NACIA Farm Bill Update -- House Conferees and Offer to Senate
April 10, 2008

Finally, some news to report on the Farm Bill!  At 7:00 p.m. last night, Speaker Nancy Pelosi appointed House Conferees to the Farm Bill. We have attached the list at the end of this page.

Shortly after Conferees were named, House Agriculture Committee Ranking Member Goodlatte offered a motion to instruct Conferees directing them to not agree to any provisions in a final Farm Bill agreement that increase taxes. This motion to instruct passed by a vote of 400 to 11.
Background on a motion to instruct:

A member of the minority party is granted priority in the House to offer the motion to instruct, and only one can be made at this stage. These instructions essentially place moral or political pressure on the conference. Instructions are non-binding. In each chamber, conferees cannot be instructed to do that which is not within their authority or, in the case of the House, the motion to instruct may not include argumentative language. The conferees may disregard the instructions and the full House and Senate still have the opportunity to accept or reject the conference committee report on the bill and a new conference may be requested if either body feels that its conferees have grossly violated their instructions or authority.

Source:  Oleszek, Walter J. (2007). Congressional Procedures and the Policy Process. Washington, DC: CQ Press.

The Conference Committee had its first formal meeting at 10:15 this morning, and just recently concluded. The House Conferees voted to make an offer to the Senate. This offer contains $5.5 billion in extra spending, less than the the $10 billion that has been discussed, and lower than the previous $6 billion House offer. The offer does not include money for permanent disaster relief.  Senator Harkin, Conference Chairman, stated that the Senate would return an offer of $10 billion, not $5.5 billion, as the previously agreed upon spending amount was $10 billion. The meeting was adjourned, and Senator Harkin stated that they would meet again once House Ways and Means Committee and Senate Finance Committee finished their negotiations, but Monday or Tuesday at the latest. Staff of the Agriculture Committees will continue to work while the Conference waits on the Ways and Means and Finance package. 

To pay for the spending, this offer includes a provision that would require credit card companies to report merchant payments to the IRS. However, the offer also includes AN ADDITIONAL $1.4 billion in cuts to the crop insurance program, on top of the previous cuts proposed. This means that the total cut to crop insurance would be $6..5 billion over ten years. Just Prior to close of the Conference meeting, Representative Moran (R-KS), expressed concern regarding the allocations within the House offer, especially the changes made in the commodity title and the cuts to crop insurance. 

Along with other members of the crop insurance industry, we met with House Agriculture Committee Chairman Peterson yesterday and expressed our opposition to these drastic cuts. We will continue to work against these cuts throughout the Conference. Please be attentive to your email, as we may need you to contact your Senators and Representative, especially if they are Members of the Conference Committee, and urge opposition to these debilitating cuts.. 

With the current extension of the 2002 Farm Bill set to expire April 18, another short term extension will be necessary to complete work. President Bush has previously stated that he would be unwilling to sign another short-term extension, but if the framework is in place, Secretary of Agriculture Schafer has reportedly indicated that the President might sign another short-term extension for the House and Senate Conferees to finalize minor details.

We will continue to closely be involved in this process to the extent possible, and will keep you updated as developments occur. 

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.

Brent W. Gattis
NACIA Washington Rep