Prior to 2001,if the market price of cotton was below the government's loan rate,
A)The cotton farmer received a loan deficiency payment and relinquished the crop to the CCC.
B)The cotton farmer defaulted on the loan but kept the crop;the CCC kept the money.
C)The cotton farmer,in effect,bought the crop from the CCC.

Question

Quizplus · Accepted Answer

If the market price of cotton was below the government's loan rate, the cotton farmer received a loan deficiency payment, which is the difference between the loan rate and the market price. The farmer then relinquished the crop to the CCC. This was done to protect farmers from market fluctuations and to ensure a stable supply of crops.

Prior to 2001,if the Market Price of Cotton Was Below