Expected Payments and Considerations for the New ACRE Program

The 2008 Farm Bill provided an option for receiving commodity program payments through existing programs or a new revenue-based alternative – the Average Crop Revenue Election (ACRE) program. ACRE is a state-level revenue program which, if elected, replaces the price-based countercyclical program. Enrollment requires the forfeiture of 20 percent of a producer’s direct payments and reduces loan rates by 30 percent. This article provides estimates of long-term expected ACRE payments for corn, soybean, and wheat acres across a variety of states. Within the cornbelt, expected ACRE payments are similar across regions for each of the crops considered, and will likely exceed the required reduction in direct payments. Outside of the cornbelt, expected ACRE payments vary considerably.Farm Management, Production Economics,

Quality of Farm Products Implications for Farm Profitability

Exact date of working paper unknown

SYSTEMS DESIGN PROCEDURES FOR FARM ACCOUNTING

This paper presents a conceptual framework, known as systems development, for designing, selecting, and evaluating information systems. Techniques are developed that aid farm managers in choosing an accounting system. Six farmers took part in case studies testing the selection techniques. The participating farmers exhibited great diversity in the preferred design of their accounting systems and the manner in which they desired reports to be presented. This diversity suggests that system selection is an important aspect of implementing an accounting system.Farm Management,

THE IMPACT OF POLLUTION CONTROLS ON LIVESTOCK-CROP PRODUCERS

A discrete-time, continuous-space model of a livestock- crop producer is used to examine the long-run effects of phosphorus runoff controls on optimal livestock production and manure application practices. Quantity restrictions and taxes on phosphorus application are shown to reduce livestock supply and impose greater costs on livestock-crop producers than on crop-only producers. Restrictions on manure application, without accompanying restrictions on commercial fertilizer application, will have only a limited effect on phosphorus runoff levels.Environmental Economics and Policy, Farm Management,

INCOME AND CAPITALIZATION RATE RISK IN AGRICULTURAL REAL ESTATE MARKETS

Farmland Prices, Farmland Returns, Capitalization Rates, Risk, Asset Bubbles, Land Economics/Use, Q14,

Actuarial Impacts of Loss Cost Ratio Ratemaking in U.S. Crop Insurance Programs

This study examines the actuarial implications of the loss cost ratio (LCR) ratemaking methodology employed by the Risk Management Agency as a component of base rates for U.S. crop insurance programs, and identifies specific conditions required for the LCR methodology to result in unbiased rates when liabilities trend. Specifically, constant relative yield risk resulting in growing absolute variance through time and other restrictive requirements are required for the LCR to result in unbiased rates. These requirements are tested against a large farm-level data set for Illinois corn. Our findings indicate that the conditions required for appropriate use of the LCR methodology are violated for this high premium volume market, resulting in large implied rate biases. The process does not correct itself through time with the addition of longer rating periods as sometimes claimed. A simple correction function is suggested and demonstrated.actuarially fair, crop insurance, insurance rating, loss cost ratio, risk growth, Risk Management Agency, yield trends, Crop Production/Industries, Risk and Uncertainty,

A SOCIOECONOMIC ANALYSIS OF MARKETING INFORMATION USAGE AMONG OHIO FRUIT PRODUCERS

Farm producers attempt to mitigate risk and uncertainty by utilizing accurate and reliable information. This research attempts to identify sources of information used by Ohio fruit producers and then determine which of these sources are best meeting their information needs. Results are based on a logit analysis of Ohio fruit producers and several factors are shown to influence producers' evaluation of the "adequacy" of their marketing information. Among these factors are age, business size, education, type of enterprise, and types of information sources. Reported findings have implications for marketing efficiency, particularly if producers' evaluation of information as adequate is positively related to its efficient use.Marketing,