In United States agriculture policy, loan deficiency payments (LDP) are a farm income support program first authorized by the

Food Security Act of 1985 The Food Security Act of 1985 (P.L. 99–198, also known as the 1985 U.S. Farm Bill), a 5-year omnibus farm bill, allowed lower commodity price and income supports and established a dairy herd buyout program. This 1985 farm bill made changes in a ...

(P.L. 99-198) that makes direct payments, equivalent to marketing loan gains, to producers who agree not to obtain nonrecourse loans, even though they are eligible. Loan deficiency payments are available under the

2002 farm bill The Farm Security and Rural Investment Act of 2002, also known as the 2002 Farm Bill, includes ten titles, addressing a great variety of issues related to agriculture, ecology, energy, trade, and nutrition. This act has been superseded by the 2007 ...

(P.L. 101-171, Sec. 1205) for wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, other oilseeds, wool, mohair, honey, dry peas, lentils, and small chickpeas. Producer Option Payment (POP) is the original name for the loan deficiency payment (LDP). This phrase continues to be used by some farmers.

References

External links

Nonrecourse Marketing Assistance Loan and Loan Deficiency Payment Program
USDA Fact Sheet (June 2003 PDF) {{DEFAULTSORT:Loan Deficiency Payments United States Department of Agriculture Agricultural subsidies Loans