Changes in Farm Support Requirements Rejected

Posted by Brian Gould Thu, 04 Mar 2010 20:17:00 GMT

The House Agriculture Committee on Wednesday rejected President Barack Obama’s proposals to reduce crop subsidies to higher-income farmers and federal support for crop insurance.

The 2008 Farm Bill is the first to deny benefits to the wealthiest Americans. It says crop subsidies will go to people with no more than $500,000 a year in adjusted gross income (AGI) from off-farm sources or $750,000 on-farm AGI.

The administration wanted to lower the income cut-off over three years to $250,000 off-farm AGI and $500,000 on-farm AGI. Some 30,000 people would be affected. The White House also proposed a $30,000 cap on the annual direct-payment subsidy, down from the current $40,000, and cuts in federal subsidies to the privately run crop insurance system. For more detail click here.