President Barack Obama’s plan for deficit reduction would cut $33 billion from farm programs, taking a highly disproportionate amount of federal spending reductions from one of its smallest line items and perhaps stymieing Congress’ efforts to write a workable 2012 farm bill.The agriculture proposals outlined included:
•Eliminating the direct payment.
•Reducing federal government assistance to crop insurance companies and farmers Using crop insurance – reductions that would come on top of $12 billion in cuts to that important program since 2008.
•Reducing conservation spending by $2 billion over 10 years.
•Extending until 2016 the SURE disaster assistance program, which has no money allocated to it after this fiscal year.