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Average Crop Revenue Election, Crop Insurance, and Supplemental Revenue Assistance: Interactions and Overlap for Illinois and Kansas Farm Program Crops

Published online by Cambridge University Press:  26 January 2015

Carl Zulauf ,
Gary Schnitkey  and
Michael Langemeier
Carl Zulauf
Affiliation:
Department of Agricultural, Environmental, and Development Economics, Ohio State University, Columbus, Ohio
Gary Schnitkey
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, Urbana, Illinois
Michael Langemeier
Affiliation:
Department of Agricultural Economics, Kansas State University, Manhattan, Kansas
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Abstract

Farm-level data from Illinois and Kansas for the 1991-2007 crops are used to examine the interaction and overlap among crop revenue insurance, Supplemental Revenue Assistance (SURE), and Average Crop Revenue Election (ACRE). Compared with 75% Crop Revenue Coverage Insurance (75% CRCP), ACRE provides more payments and has a greater impact on minimum farm revenue for the Illinois farms. In contrast, for the Kansas farms, 75% CRCP has the greater impact. SURE's relative impact on the Illinois and Kansas farms depends on the metric. The overlap in payments from ACRE and 75% CRCP resulting from covering the same part of the revenue risk distribution is estimated to be less than 5% of ACRE payments. Several proposals for improving the farm safety net are discussed.

Keywords

Average Crop Revenue Election Program (ACRE)Crop Revenue Coverage Insurance (CRCP)farm policyFood Conservation and Energy Act of 2008Supplemental Revenue Assistance (SURE)Q18Q12
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 42 , Issue 3 , August 2010 , pp. 501 - 515
Copyright
Copyright © Southern Agricultural Economics Association 2010

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