Wednesday, June 01, 2011

House budget writers vote unanimously for limit Obama proposed on farm subsidy payments

Budget-cutting Republicans endorsed one of President Obama's ideas to limit farm subsidies yesterday, as the House Appropriations Committee approved its version of the Department of Agriculture's budget for the fiscal year beginning Oct. 1. The vote was the latest sign that concern over the federal deficit and national debt will trump traditional support for longstanding programs.

"In a surprise move, the committee approved an amendment by Rep. Jeff Flake, R-Ariz., to lower the maximum adjusted gross income a farmer can have to earn certain subsidies," The Associated Press reports. "While many farmers can now make as much as $750,000 annually and still receive subsidies, Flake’s amendment would lower the threshold for some to $250,000."

Obama's attempts to impose such a limit were blocked by a bipartisan coalition of farm-state lawmakers last year, when Democrats controlled the House. But yesterday, Flake's amendment was approved by unanimous consent. “It says a lot that no one is publicly willing to defend this kind of largesse,” he said afterward, AP reports. The bill is expected to pass the House with few changes. For our previous report on the bill, which would cut USDA's discretionary programs, go here. The text of the bill, from FarmPolicy.com, is here and the committee report is here.

The bill would deny funding for the administration's proposed changes in rules of the Grain Inspection Packers and Stockyards Administration, aimed at protecting small producers. "Supporters of the GIPSA rule say it is needed because too few packers control too much of the meat industry," Brownfield Network reports. "Opponents say it would eliminate marketing agreements which reward producers for providing higher quality beef and pork." The provision's fate in the Senate is uncertain. (Read more)

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