The Payment-in-Kind Program Pays U.S. Farmers Not to Plant (Great Events from History II: Business and Commerce Series)
Article abstract: Under the Payment-in-Kind (PIK) program, farmers who agreed not to plant a portion of their land were paid with government surplus commodities.
Summary of Event
The Payment-in-Kind (PIK) program was established and administered by the U.S. Department of Agriculture (USDA) under statutory authority granted by the Agricultural Act of 1949, as amended, and the Commodity Credit Corporation Charter Act. The PIK program thus was designed and implemented within existing statutory authority but did not receive specific congressional authorization. The program was offered to farmers who agreed to reduce their planting of wheat, feedgrains (primarily corn and grain sorghum), rice, and upland cotton, beyond what was called for in the 1983 programs for those crops. The basic concept behind the program was that farmers were offered commodities as payment for reduction of this additional acreage.
Historically, the USDA has used a number of production adjustment mechanisms to take cropland out of production. These mechanisms are part of a group of farm programs designed to stabilize and enhance commodity prices and farm incomes. The Agriculture and Food Act of 1981 authorized cropland reduction programs for the 1981-1985 crops of wheat, rice, cotton, and feedgrains.
The USDA administers these farm programs through its Commodity Credit Corporation (CCC) and its Agricultural Stabilization and...
(The entire section is 2214 words.)
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