Thursday, July 19, 2007

Update on payment limitation:

The House Agriculture Committee on Wednesday adopted by a voice vote an amendment that would end the three-entity rule and establish a more restrictive means test for receiving farm program payments. The move is an apparent attempt to reach a compromise between those who want much more restrictive payment limits, as do many Midwestern and Coastal lawmakers, and those, like many Southern legislators, who want to preserve the status quo.

In addition to eliminating the three-entity rule, the amendment would prohibit payments to ag producers making more than $1 million in adjusted gross income annually. Farmers making between $500,000 and $1 million would be able to collect payments only if two-thirds or more of their income comes from farming and ranching investments. The current means test for farm program payments is $2.5 million.

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