Expected Payments and Considerations for the New ACRE Program

Nicholas Paulson and Gary Schnitkey ()

Journal of the ASFMRA, 2010, vol. 2010, 12

Abstract: The 2008 Farm Bill provided an option for receiving commodity program payments through existing programs or a new revenue-based alternative – the Average Crop Revenue Election (ACRE) program. ACRE is a state-level revenue program which, if elected, replaces the price-based countercyclical program. Enrollment requires the forfeiture of 20 percent of a producer’s direct payments and reduces loan rates by 30 percent. This article provides estimates of long-term expected ACRE payments for corn, soybean, and wheat acres across a variety of states. Within the cornbelt, expected ACRE payments are similar across regions for each of the crops considered, and will likely exceed the required reduction in direct payments. Outside of the cornbelt, expected ACRE payments vary considerably.

Keywords: Farm Management; Production Economics (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/96411/files/335_Paulson.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jasfmr:96411

DOI: 10.22004/ag.econ.96411

Access Statistics for this article

More articles in Journal of the ASFMRA from American Society of Farm Managers and Rural Appraisers Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().