"President Obama's budget outline for FY2010--in the context of fiscal discipline--includes several proposals to reduce federal spending by $16 billion over 10 years on the farm commodity and crop insurance programs. Reaction to the proposal has been generally negative from groups that are affiliated with or supportive of agriculture. The most vehement reaction has been to a proposal to eliminate direct payments to farms with more than $500,000 of sales. Any change would require legislative action by Congress; it would not be part of the annual appropriations process. Such action would be viewed as 'reopening' the 2008 farm bill, which most in the agriculture community see as a five-year contract with farmers. The agriculture committees are neither obligated nor likely to take up the proposal. If budget reconciliation is ordered by the budget committees, and the agriculture committees are tasked to find savings, then the President's farm proposals may draw more attention--but even then, the proposal likely would be modified or a different budget-saving approach could be chosen."
CRS Report for Congress, R40442
National Agricultural Law Center: http://nationalaglawcenter.org/