Farm bill may cut crop subsidies
NEW YORK (MarketWatch) -- The U.S. Senate may begin debate this week on a bill that would cut longstanding payment of subsidies to farmers whether or not they plan crops, which affected parties agree is not sustainable when the government needs to cut its budget, according to the Associated Press.
The details have yet to be worked out but the five-year farm and food aid bill could save $9.3 billion, the AP reported on Sunday.
The report notes that farmers are accepting the change because of their increasing reliance on crop insurance for bad weather or price declines, which is also government-subsidized.
The bulk of the bill's cost goes for toward nutrition programs including food stamps, which now are used by 46 million Americans, the report said. That may make it difficult to get passed through the Republican-led House, which is looking for more cuts to the program. The legislation would set spending levels for the federal government's fiscal year, which begins Oct.1.