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Average Crop Revenue Election, Crop Insurance, and Supplemental Revenue Assistance: Interactions and Overlap for Illinois and Kansas Farm Program Crops


  • Zulauf, Carl R.
  • Schnitkey, Gary D.
  • Langemeier, Michael R.


Farm-level data from Illinois and Kansas for the 1991–2007 crops are used to examine the interaction and overlap among crop revenue insurance, Supplemental Revenue Assistance (SURE), and Average Crop Revenue Election (ACRE). Compared with 75% Crop Revenue Coverage Insurance (75% CRCP), ACRE provides more payments and has a greater impact on minimum farm revenue for the Illinois farms. In contrast, for the Kansas farms, 75% CRCP has the greater impact. SURE’s relative impact on the Illinois and Kansas farms depends on the metric. The overlap in payments from ACRE and 75% CRCP resulting from covering the same part of the revenue risk distribution is estimated to be less than 5% of ACRE payments. Several proposals for improving the farm safety net are discussed.

Suggested Citation

  • 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(03), August.
  • Handle: RePEc:ags:joaaec:92589

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    References listed on IDEAS

    1. von Braun, Joachim & Ahmed, Akhter & Asenso-Okyere, Kwadwo & Fan, Shenggen & Gulati, Ashok & Hoddinott, John & Pandya-Lorch, Rajul & Rosegrant, Mark W. & Ruel, Marie & Torero, Maximo & van Rheenen, Te, 2008. "High food prices: The what, who, and how of proposed policy actions," Policy briefs 1A, International Food Policy Research Institute (IFPRI).
    2. Siebert, John W. & Hagerman, Amy D. & Park, John L., 2008. "Virtual Investment Concepts and the Ethanol Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 11(4).
    3. von Braun, Joachim & Torero, Maximo, 2009. "Exploring the Price Spike," Choices, Agricultural and Applied Economics Association, vol. 24(1).
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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. Mitchell, Paul D. & Rejesus, Roderick M. & Coble, Keith H. & Knight, Thomas O., 2011. "Analyzing Farmer Participation Intentions and Enrollment Rates for the Average Crop Revenue Election (ACRE) Program," Staff Paper Series 560, University of Wisconsin, Agricultural and Applied Economics.
    3. Francis, J. Clay & Zulauf, Carl R., 2011. "ANALYSIS OF ACRE’s DRYLAND--IRRIGATED PROVISION," Western Economics Forum, Western Agricultural Economics Association, vol. 10(01).
    4. Cooper, Joseph C. & O'Donoghue, Erik J., 2011. "Identifying and Reducing Overlap in Farm Program Support," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103261, Agricultural and Applied Economics Association.
    5. Bulut, Harun & Collins, Keith J., 2013. "Political Economy of Crop Insurance Risk Subsidies under Imperfect Information," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150577, Agricultural and Applied Economics Association.

    More about this item


    Average Crop Revenue Election Program (ACRE); Crop Revenue Coverage Insurance (CRCP); farm policy; Food Conservation and Energy Act of 2008; Supplemental Revenue Assistance (SURE); Agribusiness; Agricultural and Food Policy; Farm Management; Land Economics/Use; Risk and Uncertainty; Q18; Q12;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets


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