Assessment of STAX (Stacked Income Protection Program) for Arkansas Representative Panel Farmers

By: Vuko Karov, Eric J. Wailes, and K. Bradley Watkins

The goal of this study is to assist Arkansas farmers to better understand alternative policy proposals and in developing their positions regarding the 2012 Farm Bill. The objective of the study is to assess the impacts of the STAX proposal at the specific farm level in Arkansas during the period 2012-2016 in which the 2012 Farm Bill is expected to be in place.

To achieve the main objective, three scenarios are considered:

1. What is the average probability of receiving a STAX indemnity payment on a by farm/crop/coverage level basis?

2. What is the average STAX indemnity payment on a by farm/crop/coverage level basis?

3. Is it more profitable for farmers to participate in STAX as compared to participation in 2008 Farm Bill Title I (BASE) programs?

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