Agricultural Economics Department
Date of this Version
November 2002
Abstract
Producers have until April 2003 to select base and yield options under the new Direct and Counter-Cyclical Program. The options selected will be effective through 2007 and could significantly effect farm program payments. In many instances, the option that maximizes payments will depend upon program commodity prices. As a result, producers may want to consider some likely price scenarios, or simply consider the outcome at a range of price levels. Several computer programs are available to help producers evaluate the alternatives. However, understanding the principles can help in interpreting the computer results and provide some guidance if using a pencil and calculator.
Comments
Published in Cornhusker Economics, 11/06/2002. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.
http://www.agecon.unl.edu/Cornhuskereconomics.html