Business / Agriculture / Deficiency Payments: Direct government payments made to farmers who participated in an annual commodity program 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 FAIR Act of 1996 eliminated deficiency payments and replaced them with production flexibility contract payments.
Business / Agriculture / Contract Payments Under AMTA: Some $36 billion in payments to be made to farmers for contract crops for fiscal years 1996-2002 under Title I of the FAIR Act of 1996, known as the Agricultural Market Transition Act (AMTA). The tota MORE
Business / Agriculture / Loan Deficiency Payments: A commodity payment program authorized by the Food Security Act of 1985 that makes direct payments, equivalent to marketing loan gains, to wheat, feed grain, upland cotton, rice, or oilseed producers MORE