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How Does the Limited Base Acre Provision in the 2008 Farm Act Affect Small Farms?

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  • Arriola, Christine
  • Krissoff, Barry
  • Young, C. Edwin

Abstract

Under the Food, Conservation, and Energy Act of 2008 (Farm Act), U.S. farms with 10 or fewer base acres became ineligible to receive Direct and Countercyclical Payment (DCP) or Average Crop Revenue Election (ACRE) program payments(Section 1101(d) and 1302(d)) from USDA. Limited resource and socially disadvantaged owners are exempt from this “base 10” provision. Eliminating payments on farms with 10 or fewer base acres reduces payments made by USDA Farm Service Agency (FSA) and the cost of administering the DCP and ACRE programs. We examine the characteristics of the farms affected by the limited base acre provision and answer the question: How does the provision affect small farms?

Suggested Citation

  • Arriola, Christine & Krissoff, Barry & Young, C. Edwin, 2011. "How Does the Limited Base Acre Provision in the 2008 Farm Act Affect Small Farms?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103563, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103563
    DOI: 10.22004/ag.econ.103563
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    Keywords

    Agricultural and Food Policy;

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