The Obama administration proposes big cuts to farm subsidies over 10 years in its latest budget, released today. DTN says the proposal would eliminate 37.8 Billion dollars in farm subsidies, eliminating the direct payment subsidy program and reducing crop insurance subsidies.
In its proposal, the administration says the all-time high values of crop and livestock production no longer justify income support payments.
The Senate-passed farm bill last year eliminated direct payments – no vote was taken on a farm bill in the House.
The administration says net farm income is forecast to rise nearly 14% this year to more than $128 Billion – “the highest inflation-adjusted amount in 40 years.” Strong opposition from ag-state lawmakers and farm groups is expected -– last year the Senate voted to INCREASE spending on crop insurance by more than 2.5 Billion dollars over 10 years.