Grassley Again Ready to Move Forward with Effort to Cap Farm Program Payments
Senator says current system doesn't properly channel dollars.
Compiled by staff
Published: Jun 8, 2011
Senator Chuck Grassley, R-Iowa, is still working to establish caps on farm payments. He has worked for several years to reform farm program payments. This week he plans to again introduce the Rural America Preservation Act.
"Under current law a relatively small number of large farming operations take home a disproportionate chunk of money paid out of the farm program," Grassley said. "I have argued for years that this system does not channel the dollars to small and medium sized farmers who need it the most and the very basis of our farm safety net program."
The cap on direct payments and counter cyclical payments is currently $40,000 and $65,000 respectively.
"There is no effective cap on loan deficiency payments and market loan gains, hence no effective total limitation on what one farmer can get from the farm program," Grassley said. "So my bill would lower the caps on direct payments to $20,000 and on counter cyclical payments to $30,000 and establish a cap at $75,000 on the amount that a farmer can receive from loan deficiency payments and market loan gains."
Grassley's measure sets an overall farm payment cap of $125,000 for individuals and $250,000 for married couples.
In addition, Grassley says the legislation includes a provision to set a measurable standard for USDA to use in determining if someone is truly engaged in farming. If someone doesn't meet the standard, Grassley says they won't be eligible for farm program payments.
"Farmers need a strong safety net; a safe and abundant food supply is critical to social cohesion and for peaceful existence," Grassley said. "This bill helps ensure the safety net remain intact for family farmers and that the money doesn't get doled out to those who either don't need the money or to those who are not actual farmers."
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Tagged: farm, farming, usda
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