Farm "Counter-Cyclical Assistance"

Abstract:

Congress has approved legislation (P.L. 107-171) reauthorizing major farm income and commodity price support programs through crop year 2007. This legislation includes new "counter-cyclical assistance" programs for grains, cotton, oilseeds, peanuts, and milk. The intent of counter-cyclical assistance is to provide more government support when farm prices and/or incomes decline, and less support when they improve. In fact, farmers have, for many years, been eligible for various forms of counter-cyclical assistance. At issue has been the need for, and potential impacts of, another counter-cyclical program. This report will not be updated.