Keeping Integrity in the Farm Program

Statement

This week I introduced bipartisan legislation that would put a hard cap and other safeguards on payments farmers can receive from the federal farm program. The goal is to preserve the safety net that is so important for agriculture and, in turn, the abundant and affordable food supply the rest of us depend on.

The farm program was not designed to help big farmers get bigger, but it's veered off course. Today, 10 percent of the biggest farmers collect nearly 70 percent of total farm payments. That runs counter to the original intent of the farm program, which is intended to help small- and medium-sized farmers -- who play a pivotal role in producing America's food supply -- weather downturns in the agricultural economy that are out of their control.

The trend in farm program payments going to the biggest farmers also has a negative impact on the next generation of farmers. When 70 percent of farm payments go to 10 percent of farmers, it puts upward pressure on land prices, and makes it a lot harder for smaller and beginning farmers to buy ground or afford cash rent, which keeps them from getting a foothold in farming.

To restore the integrity of the farm program, there needs to be a hard cap on payments. My bill puts a cap of $125,000 for a single farmer ($250,000 for a married couple) to help better target farm program payments to small- and medium-sized farmers. Specifically, the bill caps direct payments at $20,000; counter-cyclical payments at $30,000; and marketing loan gains (including forfeitures), loan deficiency payments, and commodity certificates at $75,000.

Perhaps even more importantly, the bill tightens the requirements that work to make sure those who receive payments are actively engaged in the farming operation. This is done by setting a specific number of hours required for a farm payment recipient to be engaged in the farming activities through management and/or labor. The 2008 farm bill made steps in that direction, but this bill will further the effort to eliminate loopholes.

I've fought for these farm program reforms for a long time. Food is basic to life, and we need to have an effective safety net for those who produce our food. We also need to make sure that safety net is an efficient and responsible use of taxpayer dollars. I hope that the upcoming farm bill will be the impetus for passage of this common-sense legislation.

Source