The new ACRE program: costs and effects

Brian Briggeman and Jody Campiche

Main Street Economist, 2010, issue 2

Abstract: In 2010, many farmers will again choose between farm safety net programs offered by the U.S. government. They can remain in the more-familiar 2002 farm program, which protects against price declines and provides traditional direct payments. Or, they can enroll in the new Average Crop Revenue Election (ACRE) program, which protects against revenue shortfalls caused by falling prices or low yields. But ACRE requires farmers to give up a significant portion of their traditional 2002 farm program payments. Changing farm programs, especially ACRE, presents different costs and effects for not only farmers but taxpayers, too.

Date: 2010
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