Business / Agriculture / Production Flexibility Contract: A 7-year contract covering crop years 1996-2002, authorized by the FAIR Act of 1996 between the CCC and farmers, which makes fixed income support payments in place of the previous variable target price deficiency payments. Farmers are given production flexibility and diversification options on their contract acres not previously allowed on base acres. Each farm?€™s total payment is the payment rate times the payment quantity for participating base acres. In exchange for annual fixed payments, the owner or operator must agree to comply with the applicable conservation plan for the farm, the wetland protection requirements currently in law, and the constraints on growing fruits and vegetables on contract acres. Land enrolled in a contract must be maintained in an agricultural or related activity. The law states that not more than $35.6 billion will be paid over the 7-year period, in declining annual amounts from $5.3 billion in FY1996 to $4.0 billion in FY in 2002. The annual payments are allocated among commodities similar to historical deficiency payments, with 53.6% going to feed grains, 26.3% for wheat, 11.6% for upland cotton, and 8.5% for rice.
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Contract Noun Synonyms: engage, agree, promise, covenant, undertake
Contract Verb Synonyms: catch, acquire, get, come down with, develop, become infected with, go down with
Contract Adjective Synonyms: agreement, understanding, deal, bargain, arrangement, pact, commitment, obligation, compact
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Flexibility Verb Synonyms: pliability, pliancy or pliantness, elasticity, resilience or resiliency, suppleness, flexibleness, bendability, limberness, stretch, give, spring, springiness, ductility
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Production Noun Synonyms: producing, manufacture, manufacturing, making, fabrication, preparation, origination, creation, output, putting out, development, formation, forming, forging, shaping, moulding, casting, assembly, building, construction
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Business / Agriculture / Base (Or Contract) Acreage: A farm?€™s crop-specific acreage of wheat, feed grains, upland cotton, or rice eligible to enroll in commodity programs under previous legislation, and subsequently eligible for production flexibi MORE
Business / Agriculture / Contract Commodity: The commodities previously eligible for deficiency payments and now eligible for production flexibility contracts under the FAIR Act of 1996: wheat, corn, sorghum, barley, oats, rice, and upland cotto MORE
Business / Agriculture / Contract Acreage: Enrolled 1996 commodity base acreage under the FAIR Act of 1996 for wheat, feed grains, upland cotton, and rice (generally fixed for 1996 through 2002). A farmer may voluntarily choose to reduce contr MORE