IDEAS home Printed from https://ideas.repec.org/p/isu/genres/33990.html
   My bibliography  Save this paper

Iowa Farmers' Decisions to Enroll in the Average Crop Revenue Election (Acre) Program

Author

Listed:
  • Edwards, William M.

Abstract

In 2009 Iowa farmers who had at least some land enrolled in the existing DCP program offered by FSA were given the opportunity to switch to an alternative called ACRE. Despite having access to information about the program and utilizing electronic decision aids, only 27.5% of the operators surveyed enrolled at least one farm in ACRE. Those who did enroll cited a desire for more risk protection and a belief that payments from ACRE would exceed the value of the direct payments they had to give up. The primary reasons operators gave for not enrolling were the program was too complex, and they did not want to give up a portion of the direct payments. Farmers who enrolled generally farmed more acres and depended more on crop production for their gross income, and were more likely to use other risk management tools such as crop insurance and pre-harvest pricing. In general, farmers who enrolled in ACRE were more concerned about controlling financial risk in their farming operations than those who did not.

Suggested Citation

  • Edwards, William M., 2011. "Iowa Farmers' Decisions to Enroll in the Average Crop Revenue Election (Acre) Program," Staff General Research Papers Archive 33990, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:33990
    as

    Download full text from publisher

    File URL: http://www2.econ.iastate.edu/papers/p13990-2011-08-02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian C. Briggeman & Jody Campiche, 2010. "The new ACRE program: costs and effects," Main Street Economist, Federal Reserve Bank of Kansas City, issue 2.
    2. Woolverton, Andrea E. & Edwin, Young, 2009. "Factors Influencing ACRE Program Enrollment," Economic Research Report 55954, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Taylor, Mykel R. & Tonsor, Glynn T. & Wilson, Candice, 2017. "Factors Affecting 2014 Farm Bill Commodity Program Enrollment for Kansas Farmers," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258190, 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. Zulauf, Carl & Kim, Sang Hyo, 2015. "ACRE Potential Payments in Historical Perspective," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 5, October.
    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.
    5. 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 Paper Series 547, University of Wisconsin, Agricultural and Applied Economics.
    6. Dismukes, Robert & Arriola, Christine & Coble, Keith H., 2010. "ACRE Program Payments and Risk Reduction: An Analysis Based on Simulations of Crop Revenue Variability," Economic Research Report 262248, United States Department of Agriculture, Economic Research Service.

    More about this item

    Keywords

    risk; agricultural policy; USDA; agricultural management;
    All these keywords.

    JEL classification:

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

    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:isu:genres:33990. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.