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Fixed versus variable payments under Farm Act commodity programs (fiscal year)

Repeal of the Direct Payments (DP) program ends more than 15 years of fixed annual payments based on historical production. Over the last 4-5 years, fixed DP payments made up the bulk of commodity program payments to producers, as crop prices were generally well above Countercyclical Payment (CCP) program target prices and marketing assistance loan rates. That stream of fixed payments ends with the repeal of DPs.

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