USDA 2007 Farm Bill Proposals - US Department of Agriculture

continue to receive the direct payment now provided under the 2002 farm bill. This directpayment along with the new “conservation enhanced payment option” direct payment would besubject to a payment limit of $121,000 annually. The producer would also be subject to otherpayment limit changes and adjusted gross income changes recommended for the 2007 farm bill.[See Title I recommendation entitled “Strengthen Payment and Eligibility Limits” on pages 21-23.]Example conservation enhanced payment rates under this proposal will be as follows (calculatedas 1.1 times the proposed direct payment rates and data are rounded):CommodityProposedDirectPaymentRate2008-20092013-2017ConservationEnhancedPaymentRate2008-20092013-2017ProposedDirectPaymentRate2010-2012ConservationEnhancedPaymentRate2010-2012Barley (bu.) $0.25 $0.28 $0.26 $0.29Corn (bu) $0.28 $0.31 $0.30 $0.33Grain Sorghum (bu) $0.35 $0.39 $0.37 $0.41Oats (bu) $0.02 $0.02 $0.03 $0.03Other Oilseeds (cwt) $0.80 $0.88 $0.86 $0.95Peanuts (ton) $36.00 $39.60 $38.61 $42.47Rice (cwt) $2.35 $2.59 $2.52 $2.77Soybeans (bu) $0.47 $0.52 $0.50 $0.55Upland Cotton (lb) $0.11 $0.12 $0.11 $0.12Wheat (bu) $0.52 $0.57 $0.56 $0.62For each commodity, the direct payment for each crop year equals 85 percent of the farm’s baseacreage times the farm’s direct payment yield times the direct payment rate.To ensure that the payments are considered non-trade distorting under WTO criteria, thepayments should be structured to meet the criteria of decoupled income support. The paymentsshould be fixed and independent of current production and price and the producer should not berequired to produce in order to receive the payment.USDA 2007 Farm Bill Proposals Page 37 of 183