Farm Level Impacts of a Revenue Based Policy in the 2007 Farm Bill

Abstract

Revenue-based policy alternatives are thought to be a potential component of the 2007 Farm Bill. This research provides an economic analysis of switching to a revenue assurance farm program for representative farms. Specifically, this research provides a monte-carlo stochastic simulation model that compares the effect of a revenue based safety net policy relative to continuing the 2002 Farm Bill policies for different types of U.S. crop farmers. The results show that both revenue assurance proposals by the National Corn Growers Association leave the majority of farmers, especially feed grain producers, with higher total receipts and higher government payments.Agricultural and Food Policy,