National Convention-Friday

· There are 3 phrases that have hurt us in the farm bill process, Reserve Fund, Pay-Go and Re-Balance. Reserve Fund- in order to have a fund, the money has to come from somewhere and this is difficult when developing a budget for the farm bill. Pay-Go is simply put, if you pay for one program you must take money from another program. Re-Balance- this is a goal to get the general budget balanced.

· There is more regionalism in this farm bill than in the past due to budget and crop concerns. Fruits and vegetable growers, nutrition groups, conservation groups, specialty crop growers and an expanded energy title are making demands for program funding. Mr. Redding went through each of the major crops and discussed proposed target prices and loan rates in relation to the current farm bill. FAV growers had a strong lobby seeking more real money for fruits and vegetables. Due to cuts in crop insurance and payment limits, FAV producers were able to secure more funding in the house version of the farm bill. Planting flexibility was especially important to FAV growers.

· Payment limits: AGI dropped to $1 Million, one entity payments, and other changes are proposed. He discussed the possible Senate version of payment limit restrictions and the final product will be a combination of both the house and senate versions. Research is an important topic.

· Conservation: the administration of conservation programs changed when pressure came regarding a possible increase in taxes. NACD opposed FSA administration of conservation programs. Opposition came from several western legislators due to the lack of FSA offices in their districts and this is a key argument to disallow FSA to admin conservation programs.

· Office Closures: He discussed the differing opinions regarding office closures in congress. Chairman Peterson opposes closing offices.

· September 17 is the date that the Senate is expected to do the markup on the Senate Ag Version. There might not be enough time to actually pass the farm bill before the end of the fiscal year. There could be an extension if that were the case. Harkin, Lugar and Grassley are moving in the same direction. Sen. Conrad-ND, will be a key player in the farm bill process. NASCOE members must be aware of his role and react accordingly. Contacts to our legislators is critical in the farm bill development. Grassroots, education, and PAC and the key elements in working with legislators. Grassroots refers to the people out in the field keeping in contact with congress. Education of the congressperson is essential. The PAC enables NASCOE to get the attention of key legislators .

A motion was made and seconded to have the election for Vice President and Treasurer done by secret ballot. Majority voted yes by voice vote, motion passed.

Kevin Dale: Coalition Partner of the Year Award: He read the response from NACD member, John Starnes, Kansas, winner of the award. Myron Stroup accepted the award in his absence. Kevin also had plaques for other coalition partners who have aided NASCOE in the legislative Arena.

Deputy Administrator Field Operations-Steve Connelly: He discussed the following:

· Use of Government Equipment: There is a memo from the Administrator regarding use of government email and be careful not to use the government computer for lobbying efforts. This is a very serious issue and we must ensure that what we send is work related.

· Office Restructuring: This started in January, 2006. The states are to have a work group to recommend changes. 41 states have submitted plans and 192 offices to close and one to open. 7 states have submitted plans with no office closures. 9 plans are in phase one. 2 plans are in the final stages. 14 states are holding public meetings at this time. 9 states are under review. They will be holding public meetings in the near future. Administration will follow the law and now working within the limitations of the current budget and law. There is no moratorium on office closures at this time. We must focus on service to our customer.

· Improper Payments: The results from the last report are surprisingly good and are within the 2.5% threshold and this is to the credit of the COF employees and their hard work.

· Hiring FLOTS and COTS: DAFO has been able to secure funding at the national level so that personnel are able to be trained and ready to fill vacancies. These positions have not been counted against state ceilings and this enables Washington to ensure new people are ready.

Deputy Administrator Farm Programs: John Johnson: He discussed the following:

AGRICULTURAL DISASTER ASSISTANCE

• On May 25, 2007, President Bush signed into law the "U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007" (2007 Act). The 2007 Act provides approximately $3 billion in agricultural disaster aid for America's farmers and ranchers.

• The 2007 Act provides funds for a Crop Disaster Program (CDP), Livestock Compensation Program (LCP), Livestock Indemnity Program (LIP), Catfish Grant Program (CGP), and Dairy Disaster Assistance Payment Program (DDAP-III).

• The 2007 Act also provides $16 million in Emergency Conservation Program funding subject to AGI provisions.

• In addition, the 2007 Act extends the Emergency Forestry Conservation Reserve Program (EFCRP) signup until December 31, 2007, with the extended signup period beginning August 6, 2007.

Projected rollout of Disaster Assistance program signup is as follows:

Livestock Compensation Program (LCP) and the Livestock Indemnity Program (LIP) – Signup targeted for September 2007.

2. Crop Disaster for quantity losses from natural disasters that occurred in 2005, 2006, and for 2007 crops if planted before February 28, 2007. (National Training in late September) – Signup targeted for October 2007.

Crop Disaster for quality losses from natural disasters that occurred in 2005, 2006, and for 2007 crops planted before February 28, 2007.
Dairy Disaster Assistance Program (DDAP-III) - $16 million – Signup is dependent on comments received on proposed rule.

• ECP signup periods are set by the FSA County Committees, and the $16 million provided is subject to AGI provisions, which means a separate allocation type funding code on our ledgers. An announcement providing details of the 18 states (99 counties) receiving funding is forthcoming.

2005 Hurricane Assistance Provided

• HIP (Hurricane Indemnity Program) – $39.7 million

• TIP (Tree Indemnity Program) – $19.3 million

• FIP (Feed Indemnity Program) - $4.8 million

• LIP (Livestock Indemnity Program) – $22.2 million

• ECP (Emergency Conservation Program) -$179.3 million

• EFCRP - $82.1 million for approximately 180,000 enrolled.

• LIP II - $198 Thousand

• Dairy Disaster Assistance Program (DDAP II) - $3.9 million

• Emergency Assistance Loans - $11.8 million

• Aquaculture Grant Program provided $25 million in block grants to the state governments of Alabama, Florida, Louisiana, Mississippi, North Carolina, and Texas.

MORE UPDATES

• DCP – Currently 1,885,262 active contracts with signup expiring August 3rd, and about this time last year we had 1,902,941 active contracts.

• Open Estates/Deceased Persons - Review must be completed by August 31st.

• Farm Programs Delivery Task Force – Time Management; Organization; Best Practices; Process Changes; Internal Controls; Effective Delivery Methods; Mentoring; Streamlining processes. Training recommendations have been provided to upper Management.

• National Notices CP-617 and 618 – 2007 Crop Year Compliance Activities –

• In a 2005 audit of FSA compliance activities OIG found FSA:

• completed too many spot checks and compliance reviews

• could redirect an estimated 368,000 work hours, valued at over $3.7 million annually, by

• employing statistical sampling methods in lieu of its current automated selection processes

• needed to develop a more meaningful and comprehensive method for reporting spot check results.

• Subject to revision as needed.

• Current legislation provides authority through the 2007 crops for DCP and MAL’s & LDP’s.

• DCP participants receive final direct payments in October 2007.

• MAL’s and LDP’s through spring of 2008, depending on the crop.

• House Agriculture Committee Passes Farm Bill (H.R. 2419) on July 27, 2007.

Title I and II Benefits

• Continuation of direct and counter-cyclical program

• Inclusion of a revenue-based counter-cyclical program

• Lower Adjusted Gross Income (AGI) threshold

• Direct attribution / No three entity rule

• Continuation of the MILC program

• Reauthorizes CRP through 2012 with maximum enrollment of 39.2 million acres

• Biomass Energy Reserve Program

• Administration’s Farm Bill Proposal – Major Reforms

• Administration’s and FSA participation with the entire mark-up

• Senate Version of Farm Bill – Not Released Yet

Deputy Administrator Management: John Williams: This is the 10^th convention that he has attended. He discussed the following:

· Farm Bill- He discussed the different proposals between the House and Senate versions. Both versions are below the current budget we have. Carryover funds have made up the difference in the past few years and that is the case for the next coming fiscal year. A request has been made to use the carryover funds.

· Budget: every year the agencies have to absorb the raise in COLA’s. National and state office staffing is being examined. A consultant has been hired to determine where there may be opportunities to gain in budgetary savings. A report should be available next spring.

· Leasing: Congress dropped the authority for the COF to negotiate leases and mandated GSA guidelines regarding leasing. This will require a great deal of oversite and makes the process far more cumbersome. FSA has approached congress to restore leasing authority. To date, the language to reverse this situation has not been put in legislation.

· Homeland Security: There will be a Federal ID Card. This process in underway and has started in the National Office. The card will be necessary for access for FSA facilities and computer systems. This is no small endeavor. The process will be slow and costly, but will done.

· Retirement: Mr. Williams will retire in January, 2008, and thanked everyone for their hard work and their dedication.

Question and Answer Session: Bonnie reviewed the rules for asking questions.

Q: Disaster programs require crop insurance or NAP coverage. Has this been waived?

A: John Johnson: reviewed the requirements regarding insurance requirements for previous disaster programs. Section 90-12 intended different wording, but the final version did not contain the intended verbiage. Congress did delete 90-12 and the obstacles have been removed for forage producers.

Q: What options are available for COF’s with no full time employees, especially in temporary shared management situations? The question was clarified to describe how the COF employees are bearing the brunt of trying to administer programs with no resources.

A: Teresa Lasseter: This situation is a result of management issues and the moratorium on closing offices will not improve that. There are no real options for employees at this time. Budget drives the number of employees and staffing that can be used. We are trying to do a lot with limited funding. We need to think about how we can modernize and do our job better.

Q: Why are performance appraisals also tied to one office? The question was clarified to describe the work done is not credited in the county where the work is done.

A: Lasseter: This needs to be investigated and it will be looked into.

Q: How will the new awards program be administered?

A: Johnson: It will be tied to performance appraisals and policy will be coming out in September-October. A % will allotted for performance appraisals.

Q: How will be supervisory grade classification when consolidations are completed?

A: Farmer: there is a CED task force to research this issue.

Q: Much information was removed from 22-PM, when will this be restored?

A: Chott: The grievance policy will be restored soon and some of the information will go into another handbook.

Q: Employees are the most valuable asset for any company. The moral is at a low at this time, what incentives are planned for employees? Examples were sites: more insurance coverage, etc.

A: Lasseter: government has restrictions on what is available to offer employees. She reminded everyone that we have good jobs even though we have a lot of work to do. We should all feel good about what we do and it’s important to continue to have strong farming operations in this country to feed this country and the rest of the world. Moral: we need to stop and think about the benefits we are already receiving. We want to support COF employees and do everything we can to help, however, we must make an effort to make ourselves feel better. They are more than willing to listen to suggestions, especially if it is cost effective.

Farmer: There are restrictions on what is available to government employees. She reminded everyone of how good the benefits are right now. Awards are a bit moral booster. By working closing with employee organizations, Washington becomes aware of employee situations. AgLearn-we need to encourage our managers to participate in on-line training.

Q: Will CED and/or PT classification be considered in the future?

A: Farmer: There is a task force being assembled for CED reclassification. Nothing has been submitted to date regarding PT Classification.

Heinzman: NASCOE is going to submit PT Classification to HRM in the near future.

Lasseter: She reminded everyone that if there are increases in salaries, it has to come out of the budget and congress has not given enough money to cover these types of increases. We need to be cognizant of this when asking for such items.

Q: There are serious backlogs to have new employees approved for security clearance, is there any recognition of the problem this has caused?

A: Williams: Washington does recognize this problem and they expect to see a substantial improvement in this situation in the near future.

Q: It seems that some states are receiving 2007 imagery. How is it determined what states will receive current imagery?

A: Johnson: The agency had to decide how to fund IT needs, $28 million was needed to accomplish this and so it was decided to use NAIP funding to aid in this need. This reduction caused a severe reduction in the number of states that could receive 2007 imagery.

Q: What IT items have been fixed?

A: Lasseter: Are you not better off than in January? The group consensus was that it was better. Washington has spent long hours in an attempt to rectify this situation. The system needs to be modernized and they are working toward that goal, within budget restrictions.

Q: What authorities do the STC actually have regarding implementation of ECP without input from the local COC?

A: Johnson: this is the first I have heard this concern and we will follow up on this.

Q: The new BPMS system, how will this indicate the difference between efficient and inefficient offices?

A: Taitano: This would be difficult to differentiate. We will be moving away from National Averages and untimely feedback. We want to benchmark each office in program delivery. Then comparisons can be done based on cost estimates to administer programs. It is difficult to determine how productive FSA is at this time with the present workload system and BPMS will aid in this area.

Q: How are the coefficients determined with each program?

A: Taitano: BPMS will not use coefficients. We must have standard data to use across the nation, using time, cost and units as a measure.

Q: Will pay grades be intergrated into this system?

A: Taitano: Yes this will have to happen.

Q: How will BPMS actually reflect the true staffing needs across the nation?

A: Taitano: This new system should aid in this effort. The Pilot states have reported good success.

McGraff: Pilot states have been working on this and more states are to start. By the end of September there should be a report on the effectiveness of this system.

Q: Please clarify when all records that contain sensitive data need to be in safe storage?

A: Sanders: FSA is already mandated to have all sensitive data in locked storage. The cost of obtaining such equipment is under advisement and there is no good answer at this time. However, we are under the same restrictions as NRCS and other agencies to be accountable on how we handle private information. As far as electronic records, there are guidelines on sharing electronic data. Software will be sent that will encrypt information. This has started on some types of files.

Connelly: Replacing file cabinets with locking cabinets would be extremely expensive and this situation is being researched to find a cost effective means to provide the necessary security.

Lasseter: We must take extra measures to protect information. If we see any type of situation that could compromise sensitive information, please report such circumstances to supervisors.

Q: Performance plans are becoming more important and these plans are evolving. What efforts are being made to ensure a solid standard is used?

A: Williams: There are plans to ensure that states are complying with the intent of the 5 tier performance plans and the results that are desired.

Heinzman: it is very important that supervisors review what is expected at the beginning of the year, so it is clear what is expected?

Q: What are the plans for GIS?

A: Johnson: he is frustrated with the integration of programs with GIS. The problem is that the entire county is not certified at this time and that is what is causing a delay in utilizing GIS in program delivery at a better level.

Q: What are the plans to provide reports that would identify inactive producers in SCIMS and Farm Records?

A: Sanders: There are some canned queries that are available. There are problems with creating reports using current data base systems. Canned queries can be developed. There are limitations to the canned queries. Washington can look into what can be done.

Q: Why do DD’s have authority to override performance ratings on employees that they do not supervise.

A: Williams: the DD’s are reviewers and this is appropriate for the DD’s to perform this duty. There must be some objective basis to change the supervisor’s determination.

Q: What is the minimum number of employees necessary for CED grade classification? DD’s are required to have 3 FLM’s to have a grade 13 classification.

A: Farmer: CED’s already have the requirement to supervise 3 employees to keep the grade 12 level. There are other considerations that can be taken into account.

Q: What options are available to states that need 2007 imagery for COF’s that cannot do field work effectively?

A: The states that will not get imagery will have to work it out.

Q: Will DD’s be able to use CED’s to keep their grade 13?

A: Connelly-NO

Q: What is Washington doing to stop payments to estates and deceased farmers?

A: Johnson: There are many circumstances that the estate is eligible to receive payments, the problem comes in when the payments continue to be made to the estate. Currently, FSA is trying to tie into the Social Security database to stop incorrect payments because producers do not report such information directly to FSA. Independent 3^rd party insight would be an effective aid in preventing this. He is hoping that a report can be available in a few months.

Q: Why are re-locations costs not available to PT’s in combined offices?

A: Connelly: relocation reimbursement is available to anyone if over a 50 mile drive.

Announcements: Nebraska will be hosting a hospitality room, 402.

Adjourned for the afternoon. Area meetings and committee meetings to follow.

Respectfully submitted,

Deb Esselman-Baird