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Prohibiting Commodity Program Payments to Nonfarm Corporations and Partnerships

Author

Listed:
  • Walter, Alan S.
  • Johnson, James
  • Nelson, Frederick J.
  • Kester, Annie
  • Coffman, George M.

Abstract

Section 103 of the Food and Agriculture Act of 1977 required the Secretary of Agriculture to report on the effects of prohibiting commodity program payments to corporations and certain other business entities. The results of that study suggest that between 2,700 and 21,000 corporate farm units, tenants of ineligible corporate farms, or partnerships could be affected by such a prohibition. Firms ineligible for payments could not be expected to participate in supply management programs such as set-aside or land diversion. The acreage of wheat, feed grains, cotton, and rice affected by the payment prohibition would range between 425,000 under the most narrowly applied prohibition to approximately 7 million acres if ineligible corporations, tenants of ineligible corporations, and ineligible partnerships were to be denied payments. Little change in agricultural investment by nonfarmers could be expected as a result of the prohibition.

Suggested Citation

  • Walter, Alan S. & Johnson, James & Nelson, Frederick J. & Kester, Annie & Coffman, George M., 1979. "Prohibiting Commodity Program Payments to Nonfarm Corporations and Partnerships," Economics Statistics and Cooperative Services (ESCS) Reports 335360, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerscs:335360
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    File URL: https://ageconsearch.umn.edu/record/335360/files/NEDsect103ESCS.pdf
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