A big cut in the most controversial of farm subsidies was approved in late-night farm bill negotiations Thursday.The farm bill conference committee approved a cut of approximately 2 percent in direct payments, amounting to about $313 million over five years, and also eliminated payments to any farmer with 10 program acres or less.
Direct payments have long faced criticism because they’re used to dole out funds to farmers regardless of market prices. Other subsidy programs, such as the counter-cyclical program, are only distributed when market prices for commodities drop below target levels. One of those critics is Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, who has long sought to reduce direct payments.
House Agriculture Committee Chairman Collin Peterson, D-Minn., is also a critic of direct payments. He stated Thursday that if he had his way, he would eliminate direct payments altogether.
Farm bill negotiators have not yet resolved their differences on other provisions that would put new limits on subsidy payments.

