NACIA Washington Update
May 14, 2009

Congress is continuing its spring legislative push, trying to reach certain steps in the process before the Memorial Day recess, which starts at the end of next week. The major legislation in play right now is the House energy legislation, with House Energy and Commerce Committee Chairman Waxman (D-CA) reportedly claiming that he has the votes to pass it out of Committee next week. He has stated that he will release draft legislation today and that the markup will start with opening statements on Monday, May 18. There are rumored to be hundreds of amendments, so needless to say it will be a long one...

Significant in this legislation is the cap and trade and other emissions provisions, which could have considerable effect on production agriculture. Waxman has experienced resistance from Blue Dog members of his Committee, many of whom hail from coal and oil-producing states. Members of the House Agriculture Committee have also voiced concerns over the climate change legislation, as well as the proposed EPA biofuels rule that was recently released. It was reported that the main problem for Chairman Peterson (D-MN), Representative Pomeroy (D-ND), and Representative Moran (R-VA) and others was the indirect land use calculations for biofuels in the rule.  Several agriculture groups have also weighed in on the climate change debate, including the American Farmland Trust, American Soybean Association, National Association of Wheat Growers, National Cattlemen's Beef Association, National Corn Growers Association, National Farmers Union, National Milk Producers Federation, National Association of Conservation Districts, National Council of Farmer Cooperatives, Public Lands Council, United Fresh Produce Association, and the Western Growers Association. Those groups offered a position paper on the legislation, which can be accessed on the National Association of Wheat Growers website here.

On the Senate side, Committee on Energy and Natural Resources Chairman Bingaman (D- AL) is also working on a bill, but with input from Ranking member Murkowski (R-AK). Many parts of this bill have not yet been introduced, but a hearing will be held today on an introduced portion, the “Department of Energy Carbon Capture and Sequestration Program Amendments Act of 2009” (S. 1013).

The House Agriculture Committee has been busy with hearings on a number of different issues. Two hearings were held last week – one on the above mentioned issue, entitled “To review the impact of the indirect land use and renewable biomass provisions in the renewable fuel standard,” and one to review the National Animal Identification System. Today they are holding a hearing on food safety standards for horticulture and organic agriculture. The Committee intends to continue its review of the crop insurance program, with the next hearing coming the week of June 15. We believe this hearing will focus on, in part, the results of the GAO study conducted last year.  We expect that GAO report, originally scheduled for release this January, will be released Friday, May 29. We will keep you updated with further information as it becomes available.  

USDA has also stayed very active:

• Secretary Vilsack has been meeting with foreign officials, releasing encouraging statements, testifying on the Hill, and otherwise working to minimize fallout and damage to the pork industry from the H1N1 virus scare.  
• Secretary Vilsack has continued work on NAIS, recently holding a listening session in Fort Collins, CO. Details.
• Several new individuals have been nominated for positions at USDA – Rayne Pegg as Administrator of the Agricultural Marketing Service (details); Julie Paradis as Administrator for the Food and Nutrition Service (details);  Victor Vasquez  as Deputy Undersecretary for Rural Development (details); and Evan Segal as Chief Financial Officer of USDA (details).  
• USDA is participating in the White House Food Safety Working Group, which held its first listening session yesterday. In his comments Secretary Vilsack, outlined challenges and priorities.

Given that the President’s budget lays out considerable cuts to the crop insurance program, the House Agriculture Committee continues a review of the program, and the GAO report soon to be released is not expected to describe the program in a favorable light, it is vital that crop insurance agents have a strong voice in Washington in defense of the program and in defense of the important role agents play. Only you make this possible. The NACIA membership page can be found here.

As always, if you have any questions, please do not hesitate to contact us.  
Brent W. Gattis
NACIA Washington Representative

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