Obama admin may change farm bill subsidy limitation

The Bush administration's USDA, under pressure from farmers that wanted clear guidance before the 2009 planting season, enacted an "interim final rule" in December.

Subsidy limits won't be altered in any way for this year, Vilsack told reporters, but the new review could affect subsequent years.

Farmers, under the 2008 Farm Bill provision, would not be eligible for subsidies if their non-farm-related adjusted gross income, or AGI, was more than US$500,000 and their farm-related AGI was more than US$750,000.

"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."

The public did not have sufficient time to provide adequate feedback to the government on the Bush administration's payment limitation rule, Vilsack said, so there will be a 60-day extension for public comment.

The process, he said, is necessary so that the USDA can make sure farmers are not overpaid and stop payments to those who should not be getting them.

The United States Government Accountability Office released a study in December showing that the USDA had been paying millions of dollars in subsidies to wealthy farmers that should not qualify for the government assistance.