The United States Department of Agriculture (USDA)'s Economic Research Service (ERS) has released its latest report on "ACRE Program Payments and Risk Reduction."


The report, which studied the effectiveness of the variables used in ACRE's payment system, found that ACRE is least effective in covering idiosyncratic risks, shortfalls on an individual farm that do not correlate with more widespread losses and more targeted at systematic or statewide risk. The program is most effective when related to the correlation between a farm's revenue variability and variability in state average revenue.