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2011•RePEc: Research Papers in EconomicsOpen access

Alternatives to a State-Based ACRE Program: Expected Payments Under a National, Crop District, or County Base

Christine Arriola, Robert Dismukes, Keith H. Coble, David Ubilava, Joseph Cooper, Arriola, Christine, Dismukes, Robert, Coble, Keith H., Ubilava, David, Cooper, Joseph C.

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Abstract

The Average Crop Revenue Election, or ACRE, program is a commodity support program that bases coverage on aggregate State-level and individual farm-level revenue variability. Changing the level of aggregation from State to one closer to the farm level—Crop Reporting District or county—would generally increase payments. This report models how expected payments and the level of risk reduction from programs triggered at alternative levels would vary across crops—corn, soybeans, wheat, cotton, grain sorghum, and rice. It also considers how benefits from the alternative revenue programs would vary relative to benefits from direct payment and price-based commodity programs.

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The Average Crop Revenue Election, or ACRE, program is a commodity support program that bases coverage on aggregate State-level and individual farm-level revenue variability. Changing the level of aggregation from State to one closer to the farm level—Crop Reporting District or county—would generally increase payments. This report models how expected payments and the level of risk reduction from programs triggered at alternative levels would vary across crops—corn, soybeans, wheat, cotton, grain sorghum, and rice. It also considers how benefits from the alternative revenue programs would vary relative to benefits from direct payment and price-based commodity programs.

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Available abstract

The Average Crop Revenue Election, or ACRE, program is a commodity support program that bases coverage on aggregate State-level and individual farm-level revenue variability. Changing the level of aggregation from State to one closer to the farm level—Crop Reporting District or county—would generally increase payments. This report models how expected payments and the level of risk reduction from programs triggered at alternative levels would vary across crops—corn, soybeans, wheat, cotton, grain sorghum, and rice. It also considers how benefits from the alternative revenue programs would vary relative to benefits from direct payment and price-based commodity programs.

Key concepts: Payment, Revenue, Acre, Commodity, Agricultural economics, Direct Payments, Agriculture, Crop insurance

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