Business / Agriculture / Production Flexibility Contract: A 7-year contract covering crop years 1996-2002, authorized by the FAIR Act of 1996 between the CCC and farmers, which makes fixed income support payments in place of the previous variable target price deficiency payments. Farmers are given production flexibility and diversification options on their contract acres not previously allowed on base acres. Each farm’s total payment is the payment rate times the payment quantity for participating base acres. In exchange for annual fixed payments, the owner or operator must agree to comply with the applicable conservation plan for the farm, the wetland protection requirements currently in law, and the constraints on growing fruits and vegetables on contract acres. Land enrolled in a contract must be maintained in an agricultural or related activity. The law states that not more than $35.6 billion will be paid over the 7-year period, in declining annual amounts from $5.3 billion in FY1996 to $4.0 billion in FY in 2002. The annual payments are allocated among commodities similar to historical deficiency payments, with 53.6% going to feed grains, 26.3% for wheat, 11.6% for upland cotton, and 8.5% for rice.
Contract Adjective Synonyms: agreement, understanding, deal, bargain, arrangement, pact, commitment, obligation, compact
Contract Noun Synonyms: engage, agree, promise, covenant, undertake
Contract Verb Synonyms: catch, acquire, get, come down with, develop, become infected with, go down with
Flexibility Verb Synonyms: pliability, pliancy or pliantness, elasticity, resilience or resiliency, suppleness, flexibleness, bendability, limberness, stretch, give, spring, springiness, ductility
Production Noun Synonyms: producing, manufacture, manufacturing, making, fabrication, preparation, origination, creation, output, putting out, development, formation, forming, forging, shaping, moulding, casting, assembly, building, construction
Business / Agriculture / Base (Or Contract) Acreage: A farm’s crop-specific acreage of wheat, feed grains, upland cotton, or rice eligible to enroll in commodity programs under previous legislation, and subsequently eligible for production flexibility MORE
Business / Agriculture / Contract Commodity: The commodities previously eligible for deficiency payments and now eligible for production flexibility contracts under the FAIR Act of 1996: wheat, corn, sorghum, barley, oats, rice, and upland cotto MORE