National Association of Crop Insurance Agents

NACIA Washington Update
December 10, 2009

Obviously the big news this past week was FCIC and RMA’s Friday release of their first draft of the SRA. In case you missed it, NACIA did a preliminary review, which can be found here. We are continuing to review and analyze the document. In addition, we are working with other members of the crop insurance industry to educate Members of the House and Senate regarding the draconian cuts of approximately $4 billion the SRA would make to the program, on top of those in the 2008 Far Bill that have yet to be fully implemented. Specifically targeting A&O, as this draft of the SRA does, would make it very difficult for many agents to continue to serve farmers in ranchers in certain areas, as well as provide the essential services they do to the program. We are letting Congress know that in these uncertain economic times, it is essential to preserve rural jobs and the safety net for farmers and ranchers, not attempt to gut the program in the way that this SRA would. Meetings are ongoing and we will keep you apprised as the situation progresses. RMA has posted a side-by-side comparison of the current and proposed SRA. If you would like to view the changes, please click here.

Other goings-on here in Washington include the Senate’s ongoing consideration of the health care bill, which has dominated almost every aspect of that Chamber’s activities. It is not yet clear whether the necessary 60 votes to pass the bill have been secured by Senate Majority Leader Reid (D-NV), but negotiations are ongoing.

On the House side, legislation was passed last week that may be of interest to you. H.R. 4154, Permanent Tax Relief for Families, Farmers, and Small Businesses Act of 2009 was passed by a vote of 225-200. Generally, the bill amends the IRS tax code to permanently put in place the estate tax provisions that were in effect in 2009, avoiding the current expiration of exemptions set for December 10, 2010. It sets the exemption level at $3.5 million. The bill received no Republican votes, and House Agriculture Committee Ranking Member Lucas (R-OK) highlighted the negative effects he feels the legislation would have on the agriculture community, as well as fellow Agriculture Committee Member Representative Smith’s (R-NE) Floor speech regarding the issue. To read his release, please click here. If you wish to see how your Representative voted on the bill, please click here. The legislation will now need to be considered by the Senate before it becomes effective.

Today the House is considering H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009. Among other things, this legislation addresses CFTC and derivatives trading, so has garnered considerable interest in the agricultural community. House Agriculture Committee Chairman Peterson (D-MN) reported out of the Committee and earlier version of the legislation, and more information is available here.

In USDA news, the following items may be of interest:

Secretary Vilsack announced the opening of the Office of Advocacy and Outreach at USDA. From the release: “This office was established by the 2008 Farm bill to improve access to USDA programs and enhance the viability and profitability of small farms and ranches, beginning farmers and ranchers, and socially disadvantaged farmers and ranchers.” Details.
Deputy Secretary Merrigan announced that USDA is awarding more than $14 million in grants to organizations throughout the country that will provide training and assistance to socially disadvantaged farmers and ranchers. Details.
RMA has just released its Soybeen Loss Adjustment Handbook for crop years 2010 and after. Handbook.
RMA has published guidance regarding the 2010 Pilot Processing Chile Pepper Crop Provisions. Details.
RMA has also released the Pilot Biotechnology Endorsement and Insurance Standards Handbook for the 2010 and succeeding crop years. Details, endorsement, and handbook.
FCIC has released a proposed rule regarding Common Crop Insurance Regulations; Stonefruit Crop Provisions. Comments are due by January 25, 2010. Details.
2010 rice and corn loss adjustment standards handbooks are available here and here.

As always, please let us know if you have any questions.

Brent W. Gattis
NACIA Washington Representative

Kathy Fowler, NACIA President, 110 North 6th Street, P.O. Box 368, Memphis, TX 79245
phone: 806-259-1842, toll free: 877-390-9862, toll free fax: 800-848-3216
email: info@nacia.org, web: www.nacia.org
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