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Domestic Farm Programs Acreage Allotment POLICY TOOLS FOR US AGRICULTURE 4th Edition Joe L. Outlaw Professor of Agricultural Policy James W. Richardson Regents Professor of Agricultural Policy C. Parr Rosson III Professor of International Trade Danny A. Klinefelter Professor of Agricultural Finance David P. Anderson Professor of Agricultural Marketing Ronald D. Knutson Professor Emeritus Agricultural and Food Policy Center Department of Agricultural Economics Texas AgriLife Research Texas AgriLife Extension Texas A&M University Supported by Farm Foundation Agricultural Marketing Service/USDA Economic Research Service/USDA Farm Service Agency/USDA Foreign Agricultural Service/USDA Natural Resource Conservation Service/USDA i © 2008 by the Agricultural and Food Policy Center Agricultural and Food Policy Center Department of Agricultural Economics 2124 TAMU College Station, TX 77843-2124 Web site: www.afpc.tamu.edu Fourth edition. Published 2008. Layout and design by David P. Ernstes ISBN 978-0-615-20004-0 Printed in the United States of America by Insite Printing, Bryan, TX. ii Table of Contents Foreword ...................................................................................................................................... vii Acknowledgements ..................................................................................................................... viii Introduction ...................................................................................................................................ix Domestic Farm Programs Introduction .....................................................................................................................................1 Acreage Allotment ............................................................................................................................2 Acreage Reduction, Set-Aside, and Diversion ......................................................................................3 Bioenergy Program ...........................................................................................................................4 Buyout Programs .............................................................................................................................5 Commodity Purchase Program ..........................................................................................................6 Cost-Sharing Assessment Programs ..................................................................................................7 Cross-Compliance, Limited Cross-Compliance .....................................................................................8 Counter-Cyclical Payments (CCPs) .....................................................................................................9 Counter-Cyclical Revenue Payments .................................................................................................10 Dairy Buyout, Termination Program ..................................................................................................11 Dairy Diversion Program .................................................................................................................12 Direct Payments, AMTA Payments, Decoupled Payments ...................................................................13 Farmer-Owned Reserve (FOR) ..........................................................................................................14 Generic Payment in Kind (GPIK) (See also PIK) ..................................................................................15 Long-Term Land Retirement, Soil Bank, Conservation Reserve Program (CRP) .....................................16 Market Loss Assistance (MLA) Payments ..........................................................................................17 Marketing Loan ..............................................................................................................................18 Marketing Quotas ...........................................................................................................................19 Nonrecourse Loan ..........................................................................................................................20 Offsetting Compliance ....................................................................................................................21 Payment in Kind (PIK) ......................................................................................................................22 Payment Limits ..............................................................................................................................23 Planting Flexibility (Flex Acres) .........................................................................................................24 Step 1, 2, 3 Cotton Programs .........................................................................................................25 Target Price ...................................................................................................................................26 Two-Tier Milk Pricing .......................................................................................................................27 0/92 and 50/92 ............................................................................................................................28 Risk Management Programs Introduction ...................................................................................................................................29 Catastrophic Coverage (CAT) ...........................................................................................................30 Disaster Programs .........................................................................................................................31 Livestock Revenue Protection ..........................................................................................................32 Multi-Peril Crop Insurance (MPCI) ......................................................................................................33 Revenue Insurance .........................................................................................................................34 Risk Management Accounts ............................................................................................................35 iii Table of Contents Conservation and Environmental Programs Introduction ...................................................................................................................................36 Agricultural Water Quality Protection Program (AWQPP) .....................................................................37 Agriculture Conservation Program (ACP), Conservation Technical Assistance (CTA), Great Plains Conservation Program (GPCP) .......................................................................................38 Best Management Practices (BMP) ..................................................................................................39 Conservation Compliance and Sodbuster .........................................................................................40 Conservation Reserve Program (CRP) ..............................................................................................41 Conservation Security Program (CSP) ..............................................................................................42 Environmental Quality Incentives Program (EQIP) ...............................................................................43 Grassland Reserve Program (GRP) ...................................................................................................45 No Net Loss ..................................................................................................................................46 Swampbuster .................................................................................................................................47 Wetland Reserve Program (WRP) .....................................................................................................48 Wildlife Habitat Incentives Program (WHIP) ........................................................................................49 International Trade Programs Introduction ...................................................................................................................................50 Antidumping/Countervailing Duties Investigations (AD/CVD) ...............................................................51 Barter/Counter Trade .....................................................................................................................52 Blended Credit ...............................................................................................................................53 Cargo Preference ...........................................................................................................................54 Contract Sanctity ...........................................................................................................................55 Countervailing Duties ......................................................................................................................56 Direct Export Credit ........................................................................................................................57 Export Credit Guarantees ................................................................................................................58 Export Embargoes
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