TeachMeFinance.com - explain Payment-in-kind (PIK)
Payment-in-kind (PIK) The term 'Payment-in-kind (PIK) ' as it applies to the area of agriculture can be defined as ' In general, a payment made in the form of CCC-owned commodities (or title to them) in lieu of cash. This form of payment was widely used during the 1980s for paid diversion, deficiency payments, and export subsidy payments as a means of disposing of or avoiding the acquisition of commodity inventories. PIK certificates entitled the holder to a specific quantity of commodities'.
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