Gmat Prep CR question. Cotton farms..

[suyash.tiwari]

The cotton farms of Country Q became so productive that the market could not absorb all that they
produced. Consequently, cotton prices fell. The government tried to boost cotton prices by offering farmers who
took 25 percent of their cotton acreage out of production direct support payments up to a specified maximum per
farm.
The government's program, if successful, will not be a net burden on the budget. Which of the following, if
true, is the best basis for an explanation of how this could be so?
(A) Depressed cotton prices meant operating losses for cotton farms, and the government lost revenue from
taxes on farm profits.
(B) Cotton production in several counties other than Q declined slightly the year that the support-payment
program went into effect in Q.
(C) The first year that the support-payment program was in effect, cotton acreage in Q was 5% below its level
in the base year for the program.
(D) The specified maximum per farm meant that for very large cotton farms the support payments were less
per acre for those acres that were withdrawn from production than they were for smaller farms.
(E) Farmers who wished to qualify for support payments could not use the cotton acreage that was withdrawn
from production to grow any other crop.

While the OA to this problem is A, I have this hell of a doubt.
I have the following argument to contest between A and D. While I see how A is correct, but with the following logic, I am not able to rule out D as clearly as I should. Please help.
Now the stimulus says,
"The government's program, if successful, will not be a net burden on the budget. Which of the following, if true, is the best basis for an explanation of how this could be so?"

D says that the proposal the goverment has made is done keeping in mind that bigger farms whose 25% is more than smaller farms' 25% should get money upto a certain maximum. This shows that the goverment has already set a limit keeping in mind that this policy does not causes a net burden on it.

How do we counter this argument ?

Please help me out here.

[v-taseng]

Hi,
As per my understanding goes OA should be A,because it clearly states that if Govt would have not taken that step,they wud have incurred losses.
But On the other hand D says that Governmt is paying less for each farm that is probably should have (but still the govt is paying...we cannot assume that the paying however minimum it is will be beneficial to the nation as a whole).

Let me know if the reasoning is flawed!

Tanushree

[tim]

thanks; let us know if there are any further questions on this one..