Abstract
The Federal Agriculture Improvement and Reform (FAIR) Act of 1996 changed the manner in which the U.S. government provides direct payments to U.S. farmers. Under the FAIR Act, producers are eligible for fixed production flexibility contract (PFC) payments independent of the production of specific crops.1 With a few exceptions,2 supplemental market loss assistance (MLA) payments authorized in subsequent legislation have been made to producers under similar terms; i.e., a producer cannot increase or decrease MLA payments by increasing or decreasing production. The United States has declared that PFC
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