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.
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.
In some programs, the federal portion of these payments can vary; for these programs, the higher share is provided for the more desirable conservation practices that will provide greater benefits.