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On the Real-Options Decision to Sign-up for the Average Crop Revenue Election (ACRE) Program - aae w

On the Real-Options Decision to Sign-up for the Average Crop Revenue Election (ACRE) Program - aae w 2025

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The document analyzes farmer participation intentions and enrollment rates for the Average Crop Revenue Election (ACRE) program established by the 2008 Farm Bill. It examines factors influencing farmers' decisions to switch to ACRE or remain in traditional programs, highlighting perceptions of expected payments, risk protection, and individual risk aversion. The study utilizes survey data from farmers in Mississippi, North Carolina, Texas, and Wisconsin, revealing low initial enrollment rates despite expectations of higher returns under ACRE. The findings suggest that complexities and uncertainties surrounding the program significantly impacted participation decisions, indicating a need for simpler farm support programs in future policy discussions.

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