Farm Commodity Programs: Direct Payments, Counter-Cyclical Payments, and Marketing Loans

Description:

Commodity support provisions in the Farm Security and Rural Investment Act
of 2002 (P.L. 107-171, the 2002 farm bill) include three primary types of payments:
(1) annual direct payments unrelated to production or prices, (2) counter-cyclical
payments which are triggered when prices are below statutorily-determined target
prices, and (3) marketing assistance loans that offer interim financing and, if prices
fall below statutorily-determined loan prices, additional income support. This report describes the payments for wheat, feed grains, cotton, rice, oilseeds,
peanuts, wool, mohair, honey, and certain other small grains. These commodities
have similar rules, and generally account for about two-thirds of USDA farm
commodity program outlays.

Creator(s): Monke, Jim
Location(s): United States
Creation Date: February 10, 2006
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Creator (Author):
Monke, Jim

Analyst in Agricultural Policy

Publisher Info:
Place of Publication: Washington D.C.
Date(s):
  • Creation: February 10, 2006
Coverage:
Place
United States
Description:

Commodity support provisions in the Farm Security and Rural Investment Act
of 2002 (P.L. 107-171, the 2002 farm bill) include three primary types of payments:
(1) annual direct payments unrelated to production or prices, (2) counter-cyclical
payments which are triggered when prices are below statutorily-determined target
prices, and (3) marketing assistance loans that offer interim financing and, if prices
fall below statutorily-determined loan prices, additional income support. This report describes the payments for wheat, feed grains, cotton, rice, oilseeds,
peanuts, wool, mohair, honey, and certain other small grains. These commodities
have similar rules, and generally account for about two-thirds of USDA farm
commodity program outlays.

Physical Description:

30 Pages.

Language(s):
Subject(s):
Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
Identifier:
Resource Type: Report
Format: Text