President Obama: "We will end direct payments to large agribusinesses that don't need them."
Chuck Abbott from Reuters writing about President Obama's speech last night as it pertains to farm programs.
President Barack Obama, in his first speech to Congress, called on Tuesday for an end to "direct payments to large agribusinesses that don't need them," an apparent attack on subsidies costing $5.2 billion a year.The proposal echoed a leading point from his presidential campaign, although the idea was not certain of success. President George W. Bush, for example, fruitlessly backed a $250,000 annual cap on payments per farmer.
While running for president, Obama said in campaign documents that farm subsidies should go to farmers who need them and "not millionaire farmers who rely on American taxpayers to protect their multimillion dollar profits."
In remarks prepared for Congress, Obama said the White House has identified $2 trillion in wasteful and ineffective spending, including unneeded direct payments to large farms.
"In this budget, we will ... end direct payments to large agribusinesses that don't need them," he said. He did not say how much money would be saved by the step or how it would be structured.
Two farm-group spokesmen said the president apparently meant a farm subsidy known as direct payments that was created in 2002 and is made regardless of crop prices or farm profits.
But they noted "direct payments" also is a term meaning all types of federal support made in cash.
EWG has released an analysis of "Direct Payments" that you can find here.
