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.

Comments
The president is going to cut 2 trillion and one of the top ways to do that is to cut direct payments to farmers. Talk about shooting an elephant in the rear with a BB gun! A "farm bill" has to be debated and debated for 2-3 years, but a 800 billion dollar "stimulus" package can be forced within 48 hours without representatives even reading the text! I can't wait until we can import all our agriculture as well! Hope and Change, Baby!
Posted by: Ron Lee | February 25, 2009 6:08 PM
My blood boils when farm subsidies come up. $250.000.00 cap, WHAT. If you can,t afford to stay in business get out. If you are on welfare and the goverment has to pay your hospital bill they take your house and sell it when you die and if you deside to sell before then they get what they have paid out on medical. If your disable or senior citizen making lets say $550.00 a month living in goverment housing you have to pay around 200.00 a month rent leaves you 350.00 for the month and you get about 65.00 in food stamps. And the farmer I know works maybe a total of 4 months out of the year and have no other jobs and living much better than people working 12 months out of the year and still losing there homes, cars and family's. This is so not right and if all of the people in the United States knew of these subsidies and how much maybe things would change. I know of another farmer who just said he did not know why the goverment is giving them all of the money because they didn't need it. And here the world is struggling to make ends meet. I hope we have a President now that will put a stop to this GREED and help the ones that need a hand to get a jump start.
Posted by: Linda Trader | February 28, 2009 4:18 PM
Farmers need to start being accountable. They cannot continue running their businesses at a loss and expect the taxpayer to make up the difference. This goes without saying for any business. For the country to turn around, we cannot continue to do business as usual.
Posted by: Bill B | March 1, 2009 6:55 PM
It's pretty simple there Bill. Every country in the world, save New Zealand subsidizes its agriculture in some form or fashion. The United States is in the bottom 1/3 when it comes to the level of subsidation. The cheapest, most abundant food supply in the world costs you about 50 cents per day in taxes that you pay toward the farm bill. If you'd like to cut out that 50 cents per day and be at the mercy of foreign countries for your food supply, then continue on. Trust me, if every country in the civilized world agreed to stop subsidizing agriculture tomorrow the American grower would be first in line to give up their government support. We are the most efficient, most technologically advanced food producers in the world, HANDS DOWN. But when every other country in the world makes sure that their ag base stays intact at whatever the cost, what are we supposed to do?
Posted by: Ron Lee | March 2, 2009 1:36 PM
You know farmers are not stuggling when they are bying semi's, big machinery, trucks, cars and big homes. Something is wrong with this picture. People that works 40 hours a week all year can't even make ends meet and can not get help from the government so why are farmers who works 3 months out of the year and making hundred thousands a year plus getting there welfare check from the government and living high on the hogs. And I know some of these farms. They say if the government is going to give it to them they are going to take it. They even have GPS in there farm equipment and say they can set it and sit back and read a book. Now is that boasting or what. The one's I know sit back in there big concrete floor, pole barn , huge with air for summer heat for the winter and party. Come on if they had it rough wouldn't they be more conservitive. Why do they not have to get a second job. And if we the 40 hour a week person or unemployed person applies for subsidies, like food stamp, medical, or even a check we can not have no more than 3,000.00 in access or make over a couple of hundred dollars in a month. You tell me why the farmers have all this access plus making hundred thousands a year and getting these checks from the government. I think everyone is wanting a piece of this. Lets take this money the government is giving away and get this country going again. Billions of dollars givin to the rich and people starving, homeless, and can not afford medicine or to even see a doctor.
Posted by: Linda Trader | March 6, 2009 11:19 PM
I for one am sick and tired of allowing ourselves and our next generation to be at the mercy of foreign supplies of commodities. I have friends in China and they are amazed at our food safety; there were an astounding number of infants that just died last year because of the "cheaper" substitutes in the formula. Most of the farm bill actually subsidizes those who do not, for one reason or another, take responsibility to feed themselves or their children. The only way we can make sure they get something safe to eat is IF there is an abundant supply of safe food to buy. Without our awesome supply, which many countries depend on, all the food stamps etc. would be futile. The world needs the abundant supply produced by the U.S. farmer. I do not want this industry taken over by corporations that operate for strictly a profit. Our food here is cheap, and our supply is unbelievable, if you don't believe me, travel!! That subsidy is CHEAP! Perhaps instead of gripe about this we should all farm for awhile! I will raise crops, and you can milk cows!
Posted by: Mike | March 8, 2009 9:31 PM
Linda,
I'm not sure who these farmers are that you know that work 3 months a year, but I can assure you that is not the norm. Neither are 40 hour weeks. Look, it's obvious that you're mind is made up and folks like Ken Cook rely on misinformed people like yourself to perpetrate their agenda. Farm payments make up less than 10% of the entire "Farm Bill". The overwhelming majority of the the money in the bill is for nutrition and food assistance for the low-income citizens.
Posted by: Ron Lee | March 10, 2009 8:41 AM