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03-12-2020
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Under today’s farm policy, what happens if the market price of farm products falls below the support price

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03-12-2020

Answer:

If, during the term of the loan, the market price rises above the support price, farmers repay the loans with interest and sell the grain in the market. If the market price remains at or below the loan rate, farmers forfeit the grain to the CCC, keep the money, and have no further obligation.

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