Description: Farm commodity programs over the decades have focused on protecting farmers against declines in farm prices and not declines in revenue (price times production). Traditional programs for field crops provide benefits to producers when farm prices drop below specified levels. This report discusses the Average Crop Revenue Election (ACRE) program which Congress included in the Food, Conservation, and Energy Act of 2008 (P.L. 110-246) as a revenue based program option for farmers who enroll in traditional farm commodity programs. Unlike revenue protection provided by some crop insurance products, ACRE is designed to protect against losses from multi-year price declines.
Date: December 10, 2010
Creator: Shields, Dennis A.