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Commodity Programs: Flex Acres Enhance Farm Operations and Market Orientation

RCED-94-76 Published: Dec 30, 1993. Publicly Released: Jan 11, 1994.
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Highlights

Pursuant to a congressional request, GAO reviewed whether 1990 farm legislation will reduce government costs and increase farmers' flexibility and responsiveness to market demands.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
While conclusive data on the full impact of flex acres on farmers' economic well-being are not available, flex acres have generally had a positive impact on farmers' operations and are projected to reduce federal spending. Because of the advantages of flex acres as a tool for reducing the budgetary costs of farm programs and for transitioning farmers to a market orientation, Congress should consider reauthorizing or expanding flex acres provisions in the 1995 farm bill.
Closed – Implemented
Changes to farm programs made through the 1996 Farm Bill removed the link between deficiency payments and farm prices, and provided farmers much greater flexibility to make planting decisions. Farmers now have the freedom to plant any commodity they want on contract acres, with some limitations for fruits and vegetables.

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Topics

Agricultural policiesAgricultural productionAgricultural programsCommodity marketingCommodity salesCost controlFarm income stabilization programsFarm subsidiesFarmingGrain and grain products