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by Amy Beth Graves

After years of discussion about whether the United States should do away with the estate tax, Congress was ready to vote. The vote was scheduled for the beginning of September when Congress returned from summer recess and all indications were that the tax, also called the death tax, would be eliminated after 2010.

But then Hurricane Katrina hit at the end of August, and Congress found itself consumed with addressing the problems caused by the storm. The estate tax vote was postponed indefinitely.

"The hurricane delayed the vote. It just wasn't a good time to be talking about cutting taxes when so many in the South needed help," said Adam Sharp, OFBF's director of national affairs.

Congress also postponed plans by more than a month to determine where $3 billion in agriculture spending should be cut over the next five years. Plans include a 2.5 percent reduction – or $1.15 billion -- in farm program payments and cuts in conservation payments and food and nutrition programs.

With the pricetag of Hurricanes Katrina and Rita expected to be $200 billion, Congress is now under pressure to make more cuts.

"Congress was looking at making budget cuts before the hurricanes hit. Now some are eyeing farm programs as an area to cut back in," Sharp said. "Farm Bureau is interested in seeing the $3 billion taken out as evenly as possible across various Farm Bill funded programs."

American Farm Bureau Federation (AFBF) opposes deeper farm program cuts, noting that Congress made a commitment to farmers when it passed the 2002 Farm Bill. But pressure is mounting to not reduce food programs for the poor by $574 million as proposed by Sen. Saxby Chambliss, chairman of the Senate Agriculture, Nutrition and Forestry Committee.

"The hurricane has made it less popular to cut from the food program," Sharp said.

Hurricanes Katrina and Rita, as well as the drought in the Midwest, did more than postpone a couple of votes in Congress. The natural disasters have caused lawmakers to take a hard look at the United States' energy policies and shipping systems.

Gasoline and heating oil prices nationwide shot up to over $3 a gallon after Hurricane Katrina. The Gulf of Mexico has nearly 30 percent of the United States' overall oil production and 20 percent of natural gas production, according to the U.S. Department of Energy.

"A single incident has led to major disruption of (the natural gas) supply. We need to understand the vulnerabilities that exist in our energy supply and make the necessary changes to correct the situation," AFBF President Bob Stallman said in a statement last month. Stallman was speaking for the Agriculture Energy Alliance, a national coalition comprised of 72 farm groups and agribusinesses, which urged Congress to expand natural gas supplies.

In July, Congress passed an energy bill after years of debate. After the hurricanes hit, lawmakers started talking about the need for a more comprehensive energy bill. Rep. Joe Barton, R-Texas, has introduced a bill that would increase fuel refining capacity and infrastructure, boost fuel conservation and promote new pipelines to get crude oil and refined product to consumers.

Hurricane Katrina also caused a major barge and port traffic disruptions. More than half of the nation's grain exports leave from Gulf Coast ports. The hurricane helped raise awareness of the importance of maintaining the Gulf port and Mississippi river navigation system at a time when Congress is considering a major river projects bill, Sharp said. The Water Resources Development Act (WRDA) calls for new 1,200-foot locks at seven sites on the Mississippi and Illinois Rivers.

"Clearly Hurricane Katrina showed the need for updates on our dams and locks," Sharp said.

The natural disasters also have prompted Sens. Blanche Lincoln, D-Ark., and Jim Talent, R-Mo., to introduce a natural agriculture disaster bill to help farmers. The bill would provide an additional direct payment to producers who have suffered economic losses in 2006. Producers who had a 35 percent downturn in production would be eligible for crop loss assistance.

"The interests of our farmers should not be left behind when Congress develops its comprehensive response to deal with the wide ranging impacts of these two hurricanes," Blanche said in a statement.