Senators Chuck Grassley of Iowa and Tim Johnson of South Dakota have introduced legislation to cap total farm payments, close loopholes that are being used to, what they call, game the farm payment system, – and target payments to actively engaged farmers who need assistance getting over the bumps that come with ensuring a safe and abundant food supply. Grassley says, – this bill helps ensure that our farmers are able to provide a safe, abundant and inexpensive food supply for consumers at home and around the world, while maintaining the farm safety net that allows the small and medium sized farmers to get through the tough times.

The legislation would set a limit of 250-thousand dollars for married couples for farm payments in an attempt to better target farm program payments to family farmers.  Specifically, the bill caps direct payments at 40-thousand; counter-cyclical payments at 60-thousand; and marketing loan gains, loan deficiency payments, and commodity certificates at 150-thousand dollars.

The legislation also closes loopholes that people are using to maximize their take from the federal government.  And the bill improves the standard which the Department of Agriculture uses to determine farmers who are actively engaged in their operations.