Deficiency payments

Deficiency payments

In the United States, deficiency payments are direct government payments made to farmers who participated in annual commodity programs for wheat, feed grains, rice, or cotton, prior to 1996.

  • The crop-specific deficiency payment rate was based on the difference between the legislatively set target price and the lower national average market price during a specified time.
  • The total payment was equal to the payment rate, multiplied by a farm’s eligible payment acreage and the program payment yield established for the particular farm.

In the latter years of the program, farmers could receive up to one-half of their projected deficiency payments at program signup. If actual deficiency payments, which were determined after the crop year, were less than advance deficiency payments, the farmer was required to reimburse the government for the difference, except for zero, 50/85-92 payments.

The 1996 farm bill (P.L. 107-171) eliminated deficiency payments and replaced them with production flexibility contract payments. The 2002 farm bill (P.L. 101-171, Sec. 1104) reinstituted deficiency payments as counter-cyclical payments with somewhat different payment calculations.

References


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • deficiency payments — Tradúzcase por pagos compensatorios …   Diccionario español de neologismos

  • Deficiency Payments —   Funds provided to producers within the price guarantee system of the Common Agricultural Policy (CAP) to give them a fair price for their produce and labour when their costs are higher than the market prices for their produce …   Glossary of the European Union and European Communities

  • deficiency payments scheme — noun a plan for support of the price of a produce (especially by government) …  

  • deficiency judgment — see judgment 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. deficiency judgment …   Law dictionary

  • deficiency — A lack, shortage, or insufficiency. The amount by which the tax properly due exceeds the sum of the amount of tax shown on a taxpayer s return plus amounts previously assessed or collected as a deficiency, less any credits, refunds or other… …   Black's law dictionary

  • deficiency — A lack, shortage, or insufficiency. The amount by which the tax properly due exceeds the sum of the amount of tax shown on a taxpayer s return plus amounts previously assessed or collected as a deficiency, less any credits, refunds or other… …   Black's law dictionary

  • Agrarsubvention — Als Agrarsubvention wird eine Subvention zugunsten der Landwirtschaft bezeichnet. Agrarsubventionen umfassen eine große Bandbreite von Politikinstrumenten im Agrar und Ernährungssektor. Agrarsubventionen werden teilweise mit Marktversagen… …   Deutsch Wikipedia

  • Agriculture and Food Supplies — ▪ 2007 Introduction Bird flu reached Europe and Africa, and concerns over BSE continued to disrupt trade in beef. An international vault for seeds was under construction on an Arctic island. Stocks of important food fish species were reported… …   Universalium

  • agricultural economics — Introduction       study of the allocation, distribution, and utilization of the resources used, along with the commodities produced, by farming. Agricultural economics plays a role in the economics of development, for a continuous level of farm… …   Universalium

  • Optional flex acreage — is a term in United States agricultural policy. Under the planting flexibility provision of the Agricultural Act of 1949, as amended by the 1990 farm bill, producers could choose to plant up to 25% of the crop acreage base in other Commodity… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”