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Why Was ACRE a No-Go with Iowa Farmers?

William Maxham Edwards, Edwards, William

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Abstract

Abstract In 2009 Iowa farmers had the opportunity to enroll in a new revenue support program called ACRE. A survey showed that those who did enroll desired more risk protection and believed that payments from ACRE would exceed the value of direct payments forfeited. Operators who did not enroll said the program was too complex, and they did not want to give up a portion of the direct payments. Those who enrolled farmed more acres and depended more on crop production for their gross income, and were more likely to use crop insurance and pre-harvest pricing.

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What this paper is about

Abstract In 2009 Iowa farmers had the opportunity to enroll in a new revenue support program called ACRE. A survey showed that those who did enroll desired more risk protection and believed that payments from ACRE would exceed the value of direct payments forfeited. Operators who did not enroll said the program was too complex, and they did not want to give up a portion of the direct payments. Those who enrolled farmed more acres and depended more on crop production for their gross income, and were more likely to use crop insurance and pre-harvest pricing.

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Available abstract

Abstract In 2009 Iowa farmers had the opportunity to enroll in a new revenue support program called ACRE. A survey showed that those who did enroll desired more risk protection and believed that payments from ACRE would exceed the value of direct payments forfeited. Operators who did not enroll said the program was too complex, and they did not want to give up a portion of the direct payments. Those who enrolled farmed more acres and depended more on crop production for their gross income, and were more likely to use crop insurance and pre-harvest pricing.

Key concepts: Acre, Payment, Direct Payments, Crop insurance, Revenue, Agricultural economics, Business, Agribusiness

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