NACIA Washington Update
May 29, 2009
 
Today, it was expected that the General Accounting Office (GAO) would release its most recent report on the crop insurance program.  However, we have learned that is has been held by one of its requestors – possibly either Representative Waxman (D-CA) or Cooper (D-TN), who originally made the request over a year ago.  It is also possible that others who may have subsequently signed on to the request could have placed the hold.   Generally, Representatives Waxman and Cooper have not been supportive of the program, considering Representative Waxman’s repeated criticisms and Representative Cooper’s unsuccessful amendment to further cut the program during the 2007 House Farm Bill consideration.  
 
Overall, we expect this GAO report to not be favorable toward the crop insurance program.  NACIA, along with other members of the crop insurance industry, are developing several communications to Congress and other methods of combating the possible ill effects of this report.  
 
Over on the Hill, the House Agriculture Committee has repeated its intention to continue review of the crop insurance program.  While not yet formally scheduled, we expect the next hearing to focus on the GAO report and to be held the week of June 15.  Currently the only hearings the Committee has announced after June 15 are on June 24 and 25, entitled, “To review implementation of the Food, Conservation, and Energy Act of 2008.” However, we are closely tracking the Committee’s activity and will let you know when the hearing is scheduled.  NACIA will attend and report on the hearing as well.  
 
Late Thursday, May 21, Chairman Waxman’s climate change legislation was approved by the House Energy and Commerce Committee by a 33-25 vote.  Representative Bono Mack (R-CA) was the lone Republican to vote in favor of the bill, while Representatives Matheson (D-UT), Barrow (D-GA), Ross (D-AR), and Melancon (D-LA) were the four Democrats that opposed the legislation.

Several amendments to remove the cap-and-trade program under certain circumstances (job losses increase, energy prices rise, etc.) were defeated.  But it is safe to say that the bill will still undergo considerable changes before House Floor consideration and final passage.  Members of the Energy and Commerce Committee have changes that they would like to see, as well as a multitude of House Members.  In addition, the bill will have to go through the House Ways and Means and Agriculture Committees.  Ways and Means Committee Chairman Rangel (D-NY) has stated that he plans on considering healthcare legislation before climate change, so that will delay forward movement.  Agriculture Committee Chairman Peterson (D-MN) and other members of the Committee have been very public about their opposition to certain aspects of the climate change bill, so that could further delay or alter the legislation.

There exists opposition to the bill off the Hill as well.  House Agriculture Committee Ranking Member Lucas issued a press release highlighting 23 agriculture organizations that have sent letters opposing the legislation, ranging from the American Farm Bureau Federation to the North Dakota Barley Council to the Texas Sheep & Goat Raisers Association.  A copy of the release, the letters, and full list of organizations can be found here.   

On the Senate side, Senate Energy and Natural Resources Chairman Bingaman (D-NM) continues to move forward with his bi-partisan “Energy Policy Act.”  He has scheduled his second markup of the legislation for June 4.  

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Down the road at USDA, activity continues and positions are filling up.  While the RMA Administrator has not yet been made official, we believe a nominee is to be named soon.  Other occurrences of significance include the following:

The appointment of Judith Canales as Administrator for Rural Business and Cooperative programs in the Rural Development Agency. Details.

The expansion of the Livestock Gross Margin insurance program for dairy cattle to producers in Kentucky, New Mexico, Tennessee and Washington.  Details.  

The appointment of two deputy assistant secretaries, Dr. Alma Cobb Hobbs and Robin Heard, to provide management and civil rights expertise to Assistant Secretary Pearlie Reed. Details.

The announcement of allocations under USDA's Dairy Export Incentive Program for the July 2008 through June 30, 2009 period.  Details.

We are facing numerous attacks, with the House Agriculture Committee continuing a critical look at the program and the negative GAO report soon to be released potentially eroding support for the role of the crop insurance farm safety net. Please continue to support NACIA, the only voice speaking solely for crop insurance agents in Washington.

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