Hostname: page-component-cd9895bd7-q99xh Total loading time: 0 Render date: 2024-12-18T18:32:01.520Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Barnaby, A. “Should Basic Underwriting Rules Be Applied to ACRE and SURE?” Journal of Agricultural and Applied Economics 42,3(2010a):517–35.Google Scholar
Barnaby, A. Personal Communication. Information on crop insurance subsidy levels. Kansas State University, Department of Agricultural Economics. February 2010b.Google Scholar
Kansas State University, Department of Agricultural Economics. “AgManager.info, Crops: Insurance and Risk.” (Data are compiled by Art Barnaby.) Internet site: www.agmanager.info/crops/insurance/workshops/ (Accessed November 2009).Google Scholar
Langemeier, M. “Comparison of 2002 Census and KFMA Farms,” Kansas State University, Department of Agricultural Economics, Staff Paper No. 06-01, December 2005.Google Scholar
Langemeier, M. Personal Communication. Data from Kansas Farm Management Association (KFMA). Kansas State University, Department of Agricultural Economics. June 2009.Google Scholar
Nelson, F., and Schertz, L. (editors). Provisions of the Federal Agriculture Improvement and Reform Act of 1996. Washington, DC: U.S. Department of Agriculture (USDA), Economic Research Service, Agriculture Information Bulletin No. 729, September 1996.Google Scholar
Orden, D., Paarlberg, R., and Roe, T. Policy Reform in American Agriculture. Chicago, IL: University of Chicago Press, 1999.Google Scholar
Schertz, L., and Doering, O. The Making of the 1996 Farm Act. Ames, IA: Iowa State University Press, 1999.Google Scholar
Schnitkey, G. Personal Communication. Data from Illinois Farm Business Farm Management (FBFM) program. University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics. June 2009.Google Scholar
U.S. Congress. Food, Conservation, and Energy Act of2008. U.R. 2419. Internet site: http.V/frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname= 110_cong__bills&docid=f:h2419enr.txt.pdf (Accessed December 30, 2008).Google Scholar
U.S. Department of Agriculture (USDA), Economic Research Service. “Farm Program Acres: Download Data.” Internet site: www.ers.usda.gov/Data/BaseAcres/Download.aspx (Accessed November 2009).Google Scholar
U.S. Department of Agriculture (USDA), Farm Service Agency (FSA). “Direct and Counter-Cyclical Program/ACRE.” Internet site: www.fsa.usda.gov/FS A/webapp?area=home&subject= dccp&topic=landing (Accessed November 2009).Google Scholar
U.S. Department of Agriculture (USDA), Farm Service Agency (FSA). “Disaster Assistance Programs.” Internet site: www.fsa.usda.gov/FSA/webapp?area= home&subject=diap&topic = sure (Accessed January 2010).Google Scholar
U.S. Department of Agriculture (USDA), National Agricultural Statistics Service. “2007 Census of Agriculture.” Internet site: www.agcensus.usda.gov/ (Accessed February 2010).Google Scholar
U.S. Department of Agriculture (USDA), National Agricultural Statistics Service. “Data and Statistics: Quick Stats.” Internet site: www.nass.usda.gov/Data_and_Statistics/Quick_Stats/index.asp (Accessed November 2009).Google Scholar
U.S. Department of Agriculture (USDA), Risk Management Agency. “Crop Policies and Pilots.” Internet site: www.rma.usda.gov/policies/ (Accessed January 2010).Google Scholar
Zulauf, C, Dicks, M.R., and Vitale, J.D. “ACRE (Average Crop Revenue Election) Farm Program: Provisions, Policy Background, and Farm Decision Analysis.” Choices: The Magazine of Food, Farm & Resource Issues 23(2008):29–35.Google Scholar