History

How was the Agricultural Price Supports system?

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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 used to calculate the loan, a farmer could pay off the loan and sell the crop on the open market ...

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