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Wednesday, May 24, 2017
For farm programs, the budget proposes several changes in the farm bill
For farm programs, the budget proposes several changes in the farm bill. They include: -- Cap crop insurance premium subsidy at $40,000, which would save an average of $1.6 billion a year. The proposal would affect about 33,000 farmers, or about 6% of all policies sold. -- Eliminate the Harvest Price option, saving an average of nearly $1.2 billion a year. The White House stated farmers could hedge their risks with unsubsidized harvest price insurance or use futures and options markets instead. -- Eliminate premium subsidies, commodity payments and conservation technical assistance for farmers with adjusted gross income over $500,000. The proposal would save about $100 million a year. The current income cap for farm programs is $900,000 and there is no means testing for crop insurance. The White House stated, "It is hard to justify to hardworking taxpayers why the federal government should provide assistance to wealthy farmers with incomes over a half-million dollars." -- Tighten the Conservation Reserve Program by ending the general signup period through 2020 and rely on continuous signup. In other conservation programs, the White House wants to increase funding by $1.9 billion over 10 years for the Environmental Quality Incentives Program while at the same time end any new acreage enrollment in the Conservation Stewardship Program, saving roughly $7.9 billion over 10 years. -- Eliminate the Market Access Program and Foreign Market Development Program, saving over $1.8 billion over 10 years. -- Reduce the Supplemental Nutrition Assistance Program by $191 billion over 10 years, mainly by shifting up to 25% of the costs to states over the decade. States would also have more latitude about changing food-stamp eligibility. Roger Johnson, president of the National Farmers Union, called the budget proposal "an assault on the farm safety net and rural communities." Senate Agriculture Committee Chairman Pat Roberts, R-Kan., and House Agriculture Committee Chairman Michael Conaway, R-Texas, were among the GOP lawmakers caught opposing a budget plan by a president they support. Roberts and Conaway said in a joint statement they support the president's goal of 3% economic growth. Their vocabulary responding to Trump's plan was more measured than when President Barack Obama proposed to cut farm programs. "As we debate the budget and the next farm bill, we will fight to ensure farmers have a strong safety net so this key segment of our economy can weather current hard times and continue to provide all Americans with safe, affordable food. Also, as a part of farm bill discussions, we need to take a look at our nutrition assistance programs to ensure that they are helping the most vulnerable in our society," Roberts and Conaway stated.