TAILIEUCHUNG - Gale Encyclopedia Of American Law 3Rd Edition Volume 1 P21

Gale Encyclopedia of American Law Volume 1 P21 fully illuminates today's leading cases, major statutes, legal terms and concepts, notable persons involved with the law, important documents and more. Legal issues are fully discussed in easy-to-understand language, including such high-profile topics as the Americans with Disabilities Act, capital punishment, domestic violence, gay and lesbian rights, physician-assisted suicide and thousands more. | 188 AGRICULTURE SUBSIDIES announced a monumental agreement with the Soviet Union whereby the Soviet Union would purchase virtually all surplus grain produced in the United States. . grain and food prices escalated rapidly owing to this new demand causing great public skepticism about the deal except in the rural United States where farm values and incomes escalated. Another method used by the government to subsidize agricultural products is the combination of target prices deficiency payments and mandatory acreage reduction. This approach is used primarily for corn and wheat the main . grain crops. Under this method the government sets an ideal price or target price for a commodity. If the market price falls below that target price the government pays the farmer the difference that is makes a deficiency payment to the farmer. This prevents the farmer from being forced to sell the product at a price the government deems unfairly low and supports the farmer s income during difficult economic periods. Programs using this method are not mandatory so the farmer must enlist in one to be involved. In return for a guaranteed minimum income and price stability the farmer normally is required to take a specified portion of land out of production that is make a mandatory acreage reduction at least for program commodities. In any given year it is impossible to predict how expensive the deficiency payment programs will be because weather conditions and uncontrolled market forces often greatly affect prices. These types of agriculture subsidies often have been quite expensive especially during years when market prices are low owing to high production and low exports. To reduce the government s cash payments to farmers during one particularly disastrous market swing the Reagan administration implemented the Payment in Kind PIK Program in 1983. Under the PIK Program instead of paying farmers with cash the government paid them with certificates good for federal surplus grain.

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