Final answer:
The PLC in the 2014 farm bill was a better safety net for farmers compared to the CCP in the previous 2008 farm bill. PLC uses reference prices to trigger payments to farmers when market prices fall below these reference prices, providing stability and support. An example of this is if the reference price for corn is $4 per bushel, the PLC program will make payments to farmers if the market price falls below $4.
Step-by-step explanation:
The PLC (Price Loss Coverage) in the 2014 farm bill was considered a better safety net than the CCP (Countercyclical Price Program) in the previous 2008 farm bill because it provided more stability and support for farmers. PLC uses reference prices and allows for payments to be triggered when market prices fall below these reference prices. This offers farmers protection against declining market prices and income fluctuations.
For example, let's say there is a reference price set for corn at $4 per bushel. If the market price of corn falls below $4, the PLC program will make payments to farmers to make up the difference. This helps to ensure a minimum level of income for farmers and acts as a safety net when prices are low.
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