MATHEMATICAL FORMULAS FOR CALCULATING NET RETURNS FROM PARTICIPATION IN GOVERNMENT PROGRAMS, CRP, AND CROP INSURANCE ALTERNATIVES

The purpose of this report is to provide a revised version of the publication, "Mathematical Formulas for Calculating Net Returns from Participation in Government Commodity Programs including Marketing Loans" (Williams and Barnaby, 1994). The change in design of the government commodity programs and development of several crop insurance alternatives has been significant since the previous paper was published. The formulas for calculating net returns incorporate provisions from the Farm Security and Rural Investment Act of 2002 and several crop insurance designs developed in the 1990s. Individuals conducting research or education programs will be able to use this revision for reference when estimating net returns for producers under current commodity program and crop insurance plan provisions.