Many powerful farm lobbiest are not seeing eye to eye with President Obama after he announced his budget includes a proposal to cut government subsidies to large farms.
President George W. Bush suggested similar ideas but was fought off by the same lobbyists.
Bush planned to limit annual farm subsidy payments to $250,000, and Obama’s plan looks very similar. Obama wants to eliminate one type of subsidy to farms with sales over $500,000. This subsidy is in the form of direct payments.
According to an Agiculture Department spokesman this change would affect 81,000 farms, or 4 percent across the United States.
Rice and cotton farms would be most effected. These large farms are spread across California, Texas and the Southeast.
Many suspect that Republicans who represent cotton and rice will fight hard against this proposal alongside Democrats from the Plain States.
The spokesperson also pointed out that although this is not a good thing for large farms, ultimately medium to small sized farms will see more money coming their way, especially those growing soy beans and corn.
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