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Farm Bureau is analyzing a proposal by the federal government that would drastically change the way farm payments are distributed.

On Jan. 31 Agriculture Secretary Mike Johanns, citing farmer input and the Bush administration's goal of balancing the budget, proposed eliminating farm payments to those who make more than $200,000 annually in adjusted gross income. The current income cap is $2.5 million. Also included in the proposal is a suggestion that Congress reduce farm payments by $10 billion over the next five years.

The announcement came as the Bush administration and the U.S. Department of Agriculture (USDA) rolled out suggestions for the upcoming 2007 Farm Bill.

For two years farmers, producers and stakeholders around the country were included in 52 different USDA forums to discuss what should be included in the bill. The federal government's proposal is based on the results of those discussions.

AFBF is analyzing the proposal carefully as part of its effort to secure a new farm law that provides the best opportunities for its members.

"Farm Bureau members from across the country have repeatedly and strongly emphasized the need to keep the 2007 Farm Bill consistent and very similar to the concepts in the current bill," said AFBF President Bob Stallman. "We are keeping an open mind about the administration’s proposal and intend to give it full consideration."

OFBF supports a consistent, long-term market oriented farm policy that relies less on government and increasingly more on the market, allows farmers to take maximum advantage of market opportunities at home and abroad without government interference, encourages production decisions based on market demand and develops risk management tools to deal with the inherent fluctuations in revenue and income associated with farming.

"Since we last negotiated a farm bill in 2002, a lot has changed. Understanding agriculture's potential to produce renewable fuels and the impact that will have on livestock producers and conservation programs is critical," said OFBF Senior Vice President of Public Policy Keith Stimpert.

Lawmakers are anticipating having fewer dollars for farm programs when Congress writes a new farm bill this year. President Bush has promised to balance the budget within five years, and the Democratic-run Congress is insisting on budget cuts to pay for new spending.

The current farm bill, written in 2002, expires in September of this year. Johanns' plan would cost $87.3 billion over the next five years, not counting food stamps and other nutrition programs, compared with $105 billion spent on farm programs over the past five years.