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

  • Mitchell, Paul D.

    (University of WI)

  • Rejesus, Roderick M.

    (NC State University)

  • Coble, Keith H.

    (MI State University)

  • Knight, Thomas O.

    (TX Tech University)

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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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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