Agricultural Economics Department


Date of this Version

August 2002


Published in Cornhusker Economics, 08/28/2002. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


The Farm Security and Rural Investment Act of 2002 (the farm bill) has been recognized as potentially providing agricultural producers with enhanced financial support. The bill has titles (sections) that address commodity programs, conservation, trade, nutrition programs, credit, rural development, research, forestry and energy. Some provisions are intended to indirectly affect producer prices and costs of production through trade promotion and research, for example. The commodity and conservation programs promise direct support for agriculture based on planting history and production, as well as payments for following specific production practices expected to conserve resources and protect the environment. The purpose of this discussion is to examine the possible effects of the commodity (Direct and Counter-Cyclical) programs on farm program payments.