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

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

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.

Suggested Citation

  • Arriola, Christine & Dismukes, Robert & Coble, Keith H. & Ubilava, David & Cooper, Joseph C., 2011. "Alternatives to a State-Based ACRE Program: Expected Payments Under a National, Crop District, or County Base," Economic Research Report 262235, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:262235
    DOI: 10.22004/ag.econ.262235
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    References listed on IDEAS

    as
    1. Zulauf, Carl R. & Schnitkey, Gary D. & Langemeier, Michael R., 2010. "Average Crop Revenue Election, Crop Insurance, and Supplemental Revenue Assistance: Interactions and Overlap for Illinois and Kansas Farm Program Crops," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(3), pages 1-15, August.
    2. Woolverton, Andrea E. & Edwin, Young, 2009. "Factors Influencing ACRE Program Enrollment," Economic Research Report 55954, United States Department of Agriculture, Economic Research Service.
    3. Cooper, Joseph C., 2009. "Economic Aspects of Revenue-Based Commodity Support," Economic Research Report 55838, United States Department of Agriculture, Economic Research Service.
    4. Bruce A. Babcock, 2010. "Costs and Benefits of Moving to a County ACRE Program," Center for Agricultural and Rural Development (CARD) Publications 10-pb2, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Dismukes, Robert & Arriola, Christine & Coble, Keith H., 2010. "ACRE Program Payments and Risk Reduction: An Analysis Based on Simulations of Crop Revenue Variability," Economic Research Report 262248, United States Department of Agriculture, Economic Research Service.
    6. Mario J. Miranda, 1991. "Area-Yield Crop Insurance Reconsidered," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 233-242.
    7. Joseph C. Cooper, 2010. "Average Crop Revenue Election: A Revenue-Based Alternative to Price-Based Commodity Payment Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1214-1228.
    8. Coble, Keith H. & Dismukes, Robert & Thomas, Sarah E., 2007. "Policy Implications of Crop Yield and Revenue Variability at Differing Levels of Disaggregation," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9759, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Jansen, Jim A. & Stockton, Matthew C. & Lubben, Bradley D., 2012. "Modeling Correlated and Disaggregated Crop Revenue Distributions: Implications under Mixed Policy and Program Initiatives," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124688, Agricultural and Applied Economics Association.
    2. Cooper, Joseph & Hungerford, Ashley & O'Donoghue, Erik, 2015. "Interactions of Shallow Loss Support and Traditional Federal Crop Insurance: Building a Framework for Assessing Commodity Support Issues for the Next Farm Act," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205310, Agricultural and Applied Economics Association.
    3. Cooper, Joseph C. & Delbecq, Benoit A. & Davis, Christopher G., 2012. "Fiscal and Farm Level Consequences of “Shallow Loss” Commodity Support," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124199, Agricultural and Applied Economics Association.
    4. Cooper, Joseph & Delbecq, Benoît, 2014. "A multi-region approach to assessing fiscal and farm level consequences of government support for farm risk management," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-23, December.
    5. Jansen, Jim A. & Lubben, Bradley D. & Stockton, Matthew C., 2012. "Analyzing Crop Revenue Safety Net Program Alternatives and Impacts on Producers and Program Costs," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119784, Southern Agricultural Economics Association.

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