Farm Commodity Payment Limits: Comparison of Proposals (CRS Report for Congress)
| Release Date |
April 26, 2002 |
| Report Number |
RS21138 |
| Report Type |
Report |
| Authors |
Jasper Womach, Resources, Science and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
Limits on farm commodity program payments have been imposed since 1970. As part of the emergency economic assistance packages enacted each of the past three years, the payment limits have been doubled. In addition, a mechanism has been developed that allows farms to circumvent the payment limit on marketing loan benefits, namely marketing certificates. Greater public awareness of the size of benefits reaching a comparatively small number of very large farms has focused the attention of Congress on payment limitations. With some differences in detail, the House farm bill (H.R. 2646) and the Senate bill (S. 1731) largely would preserve payment limits at the increased levels recently approved, including the exemption of marketing certificates. In contrast, an amendment to be offered by Senators Dorgan and Grassley would reduce the limits about 50 percent and eliminate the marketing certificate exemption. Translating the dollar limits into crop acreage levels makes it easier to see how farmers might be impacted. Lower payment limits would mostly be felt by rice and cotton farmers.
