TeachMeFinance.com - explain Advance deficiency payments
Advance deficiency payments The term 'Advance deficiency payments ' as it applies to the area of agriculture can be defined as ' Initial payments (ranging from 30 to 50% of the total payment) made to crop producers when they signed up for federal commodity programs. If the total deficiency payment was eventually calculated to be less than the advance deficiency payment, the producer was required to refund the difference. The FAIR Act of 1996 replaces the target price/deficiency payment subsidy mechanism with production flexibility contract payments'.
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