This preview shows page 1. Sign up to view the full content.
Unformatted text preview: farmers if the market price of their commodity was lower than a legislated target price For example if the target price was $3 00 per bushel for corn and the price. For example, if the target price was $3.00 per bushel for corn, and the average market price for corn was $2.80 per bushel; a corn producer would receive a government check for $.20 per bushel of corn produced as a deficiency payment. As I have said before, these programs are being phased out at this time. Transition payments to farmers are now being made and will last only a few years under the current law. Any way you look at it, these payments are transfer payments to individuals or corporations that had to follow certain guidelines to be entitled to 31 them. The budget allocation for USDA was $75.5 billion in 2000 and $85.3 billion in 2005....
View Full Document
This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10