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Grassley opposes Obama plan for direct payments

An influential Republican Senator who has long championed lower payment limits for commodity programs told reporters Tuesday that he does not support ending direct payments to farmers making more than $500,000 in sales.

That's part of the Obama Administration's proposed budget for 2010. Grassley said he does support another Obama proposal to cap all commodity program paymaents, including direct payments, at $250,000.

But he said the direct payment is one of only a few farm program payments that wouldn't be viewed as trade distorting under World Trade Organization rules.

"I'm reluctant to do too much to direct payments until we get done with our trade negotiations," Grassley said.

An influential Republican Senator who has long championed lower payment limits for commodity programs told reporters Tuesday that he does not support ending direct payments to farmers making more than $500,000 in sales.

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