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PRE and POST FARM BILL REQUIRED FUNDING and STAFFING ADJUSTMENTS
FOR FY 2002 and FY 2003 - USDA FARM SERVICE AGENCY
Implementation of ARPA (Agricultural Risk Protection Act) passed in June, 2000 has been a non-funded mandate, which required an increase in funding and staffing for administration of the Non-Insured Assistance Program (NAP), and also the reconciliation and oversight of FCIC compliance by FSA in coordination with RMA. This enacted law identified the value of FSA's resources and its infrastructure, but also has long-term impact on the staffing needs for FSA. The most recent workload Report 10 released from the Budget Division estimates 328 FTE staff years required to complete the mandated tasks associated with ARPA for FY 2002 without accounting for FCIC reconciliation and integrity reviews that field offices have been currently unable to complete due to insufficient staffing. NASCOE believes total permanent staff years to administer ARPA and adequate FCIC reconciliation and compliance reviews will conservatively be 664 FTE staff years or $35.8 million. USDA needs to secure an adequate reimbursable agreement from RMA to FSA, or appropriated S & E funds need to accurately account for this increased permanent workload. In 2003, it is expected that 80% of the total amount of crop acreage eligible for crop insurance will be covered. FCIC now subsidizes over half the cost of farmers' insurance premiums to encourage farmer participation. FCIC also reimburses private insurance companies' administrative costs, and pays a share of the indemnities on insurance policy claims. The program was also revised in 2000 through ARPA. ARPA increased the estimated annual cost of the program from $1.7 billion to $3 billion, largely due to its increases in insurance premium subsidies and compliance activities. However, the changes made have made the program more attractive to farmers and significantly increased the participation. Since 1993, the crop insurance program has grown from $700 million in gross premiums insuring $10 billion in crop value, to $2.4 billion in premiums insuring over $32 billion in crop value in 2000. FSA must have sufficient staff to conduct the reviews necessary to ensure crop insurance integrity, and to safeguard taxpayers interest by effectively reducing fraud, waste and abuse of more than $32 billion potential indemnities.
FSA's most recent work load Report 10 already indicates a need of 3,118 additional FTE employees above the current permanent staffing level WITHOUT consideration for implementation of a new Farm Bill. Prompt payment interest has been paid for late program payments due to current insufficient staffing. With over one-third of FSA's workforce currently employed as temporary employees, training and employee replacement cost continues to be a waste of fiscal spending. The current and existent farm programs already justify recruitment of additional permanent employees, but the need for increased permanent staffing becomes magnified with any of the proposed new Farm Bills. FSA's salary and expense must be sufficiently increased in the budget and be earmarked for the necessary increase in permanent staffing. In order to provide adequate and timely service to our customers, secure the interest of taxpayers, as well as safeguard and retain a workforce with institutional knowledge and skills required for efficient and accountable program delivery, the current FTE ceiling for the Farm Service Agency needs increased. Intermittent workload as indicated by Section B of the most recent Report 10, includes the generated workload for non-reoccurring programs and services. This section only supports utilizing a temporary workforce of 1,536 FTE employees, which indicates 1,582 FTE employees are still needed for permanent programs and services. As of December 1, 2001 FSA county offices were staffed 576 FTE positions BELOW its permanent (CO) ceiling. Even if staffed according to ceiling levels, to accommodate the intermittent permanent farm program workload experienced by FSA, currently 1,006 FTE temporary employees also assist in performing permanent responsibilities such as measurement services, LDP processing, and GIS mapping. With implementation of the Farm Bill, it is conservatively estimated that enrollment and participation in commodity and conservation programs will increase 5% above current participation levels. This baseline increase requires 615 FTE county office (CO) employees for the purpose of enrolling and maintaining America's farms and ranches into the multitude of programs mandated in the 2002 Farm Bill. In addition the newly mandated permanent programs such as honey, wool and mohair support an additional need for 85 FTE employees.
Total permanent employees required to be hired for pre and post Farm Bill amount to 1,940 FTE staff years. This figure includes the 576 FTE staff years staffed below the current permanent ceiling level, and documented deficient for current program baseline levels. In addition 615 FTE staff years are required for long-term, increased commodity and conservation participation, and 85 FTE staff years for honey, wool and mohair, plus 664 FTE staff years required for ARPA. The President's FY 2003 budget indicates 1,992 temporary staff years for FSA without analysis for the initial start-up work for computing bases, yields, and sign-up activities. Providing consideration for initial start-up activities for the new Farm Bill, and on the supposition that market conditions will remain at current low levels and LDPs and loans levels will remain consistent, 3,681 temporary FTE staff years will be required. As supported and explained above, this will reduce to 2,542 FTE temporary staff years after initial start-up activities have ended.
The above estimate assumes the least administrative and cumbersome House version of the Farm Bill. The Senate version will increase these estimates due to increased staffing needs for updating bases and yields, payment limitation requirements, and increased conservation programs.
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