NACIA Washington Update
January 28, 2009
As expected, the current news in the crop insurance world continues to be the SRA renegotiation. Right now, RMA is reviewing industry comments on the first draft. We expect them to issue a second draft SRA in mid-February, most likely coordinated timing-wise with the industry meetings. Industry comments on that draft will need to be submitted to RMA in mid-March. RMA has stated that the third, and they hope final, SRA will come in the beginning or middle of April.
NACIA and other members of the crop insurance industry are working constantly to educate Congress and the public of the severely detrimental effects the proposed cuts would have on the program, the safety net for farmers and ranchers, the jobs in rural America, availability of credit for farmers and ranchers, and the rural economy overall. We would like to say thank you again to those of you who have helped in this effort by contacting your Senators and Member of Congress urging them to sign on to letters of support for the crop insurance program. Since the Senate letter to RMA was sent last week, there has been several additional letters from a group of 36 House Members, individual House Members, and outside organizations. These letters can be viewed here, here, here, here, and here.
Unfortunately, those who do not care about the safety net and continued economic viability of rural areas of the country have been active in encouraging RMA to cut the crop insurance program. Representatives Waxman (D-CA), Cooper (D-TN), and several other Members of Congress have sent a letter to Secretary Vilsack asserting that A&O and other funding stream in the program were actually “squandered in excess payments to insurers and other middlemen.” If you remember back to 2008, Representatives Waxman and Cooper spearheaded an effort in the House to amend the Farm Bill and severely cut the program during that debate. Their amendment was soundly defeated in a bi-partisan vote. If you would like to view the letter, please click here. RMA has also issued documents in support of their first draft of the SRA, providing what they view as justification for the proposed cuts. To view RMA’s “Frequently Asked Questions” release, click here.
Other than the SRA, the following USDA news may be of interest:
- On January 28th, NASS released new satellite images of agricultural land cover in 47 of the 48 contiguous states for the 2009 crop year. The cropland data layers (CDL) images and the entire inventory of CDL products is available online at the USDA-NRCS Geospatial Data Gateway and the NASS research website. For more information on the announcement, click here.
- On January 22nd, Secretary Vilsack announced that USDA had awarded over $4 million in ARRA grant funding to 44 rural communities for the start-up and expansion of businesses. The hopes are that this funding will help job creation and development in rural communities. To see if your community was one of those selected, click here.
- USDA announced on January 26th, the distribution of $234.5 million in MAP and Foreign Market Development (FMD) funding to various U.S. trade organizations for the international promotion of U.S. food and agricultural products. To see the list of recipients, click here.
- Also on January 26th, Secretary Vilsack announced that $140.4 million in ARRA funding was awarded for community facilities projects such as the creation and renovation of hospitals, courthouses, health centers, and school. To see if your community was one of those selected, click here.
It is vital that we have your support as we fight every day for crop insurance agents. If you haven’t already, please send in your 2010 dues. Also encourage other agents to become NACIA members, as our organization is the only organization comprised solely of crop insurance agents. You can join or pay online at our secure website, www.nacia.org.
Thank you for your actions in support of the crop insurance program, and as always, please let us know if you have any questions.
Brent W. Gattis
NACIA Washington Representative
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