WASHINGTON – Senator Chuck Grassley today introduced an amendment that would place a limit of $250,000 on the amount of farm payments an individual can receive. Grassley introduced the amendment with Senator Byron Dorgan of North Dakota.
“This amendment makes perfect sense. It’s good policy and a nice way to help the Agriculture Committee dig into the $15 billion in off-sets it needs for the farm bill,” Grassley said. “This proposal has always been popular and the reality is that with 72 percent of the payments going to 10 percent of farmers, we’ve got a serious problem on our hands.”
The amendment would save $486 million over five years and $1.07 billion over 10 years. The amendment also specifies that the savings be applied to renewable energy/rural development, conservation and nutrition.
Grassley and Dorgan plan on introducing legislation in the near future so it can be included in the 2007 farm bill.
Grassley has been the leading advocate to ensure that farm payments are directed to small and medium sized farmers to help them get through the lean years. A version of the payment limits amendment introduced today was included in the 2002 farm bill passed by the Senate. The provision was removed during conference negotiations despite the amendment passing the Senate and a motion to instruct conferees to include the Senate language passing the House of Representatives.
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