United States Senate

 

FOR IMMEDIATE RELEASE
August 1, 2007

Contacts:  Stephanie Valencia (Salazar)

202-228-3630/202-494-8790
Aaron Eske (Nelson)

202-224-5436



 

Sens. Salazar and Nelson Introduce Bill to Close Farm Payment Loopholes, Taking Aim at Ending Waste in Farm Payments



WASHINGTON, D.C. – In an effort to curb waste and abuse within federal farm payments policy, United States Senators Ken Salazar (CO) and Ben Nelson (NE) today introduced legislation (S. 1904) that will close a loophole that allows commodity support payments to non-farmers. This bill would end the practice of providing commodity support farm payments to landowners who no longer use the supported land for agricultural purposes.

This abuse has been highlighted in recent media reports. For example, land that was formerly used for agricultural purposes, but has now been redeveloped for commercial or industrial use, or subdivided into multiple residential units, would no longer be eligible for commodity support farm payments. This much needed common sense reform will ensure that farmers who rely on commodity safety net payments get them and it will eliminate waste and abuse in current farm payments policy.

“This legislation directs the USDA to address the unsettling situation of farm support payments going to owners of land that is no longer used for agricultural purposes,” said Senator Salazar. “It is common sense that land that is now used for commercial, industrial, or residential purposes should not be eligible for farming support payments. Closing this loophole is one clear way we can eliminate wasteful spending and abuse, ensure that farmers who truly need support payments actually receive them and hopefully help our rural communities flourish.”

“This bill will improve a system that is not perfect but critical for our family farmers in Nebraska,” said Senator Nelson. “By eliminating waste and directing payments to the people who truly need it, we can address concerns that have been raised about our safety net program and rebuild confidence in our farm programs.”

The Salazar-Nelson bill will:

1) Require for the U.S. Department of Agriculture (USDA) to conduct an audit of payments and base acreage each year and report the results of that audit to Congress to ensure that payments are going to agricultural producers;
2) Require the USDA to permanently reduce base acres for land that has been developed for commercial or industrial use, subdivided or developed into multiple residential units or other non-farming uses and is no longer intended to be used in conjunction with a farming operation; and

3) Require that land owners that receive such payments to certify that they are an agricultural producer.

 

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