NACIA Washington Update
April 2, 2009

In Washington, the cherry blossoms are at their peak, and so we know spring is finally here. We know that many of you have undergone some severe weather this past week, and so we hope for you also that spring comes soon.

The budget continues to dominate Congressional activity, with the House and Senate voting on amendments to their respective resolutions this week. Both chambers are hoping to pass the legislation by today or tomorrow, prior to the two week spring recess starting April 6. While the budget resolution is not binding legislation, it is important to note because it provides guidelines for spending and funding sources. We would like to highlight that on the Senate side, the resolution contains cuts to the crop insurance program in the amount of $70 million per year for five years, totaling $350 million. Senator Conrad (D-ND), the sponsor of the resolution, has been quoted as saying that he is “a very strong supporter of crop insurance. These are savings that we believe can easily be achieved from the crop insurance system without damaging either farmers, or the insurance agents, or the insurance companies.” The source of these funds within the crop insurance program has not been identified, so anything from A&O, to underwriting gains, to farmer premium subsidies are at risk. In a clip reported by Farm Policy newsletter, Senator Grassley (R-IA) had some interesting comments regarding the amendment that made these cuts. He inferred that part of Senator Conrad’s motivation in offering the amendment cutting crop insurance may have had something to do with Senator Grassley’s farm payment limits amendment (offered and defeated) and the importance of crop insurance in Senator Grassley’s home state of Iowa. To listen to the interchange between Senator Grassley and the reporter, click here.  

We expect that these cuts and other changes to the crop insurance program will be under consideration throughout this year, especially in a couple weeks at the House Agriculture Committee crop insurance hearing that is currently scheduled for April 22. The title of the hearing is “To review farmers’ views on the effectiveness and operations of the Federal crop insurance program.” You can be assured that NACIA will be present and report on that hearing, as well as working hard to ensure that the agents’ voice is heard leading up to and following the hearing. Witnesses have not yet been announced, but we will notify you as soon as they are.

On Tuesday, the House Agriculture Appropriations Subcommittee held a hearing with Secretary Vilsack testifying. During the hearing, The Secretary discussed the decision to extend the deadline for opting to participate in the ACRE program from June 1 to August 14. Further details are available from USDA, click here.

On the other side of the Capitol, yesterday the Senate Agriculture Committee held a hearing to consider the nominations of Kathleen A. Merrigan to be Deputy Secretary of Agriculture, Joe Leonard Jr. to be an Assistant Secretary of Agriculture for Civil Rights, and James W. Miller to be Under Secretary of Agriculture for Farm and Foreign Agricultural Services. As we mentioned last week, NACIA joined other agriculture groups in signing a letter to the Committee in support of Jim Miller’s nomination.  The final version of the letter listing all signatories can be viewed on the NACIA website here.

The continued viability of the crop insurance program, as well as the upcoming SRA renegotiation, was a topic of discussion during that hearing. Senator Roberts (R-KS), a long-time supporter of the program, queried Mr. Miller on the program. Senator Roberts discussed the importance of the crop insurance program, stating that without it there would be disaster assistance bills every year. He also asserted that with all of the challenges facing farmers and ranchers, they should not have to worry about what the government was going to do next, whether it is excessive regulation or cutting into the safety net to provide for other programs. Senator Roberts asked Miller about the upcoming SRA renegotiation and the goals and priorities for that process. Miller replied that he was not going to specifically lay out his negotiating strategy publicly, but that he supported the program and realized its importance for producers. He stated that the end result of the negotiation should be a new agreement with the companies that improves the crop insurance product for all producers through improving technology and efficiency. Miller went on to mention that the country is facing a “fiscal dilemma” and that everyone must share in the pain, but that he wanted the best crop insurance program for producers. At the conclusion of the exchange between Senator Roberts and Miller, Senator Harkin associated himself with Senator Robert’s support of the program, saying that while he and Senator Roberts do not always agree on everything, they are in “lockstep” regarding crop insurance. If you would like to listen to the conversation, please click here. The exchange can be found at 86:48 of the webcast.  
 
Shari, we noticed that you have not yet paid your 2009 NACIA dues. It is essential that NACIA has a strong, unified voice in Washington to speak for agents and the program, as we look ahead to the many challenges in the 111th Congress, including hearings, inquiries, GAO Reports, budget reconciliation, and others looking for funding sources for their projects. Your support is vital to our mission, so please send in your check or visit our membership page to pay online through our secure website (the link can be found below). When paying, please be sure to enter the email addresses for all agents in your firm.  

An essential aspect of reaching the decision-makers in Washington is communication. Please contact us with questions or suggestions, letting us know if you can be involved in the protection of crop insurance and those this vital program serves.  
 
Brent W. Gattis
NACIA Washington Representative

to the top