What The Proposed 2010 Budget Means For Agriculture

In President Obama’s released 2010 budget, a phase out of direct payments to producers with annual revenue exceeding a half-million dollars is proposed,
Brownfield reports. The White House in a statement said, large farmers are well positioned to replace those payments with alternate sources of income from emerging markets for environmental services.

“If you look at soybean farm, for example, that has $500,000 in sales, by the time you take out cost of production, that farmer actually only nets $36,000,” said American Farm Bureau Congressional Relations Director Tara Smith in reaction to the proposal. “To be nickel and diming those kinds of farmers, we have some significant concerns with that.”

The Obama budget proposal includes a quarter million dollar payment limitation for farmers. The White House said the President intends to close loopholes that allow, what it refers to as mega farms, to get around payment limits. In his address to Congress Obama said he would “end direct payments to large agribusinesses that don’t need them.”

Senator Charles Grassley (R-IA), an advocate for limiting farm program payments, said the approach outlined in the budget is not the best way to ensure farm payments go to those who need it most.

Concentrated animal feeding operations (CAFOs) will also see tougher standards. The Obama proposal strictly regulates pollution from large livestock farms, with fines for violators and what the administration calls meaningful local control. Obama favors a ban on packer-owned livestock “ensure independent farmers have fair access to markets.”

The budget proposal addresses identifying and training the next generation of producers and to provide them with tax incentives to get them onto their first farm. Obama is calling for money to help farmers create value-added enterprises. He also wants continued enhancement of broadband availability in rural America, as well as continued leadership in renewable fuels development. Additionally, the budget proposal calls for upgrading rural transportation infrastructure, including locks and dams.