During the years 1998 through 2002 we experienced a period of low commodity prices. The new Farm Program stabilizes the farm economy by guaranteeing the Farmer/Landowner receive target prices on their program crops. These established target prices are higher than the commodity prices during the years 1998 through 2002. Thus, if the commodity prices should fall for any reason the farmer/landowner still receives a respectable income , bringing further security to this investment opportunity.

     This farm program allowed Roundaway Plantation to update its Base Acreage and its Payment Yields . Regardless of the commodity prices at the market place, the farming operation will receive Direct Payments (DP) based on the base acreage and payment yields. Further, a Counter Cyclical Payment (CCP) on all listed commodities, including soybeans, will be made. The amount of this payment depends on the 12 month average commodity price the farmer was able to receive at the market place. It is payable on 85% of the established base acreage times payment yield times the variable CCP rate for each commodity.

     Basically, the farmer / landowner can at minimum expect to receive the target prices listed below on 85% of the base acreage and its payment yields. For the products grown in excess of 85% of the base acreage, the farmer/landowner will receive no less than the Loan Rates, even if the market price is lower. However, if the market price is higher than the loan rate, the farmer/landowner receives the market price.