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Definition for

Direct Payments

Generally, payments (usually in cash but sometimes in commodity certificates) made directly to producers in conjunction with participation in commodity support programs, conservation programs, and disaster assistance programs. Under the 2002 farm bill (P.L. 101-171, Title I), producers of covered commodities and peanuts are eligible to receive fixed, decoupled direct payments (replacing what previously were called contract payments), counter-cyclical payments, and loan deficiency payments (or marketing loan gains). Several other loan commodities also are eligible for loan deficiency payments.

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