February 26th, 2009
03:29 PM ET
11 years ago

Obama's first budget: Less money for wealthy farmers

WASHINGTON (CNN) - Wealthy farmers would get less money from the federal government - and none, three years down the line - under proposals in President Barack Obama's first budget, introduced Thursday.

Click on the jump for more info about agriculture funding in the budget.

The following are some of the key figures and proposals in the fiscal year 2010 budget regarding agriculture:

- Agriculture Department funding would increase by $1.4 billion, from $24.6 billion to $26 billion

- The Agriculture Department also received an additional $6.9 billion in the stimulus package, which is separate from the budget

- Obama's proposed fiscal year 2010 budget "phases out direct payments over three years to farmers with sales revenue of more than $500,000 annually." At present, the budget says, "direct payments are made to even large producers regardless of crop prices, losses or whether the land is still under production.... Large farmers are well positioned to replace those payments with alternative sources of income from emerging markets for environmental services, such as carbon sequestration, renewable energy production, and providing clean air, clean water, and wildlife habitat."

- The budget cuts Market Access Program (MAP) "funding for overseas brand promotion"

- The budget also cuts cotton subsidies. It "proposes to eliminate the requirement for the government to pay the storage costs of cotton that is put under loan by the USDA. Cotton is the only commodity for which this assistance is provided."

- The budget provides $1.3 billion in loans and grants to increase rural broadband capacity and improve rural telecommunication service.

- The budget boosts funding for "food safety inspection and assessment and the ability to determine food safety risks."

The government's fiscal year runs from October of one year through September of the next.

Related: Obama unveils budget blueprint

–CNN's Alan Silverleib contributed to this report.

Filed under: Obama administration
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