Senators Charles Grassley of Iowa and Tim Johnson of South Dakota have introduced a new bill to limit farm payments.
It’s designed to match up with anticipated changes to farm programs in the next farm bill.
Grassley, who has fought for payment limits in the past, says the likely elimination of direct payments made the new legislation necessary.
“It still calls for a 250-thousand dollar overall cap for married couples—and it maintains a hard cap on marketing loan gains,” Grassley says.
The bill also calls for a cap on the overall amount a farmer can receive in safety net payments—but Grassley says that would not include crop insurance supports or payments.
“For instance, if we were to adopt a shallow loss program, it would set a limit of 50-thousand dollars—or 100-thousand per couple—that a farmer could receive,” he says.
Grassley says the bill also attempts to close the loopholes in “actively engaged” provisions of the law.