Number: 97-69
Title: The Federal Agricultural Improvement and Reform Act of 1996: An Overview
Authors: Jean M. Rawson, Environment and Natural Resources Policy Division 
Abstract: At the core of U.S. farm policy are federal programs that support farm income and some commodity prices. The 1996 law makes substantial policy changes to many of these programs. It replaces the earlier target price deficiency payments system for grains and cotton with predetermined and capped annual contract payments to participating producers through 2002. Payments are tied to overall crop history, rather than to individual crops, and no longer are linked to market prices. Earlier nonrecourse commodity loan and marketing loan repayment provisions are largely maintained; however, the new law ends annual federal acreage reduction and strict planting requirements.
Pages: 17
Date: January 6, 1997