Ethanol incentives, farm payments may be cut

Thu Apr 17, 2008 8:51pm EDT
Reuters.com
By Charles Abbott

WASHINGTON (Reuters) - Ethanol tax incentives and crop subsidies including "direct" payments to farmers could be reduced as part of the new U.S. farm law, a House chairman and two Senate staff workers said on Thursday.

House Agriculture Committee chairman Collin Peterson told reporters that $1 billion in cuts in commodity programs over 10 years was an element in the House proposal to offset a spending increase of $9.5 billion. Commodity programs include the direct payments of $5.2 billion guaranteed annually to farmers.

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