direct farm payments

Farm bill analysis
8:00 pm
Fri February 7, 2014

New farm bill changes U.S. ag policy

President Obama signed the long-overdue Agriculture Act of 2014 – the $956-billion farm bill – into law on Friday, February 7, 2014.

Not everyone likes the farm bill signed into law on Friday, but at least farmers will be able to start making informed decisions.

The biggest change in the 2014 farm bill is that the subsidies known as direct payments are gone. Instead of the government paying a known amount to farmers each year—at a fixed budget of $5 billion—the new system of subsidies will fluctuate, partly with market forces. That makes it really hard to predict how much the program will cost each year, says Iowa State University ag economist Chad Hart.

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