Counter-Cyclical Agricultural Program Payments: Is It Time to Look at Revenue?
Chad E. Hart, Bruce A. Babcock
December 2000 [99-BP 28] (Revised)
(Revised) This paper examines the Supplemental Income Payments for Producers (SIPP) program, a proposal to adjust the current federal farm program to react to declines in farm revenue. The SIPP program, as currently outlined, would provide farmers assistance when current national revenue for a crop falls below a set percentage of historical national revenue for the crop. The authors explore the implications of changing the percentage of revenue and/or the level of revenue covered (national, state, county, etc.). Revenue guarantees based on the futures markets rather than past revenue outcomes are also discussed.
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