Grassley Seeks More Public Support for Farm Program by Keeping Focus on Family Farmer


Sen. Chuck Grassley today criticized the latest offer made by Senate Democrats in the farm-bill conference over the Senate-passed Grassley-sponsored measure to cap farm subsidy payments. The payments are virtually unlimited in current law.

"This offer will make agriculture payment limits a laughing stock. When 10 percent of farmers get 60 percent of the payments, we're not helping small and midsized producers. If we don't establish credible payment limits in this farm bill, then the American public's support for the family farmer will further erode, and resistance could build against helping family farmers in the future. That could mean goodbye safety net, and goodbye family farmer."

The initiative to limit payments was one of several amendments offered by Grassley to make the farm bill more oriented to the small and midsize family farmer. Sen. Byron Dorgan of North Dakota co-sponsored the payment limit amendment with Grassley.

Today, reports indicate the Democrat conferees proposal would alter the Senate-passed Grassley/Dorgan version of payment limits with a total payment cap of $560,000, with a $40,000 cap for fixed payments, $40,000 for counter-cyclical payments, $100,000 for loans and a separate $100,000 cap for loans above the first $100,000, but with a repayment rate at 20 percent above the posted county price. The Democrat proposal includes direct attribution "through the individual" with a full share for both husband-and-wife operations. However, triple entity would no longer apply. This offer would also do away with generic certificates.

Current law limits payments to $460,000. The Senate Agriculture Committee reported a farm bill with limits at $500,000. The House-passed farm bill set limits at $550,000. During debate by the full Senate on the farm bill, senators voted for the Grassley/Dorgan amendment which limited program payments to $275,000 for a married couple. The latest offer from Senate Democrat conferees raises that limit to $560,000.