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Difference between the actual market and target price

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Commodity Credit Corporation:

Non-resource loan: loan that carries neither a penalty nor further obligation to repay if not paid back-- the farmer could get at least the target price for his or her crops.

Deficiency payment: check sent to producers that makes up the difference between the actual market price and the target price.

Why do they benefit to farmers?

Reference no: EM131750755

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