This paper considers methods to adversely select on Average Crop Revenue Election (ACRE) and Supplemental Revenue (SURE). In the case of winter wheat, farmers had a large amount of a priori yield and price information before electing 2009 ACRE. Prior to the August 14 sign-up for ACRE, wheat was 3 months into the marketing year. In most years nearly half of the national average price is determined in the first 3 months of the marketing year. With this available information it was clear that Oklahoma, Texas, and Washington wheat would collect the maximum or near the maximum ACRE payment, while there was little chance that ACRE would pay on Colorado wheat.

New revenue-based support programs in the 2008 Farm Bill represent a fundamental shift in farm programs and risk management decision-making. However, complexity, uncertainty, economics, and, arguably, an incomplete analysis of the new Average Crop Revenue Election (ACRE) program all contributed to low enrollment in the new program in 2009. An effective analysis of ACRE should consider farm programs as part of an integrated risk management portfolio, including crop insurance, marketing, and other risk management tools as opposed to a separate lottery program. Improving this integration could be one of the most significant consequences of the 2008 Farm Bill.

Animal identification has been one of the most contentious issues for the last decade in the livestock industry. More specifically, at issue is the idea of a government-sponsored identification system, although it is unclear that an identification system forced on the industry by the market would be any more popular. Rancor over the issue has set livestock groups at odds over the merits of establishing such a framework; it has highlighted differences between species, within species, and by size and scale of agriculture. Given its politically sensitive nature, many groups without a tie to agriculture have been drawn in to lobby on the issue. This article examines the U.S. experience with the development of an animal identification system.

Mexico initiated a federal animal identification (ID) system (SINIIGA) in 2003. The program is administered by an agency of the federal Department of Agriculture (SAGARPA) and has been used primarily to support a federal subsidy program for livestock producers. The program is conceptually well designed, but implementation thus far falls short of the potential and needs, most importantly in animal disease management. Although substantial numbers of animals have been tagged, relatively little progress has been made in developing a usable animal ID information system. Animal health officials currently are not actively involved in the development and use of the system.

This article provides a brief history of the animal identification (ID) system that previously existed in Canada along with details on efforts to “reidentify” the country's cattle herd. The current state of ID for various species is summarized, and the state of regulations federally and for major agricultural province are outlined. A short background on the economics of animal ID is provided. Particular attention is paid to the operation of the Canadian Cattle Identification Agency, an industry-government initiative charged with identifying the national cattle herd. The animal ID system in Canada is found to have performed well when called on in times of animal health crises, although there have been notable deficiencies in its performance on occasion. Canada's animal ID system will continue to evolve as new technologies for tagging and database management (among others) are developed. It is expected the system will play an important role in future attempts to exploit traceability for value-added initiatives.

Although Canada has developed an effective animal identification system, and the provinces are progressing toward a system that has full traceback capabilities, the U.S. and Mexico have made little or no progress. Contemporary U.S. proposals for state initiatives will not work. In the meantime, the U.S. livestock industry will continue to lose markets for its products and has little to no basis for complaining about lost sales and the lack of open markets. Also indentified are relevant economic and political principles that both underlie animal identification systems and the failure to make positive steps forward toward establishing a North American animal identification system.