The 2014 Farm Bill eliminated the Direct Payment Program (DPP), the Counter-Cyclical Payment (CCP) Program and the Average Crop Revenue Election (ACRE) Program, and therefore creating savings (reductions) in federal government budget spending. Subsequent to these program deletions, the Congress created two new Commodity Programs: Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC). Congress also increased the premium subsidies for producer participation in Federal Crop Insurance. Discuss the budgetary impacts of these multiple changes, as well as the political/economic reasons for the 2014 Farm Bill’s combination of program deletions and additions.

The 2014 Farm Bill eliminated the Direct Payment Program (DPP), the Counter-Cyclical Payment (CCP) Program and the Average Crop Revenue Election (ACRE) Program, and therefore creating savings (reductions) in federal government budget spending. Subsequent to these program deletions, the Congress created two new Commodity Programs: Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC). Congress also increased the premium subsidies for producer participation in Federal Crop Insurance. Discuss the budgetary impacts of these multiple changes, as well as the political/economic reasons for the 2014 Farm Bill’s combination of program deletions and additions.