National Association of Crop Insurance Agents

NACIA Washington Update
September 25, 2009

Washington continues to be consumed in the health care debate, with the Senate Finance Committee beginning consideration of the long-awaited proposal from Chairman Baucus (D-MT). The House is not missing out on any of the action either, as the House Energy and Commerce Committee has resumed consideration of the House legislation. They began consideration of the bill by Chairman Emeritus Dingell (D-MI) and Chairman Waxman (D-CA) back in July, but had to stop before completing the mark up due to August Recess.

While Congress has been focused on health care, RMA and USDA have continued to be active in areas of crop insurance and agriculture. The official information from last week’s FCIC board meeting has now been posted on the RMA website here. The full Manager’s Report, which includes a program update on nine products, regulatory updates on the Common Crop Insurance Policy and the National Financial and Operation Review, compliance updates, and other information, is available here. In addition, the FCIC Board reimbursement decisions on the following products have been posted:

ARH Strawberry Pilot
Concept Proposal 107
Confidential Submission 0013
Confidential Submission 0015
Cottonseed Pilot Endorsement
Fresh Market Bean
GRP Oysters
GRP Sugarcane
Sweet Potato Pilot
Tobacco Quality Price

Other big news from RMA includes the recent release of the Milliman, Inc. study, which analyze the rate of return for crop insurers participating in the program. The results of the study will be a factor in the renegotiation of the SRA. SRA discussions between RMA and the crop insurance companies have already begun, as dictated by the 2008 Farm Bill. The press release accompanying the study can be viewed here. The study itself can be viewed here. Accompanying this study and also information that factors into SRA renegotiation is the historical rate of return data, which can be viewed here.

We also wanted to highlight again the RMA-issued a reminder to producers regarding the September 30 closing date for several crops in some states. The crops include alfalfa seed, barley, canola, cultivated wild rice, forage production, mint, oats, potatoes, rye, sugarcane, and wheat. For more details regarding the states in which this closing date applies and other information, click here.

Other USDA activities of interest include the following:

USDA has designated Overton County, Tennessee, as a primary natural disaster area because of losses caused by excessive rain and extensive flooding that occurred in mid-July. Surrounding counties are also eligible for some assistance. Details.
For those of you involved in organics, Secretary Vilsack has announced that Miles McEvoy has been hired to serve as Deputy Administrator of the National Organic Program (NOP). In addition, Vilsack announced that the NOP will become an independent program area within AMS. Details.
Secretary Tom Vilsack announced that USDA Rural Development is awarding $2.2 million in grants to help rural businesses, Native American tribes and economic development groups create and retain jobs. Details. As rural businesses, we would encourage crop insurance agents to seek grants such as these. Information regarding availability and process is available here.

We have heard from several agents regarding the First crop/Second crop issue in the Southeastern states and those in other states insuring double cropped wheat and soybeans. NACIA is tracking the issue closely and investigating the most effective way to resolve this problem before it negatively effects the program. Please let us know your opinions and feelings on the matter, preferably with data. This information will be extremely helpful in our communications with Congress and the Department.

If you have not paid your dues please submit them online through the secure NACIA website or print out the membership renewal form and mail in your check. Your support is vital to insure that the interests of crop insurance agents are heard by decision-makers in Washington.

As always, if you have any questions or comments please contact us.

Brent W. Gattis
NACIA Washington Representative

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Kathy Fowler, NACIA President, 110 North 6th Street, P.O. Box 368, Memphis, TX 79245
phone: 806-259-1842, toll free: 877-390-9862, toll free fax: 800-848-3216
email: info@nacia.org, web: www.nacia.org
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