NACIA Washington Update
February 12, 2010
Due to the “cataclysmic” snowfall in the Washington area, this week has been very quiet. With the entire federal government shut down for four straight days, the bad news is that there have not been any developments regarding the SRA renegotiation, and the good news is that there have not been any developments regarding the SRA renegotiation! As long as they are shut down, they cannot propose more cuts to the crop insurance program. In addition, the Washington shut-down has prevented any inkling on how Congress will react to the proposed cuts to crop insurance in the President’s Fiscal Year (FY) 2011 Budget.
Please send in your 2010 NACIA dues. NACIA is fighting hard on a daily basis to educate RMA and Members of Congress and fight against the Administration’s efforts to destroy the program through the SRA renegotiation and proposed cuts in the FY 2011 budget request. Please visit our secure website and submit your dues there, or send in your check to the address at the bottom of this update. Your participation is vital, and we would encourage you to urge other agents to join and strengthen our voice here in Washington.
Despite no government and industry negotiations this week, the SRA was still on the minds of some people. The media has taken notice and a commendable article was published in Agri-Pulse (www.Agri-Pulse.com). The article does an excellent job of pointing out some discrepancies in what RMA says they would like to do and the effect their proposed SRA would have on the industry. RMA has stated that one of its goals is to expand service into under-served states and regions. However, Bob Parkerson, President of National Crop Insurance Services, asserts in the article that the proposed SRA would do just the opposite: “We cannot accept this first draft because it would put the industry at a weak or no position at all in our ability to provide service to all types of farmers in all fifty states. It just can’t be done.” RMA also has asserted that the proposed draft would not have an extremely detrimental effect on the overall program. However, Keith Collins, former Chairman of the FCIC Board of Directors, explains why the proposed changes would even go so far as to change portions of the program structure: “But if you look at long-term historical levels and then apply $800 million in cuts, it is easy to see where these companies will either look at potential mergers or accelerate their interest in finding a buyer.”
Prior to going under three feet of snow, USDA was able to produce some items of interest late last week:
- RMA issued a reminder to producers that February 28 and March 15, 2010, are sales closing dates for crop insurance. Since February 28 falls on a weekend, applications and changes to existing crop insurance coverage must be submitted no later than March 1, 2010. To see the lists of crops and states to which these sales closing dates apply, click here.
- The FCIC Board of Directors intended to have a meeting yesterday, but it has been postponed (no date has yet been named). Click here for the agenda and here for the meeting notice.
- USDA was planning on releasing the new 10-year agricultural projections yesterday at 12:00 p.m. However, since they are closed, that did not occur. When it does occur, "USDA Agricultural Projections to 2019" will be released on the Office of the Chief Economist Web site at: www.usda.gov/oce. Details.
- Secretary Vilsack released a statement on the President’s FY 2011 Budget Request, which contains the proposed cuts to the crop insurance program. In the statement, he discusses the current economic downturn and states, “Our proposed FY 2011 budget is a reflection of that reality, essentially freezing funding for discretionary programs at the FY 2010 level. However, limits we placed on select programs and efforts to eliminate earmarks and one-time funding actually result in a bottom line reduction to our discretionary budget authority of over $1 billion.” Full statement.
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
Please send 2010 dues checks to the following address:
Brent W. Gattis
NACIA Washington Representative
1400 16th Street NW
Suite 400
Washington, D.C. 20036
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