Economic Analysis of Base Acre and Payment Yield Designations Under the 2002 U.S. Farm Act
By C. Edwin Young, David W. Skully, Paul C. Westcott, and Linwood Hoffman
Economic Research Report No. (ERR-12) 46 pp,
The 2002 Farm Act provided farmland owners the opportunity to update commodity program base acres and payment yields used for calculating selected program benefits. Findings in this report suggest that farmland owners responded to economic incentives in these decisions, selecting those options for designating base acres that resulted in the greatest expected flow of program payments. Farmland owners with high-payment base acres, such as rice and cotton, held on to these base acres and, whenever possible, expanded them. Analogously, farmland owners with low-payment commodity base acres, such as oats and barley, switched to higher payment commodities whenever possible.
Keywords: base, 2002 Farm Act, direct payments, counter-cyclical payments, production flexibility contract payments, base acres, program yields, ERS, USDA
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- Abstract, Acknowledgments, Contents, and Summary, 83 Kb
- Introduction, 52 Kb
- Role of Base Acres and Program Yields in U.S. Agricultural Policy, 36 Kb
- Planting Flexibility Allowed Movement Away From Base Acres, 1,536 Kb
- The 2002 Farm Act, 847 kb
- Economics of Base Designation, 95 kb
- Evaluating the Base Updating Decision, 413 kb
- Influence of Base Updating on 2003 Planting Decisions, 810 kb
- Conclusions, 42 kb
- References, 45 Kb
- Appendix, 59 Kb
See the related data product, Farm Program Acres.
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Updated date: September 19, 2005