Obama: End US crop subsidies to ‘wealthy farmers’
WASHINGTON, Feb 1 (Reuters) - President Barack Obama asked Congress to end crop subsidies to “wealthy farmers” and to pare federal support for crop insurance on Monday, which he estimates would save $10 billion over 10 years.
Obama targeted those areas for large cuts last year without success.
In his proposed budget for fiscal 2011, Obama suggested a sharply lower cut-off in income to qualify for crop supports. It would save $2.26 billion over 10 years and be implemented over a three-year period.
The administration plan would shut off crop subsidies to people with more than $250,000 adjusted gross income (AGI) from off-farm sources or with more than $500,000 on-farm AGI. The caps now are set at $500,000 off-farm AGI and $750,000 on-farm AGI.
Some $8 billion would be saved over 10 years by reforming administration of the federally subsidized crop insurance system to end “huge windfall profits.” The Agriculture Department is negotiating a new master agreement with insurers to reduce overhead payments. (Reporting by Charles Abbott; Editing by Lisa Shumaker) ((chuck.abbott@thomsonreuters.com; +1 202 898 8319)) Keywords: OBAMA/BUDGET FARM
