USDA Changes Actively Farming Requirement For Subsidies

The USDA is out with its final rule on payment limits and its definition of farmers who are “actively engaged”, under the 2018 Farm Bill. Senate Finance Chair and Agriculture Committee member Chuck Grassley has pursued farm payment limits for years, getting language in House and Senate farm bills twice, only to see it ditched in conference negotiations both for the 2014 and 2018 Farm Bills.

“They aren’t including it. And, remember, I voted against it 2014 because how they obliterated the good language. I got through both the House and Senate—this is even worse," noted Grassley, referring to the 2018 Farm Bill which looked at allowing nieces, nephews and cousins of farm operators to get subsidies.

But in its final rule out this week, USDA said these relatives must be “actively engaged” by providing “either 25% of the total management hours required by the operation” each year—or at least 500-hours a year. Grassley added not addressing these loopholes years ago has undermined public support for farm payments.

“This is how far out of control the waste of taxpayers’ money has gone, and the injustice that it does to the family farmers that have dirt under their fingernails, and are entitled to some protection from the federal government.”

Grassley and Nebraska GOP Congressman Jeff Fortenberry appealed to USDA Secretary Sonny Perdue to close the 2018 Farm Bill’s “actively engaged” loophole. An earlier GAO study found the loophole cost taxpayers $259 million before the bill was written.

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