(Washington, D.C.) The Council for Citizens Against Government Waste (CAGW) today applauded the amendment to S. 1731, the Senate Farm Bill, which caps farm subsidies at $275,000 for the next 10 years, saving taxpayers $1.3 billion over 10 years.

"Sen. Charles Grassley (R-Iowa) and Senator Byron Dorgan (D-N.D.) deserve credit for this much-needed reform. It provides some relief for taxpayers from an otherwise bloated farm bill that increases subsidies by $73 billion over 10 years," CCAGW President Tom Schatz said. "Taxpayers are indirectly subsidizing every acre of land producing even the most basic commodity crops such as corn, wheat, rice and soybeans, regardless of whether the farmer needs the money."

Once the Senate bill leaves the Senate it will go into conference, where it will go up against the more generous House bill, which caps farm subsidies at $550,000, $90,000 above current levels. CCAGW will urge the conferees to accept the Senate amount, rather than the House figure. Currently, an overwhelming percentage of government payments go to large farms rather the smaller farms, which are most in need of assistance. Farm policy allocates two out of every three farm subsidy dollars to the top 10 percent of subsidy recipients, while completely shutting 60 percent of farmers out of subsidy programs. These big government payments drive up land prices and put small farms out of business. While supporting the Grassley-Dorgan amendment, CCAGW continues to oppose passage of farm legislation that does not move farm policy toward a more free market agriculture.

"Americans are sick of hearing how everyone from Fortune 500 companies to a former Miss America receive thousands of dollars in farm subsidies, while the average farmer faces falling crop prices due to government-stimulated demand through subsidies" Schatz said. "Farm subsidies should not be welfare programs for farmers."