safety net
$500,000 in sales does not (usually) a viable net income make
(March 9, 2009) - In his February 24, 2009 speech before Congress, President Obama said, "In this budget, we will...end direct payments to large agribusinesses that don't need them." We were listening to the speech and when he said that we did a double take.
What did he mean?
Large agribusinesses like Monsanto, Cargill, ADM, AGCO, and Pioneer Seed don't receive direct payments. Direct payments are the current iteration of the AMTA (Agricultural Market Transition Act) payments that were made a part of the 1996 Farm Bill in order to entice farmers to support a radical reordering of farm programs. These payments are made to growers of the major crops (corn, soybeans, cotton, wheat, rice, etc.) so Obama wasn't talking about many large livestock producers, orchardists, and fruit and vegetable producers.
To our ears the wording was strange because, in most cases, we do not think of crop farmers, even the large ones, as "large agribusinesses." They may be incorporated to simplify tax and inheritance issues, but for the most part, they are family operations-hardly what comes to mind when the President talks about "large agribusinesses."
Secretary of Agriculture Vilsack lays out priorities, extends comment period for payment limitations rule
From the United States Department of Agriculture
WASHINGTON, Monday, January 26, 2009-Agriculture Secretary Tom Vilsack today announced he will extend the comment period for the 2008 Farm Bill Farm Program Payment Limitation and Payment Eligibility rulemaking process.
Vilsack discussed his priorities as Secretary of Agriculture during a teleconference call today with agriculture and other reporters across the country and said that as part of the regulatory review process outlined by the White House and Office of Management and Budget (OMB), he is directing the Department to extend the comment period for the payment limits rule for an additional 60 days.
"Let's be clear - in no way is this move a signal that we will modify the rules for the 2009 crop year," Vilsack said. "Sign up has begun and it's important that clear and consistent rules remain in place so that producers can prepare for the crop year and manage their risk appropriately."
To date, USDA has only received seven comments on the payment limits rule and Vilsack says that by extending the comment period additional farmers and other interested parties will have the opportunity to comment.