2004 Iowa Farm Custom Rate Survey

Results of a survey of custom rates paid or charged for a large number of tillage, planting, harvesting and miscellaneous operations are presented.

Iowa Farmers’ Decisions to Enroll in the Average Crop Revenue Election (Acre) Program

� In 2009 Iowa farmers who had at least some land enrolled in the existing DCP program offered by FSA were given the opportunity to switch to an alternative called ACRE.� Despite having access to information about the program and utilizing electronic decision aids, only 27.5% of the operators surveyed enrolled at least one farm in ACRE.�� Those who did enroll cited a desire for more risk protection and a belief that payments from ACRE would exceed the value of the direct payments they had to give up.� The primary reasons operators gave for not enrolling were the program was too complex, and they did not want to give up a portion of the direct payments.� Farmers who enrolled generally farmed more acres and depended more on crop production for their gross income, and were more likely to use other risk management tools such as crop insurance and pre-harvest pricing. �In general, farmers who enrolled in ACRE were more concerned about controlling financial risk in their farming operations than those who did not.risk; agricultural policy; USDA; agricultural management

Managing Risk with Crop Insurance

Every year Iowa farmers face the threat of damage to their crops from drought, hail, flood, insects, and other natural disasters. The U.S.D.A. Risk Management Agency (RMA) and private crop insurance venders have developed a set of insurance programs to help control crop production risks at a reasonable cost. Crop insurance coverage is not mandatory, but it does provide a financial safety net in case of severe production losses.

Group Risk Plan and Group Risk Income Protection

Group Risk Plan (GRP) and Group Risk Income Protection (GRIP) are low-cost insurance programs designed to help farmers protect their crops from disastrous losses. GRP and GRIP are alternatives to the traditional Multiple Peril Crop Insurance and revenue insurance products.

Why Was Acre a No-Go with Iowa Farmers?

Abstract� In 2009 Iowa farmers had the opportunity to enroll in a new revenue support program called ACRE.� A survey showed that those who did enroll desired more risk protection and believed that payments from ACRE would exceed the value of direct payments forfeited.� Operators who did not enroll said the program was too complex, and they did not want to give up a portion of the direct payments.� Those who enrolled farmed more acres and depended more on crop production for their gross income, and were more likely to use crop insurance and pre-harvest pricing.�commodity; ACRE; farm program

Farm Security and Rural Investment Act of 2002: Commodity Programs for Crops

The 2002 Farm Security and Rural Investment Act provides for three different types of payments to agricultural producers and landowners: direct, counter-cyclical and loan deficiency payments. Eligiable recipients will have the opportunity to update their acreage bases and programs yields under a new set of rules.

WHY WAS ACRE A NO-GO WITH IOWA FARMERS?

ACRE, Risk, Commodity, Program, Resource /Energy Economics and Policy, Q18,

Actual Production History and Insurance Units for Multiple Peril Crop Insurance

The first step in developing a crop risk management program for a farm is to establish the proven yield and unit structure. The Actual Production History (APH) is used to set the guarantees under all of the FCIC-backed insurance plans except the Group Risk Plan (GRP). True risk protection must be based on the farm's own production potential. Providing historical yield records is the most realistic method of estimating it.

Catastrophic Crop Insurance

Beginning in 1995 farmers were offered the chance to carry a minimum level of Multiple Peril Crop Insurance (MPCI) coverage at very little cost. This catastrophic or CAT insurance coverage replaces the protection offered to crop producers under federal disaster programs in recent years.