February 26, 2009
Well, it's official. The budget document just released confirms that the President was referring specifically to the "direct payments" program. The good news (and better than I speculated at ObFo): Bam wants to eliminate direct payment for farmers with SALES greater than $500,000. That will affect a lot more farmers than using income as the basis for a limit. But before you start cheering, know that the administration fully expects the lost subsidy will be replaced by "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." So no worries, Big Ag! The money will continue to flow.