price support programs

Government programs that aim to keep farm prices received by participating producers from falling below specific minimum levels. Price support programs for major commodities are carried out by providing loans and purchase agreements to farmers so that they can store their crops during periods of low prices. The loans can later be redeemed if commodity prices rise sufficiently to make the sale of the commodity on the market profitable, or the farmer can forfeit the commodity to the Commodity Credit Corporation (CCC). With a purchase agreement, the producer may sell the commodity to the CCC.

Authorization Path: 1.2.1.2.12.0