatte's position on this proposal will be highly influential to the Administration's position, and will most likely be determined by offset sources.
- USDA Secretary Schafer stated in a speech Wednesday that “The farm bill now on the table has a lot to offer. It moves us forward in conservation, nutrition, research, specialty crops, and renewable energy. I’m continually optimistic that within the next few weeks we’ll be able to craft a bill that will be workable.”
- However, the Administration has been staunch in its opposition to any offsets that will raise taxes, and will veto the Farm Bill if those types are contained.
- The Administration has also repeatedly declared its opposition to any further short term extensions—the current Farm Bill extension expires April 18.
- Jurisdiction over the disaster assistance program could still be an issue, although Senate Finance Committee Ranking Member Grassley has been reported as asserting that lawmakers were beginning to recognize that Senate Finance Committee Chairman Baucus wants his committee to control the disaster fund, saying “I think they're awakening to that reality.”
This is a crucial time for the Farm Bill, and if offsets are found by Tuesday, things are expected to move very quickly in the coming weeks. However, if this falls through, it is not likely that there will be enough time for anything but a long-term extension. We will continue to represent the interests of crop insurance agents, opposing these proposed cuts that would severely damage the important safety net. We will report on further developments as they occur, and may need to call on you to contact you Representative or Senator.
We wanted to let you know that for your convenience, you can pay your 2008 NACIA dues online. Just click on the link below. 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.
If you have any questions or concerns, please do not hesitate to contact us.
Brent W. Gattis
NACIA Washington Representative
http://www.nacia.org/membership.html
|
