{
  "id": "R45165",
  "type": "CRS Report",
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  "number": "R45165",
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      "source": "EveryCRSReport.com",
      "id": 580218,
      "date": "2018-04-17",
      "retrieved": "2018-04-19T12:55:54.527608",
      "title": "U.S. Farm Commodity Support: An Overview of Selected Programs",
      "summary": "Federal efforts to bolster farm household incomes and the rural economy by providing support to producers of key crops has been a central pillar of U.S. farm policy since such programs were first introduced in the 1930s. Current farm support programs are counter-cyclical in design\u2014that is payments are triggered when the annual market price for an eligible crop drops below a statutory minimum or when revenue is below a guaranteed level. The farm commodity program provisions in Title I of the Agricultural Act of 2014 (P.L. 113-79, the 2014 farm bill) consists of three types of support for crop years 2014-2018: \nPrice Loss Coverage (PLC) payments. PLC payments occur if the national average marketing year price for a \u201ccovered commodity\u201d (e.g., wheat, corn, soybeans, rice, and peanuts, among others) is below its \u201creference price.\u201d The difference between these two prices is the per-unit payment rate, which is multiplied by historical program yields and paid on 85% of historical program acres (i.e., base acres).\nAgriculture Risk Coverage (ARC) payments. ARC payments occur when annual crop revenue for a county or an individual producer is below its guaranteed level based on a five-year moving average of historical crop revenue. The difference between these prices is the per-acre payment rate, which is paid on 85% of base acres.\nMarketing Assistance Loans (MAL). MAL offers interim financing for a group of \u201cloan\u201d commodities (consisting of covered crops plus several others) that is equal to actual production multiplied by statutorily set loan rates. Additional benefits are available to producers if market prices fall below loan rates.\nThese three commodity support programs are in effect for the 2014-2018 crop years. The U.S. Department of Agriculture\u2019s (USDA) Farm Service Agency (FSA) reported that ARC and PLC payments exceeded $5 billion in FY2014, and payments reached nearly $7 billion in both FY2015 and FY2016. Under current law, the Congressional Budget Office projects farm commodity program payments to exceed a combined total of $4 billion each fiscal year from 2016 to 2027. \nThe \u201ccovered commodities\u201d that qualify for ARC and PLC include wheat, feed grains (corn, sorghum, barley, oats), seed cotton, rice, soybeans, other oilseeds (sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, and sesame seed), and peanuts. Support under MAL is available for covered commodities plus refined beet and raw cane sugar, wool, mohair, honey, dry peas, lentils, and chickpeas. \nThe 2014 farm bill\u2019s Title I farm program payments are set to expire in September 2018. The upcoming farm bill discussions may address farm commodity program payments. Without a new farm bill or an extension of the current farm bill, the authority for some farm programs would expire, and some would cease to operate altogether. Accordingly, this report lists a selection of legislative proposals introduced in the 115th Congress that would impact the farm commodity program payments in Title I of the farm bill. \nUSDA administers these farm commodity programs. Dairy, livestock, tree crops, and sugar producers have separate programs within Title I that are outside the scope of this report.",
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