IDEAS home Printed from https://ideas.repec.org/p/ias/cpaper/10-pb2.html
   My bibliography  Save this paper

Costs and Benefits of Moving to a County ACRE Program

Author

Listed:
  • Bruce A. Babcock

Abstract

Better integration of the different programs that comprise the farm safety net seems inevitable in the next farm bill given widespread public concern over the rapidly growing federal debt. With $5 billion in direct payments flowing annually to farmers who own or rent base acres without regard to farm income, $7 billion flowing to crop insurance companies over the last two years, and $2.6 billion flowing to cotton farmers in the last two years from programs that violate our trade commitments, there is substantial room for improvement. One path toward better integration would be to modify the ACRE (Average Crop Revenue Election) program so that it covers county revenue rather than state revenue. For approximately the same cost as the direct payment program, 100% of planted acres could be covered at a 95% coverage level. Accounting for county ACRE payments before crop insurance payments are made could easily reduce the cost of the crop insurance program by more than $4 billion per year.

Suggested Citation

  • 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.
  • Handle: RePEc:ias:cpaper:10-pb2
    as

    Download full text from publisher

    File URL: https://www.card.iastate.edu/products/publications/pdf/10pb2.pdf
    File Function: Full Text
    Download Restriction: no

    File URL: https://www.card.iastate.edu/products/publications/synopsis/?p=1128
    File Function: Online Synopsis
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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 Papers 116705, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    2. Mitchell, Paul D. & Rejesus, Roderick M. & Coble, Keith H. & Knight, Thomas O., 2010. "A Real Options Framework for Analyzing Program Participation as Human Capital Investments: The Case of the Average Crop Revenue Election (ACRE) Program," Staff Papers 92896, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    3. Bulut, Harun & Collins, Keith & Zacharias, Thomas P. & Schnapp, Frank, 2011. "Why Do Producers Choose Individual or Area Insurance Protection?," NCIS Special Reports 160545, National Crop Insurance Services (NCIS).
    4. 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.

    More about this item

    Keywords

    ACRE; agricultural risk; Average Crop Revenue Election program; crop insurance; direct payment program; farm bill; farm payments; SURE; Supplemental Revenue Assistance Payments Program.;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:10-pb2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/caiasus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.