Analyzing Farmer Participation Intentions and County Enrollment Rates for the Average Crop Revenue Election Program

Paul Mitchell (), Roderick Rejesus, Keith Coble and Thomas O. Knight

Applied Economic Perspectives and Policy, 2012, vol. 34, issue 4, 615-636

Abstract: The 2008 Farm Bill created the Average Crop Revenue Election (ACRE) program to be 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 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 affecting participation. Farmer beliefs and attitudes also played key roles, and were changing during the months before the ACRE deadline. Copyright 2012, Oxford University Press.

Date: 2012
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