Alternatives to a State-based ACRE program

The Average Crop Revenue Election (ACRE) program currently bases coverage on aggregate State-level and individual farm-level revenue variability. Changing the level of aggregation from the State to one closer to the farm level-such as the Crop Reporting District or county-would generally increase payments, while increasing the level of aggregation from the State would, on average, reduce expected ACRE payments, with average changes varying by crop. For example, based on simulations, expected payments for wheat would increase on average by about 28 percent if the area trigger were switched from the State to the county, while expected payments for corn would increase by about 19 percent. This chart is based on the data in Table 2 of the ERS report, Alternatives to a State-Based ACRE Program: Expected Payments Under a National, Crop District, or County Base, ERR-126, September 2011.

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