Washington, D.C. – U.S. Senator Russ Feingold is working to reform the direct payment system by curbing the largest giveaways to farming operations and large land owners receiving more than $10,000 in payments per year. Feingold will propose an amendment to the Farm Bill that would redirect resources to programs that help family farms and rural communities. Feingold’s amendment would save about $360 million per year that could be better spent on working land conservation efforts, purchasing local food for nutrition programs, and creating more opportunities for farmers and rural residents.

“Taxpayers should not be forced to make payments every year to the largest landowners based only on a history of farming and regardless of whether it has been a good year or bad year or even whether they use their land for farming,” Feingold said. “Direct payment subsidies are in dire need of reform and we should direct the savings from reform to programs that help farmers and rural communities.”

“Right now the direct payment has not proven adequate when farmers need a safety net – it’s insufficient in times when prices are low and not justifiable when prices are high. We support Senator Feingold’s plan to use direct payment dollars toward programs that support farmers and rural communities especially at a time when those programs are short on funding,” said Sue Beitlich, President of the Wisconsin Farmers Union “We need reforms like Senator Feingold’s to help maintain a level playing field for Wisconsin’s farmers and ensure the resources are there for worthwhile programs to improve the lives of farmers and rural Americans.”

“This is the exact type of progressive legislation that helps to level the playing field between family-scale farmers in this country and corporate agribusiness.” Said Mark Kastel, Senior Farm Policy Analyst at The Cornucopia Institute. “The amendment’s redirection of resources will directly aid farmers and rural communities and help create a safer more stable food supply for consumers.”

Under current rules, certain landowners receive direct payments based on a history of growing certain crops. These payments are made to the farmers each year regardless of what is planted and without respect to crop prices. In some cases, the land is no longer even used in active farming. Even more outrageous, there are instances of land that has been developed and continues receiving direct payments. Feingold’s amendment would cut payments over $10,000 per year by 30 percent, leaving payments to the vast majority of farmers intact. According to the Congressional Budget Office, the proposal could generate a savings of about $3.60 billion over ten years. In addition to the support of the Wisconsin Farmers Union and the Cornucopia Institute, Feingold’s proposal is supported by the Sustainable Agriculture Coalition.

Feingold also supports a proposal by Senators Byron Dorgan (D-ND) and Chuck Grassley (R-IA) to cap subsidy payments. The amendment, supported by members from both parties and a wide range of organizations, would cap all farm subsidy payments at $250,000 per person per year and close existing loopholes, with the money saved going towards conservation, nutrition, food aid, and other important programs.