Acreage Reduction Program
Stored: Acreage Reduction Program
| Type | Program |
|---|---|
| Sponsor Organization | Farm Service Agency |
| Top Organization | Department of Agriculture |
| Creation Legislation | Agricultural Adjustment Act of 1933 |
| Website | Website |
| Purpose | To reduce surplus commodity production by paying farmers to take land out of production, aiming to stabilize agricultural markets, increase commodity prices, and support farm incomes by managing supply.[1] |
| Program Start | 1933 |
| Initial Funding | |
| Duration | Ended |
| Historic | No |
Acreage Reduction Program (ARP) was an agricultural policy initiative designed to decrease agricultural surplus by paying farmers to idle a portion of their land. By reducing the supply of certain crops like wheat, corn, and cotton, ARP sought to stabilize prices, support farmer incomes during times of overproduction, and manage commodity markets. This program has transitioned into the broader Conservation Reserve Program (CRP), which focuses not only on production reduction but also on conservation benefits.[2]
Goals
- Reduce surplus commodity production to stabilize market prices.[3]
- Support farmer incomes through government payments for land idling.
- Control supply to prevent agricultural market disruptions.
Organization
The Acreage Reduction Program was managed by the Farm Service Agency (FSA) within the U.S. Department of Agriculture (USDA). It involved FSA county offices administering the program at the local level, with national oversight from USDA. Funding came from annual agricultural appropriations, with payments made directly to farmers based on the amount of land idled.
The leader of the program would typically have been the **Administrator of the Farm Service Agency** or similar.
Partners
- No specific partnerships were listed for ARP, but it involved coordination with agricultural producers and local FSA offices.
History
ARP was established by the **Agricultural Adjustment Act of 1933** as part of New Deal policies to address the economic hardships of the Great Depression by controlling agricultural production. Over the decades, it evolved, facing criticism for its market intervention and environmental impacts. It was gradually phased out, with the last significant use in the 1980s. The ARP's functions were largely absorbed into the Conservation Reserve Program, which was established in 1985, focusing more on conservation alongside production control.
Funding
Specific initial funding amounts are not detailed, but ARP was funded through the USDA's budget for agricultural support programs. Farmers received payments based on the amount of land they agreed to idle, with funding varying year by year based on commodity needs and market conditions.
Implementation
Implementation involved:
- Farmers signing up for the program and agreeing to idle specific portions of their land.
- FSA verifying compliance and distributing payments.
- Adjusting program rules based on current agricultural market conditions.
The program ended as it transitioned into more environmentally focused conservation programs like CRP.
Goals
The goal was to reduce supplies, thereby raising market prices. Additionally, idled acres did not earn deficiency payments, thus reducing commodity program costs. ARP was criticized for diminishing the U.S. competitive position in export markets. The 1996 farm bill (P.L. 104–127) did not reauthorize ARPs. ARP differed from a set-aside program in that under a set-aside program reductions were based upon current year plantings, and did not require farmers to reduce their plantings of a specific crop.
Related
External links
- https://www.fsa.usda.gov/programs-and-services/conservation-programs/crp
- wikipedia:Acreage Reduction Program
References
- ↑ "Conservation Reserve Program". https://www.fsa.usda.gov/programs-and-services/conservation-programs/crp. Retrieved January 30, 2025.
- ↑ "Conservation Reserve Program". https://www.fsa.usda.gov/programs-and-services/conservation-programs/crp. Retrieved January 30, 2025.
- ↑ "Conservation Reserve Program". https://www.fsa.usda.gov/programs-and-services/conservation-programs/crp. Retrieved January 30, 2025.
This article incorporates public domain material from Jasper Womach, Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, Congressional Research Service, http://ncseonline.org/nle/crsreports/05jun/97-905.pdf