NACIA Washington Update
October 1, 2009

Yet again this week the health care debate has monopolized the headlines here in Washington, as Senate Finance Committee consideration of Chairman Baucus’s bill continues. Some other activity did also garner some attention – Senator Kerry (D-MA) and Senator Boxer (D-CA) unveiled their climate change bill yesterday.

While this bill is not the same as the Representative Waxman’s House legislation that contained the very controversial cap-and-trade provisions, it still contains a potential cap-and-trade program, albeit with less clearly defined roles for USDA and EPA. The bill introduction spurred a reaction from the Ranking Members of the House and Senate Agriculture Committees, Senator Chambliss (R-GA), and Representative Lucas (R-OK), who took the opportunity to criticize the potential effects a cap and trade system would have on the agriculture industry. The two Members of Congress jointly penned an editorial published in The Hill, a Washington D.C. area newspaper. The editorial can be viewed here. In addition, Representative Lucas used his weekly radio address to discuss the topic, a transcript of which can be viewed here.

Over on the USDA side, initial SRA renegotiation discussions continue between RMA and the crop insurance companies. We can expect the possibility that these negotiations will be difficult, as RMA seeks to save money and the companies seek to preserve their ability to participate in the program in a financially viable manner. The current budget situation in Washington, the recent cuts to the crop insurance program in the 2008 Farm Bill, and the decrease in commodity prices are all factors that will contribute to a difficult situation.

As we have noted in our previous updates, USDA has also announced several areas around the country as disaster areas, and thus eligible for special assistance. In an effort to direct some of that assistance to producers in Massachusetts, Senator Kerry and the Representatives from Massachusetts have written a letter to Secretary Vilsack asking that Barnstable, Berkshire, Bristol, Essex, Franklin, Hampden, Hampshire, Middlesex, Norfolk, Plymouth and Worcester counties receive disaster declarations due to the crop losses from cool and rainy weather conditions. The full text of the letter is below.

On the other side of the country and of the weather spectrum, USDA has started issuing Livestock Forage Disaster Program payments to several counties in Texas due to severe drought. If you have clients that that may be eligible producers, the deadline to sign up for 2008 losses is December 10, 2009, and for 2009 losses is January 30, 2010. More details are available here.

Other USDA activities that may be of interest include the following:

• Secretary Vilsack announced last week that 58 recipients will receive $8 million in rural economic development grants in 41 states, Puerto Rico and the Western Pacific. For a full listing of the recipients, please click here.
• More grants – USDA has selected 10 organizations in eight states to receive $1.4 million in grants to assist small, socially disadvantaged agricultural producers and cooperatives in rural areas. For a listing of the organizations and states, please click here.

Again, we would encourage you to let us know regarding the First crop/Second crop issue in the Southeastern states and those in other states insuring double cropped wheat and soybeans. We have heard from several agents on the issue, but as always, more information is helpful. NACIA is tracking the issue closely and investigating the most effective way to resolve this problem before it negatively effects the program. Please let us know your opinions and feelings on the matter, preferably with data. This information will be extremely helpful in our communications with Congress and the Department.

If you have not paid your dues please submit them online through the secure NACIA website or print out the membership renewal form and mail in your check. Your support is vital to insure that the interests of crop insurance agents are heard by decision-makers in Washington.

As always, if you have any questions or comments please contact us.

Brent W. Gattis
NACIA Washington Representative

______________________________________________________________________________

The Honorable Thomas Vilsack
Secretary
United States Department of Agriculture
Room 200A, Administration Building
12th Street & Jefferson Drive, SW
Washington, DC 20250

Dear Secretary Vilsack:

We are writing to request the Department of Agriculture issue a disaster declaration in Barnstable, Berkshire, Bristol, Essex, Franklin, Hampden, Hampshire, Middlesex, Norfolk, Plymouth and Worcester counties in Massachusetts due to agricultural production losses suffered because of this summer’s cool and rainy weather conditions.

Beginning in May 2009 and continuing into September, abnormally wet and cool weather conditions have significantly affected the growing conditions and production levels of major agriculture crops in many Massachusetts counties. According to the Department of Conservation and Recreation, Massachusetts rainfall was at 148 percent above normal in June. According to the National Weather Service (NWS), June 2009 was the sixth coolest June on record in both Boston and Worcester, and likely the second cloudiest June on record since 1885, based on sunshine records kept at Blue Hills Observatory. The NWS weather stations throughout Massachusetts reported July rainfall figures in excess of 200 percent with corresponding below normal temperatures.

Due to these weather conditions, most vegetable crops are suffering. Yellow corn production has suffered due to prevented planning and poor growing conditions. Strawberries suffered due to wet cool conditions which increased rot and decreased yield. Weather related blight is causing significant damage on potato and tomato crops.

As a result of production losses due to excessive moisture, flooding, hail and temperatures resulting in weather related blight, we urge you to issue a disaster declaration for the counties of Barnstable, Berkshire, Bristol, Essex, Franklin, Hampden, Hampshire, Middlesex, Norfolk, Plymouth and Worcester.

Thank you for your consideration of this request.

Sincerely,

John F. Kerry
U.S. Senate

Edward J. Markey
U.S. House of Representatives

Barney Frank
U.S. House of Representatives

Richard E. Neal
U.S. House of Representatives

Niki Tsongas
U.S. House of Representatives

John F. Tierney
U.S. House of Representatives

John W. Olver
U.S. House of Representatives

William Delahunt
U.S. House of Representatives

James P. McGovern
U.S. House of Representatives

Michael E. Capuano
U.S. House of Representatives

Stephen F. Lynch
U.S. House of Representatives


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