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Article: Agricultural Price Supports
- Article from:
- Dictionary of American History
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AGRICULTURAL PRICE SUPPORTS
AGRICULTURAL PRICE SUPPORTS.
Introduced to meet the emergency of the Great Depression, agricultural price supports have persisted as a critical, if controversial, element of farm regulation. The Commodity Credit Corporation (CCC) was incorporated on 17 October 1933 to administer the system of price supports. Farmers received short-term loans, typically lasting twelve or eighteen months, of an amount that was determined by multiplying a fixed price per unit (such as a bushel of corn or a bale of cotton) by the quantity of crop they put up for collateral. The loans also carried a non-recourse clause. If at anytime the market price rose above the fixed price ...