Asked by Shannon Bubar on Jul 12, 2024
Verified
The three types of farm subsidies under the Food, Conservation, and Energy Act of 2008 are
A) equipment coupons, land leases, and income contributions.
B) marketing agreements, transition payments, and interest loans.
C) direct payments, countercyclical payments, and marketing loans.
D) public land sales, fertilizer discounts, and farm bank loans.
Food, Conservation, And Energy Act
A comprehensive piece of legislation passed in the United States that governs agricultural and food policy, aimed at promoting conservation, energy efficiency, and food security.
Farm Subsidies
Financial aid and support programs provided by governments to help farmers reduce the risk of farming, ensuring a stable food supply.
Direct Payments
Cash transfers from governments to individuals or businesses for specific purposes, often used in agricultural subsidies or social welfare programs.
- Differentiate among various agricultural assistance initiatives and their impacts on market results.
Verified Answer
MF
Marah FarahJul 12, 2024
Final Answer :
C
Explanation :
The Food, Conservation, and Energy Act of 2008, also known as the 2008 Farm Bill, includes three main types of farm subsidies: direct payments, countercyclical payments, and marketing loans. Direct payments are fixed annual payments to farmers based on historical acreage and yields, regardless of current market conditions. Countercyclical payments provide financial assistance to farmers when market prices for certain crops fall below target prices set by the government. Marketing loans offer farmers favorable terms on loans for storing crops until market conditions improve, allowing them to sell at better prices.
Learning Objectives
- Differentiate among various agricultural assistance initiatives and their impacts on market results.