Budgetary and Resource Allocation Effects of Revenue Assurance

David A. Hennessy, Bruce A. Babcock, Dermot J. Hayes
February 1995  [95-WP 130]

Download Full Text

Suggested citation:

Hennessy, D.A., B.A. Babcock, and D.J. Hayes. 1995. "Budgetary and Resource Allocation Effects of Revenue Assurance." Working paper 95-WP 130. Center for Agricultural and Rural Development, Iowa State University.


The efficiency of redistribution and the level of government costs of revenue assurance are compared with current farm programs. The results suggest that a revenue assurance program using a fixed base acreage and actual or county average yields to ensure whole farm revenues could provide a significant improvement over existing policies. Revenue assurance would affect producer welfare somewhat, but would significantly reduce government expenditures.