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AGBE 451 Final Exam Questions & Answers 2024/2025
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AGBE 451 Final Exam Questions & Answers 2024/2025
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AGBE 451 Final Exam Questions &Answers 2024/2025
Coupled Payments - ANSWERSthere is a direct link between the determination of the program benefit
and the farmer's production and market conditions (such as prices). In turn, the benefits of coupled
programs affect per-unit net returns associated with specific production choices. That is, coupled
programs may increase farmers' profit from growing crops such as corn or soybeans. As a result, these
programs have the greatest potential to affect agricultural production and agricultural markets.
Decoupled Payments - ANSWERSdecoupled payments are fixed income transfers that do not depend on
the farmer's production choices, output levels, or market conditions. Decoupled program benefits do not
subsidize production activities, inputs, or practices. These income transfers do not change per-unit net
returns, so they have no direct effect on production decisions for specific commodities.
The 1996 Farm Bill - ANSWERS- federal agriculture improvement and reform act
- Production Flexibility Contract Payments
- Ended payment programs linked directly to farmland
- Required crop insurance to become eligible for other disaster aid
- Creation of the Risk Management Agency
- Establishment of revenue based crop insurance policies
Commodity Credit Corporation (CCC) - ANSWERSThis is utilized because it does not have to jump through
all of the bureaucracy to get payments out to the disaster stricken. It is a government-owned and
operated entity that was created in 1933 to stabilize, support, and protect farm income and prices. CCC
was also charged with maintaining balanced and adequate supplies of agricultural commodities and to
aid in the orderly distribution of those commodities.
The Pareto Criterion - ANSWERSThe most widely accepted criterion for making welfare judgments is the
Pareto criterion, which holds that a change is beneficial if it benefits at least one person without
reducing the welfare of any other individual. Most public policies in agriculture (and in other sectors),
however, benefit some people while harming others. An agricultural price-support program, for example,
benefits farmers at the expense of consumers and taxpayers. Therefore, the Pareto criterion is not useful
in the evaluation of actual public policies.
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