The 1996 Farm Act did all of the following except OA) Eliminate target prices and deficiency payments

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Abstract

The Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127), known informally as the Freedom to Farm Act, the FAIR Act, or the 1996 U.S. Farm Bill,

This act was the omnibus 1996 farm bill that, among other provisions, revises and simplifies direct payment programs for crops and eliminates milk price supports through direct government purchases.

Main Features of Law can be described as below :

1. The law removed the link between income support payments and farm prices.
2. It authorized 7-year production flexibility contract payments that provided participating producers with fixed government payments independent of current farm prices and production.
3. The law specified the total amount of money to be made available through contract payments under production flexibility contracts for each fiscal year from 1996 through 2002.
4. Payment levels were allocated among contract commodities according to specified percentages, generally derived from each commodity’s share of projected deficiency payments for fiscal 1996-2002.
5. The law increased planting flexibility by allowing participants to plant 100% of their total contract acreage to any crop, except with limitations on fruits and vegetables
6. The authority for acreage reduction programs was eliminated, while nonrecourse loans were continued in a modified form.
7. Dairy price support was to be phased down for milk over 4 years and then eliminated, but subsequent legislation continued this program.
8. Changes of this law cause to dairy support ended, processors could have obtained recourse loans on dairy products
9. The minimum national poundage quota was eliminated.
10. Trade and food aid programs were reoriented toward greater market development, with increased emphasis on high-value and value-added products
11. The Act also contained numerous provisions in the areas of farm credit, rural development, and generic commodity promotion through check-off programs, among others.

Solution

Therefore option A) "Eliminate target prices and deficiency payments" in Incorrect due to below reason :

The farm freedom act 1996, The law removed the link between income support payments and farm prices.

Therefore option B) "Refocus farm policy toward stabilizing farm incomes rather than prices" in Incorrect due to below reason :

Payment levels were allocated among contract commodities according to specified percentages, generally derived from each commodity’s share of projected deficiency payments for fiscal 1996-2002.

Therefore option C) Increase government regulation of farming" is Correct due to below reason :

The farm act 1996 did not supported to government regulation in farming sectors, as it is done for manufacturing sector.

Therefore option D) "Eliminate many restrictions on acreage set-asides"  in Incorrect due to below reason :

The authority for acreage reduction programs was eliminated, while nonrecourse loans.