Thursday, March 04, 2010

House Agriculture Committee rejects additional limits on wealthy farmers' subsidies, insurance

As expected, yesterday the House Agriculture Committee "rejected President Barack Obama's proposals to reduce crop subsidies to higher-income farmers and federal support for crop insurance," reports Charles Abbott of Reuters. Chairman Collin Peterson, D-Minn., said "I think we have overwhelming support in the House not to open up the Farm Bill" until the current one expires in 2012.

"The 2008 farm law is the first to deny benefits to the wealthiest Americans," Abbott notes. "It says crop subsidies will go to people with no more than 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 cutoff 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. (Read more)

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