The term "payment acres" refers to a specific portion of a farm's base acres that are eligible for direct payments and counter-cyclical payments under agricultural commodity programs. Specifically, payment acres are defined as 85 percent of the base acres of a covered commodity on a farm. These base acres are established according to federal agricultural regulations.
Payment acres are primarily used in agricultural law and policy. They play a crucial role in determining the financial support that farmers receive through direct payments and counter-cyclical programs. These payments are designed to stabilize farm income and support farmers during periods of low market prices. Users may encounter forms related to payment acres when applying for agricultural subsidies or participating in federal commodity programs.
Here are a couple of examples of abatement:
For instance, if a farm has a total of one hundred base acres for corn, the payment acres would be eighty-five acres. This means that the farm would be eligible for payments based on this eighty-five acres under applicable agricultural programs.
(Hypothetical example) A farmer with fifty base acres of soybeans would have forty-two payment acres eligible for direct payments.
The definition and use of payment acres are primarily governed by federal agricultural laws, specifically:
| Term | Definition |
|---|---|
| Base acres | The total acres of a commodity for which a farm is eligible for payments. |
| Counter-cyclical payments | Payments made to farmers when market prices fall below a certain level. |
If you are a farmer and believe payment acres apply to your situation, you should:
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Payment acres are 85 percent of the base acres of a covered commodity on a farm, eligible for direct and counter-cyclical payments.