Business / Agriculture / Incentive Payments: Direct payments made to producers of wool and mohair, which were similar to deficiency payments made to producers of grains and cotton. The incentive payment rate was the percentage needed to bring the national average return to producers (the market price plus the incentive payment) up to the annually set national support price. Each producer’s direct payment was the payment rate times the market receipts. Producers with higher market receipts got larger support payments. This created an incentive to increase output and to improve quality. The wool and mohair commodity programs ended after the 1995 marketing year as required by P.L. 103-130.
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Incentive Adjective Synonyms: incitement, impetus, encouragement, goad, prod, provocation, spur, impulse, enticement, lure, inducement, stimulus, motivation, carrot
Business / Finance / Lag Response Of Prepayments: A delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is obse MORE
Business / Agriculture / Loan Deficiency Payments: A commodity payment program authorized by the Food Security Act of 1985 that makes direct payments, equivalent to marketing loan gains, to wheat, feed grain, upland cotton, rice, or oilseed producers MORE