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Analyzing Farmer Participation Intentions and Enrollment Rates for the Average Crop Revenue Election (ACRE) Program

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Author Info

  • Mitchell, Paul D.

    (University of WI)

  • Rejesus, Roderick M.

    (NC State University)

  • Coble, Keith H.

    (MI State University)

  • Knight, Thomas O.

    (TX Tech University)

Abstract

The 2008 Farm Bill created the Average Crop Revenue Election (ACRE) program as a new commodity support program. Using a multinomial logit model to analyze a mail survey administered before the ACRE sign-up deadline, we identify factors driving farmer intentions regarding ACRE participation. Using a two-limit Tobit model to analyze actual county-level ACRE enrollment rates, we assess the effect of similar factors on actual farmer decisions. Results suggest that primary crops, risk perceptions, risk aversion, and program complexity were important factors. Farmer beliefs and attitudes also played key roles and were evolving during the months before the ACRE deadline.

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Bibliographic Info

Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 560.

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Date of creation: Aug 2011
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Handle: RePEc:ecl:wisagr:560

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  1. Bhaskar, Arathi & Beghin, John C., 2007. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Staff General Research Papers 12841, Iowa State University, Department of Economics.
  2. Arathi Bhaskar & John C. Beghin, 2010. "Decoupled Farm Payments and the Role of Base Acreage and Yield Updating Under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 849-858.
  3. Woolverton, Andrea E. & Edwin, Young, 2009. "Factors Influencing ACRE Program Enrollment," Economic Research Report 55954, United States Department of Agriculture, Economic Research Service.
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  6. Christopher R. McIntosh & Jason F. Shogren & Erik Dohlman, 2007. "Supply Response to Countercyclical Payments and Base Acre Updating under Uncertainty: An Experimental Study," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1046-1057.
  7. Cooper, Joseph C., 2009. "ACRE: A Revenue-Based Alternative to Price-Based Commodity Payment Programs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49180, Agricultural and Applied Economics Association.
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  13. Olson, Kent D. & DalSanto, Matthew R., 2008. "Provisions and Potential Impacts of the Average Crop Revenue Election (ACRE) Program," Staff Papers 42980, University of Minnesota, Department of Applied Economics.
  14. Lubben, Bradley D. & Novak, James L., 2010. "Discussion: What Have We Learned from the New Suite of Risk Management Programs of the Food, Conservation, and Energy Act of 2008?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(03), August.
  15. 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.
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Cited by:
  1. Coble, Keith H. & Barnett, Barry J. & Riley, John Michael, 2013. "Challenging Belief in the Law of Small Numbers," 2013 AAEA: Crop Insurance and the Farm Bill Symposium, October 8-9, Louisville, KY 156958, Agricultural and Applied Economics Association.

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