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CRS861012ENRpage05
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of supporting farmers. PRICE suppoar COSTS Background Farm price support activities are carried out chiefly within the purview of the CCC, a wholly owned Government corporation operating within USDA under the authority of the Comodity Credit Corporation Charter Act (15 U.S.C. 714). The Corporation has an authorized capital stock of $100 million and authority to borrow up to $25 billion at any one time from
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CRS861012ENRpage29
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. 25.85 22.76 27.82 _ 24.21 I 31.28 29.47 18.65 27.81 1000-1499 75406 ' ‘23779 10288 8305 I 110382 36262 I 14 264436 pct. . 15.35 8.15 I 16.79 12.42 17 . 13.43 5.56 14.52 1500-1999 » . « 48701 11210 ’ — 5718 - 4279 52065 17710 11 . 134694 get. 8.90 1.84 9.33 6.40 8.13 6.56 ‘ 4.37 7.39 2000-2499 26852 5401 3443 2386 22903 8903 7 69895 per. 5.47 - 1.85 5.62 3.57 3.58 . 3.30 2.78 3.84 2500+ I 60546
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CRS861012ENRpage08
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_years. In fact, nearly all CCC activities, including those commodity price support programs that do take in some receipts, incur losses in most years. How do "net realized losses“ differ from outlays? As noted, outlays are an annual measure, a portion of which can theoretically be recovered at a later 5The 1985 farm legislation added a new price support tool known as a "marketing loan
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and marketing year are the samer-meaning that dairy price support operations of the 1985-86 marketing year will be recorded entirely within the 1986 fiscal year. ‘As table 1 indicates, CCC outlays increased nearly tenfold from fiscal 1980 to 1986, from about $2.7 billion to roughly $26 billion. What caused this increase? During the late 1970s, farm exports boomed. Agricultural experts predicted that world
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CRS-5 the developments that can, sometimes overnight, render even the most recent CCC cost estimate out°of*date. CCC Cost Concepts The $26 billion in FY86 costs, noted above, are "net outlays," which measure Federal aid to farmers in any single year. However, a closer look at them as well as several other farm budget measurements can be helpful to understanding the true taxpayer cost of farm assistance. Net outlays, also sometimes called "net expenditures,' portray the difference between what the CCC spends in a given year to support farm prices and income, and what it earns during the same year from surplus commodity sales, loan repayments, and so forth. Net outlays do not necessarily translate into losses, however. Some outlays may be recoverable at a later time, while others may not be. Recoverable outlays are mainly in the form of nonrecourse loans. If farmers enrolled in price support programs are able to sell their crops for prices (per bushel or other unit) that are higher than the value of the Federal loans they obtained by using these crops as collateral, they repay the loans with interest to the CCC. Therefore, the CCC will recoup its outlays for these particular loans. If, however, prices are at or below loan l levels, a large number of loans will not be repaid. The CCC instead takes
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CR8-21 in order to keep large producers participating--even if outlays are high for the next several years. That way, the large farm surpluses might be reduced without further harming an already ailing farm economy, it hasbeen argued. Still others assert that no farm policy can provide solutions to all of agriculture's problems, mainly because macroeconomic and other forces outside of the sector today play a far more important role in determining farmers‘ well“being- Perhaps, they believe, Federal farm programs today can only treat some of the symptoms of-—but not cure-“an ailing agricultural economy.
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CRS861012ENRpage01
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LC /L/f /in/‘ji s RP+»7%<%“-/0/‘2 E/1//gs-1012 ENR s °P Congressional Research Service The Library of Congress Washington, D.C. 20540 FARM SUPPORT PROGRAMS: COST CONSIDERATIONS Geoffrey S. Becker Specialist Food and Agriculture Section Environment and Natural Resources Policy Division ' September 1986 Revised a November‘ 1986 Government Publication; s L Uni? ' AUG 0 i 1994 Washington
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CRS85585Apage15
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the right to meet with representatives of groups interested in their civil rights. Similarly, in 1978, the district court in ‘ Johnsofl Vs Solomon, F0 Supp. Mdo géf Rennie v. Klein, 462 F. Supp. 1131 (D.N.J. 1978). _g§/ Wyatt v. Aderholt, 368 F. Supp. 1383 (M.D. Ala. 1974). .31] Davis v. Watkins, 384 F. Supp. 1196 (N.D. Ohio 1974); Johnson by Johnson v. Brelje, 701 F. 2d 1201 (7th Cir. 1983) (striking down
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Govemrhent Publications ;s~95s>5/4 €S"5§5‘A ”%”‘* Congressional Research Service JUL 2 1994 The L-ib"3"Y 0f C°"8"955 Washington University Libraries I St. Louis, MO 63130 \eNOEON PRQPERGTEYR W MIN W 5~.‘fiR«W eehangeétan Mnévergggry THE CONSTITUTIONAL RIGHTS OF MENTAL PATIENTS Charles Dale Legislative Attorney American Law Division February 13, 1985 I LTR is-22.;
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CRS84521ENRpage43
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paying more into the fund than they receive from it. This results in higher costs to the utilities and their consumers. 0 Impact on Residential Consumers. Cost to residential consumers from an acid rain bill would depend on how much electricity they con- sume. To estimate the cost to consumers, three levels of consumption were used: 500 hwh, 1000 kwh, and 1500 kwh. A l0 percent cost penalty
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which would not have to clean up under an acid rain mitigation program. None of the bills examined here uses this concept to its fullest in assisting polluters in meeting emission reductions. Only S. 2001 provides some kind of subsidy to anyone required to reduce, and that subsidy is limited to the alternative of least cost to the trust fund. Hence, as noted earlier, the effective cost
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permissible, it could not constitutionally continues 2‘ after that basis no longer existed”). Jones v. United States, 463 U.S. 354 (1983) (criminal acquitee cannot be confined involuntarily when he or she is no longer mentally ill or dangerous. t i I a 33/ 442 11.5. 584 (1979).
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sought to challenge his commitment and thus, violated __3_§_/ 4901-‘. 2d 866 (5th on-. 1974). 33/ 514 F. 2d 125 (24 cu. 1975). 39/ 572 F. supp. 193 (n. Colo. 1983).
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CRS851132EPWpage05
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\.~ / CONTENTS ABSTRACTCOOQOOOOIOOOOOOO-000000000OOOOOOOOOOOOOOOOOOOOOOOOOOOOQOOQOOOOOOOOOO INTRODUCTIONOOOOOOO00000.00GOOOOOOOOOOOOOOOOOO000000000COCOOOOCOOOOOQOOOOOOO 1 ANSWERSCCOOOOIOOCOOOOOOOOOOOOOOOOOOOIOOOOOCOCOOOOOOOOOOOOOOCO 3 What Causes the Federal Government's Outstanding Debt To Change?...... 3r What Causes the Amount of Securities Held by the Social Security and Medicare Trust
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CRS851132EPWpage35
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CRS-15 ADDITIONAL REFERENCES U.S. Congress. Senate. Committee on the Budget. Social Security, Medicare, and the Unified Budget. Senate Print No. 99-83, 99th Cong., lst Sess. Washington, U.S. Govt. Print. Off., 1985. U.S. Library of Congress. Congressional Research Service. Social Security: The Effect of National Debt Bimitations in 1985. Report No. 85- lll8 EPW, by David Koitz. Washington, 1985
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