Bill Huffman
Director - Governmental Affairs

May 30, 2008

Congress returns to session Monday!

One of the first orders of business is the Senate is expected to take up H.R. 6124, the Farm Bill, which was delayed the week before last due to a clerical error in the final version that was sent to the President, which he vetoed. The House of Representatives corrected the error a week ago and voted overwhelmingly to approve H.R. 6124. We expect the Senate to do likewise, probably on Monday or Tuesday of next week.

President Bush again is expected to veto H.R. 6124 (the corrected version of the new Farm Bill) and Congress is expected to override that veto. All indications are the Farm Bill will be finally done within the next 10-days. We should note that the commodity title, as well as several other titles, actually is law now, only the trade title, which was inadvertently not in the original bill Mr. Bush vetoed and Congress earlier voted to override, remains to be acted on. As we mentioned in an earlier report, Congress decided to vote again on the entire package in order to avert a potential constitutional question that opponents of the Farm Bill had raised.

The next phase of this saga will be the implementation of the Farm Bill. That is the job of the U.S. Department of Agriculture, which is already beginning that process. Lesher, Russell & Barron, the governmental affairs and lobbying firm that represents the California Rice Commission, reported this morning that USDA’s key staff is in the process of prioritizing which sections of the new bill will be implemented first. 

As is usually the case with new farm legislation, it will take several months before the regulations and implementation procedures are completed by USDA. As an example, growers are awaiting word on how and when the new payment limit regulations and program eligibility requirements will be developed. We don’t have an answer for that yet; however, the California Rice Commission hopes to have a conference call with USDA’s Administrator for the Farm Service Agency in about 10-days to get answers to some of those questions.

FRC will try to relay as much information as we can to members as soon as we know the answers to some of these questions.

As for the 2008 crop, the California State Office of the Farm Service Agency will soon be announcing signup for this year’s crop. In the meantime, growers can submit updated or new 502 forms and growers may now certify their 2008 planted acreage at their local FSA office so they can receive any advance on their 2008 direct payment. The California State FSA office is awaiting word from Washington on what that advance rate will be. It is important to note that the 2008 crop rice program will basically be the same program as last year. The provisions of the new Farm Bill will become effective for the 2009 crop.

We emphasize, however, that we expect it will take as long as three-to-six months before most of the new regulations for the 2009 crop will be finalized and published in the Federal Register. We also expect it will be late summer or early fall before growers receive any of their “direct payment” for the 2008 rice crop. Growers should be looking for their County FSA newsletter, which will have more details on the schedule for signups and other pertinent information with respect to the 2008 crop.

We will keep you informed as developments occur.