摘要：The Federal Agricultural Improvement and Reform (FAIR) Act of 1996 introduced an alternate price support program to the nonrecourse commodity loan program, the loan deficiency payment (LDP). Under Title I: The Agricultural Market Transition Act (AMTA), eligible producers may choose to receive an LDP payment rather than obtain a loan from the Commodity Credit Corporation (CCC). Although there was a similar target price deficiency payment program set up under the Agricultural Act of 1973, the current LDP did not play a role in farmer's marketing plans until 1998 when market prices dropped below loan rates. The introduction of the direct payment LDP was an attempt to decouple government payments from market prices and move toward a free market commodity pricing system with limited government involvement. The focus of this study was to examine whether the introduction of the LDP has had an impact on local basis, as well as what other factors may be impacting the local basis in South Dakota.
