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Analyzing Farmer Participation Intentions and County Enrollment Rates for the Average Crop Revenue Election Program
Author(s) -
Mitchell Paul D.,
Rejesus Roderick M.,
Coble Keith H.,
Knight Thomas O.
Publication year - 2012
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/pps038
Subject(s) - tobit model , acre , multinomial logistic regression , revenue , commodity , business , agricultural economics , risk aversion (psychology) , survey data collection , agribusiness , voucher , economics , agricultural science , agriculture , econometrics , geography , finance , statistics , mathematics , expected utility hypothesis , environmental science , accounting , mathematical economics , archaeology
The 2008 Farm Bill created the Average Crop Revenue Election (ACRE) program to be a new commodity support program. Using a multinomial logit model to analyze a mail survey administered before the ACRE sign‐up deadline, we identify factors driving farmer intentions regarding ACRE participation. Using a Tobit model to analyze actual county‐level ACRE enrollment rates, we assess the effect of similar factors on actual farmer decisions. Results suggest that primary crops, risk perceptions, risk aversion, and program complexity were important factors affecting participation. Farmer beliefs and attitudes also played key roles, and were changing during the months before the ACRE deadline.