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The Revenue Program Option in the 2008 U.S. Farm Bill: Evaluating Performance Characteristics of the ACRE Program

Published online by Cambridge University Press:  15 September 2016

Carl Zulauf  and
David Orden
Carl Zulauf
Affiliation:
Department of Agricultural, Environmental, and Development Economics at Ohio State University in Columbus, Ohio
David Orden
Affiliation:
International Food Policy Research Institute (IFPRI) in Washington, D.C., and Professor in the Institute for Society, Culture and Environment at Virginia Tech University in Blacksburg, Virginia
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Abstract

Had only a farm program like the new ACRE state revenue program existed instead of the authorized 1996–2008 programs for com, soybeans, and wheat, farm support expenditures would have occurred earlier but totaled less. In contrast, at the higher prices forecast for the three crops over the 2009–2012 crop years, spending per acre is expected to be higher for acres enrolled in the ACRE program than for acres enrolled in the traditional programs. These results reflect the different design features of the two programs: revenue versus price assistance and assistance levels that adjust with lagged market revenue versus fixed nominal support triggers. The design issues and policy questions raised for both domestic policy considerations and WTO compliance are discussed.

Keywords

farm policyFood Conservation and Energy Act of 2008Average Crop Revenue Election Program (ACRE)WTO domestic support commitments
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 39 , Issue 3 , October 2010 , pp. 517 - 533
Copyright
Copyright © 2010 Northeastern Agricultural and Resource Economics Association 

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