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Abstract
Moving from price-triggered to area revenue–triggered programs was perhaps the most
common theme among 2007 farm bill proposals. Area revenue–triggered commodity
programs may make farm-level revenue insurance products seem redundant, raising
questions about why the federal government should continue both programs. Area
revenue–triggered programs would remove much of the systemic risk faced by producers.
As a result, private sector insurers may be able to insure the residual risk without federal
involvement. This paper examines the effects of moving to area revenue–triggered
commodity programs with a focus on public policy issues that would likely arise.