Deficiency payment check sent to producers that makes up


Commodity Credit Corporation:

Non-resource loan: loan that carries neither a penalty nor further obligation to repay if not paid back-- the farmer could get at least the target price for his or her crops.

Deficiency payment: check sent to producers that makes up the difference between the actual market price and the target price.

Why do they benefit to farmers?

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Microeconomics: Deficiency payment check sent to producers that makes up
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