Acre vs dcp food conservation and energy act of 2008
This presentation is the property of its rightful owner.
Sponsored Links
1 / 29

ACRE VS DCP Food, Conservation, and Energy Act of 2008 PowerPoint PPT Presentation


  • 51 Views
  • Uploaded on
  • Presentation posted in: General

ACRE VS DCP Food, Conservation, and Energy Act of 2008. Michael R. Dicks Department of Agricultural Economics Oklahoma State University. Thanks to: Larry Sanders Kim Anderson Dan Skipper Francie Tolle. June 6, 2008. It’s Done, Finally!!!. Overview. Two Commodity Program Options

Download Presentation

ACRE VS DCP Food, Conservation, and Energy Act of 2008

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Acre vs dcp food conservation and energy act of 2008

ACRE VS DCP Food, Conservation, and Energy Act of 2008

Michael R. Dicks

Department of Agricultural Economics

Oklahoma State University

Thanks to:

Larry Sanders

Kim Anderson

Dan Skipper

Francie Tolle

June 6, 2008


Acre vs dcp food conservation and energy act of 2008

It’s Done, Finally!!!


Overview

Overview

  • Two Commodity Program Options

    • DCP same as in past with some changes in Target price and Loan rates.

    • Average Crop Revenue Election (ACRE)


Acre assumptions

ACRE assumptions

  • 30 years of historic yield forecasts future yield volatility

  • Price volatility in actual price changes (percent change – elasticity computed for wheat only)

  • County planted yield = farm planted yield

  • Loan rate is price floor, not 30% reduction in loan rate.

  • No payment restrictions


Historic comparison

Historic Comparison

  • Apply ACRE and DCP to past 30 years and compare.


Summary 3 30 avg annual price

Summary$3.30 Avg. Annual Price


Future comparison

Future Comparison

  • Past 30 years yield and price volatility @ USDA baseline average annual price

    • $4.55/ bushel wheat


Summary 4 55 avg annual price

Summary$4.55 Avg. Annual Price


Breakeven analysis

Breakeven Analysis

  • At what average annual price does it pay to switch to ACRE from DCP?

    • Compare average annual total payment over 30 years yield and price volatility.


Acre vs dcp food conservation and energy act of 2008

Breakeven Price – Switch from DCP to ACRE


Acre vs dcp food conservation and energy act of 2008

Comparison of price volatility measures


Acre vs dcp food conservation and energy act of 2008

  • Yield explains 63% of the variation in TR for the DCP payment, more than twice the value for the ACRE payment, 25%.

    • Three counties in Oklahoma for Wheat.


Commodity programs

Commodity Programs

SEC. 1601. ADMINISTRATION GENERALLY.

(c) REGULATIONS.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, not later than 90 days after the date of enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title.


Commodity programs1

Commodity Programs

(d) ADJUSTMENT AUTHORITY RELATED TO TRADE AGREEMENTS COMPLIANCE.—

(1) REQUIRED DETERMINATION; ADJUSTMENT.—If the Secretary determines that expenditures under this title that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed such allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of such expenditures during that period to ensure that such expenditures do not exceed such allowable levels.


Acre vs dcp food conservation and energy act of 2008

This simply won’t help!!

Questions?


  • Login