Report of the Payment Limit Commission Keith Collins. Commission’s Statutory Charge. Assess effects of further limitations for direct, counter-cyclical payments and marketing loan benefits on: Farm income Farm land values Rural communities and agribusiness infrastructure
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Report of the Payment Limit Commission Keith Collins
“Examine the feasibility of improving the application and effectiveness of payment limitation requirements, including the use of commodity certificates and the unlimited forfeiture of loan collateral.”
--Gary Black (Georgia); Gary Dyer (Arizona);
Richard Newman (Texas)
--Terry Ferguson (Illinois); Ellen Linderman (North Dakota);
Neil Harl (Iowa)
--Alice Devine (Kansas); William Spight (Mississippi);
Ed Smith (Texas)
--375 comments received
--9 invited speakers and several members of the public
--From January-August, 9 meetings held in which several experts were invited to provide information
Producer has own operation, 50% interest in trust A and 50% interest in corporation B
Land, equipment or operating capital
Active personal labor or active personalmanagement
Farm typePayments per farm*
Other crops $12,100
*For farms receiving government payments. About 20% of other crop and 40% of livestock farms received government payments in 2001.
Amount not paid
out due to limits
FSA Farms1.6 mil. 198,890 19,222 2,289 325
Direct payments fall $255-275 mil.
CC payments fall $400-425 mil.
Loan benefits fall $400-500 mil.
Regional Effects of Further Limitations
Ariz. & Calif: 25% or more of producers would reach limit
--Delay change until next farm bill or allow adequate phase-in time
--Increase compliance resources at FSA/OIG
--Avoid incentives to create business organizations for payment purposes
--Avoid changes that force risk shifting from landlord to tenant
--Changes should be meaningful, transparent and simple and sensitive to commodities, regions, existing infrastructure
--Information and analysis