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Price Supports

Friday, June 14, 2013

Price Supports

Raising Price Supports Could Drive Up Government Spending and Distort Planting Decisions


The House and Senate versions of the pending farm bill are supposed to save $47 billion by repealing three subsidy programs: direct payments, counter-cyclical payments and the average crop revenue election. But both bills would then use almost three-quarters of those savings – about $35 billion – to fund a suite of new farm income support programs designed to put a higher floor under crop prices or guarantee average revenues from crop sales. Read more, download report (PDF).

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