The term national average price refers to the average amount paid to producers of agricultural commodities across the United States during a marketing year. This figure is established by the Secretary of Agriculture and is used to assess market conditions and provide assistance to farmers affected by import competition.
The national average price is primarily used in agricultural law and trade regulations. It plays a crucial role in determining eligibility for various forms of government assistance aimed at farmers. This term is relevant in contexts such as:
Users can manage related legal forms and procedures through tools like US Legal Forms, which provide templates drafted by licensed attorneys.
Here are a couple of examples of abatement:
For instance, if the national average price for corn in a given marketing year is set at $3.50 per bushel, this figure will be used to evaluate market conditions and determine eligibility for assistance programs aimed at corn farmers.
(hypothetical example) If the national average price for soybeans is lower than expected due to increased imports, farmers may qualify for federal assistance to help mitigate their losses.
The national average price is defined under 19 USCS § 2401 (5), part of the Trade Act of 1974. This statute outlines the framework for relief from injury caused by import competition, specifically for agricultural producers.
| Term | Definition | Difference |
|---|---|---|
| Market Price | The price at which a commodity is currently being bought and sold in the market. | Market price fluctuates based on supply and demand, while national average price is a calculated average over a specific period. |
| Base Price | A predetermined price used as a reference point for calculating payments or subsidies. | Base price may not reflect current market conditions, whereas national average price is updated annually. |
If you are a farmer or agricultural producer affected by market conditions, it is essential to understand how the national average price may impact your eligibility for assistance programs. Consider the following steps:
If your situation is complex, seeking professional legal advice may be beneficial.
Browse our library of 85,000+ state-specific legal templates.
| Attribute | Details |
|---|---|
| Typical Calculation Period | Marketing year |
| Governing Body | Secretary of Agriculture |
| Relevance | Determines eligibility for assistance programs |
The national average price is the average amount paid to agricultural producers for their commodities during a marketing year.