Estimating the Costs of Revenue Assurance

Feng Xu, Chad E. Hart, Darnell B. Smith, William H. Meyers
September 1995  [95-WP 140]

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Xu, F., C.E. Hart, D.B. Smith, and W.H. Meyers. 1995. "Estimating the Costs of Revenue Assurance." Working paper 95-WP 140. Center for Agricultural and Rural Development, Iowa State University.


Using a formula to estimate per acre costs at 70, 75, and 80 percent levels of coverage, this study provides estimates of the government cost of the revenue assurance plan, one of the alternative proposals for the 1995 Farm Bill. These costs are compared with results from previous studies and with crop insurance premiums. The authors conclude that a revenue assurance program would result in substantial budget savings over the current program.