Obama Budget on Direct Payments

From the budget, page 48:

• Reduce direct Payments. As part of an effort to transition large farms from direct
payments provided to owners of base acres to increased income from revenue derived from emerging markets for environmental services, the President’s Budget phases out direct payments over three years to farmers with sales revenue of more than $500,000 annually. Presently, direct payments are made to even large producers regardless of crop prices, losses, or whether the land is still under production. The program was introduced in the 1996 Farm Bill as a temporary payment scheduled to expire, but was included in the 2002 and 2008 Farm Bills. The President wants to maintain a strong safety net for farm families and beginning farmers while encouraging fiscal responsibility. Large farmers are well positioned to replace those payments with alternate sources of income from emerging markets for environmental services, such as carbon sequestration, renewable energy production, and providing clean air, clean water, and wildlife habitat. USDA will increase its research and analytical capabilities and conduct Government-wide coordination activities to encourage the establishment of markets for these ecosystem services