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Debt reduction plan takes aim at ag spending

Federal spending on agriculture will take a hit if the Bipartisan Policy Center’s comprehensive deficit reduction plan is adopted. The plan, entitled Restoring America’s Future and authored by the Center’s Debt Reduction Task Force, aims to trim national debt, reduce deficits, and balance the budget by 2014.

The proposal eliminates all support payments to producers with incomes topping $250,000. It also lowers the cap on direct payments based on production history from $40,000 to $20,000. Counter-cyclical payments remain intact.

The proposal also reduces Federal Crop Insurance administrative and operating cost subsidies to what the panel refers to as a reasonable rate of return for crop insurance companies. The plan also reduces the premium subsidy for farmers from 60 percent to 50 percent.

Finally, the plan calls for consolidating and capping conservation programs primarily by eliminating overlap. The plan proposes consolidating 16 of the programs into one capped entitlement that grows with inflation.

The NAFB News Service contributed to this article.