February 2002

Dear Chairman Combest and Representative Stenholm:

When the House and Senate conference committee convenes on the Farm Bill, we strongly urge you to accept the payment limitation language adopted by the Senate under the Dorgan-Grassley amendment. This key reform will ensure that reduced and more reasonable payment limitations are used to distribute farm program payments.

As you know, the Dorgan-Grassley amendment to the Farm Bill passed the Senate by voice vote after a motion to table it was overwhelmingly rejected by a vote of 66-31. This language would limit payments to $225,000 for individuals and $275,000 for husband and wife entities. Additionally, the Senate language closes loopholes that allow payment recipients to form multiple entities to avoid current payment limits.

While we commend you for including payment limitations in the House Farm Bill, we believe the language added in the Senate would improve the integrity of the farm program payments and help to retain public support for these programs essential to rural areas. Closing the loopholes in current law will also help prevent the overwhelming consolidation of farms that has resulted in a decrease in small- and medium-sized family farm operations.

Public support for farm programs will wane with continuing negative publicity surrounding multi-million dollar payments. Effective payment limitations can help retain a fundamental goal of farm policy, to provide for a diverse, family-farm-oriented farming structure. We urge you to consider stronger payment limitation language in the final version of the Farm Bill.

Sincerely,

Doug Bereuter and Earl Pomeroy

Cc: House Agriculture Committee conferees

Related links:

• Key farm policy reforms brewing in Congress
• The members negotiating the final farm bill
• Key reforms at stake during the negotiations
• Key farmland conservation programs