Farmer-Owned Grain Reserve
Encyclopedia
The Farmer-Owned Grain Reserve (FOR) was a program, established under the Food and Agriculture Act of 1977
, designed to buffer sharp price movements and to provide reserves against production shortfalls by allowing wheat and feed grain farmers to participate in a subsidized grain storage program. Farmers who placed their grain in storage received an extended nonrecourse loan for at least 3 years. Under certain conditions, interest on the loan could be waived and farmers could receive annual storage payments from the government. The 1996 farm bill (P.L. 104-127) repealed this program.
Food and Agriculture Act of 1977
The United States Food and Agriculture Act of 1977 was an omnibus farm bill. It increased price and income supports and established a farmer-owned reserve for grain. It also established a new two-tiered pricing program for peanuts. Under the peanut program, producers were given an acreage...
, designed to buffer sharp price movements and to provide reserves against production shortfalls by allowing wheat and feed grain farmers to participate in a subsidized grain storage program. Farmers who placed their grain in storage received an extended nonrecourse loan for at least 3 years. Under certain conditions, interest on the loan could be waived and farmers could receive annual storage payments from the government. The 1996 farm bill (P.L. 104-127) repealed this program.