The term "target price" refers to a specific price level set for covered commodities, such as grains and oilseeds. This price is used to calculate counter-cyclical payments to farmers, helping them manage income fluctuations due to market changes. Essentially, the target price acts as a safety net, ensuring farmers receive a minimum level of financial support when market prices fall below this threshold.
Target prices are primarily used in agricultural law and policy, particularly concerning commodity programs. These prices are significant in the context of federal farm programs, where they help determine payments to farmers during periods of low market prices. Users may encounter target prices when dealing with agricultural contracts, subsidy applications, or financial planning related to farming operations. Legal templates from US Legal Forms can assist users in navigating these processes effectively.
Here are a couple of examples of abatement:
For instance, if the target price for corn is set at $4.00 per bushel and the market price drops to $3.00, farmers may receive payments based on the difference to help stabilize their income. This ensures that they do not suffer excessively from market volatility. (hypothetical example)
The primary statute governing target prices is found in the U.S. Code, specifically under Title 7, Agriculture, § 7901. This section outlines the definitions and applications of target prices in the context of commodity programs.
If you are a farmer or involved in agricultural production, understanding target prices is crucial for financial planning. You can check the current target prices set by the government and assess how they may affect your income. For assistance, consider using US Legal Forms to access templates that can help with applications for counter-cyclical payments. If your situation is complex, seeking advice from a legal professional may be beneficial.
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| Attribute | Details |
|---|---|
| Typical Use | Calculating counter-cyclical payments for farmers |
| Jurisdiction | Federal agricultural policy |
| Key Statute | 7 USCS § 7901 |
A target price is a predetermined price level for agricultural commodities used to calculate government payments to farmers during low market prices.