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.
Full Text 0.56 MB