ellenhch wrote:
A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from taxes on farm profits.
The gov't therefore pays the direct support payments (now) in order to boost cotton prices.
When cotton prices increase,the gov't does not have to pay these direct support payments (as cotton P have increased and taking out acreage from the cotton farm is no longer necessary), therefore because the farms are earning more revenue from the increases prices of the cotton,
...



.jpg)





