Senators Ask for Payment Limits Legislation to be Included in the Farm Bill

WASHINGTON – Senator Chuck Grassley, along with Senator Byron Dorgan, yesterday sent a letter asking that their legislation to place a hard cap on farm payments be included in the Chairman’s mark of the 2007 farm bill. The letter was sent to Senator Tom Harkin, chairman of the Senate Agriculture Committee.

The letter says that by including the payment limits legislation "it would ensure that we get some common sense into the farm program by making sure that farm payments go to those who need it most."

Grassley and Dorgan introduced their legislation at the end of May. 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.

Similar legislation easily passed the Senate during debate of the 2002 farm bill. The provision was the eliminated during conference negotiations with the House of Representatives.

Here is a copy of the letter.

June 5, 2007

The Honorable Tom Harkin

Chairman

Senate Agriculture Committee

Senate Russell-328A

Washington, DC 20510

Dear Chairman Harkin:

We are asking that you include S.1486 in your 2007 farm bill mark. We have been working together on placing a hard cap on farm payment since the last farm bill debate and feel that action on this issue is long overdue.

By including S.1486 in your mark, it would ensure that we get some common sense into the farm program by making sure that farm payments go to those who need it most. A hard cap that closes loopholes effectively reduces the ability of mega farms to use subsidies to bid land away from smaller farms. Reform also reduces incentives to overproduce, overbid land prices, and overuse natural resources. Removing loopholes restores good government and improves USDA’s ability to enforce the law.

It was never the intent of the farm program for 10 percent of the farmers to get 72 percent of the benefits from the program, and inclusion of S.1486 in your mark would be an important step toward correcting current inequities in the program.

You have been instrumental in keeping this issue on the forefront with your 2007 farm bill discussions, and we would like to thank you for your past support on this important legislation.

Thank you for your consideration of our request.

Sincerely,