April 29, 2008

 

US farm law sets modest increases to grain subsidies

 

 

The new US farm law is set to adjust crop subsidy rates by 2010, with modest increases in soy and wheat supports, officials confirmed.

 

House and Senate farm-bill negotiators, who met on Monday to discuss the bill, intend to spend US$610 billion over 10 years.

 

Nutrition programmes would get two-thirds of the money.

 

The package, according to senior negotiators, would trim direct payments by US$400 million over 10 years.

 

US grain, soy and cotton farmers get US$5.2 billion in direct payments every year.

 

Representative Jerry Moran, a Kansas Republican, said funds are redirected out of programmes that support producers and into non-agricultural programmes.

 

Moran stressed that the decision is less friendly to grain farmers.

 

The farm bill would cut crop supports and crop insurance by more than US$7 billion, while nutrition programmes would gain US$10 billion, land stewardship US$4 billion, specialty crops US$1.35 billion and biofuel development US$900 million.

 

In separate bills, the House and Senate voted last year for a boost of up to 28 cents a bushel for wheat and up to 30 cents for soy.

 

Under the new bill, wealthy part-time farmers would be barred from farm subsidies.

 

However, full-time farmers would be eligible for subsidies regardless of how much they earn.

 

A budget of US3.8 billion will be allocated for agricultural disasters, down from US$250 million from a Senate proposal.