Every year, farmers produce and sell a certain product at a certain price that is determined by the market. If the market price is lower than that price at which the farmers want to sell, the farmers are in a deficit. Therefore, in order to assist American farmers, our government gives price supports for some crops and dairy products. So in a case where the market price is lower that the target price for farmers, farmers receive a "deficiency payment", or price support, from the government in order to make up for the difference.

1914-17 - WWI -More land farmed, great prosperity, raised production levels

1920's - Hoover - European demand slowed, prices spiraled downward.

1929-32 - Farmers attempt to raise production to increase income, increased supply lowers price. Farm prices at 65% of 1914. Dust Bowl Depression - Farming Collapses. Hoover does nothing.

1933 - FDR -Agricultural Adjustment Act -Farmers payed to cut production of wheat, cotton, rice, tobacco, corn, hogs, dairy. Declared unconstitutional and reworked Lent $ to store crops in event of low production years.

1939 - All Risk Crop Insurance Program

1956 - Agricultural Act of 1956 - Soil Bank Program - Farmers payed to convert cropland to soil conserving uses.

1960's - Dept of Agriculture under Kennedy and Johnson offer "rental payments" top take land out of production.

19 73 - Nixon - ends subsidy program -farm income swells to $33.3 Billion.

Mid 70's - Poor worldwide grain production prompts increase in US exports but by 1976 exports and income fell while production remained the same.

1976 - Net Farm income falls to $18. 7 Billion.

1978 - President Carter initiates voluntary 'farmer-held grain reserve program. Took grain off the market until certain price levels were met.

1980 - Grain embargo - exports still reach a high of $40 Billion. Rise in production costs and hot summer wit drought causes much farm loss. Congress passes a new Crop Insurance Program.

1981 - Embargo lifted

1995 - Farm subsidies reenacted by Clinton Administration as production began to swell.

1999 - Debate continues over farm subsidies as farms become increasingly corporate.