Federal payments to farmers have reached an historic high over $26 billion in fiscal year 2000. Much of this assistance was targeted to help farmers cope with persistently low commodity prices and was provided principally through the Marketing Assistance Loan Program, which is administered by the U.S. Department of Agriculture (USDA). This program was designed originally to provide short-term financing so that farmers could pay their bills right after harvest and spread their sales over the entire marketing year. However, at times of low commodity prices as in 1999 and 2000 the Marketing Assistance Loan Program has become a major source of income for farmers growing wheat, rice, feed grains, oilseeds (primarily soybeans), and upland cotton.

GAO-01-964 Farm Programs: Changes to the Marketing Assistance Loan Program Have Had Little Impact on Payments