Farm commodity programs 2008 farm bill jim monke

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Start Reading. Direct payments are issued to farmers who produce an eligible crop and are paid regardless of the current market price of the crop. They are based on how many acres have been planted in that crop in the past, and the historical yield. The other two types of payments require the market price to fall below a specified level.

To determine if farmers will receive these payments, a target price is set for each commodity crop. If this post has left you with more questions than answers — are direct subsidies the best way to ensure farmers a reasonable income? Who benefits most from subsidies? How does the structure of the commodity programs influence what farmers grow, and, in turn, what we have to eat? Ann Butkowski is happy to be back in her native Minnesota after spending the last two years in Boston.

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