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Abstract

Current farm programs distribute direct payments to producers of certain crops according to how much of the crop they produce. Those with larger production receive larger payments. The massive size and concentrated distribution of direct payments under the 1985 Food Security Act have prompted suggestions to alter the distribution and amount of payments. Changes recommended by policymakers include “capping" (limiting the size of payments), "targeting" (basing eligibility on need), and "decoupling" (separating payments from production).

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