President Barack Obama asked Congress on Monday to slash crop subsidies to "wealthy farmers" and to pare federal support for crop insurance, moves estimated to save $10 billion over 10 years.
Obama targeted those areas for large cuts last year without success.

In his proposed budget for fiscal 2011, Obama suggested a sharply lower cut-off in income that qualifies for crop supports, implemented over a three-year period. It would save $2.26 billion over 10 years.

The administration plan would end crop subsidies to people with more than $250,000 adjusted gross income from off-farm sources or more than $500,000 on-farm AGI. The caps now are set at $500,000 off-farm AGI and $750,000 on-farm AGI.

Some $8 billion would be saved over 10 years by reforming administration of the federally subsidized crop insurance system to end "huge windfall profits." The Agriculture Department is negotiating a new master agreement with insurers to reduce overhead payments.

The White House also requested a 25 percent cut, to $1.2 billion, in the Environmental Quality Incentives Program. It shares the cost of controlling runoff from fields and feedlots. The green-payment Conservation Security Program would be cut by roughly $1 million and enrollment held to 12 million acres in fiscal 2011 instead of 12.8 million acres.

Source: Drovers