Monday, August 22, 2011

Will 2012 Farm Bill Do Away With Payment Limits?

Chris Clayton is finding support for keeping/improving crop insurance, even if that means losing some programs like direct payments and SURE.  And the support is not simply northern Plains and Midwest, but in OK and TX. 

One effect of this is to end the limitation on payments for much of the money the taxpayer spends on farm programs.  As commodity prices rise, the cost of insurance coverage goes up and the government exposure and subsidy grows.  I suspect most of the non-rural supporters of payment limitations, and even people like Sen. Grassley who've supported limitations in the past, will not question this.  My prediction is it will take the food movement a couple years after the 2012 farm bill is passed to begin to make this an issue.

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