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Direct Farm Payments Being Phased Out

Posted: Thursday, March 5th, 2009 at 9:06 am

President Obama's proposed budget for the USDA would phase out direct farm payments for operations generating more that half million dollars in revenue annually. Regional Manager of the Iowa Farm Bureau Jerry Anderson says direct farm payments are payments farmers received based on their production history for their crops. Anderson says while half a million in annual sales sound like a huge operation, last year with beans in the teens and higher prices it wouldn't take a huge operations to trigger that limitation. He says in years where prices are lower such as this year direct payments can help farmers not lose money. The savings from the cut would go to a child nutrition program.