[20020531]RS20913_农场“反周期援助”.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS20913Updated May 31, 2002Farm “Counter-Cyclical Assistance”name redacted and name redactedSpecialists in Agricultural PolicyResources, Science, and Industry DivisionSummaryCongress has approved legislation (P.L. 107-171) reauthorizing major farm incomeand commodity price support programs through crop year 2007. This legislationincludes new “counter-cyclical assistance” programs for grains, cotton, oilseeds,peanuts, and milk. The intent of counter-cyclical assistance is to provide moregovernment support when farm prices and/or incomes decline, and less support whenthey improve. In fact, farmers have, for many years, been eligible for various forms ofcounter-cyclical assistance. At issue has been the need for, and potential impacts of,another counter-cyclical program. This report will not be updated.BackgroundFarming often is characterized as a “cyclical” business with exaggerated price swingsthat are destabilizing. Farmers respond to high prices by boosting output. However,when prices drop, farmers are not quick to cut back production. They are more likely tooperate