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An individual farm’s share, based on its previous production, of the national acreage needed to produce sufficient supplies of a particular crop.

Acreage Reduction Program (ARP):

A voluntary, unpaid land retirement system in which farmers reduce their planted acreage from an historical "base-acreage" level. Usually required for participation in other agricultural programs. This program expired with passage of the 1996 Farm Bill.

bilateral agreement:

A two-country agreement for the exchange of a given volume of specific products during a specified period of time.

biotechnology:

The use of microorganisms–plant cells, animal cells or parts of cells, such as enzymes–to produce products or carry out processes.

biosolids:

Organic waste by-products from ag production and municipal sewage treatment plants that are spread on farm fields as a natural fertilizer or soil amendment.

carryover:

The inventory of a farm commodity not yet used at the end of a marketing year. Marketing years generally start at the beginning of the new harvest for a commodity.

checkoff programs:

Research and promotion programs authorized by law and financed by assessments. The programs are paid for by specified industry members (producers and handlers).

federal crop insurance:

A voluntary risk management tool, available to farmers since the 1930s, that protects them from the economic effects of unavoidable adverse natural events. In 1980, federal crop insurance was expanded to include more crops and to cover multiple hazards. Administrative costs are appropriated by Congress, and premium costs are federally subsidized.

Findley Payment:

A portion of the deficiency payment, usually paid at the end of the marketing year. The payment is intended to compensate producers for any loss of income if the Secretary of Agriculture invokes his authority to lower loan rates in order to make U.S. prices competitive in the world market.

General Agreement on Tariffs and
Trade (GATT):

An agreement negotiated in 1947 among 23 countries, including the U.S., to increase international trade by reducing tariffs and other trade barriers. This multilateral agreement provides a code of conduct for international commerce. GATT also provides a framework for periodic multilateral negotiations on trade liberalization and expansion.

import quota:

The maximum quantity or value of a commodity allowed to enter a country during a specific period of time.

international trade barriers:

Regulations used by governments to restrict imports from, and exports to, other countries. Examples are tariffs, embargoes, import quotas and unnecessary sanitary restrictions.

loan rate:

The price per unit (bushel, bale, pound) at which the government will provide loans to farmers and processors to enable them to hold their commodities for later sale. The 1996 Farm Bill established minimum loan rates for wheat, feed grains, dairy products and rice. Also set soybean and cotton rates by a formula reflecting an average of previous years' market prices.

marketing loan:

A variation on the standard nonrecourse commodity loan. The mechanism allows producers to repay their loans at the lower of the prevailing world market price or the original loan rate.

marketing quota:

Under certain agricultural programs, the quantity of a commodity that will provide adequate and normal market supplies. When marketing quotas are in effect (only after approval by at least two-thirds of the eligible producers voting in a referendum), growers who produce in excess of their farm acreage allotments are subject to marketing penalties and are ineligible for government price support loans. Quotas are used for domestically-consumed peanuts. For certain tobacco varieties, a poundagelimitation is applicable as well as acreage allotments.

market transition payments:

Seven-year contractual agreements between farmers and the federal government whereby farmers receive payments based on past production of program crops. Sign-up for these contracts was offered to all program participants on a one-time basis in 1996 as part of the 1996 Farm Bill.

multilateral agreement:

An agreement or program involving three or more countries . . . such as the General Agreement on Tariffs and Trade, and North American Free Trade Agreement.

net farm income:

The money and non-money income farm operators receive from farming as a return for labor, investment and management after production expenses have been paid.

nonrecourse loan:

Price support loan to farmers to enable them to hold their crops for later sale, usually within the marketing year. The loan is nonrecourse in that farmers can forfeit without penalty the loan collateral (the commodity) to the government as settlement of the loan.

non-point source pollution:

Pollution that cannot be detected from a specific point or any specific land use. It’s usually pollutants that are on the ground and get washed into lakes, streams and ponds when it rains.

normal crop acreage:

The acreage on a farm normally devoted to a group of designated crops. When a set-aside program is in effect, a farm's total planted acreage plus the set-aside acres cannot exceed the normal crop acreage if the farmer wants to participate in the commodity loan program or receive deficiency payments.

parity price:

Price per bushel, pound or bale that would be necessary today to buy the same quantity of goods (from a standard list) that a bushel would have bought in the 1910-1914 base period at the price then prevailing.

payment limitation:

A limitation set by law on the amount of money any one individual may receive in farm program payments, such as market transition payments and disaster payments, each year under the USDA programs. The limitation does not include the value of any government price-support loans received.

permanent legislation:

The statutory legislation upon which many agricultural programs are based . . . for the major commodities, principally the Agricultural Adjustment Act of 1938 and the Agricultural Adjustment Act of 1949. Although these laws are frequently amended for a given number of years, they would once again become law if current amendments, such as the 1996 Farm Bill, were to lapse or new legislation not be enacted.

point-source pollution:

Pollution that can be detected from a specific point, such as an outlet pipe emptying into a river from a wastewater treatment plant or a factory.

program yield:

A term designating the average historical yield established for a particular farm or area. Program production would be the program acreage planted in a commodity multiplied by the program yield.

Public Law 480:

Enacted in 1954 to expand foreign markets for U.S. agricultural products, combat hunger and encourage economic development in developing countries. Makes U.S. commodities available through low-interest, long-term credit under Title I of the Act and as donations for famine or other emergency relief under Title II. Under Title I, the recipient country agrees to undertake agricultural development projects to improve its own food production or distribution. Title III authorizes "food for development" projects.

runoff:

Rainfall or snow melt water that moves across agricultural or nonagricultural land into a nearby lake, stream or river. This water may contain sediment or otherpollutants when it reaches the water body.

set-aside:

This program expired with passage of the 1996 Farm Bill. The program limited production by restricting the use of land.

target price:

Most target price programs expired with passage of the 1996 Farm Bill. This was a commodity price goal established by law for wheat, feed grains, rice, and cotton. If the market price fell below this level, a direct government payment was made to producers for the difference between the target and the price support loan level or market price, whichever was higher.

tariff:

A system of duties imposed by government on both imported and exported goods. Sometimes used as a means of raising revenue.