The features of the 1980 and 1985 Farm Bills continued the practice of attempting to control the supply of surplus commodities such as wheat, corn and other feed grains, cotton, and other commodities by requiring producers to set aside a portion of the land historically planted to these crops in exchange for deficiency payments that made up the difference between the announced target price for the year and the current market price (see Chapter 13 for a discussion of production control policies, set-aside requirements, and target prices).
The federal government also enacted a payment-in-kind (PIK) program for specific crops, such as corn and wheat, in 1983 and 1984 under which farmers were paid in the from of surplus commodities rather than cash when participating in government income and price support programs. Real direct government payments to farmers increased dramatically in the late 1980s (see Figure 18.6, C) when commodity prices fell.