Budgetary and Resource Allocation Effects of Revenue Assurance

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

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.

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