"Green payments," if enacted, would merge farm income support and conservation payments. Achieving both objectives with a single payment, however, assumes that farms targeted for income support also face pressing environmental concerns. If income support and conservation payments would otherwise go to different farms, policymakers will face tradeoffs between the two objectives when designing a green payments program. Of the roughly 40 percent of farms that received some type of government payment in2004, 17 percent—or about 6 percent of all farms—received both types of payments, partly because less money is spent on conservation. In 2004, income support to farmers was nearly 8 billion dollar, while conservation payments totaled about 2 billion dollar. Conservation funding is rising, however, so the number of farms receiving both types of payments also is likely to rise. Nonetheless, about half of conservation payments made in 2004 went to farmers who also received income support, suggesting that a significant share of additional conservation payments will also flow to producers who do not receive income support.
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