OMAHA, Neb. (AP)--President Bush's proposed cuts to farm payments would include reducing the yield many farmers could claim for loan deficiency payments, the Nebraska Farm Bureau said March 8.

Under the current program, 100 percent of production is eligible for loan deficiency payments. Under Bush's proposal, only about 85 percent of yield would be eligible, the farm bureau said.

That is because Bush's proposal would base payments on 1981-1985 production history, which typically is much lower than actual yields, Nebraska Farm Bureau president, Keith Olsen said.

Loan deficiency payments are paid by the government if market prices drop below a set price on several crops, including soybeans, corn and wheat. The price set for corn is $1.95 per bushel.

If Bush's proposal had been in place during last year's harvest, a Nebraska farmer with 1,000 acres in irrigated corn would have lost an average of more than $22,000, the Farm Bureau said, based on a survey of 24 dryland and irrigated corn growers.

"While we understand that all federal programs need to be trimmed in light of the climbing deficit, we feel cuts to the farm bill should be adjusted to lessen the detriment it will cause to the average farmer and the state of Nebraska," Olsen said.

Date: 3/23/05