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Traditional farm programs have focused on supporting prices rather than revenues (prices multiplied by yields). The new optional Average Crop Revenue Election (ACRE) program addresses declines in state revenue caused from declines in prices and/or yields.
The inclusion of state yield protection allows for protection from droughts, natural disasters, and floods. The ACRE program uses market-based prices and state yields in determining revenue instead of government targets, therefore allowing revenue to adjust to current market conditions as they move up and down.
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