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LOGO: Journal of Cotton Science


Comparison of ACRE and DCP Programs with Simulation Analysis of Arkansas Delta Cotton and Rotation Crops

Authors: Archie Flanders and Eric J. Wailes
Pages: 26-33
Economics and Marketing

A new provision of the 2008 Farm Bill allows farmers to enroll in an average crop revenue election (ACRE) program. Enrollment in ACRE requires forgoing counter-cyclical payments, as well as reduced loan rates and direct payments available in the traditional income support program. Comparisons of the program alternatives under conditions of commodity price variability indicate that revenue outcomes vary among crops that are produced in the Arkansas Delta. Selection of the optimal program depends upon farmer risk preferences and outlook for future commodity prices.