Direct payments are farm program payments that are based on historical cropping patterns of major commodities, or "base acres," with per-acre rates fixed in legislation and not linked to current production or market prices. Direct payments per acre vary significantly by commodity. In 2008, rice and peanuts received the largest direct payments per acre ($96.25 and $45.85, respectively).
In recent years, direct payments (DPs) have provided recipients with an incentive to satisfy environmental compliance (EC) provisions. Under EC, farmers must apply approved soil conservation systems to highly erodible cropland and refrain from draining wetland to maintain eligibility for most USDA agricultural programs.
Goodbye direct payments. Considering current budgetary issues, Gary Schnitkey, Univ. of Illinois professor of agricultural economics, says to expect some changes in programs farmers have grown accustom to.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at CNH Industrial’s goals for growing its precision business by 2030.
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