LOWER U.S. FARM PAYMENT BASE EYED FOR SAVINGS
Reducing the amount of crop base a
farmer can receive deficiency payments on is being looked at as
one way to cut the U.S. agriculture budget for fiscal year
1988, congressional aides and lobbyists said.
    Rep. Charles Stenholm (D-Tex.) has suggested that the
planted crop base a producer receives deficiency payments on be
reduced by five pct, an aide to Stenholm said.
    The aide said no official proposal has yet been drawn up,
but that as it becomes more clear exactly how much agriculture
spending will have to reduced, specific numbers will be
discussed and a proposal could "very likely" be drafted.
    Under the proposal, if a farmer idled 20 pct of his acreage
base and was eligible to plant the remaining 80 pct, he would
receive payments on only 75 pct of his total base.
    Current regulations provide farmers with deficiency
payments on 100 pct of their non-idled acreage.
    Reducing the payment base by five pct could save around 400
to 500 mln dlrs, but would have to be applied to the 1987 crop
programs in order for any savings to accrue in fiscal year
1988, an Agriculture Department economist said.
    Stenholm's aide said when the proposal is officially
offered, it would likely be an amendment to the budget
reconciliation bill.
    Other options currently being talked about as a way to cut
one to two billion dlrs from the farm budget include increasing
acreage reduction programs, limiting farm payments,
implementing a 0/92 acreage set-aside program or limiting the
use of generic in-kind certificates.
 Reuter
