Peterson May Seek Tighter Caps on Payments to Individual Farmers

The House's top farm-bill writer says the legislation probably will include some new limitations on how much money farmers can receive annually from the government.

Agriculture Chairman Collin C. Peterson, D-Minn., has not offered a specific dollar figure, but agricultural lobbyists say the new cap could be $200,000 a year - down from the current limit of $360,000.

The payment limitation could be considered next week by the panel, which is expected to take three days to mark up the farm bill (HR 2419).

Peterson's plan also could tighten the three-entity rule, which currently bars farmers from collecting federal dollars on more than three properties.

Peterson's proposal may also reflect an Bush administration plan to bar farmers who make more than $200,000 in annual adjusted gross income from getting payments. Currently, farmers who make up to $2.5 million yearly can collect subsidies.

Peterson's biggest hurdle will be convincing Southern lawmakers on his committee to accept payment limits. Southern farmers rely more heavily on federal subsidies to support the high cost of cotton and rice production in their region.