Grassley, Johnson Keep Focus on Setting Hard Caps for Farm Payments, Closing Loopholes
Press Release
Senators Chuck Grassley of Iowa and Tim Johnson of South Dakota today introduced legislation to cap total farm payments at $250,000, close loopholes that are being used to game the farm payment system, and target payments to actively engaged farmers who need assistance getting over the bumps that come with ensuring a safe and abundant food supply.
"This bill helps ensure that our farmers are able to provide a safe, abundant and inexpensive food supply for consumers at home and around the world, while maintaining the farm safety net that allows the small and medium sized farmers to get through the tough times," Grassley said. "Current policies allow 10 percent of the biggest farmers to receive 70 percent of the benefits of the farm program. This puts our safety net at risk by reducing urban support for the farm bill and creating upward pressure on land prices."
"Farm programs are going to be in for tough scrutiny as budget negotiators scour spending programs. One certainly deserves to be and that is payments of more than $250,000 to a farming operation. This bill caps payments at $250,000," said Johnson. "Farm payments need to be targeted to those who need it, the small and mid-size family farmers in South Dakota and across the nation."
The legislation would set a limit of $250,000 for married couples for farm payments in an attempt to better target farm program payments to family farmers. Specifically, the bill caps direct payments at $40,000; counter-cyclical payments at $60,000; and marketing loan gains (including forfeitures), loan deficiency payments, and commodity certificates at $150,000. It also closes loopholes that people are using to maximize their take from the federal government. The bill also improves the standard which the Department of Agriculture uses to determine farmers who are actively engaged in their operations.
In addition, the legislation would save the federal treasury more than $1 billion over 10 years.
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