The 2014 U.S. Farm Act passed into law in early February, 2014, after approximately three years of hearings. Much debate in the negotiations leading to this Farm Act focused on new programs for providing producers with support payments covering “shallow losses” in revenue. We develop an...

The 2014 U.S. Farm Act has new programs for providing producers with commodity support payments covering “shallow losses†in revenue. We develop an approach to examine the sensitivity of the farmer’s downside risk protection to marginal changes in the deductible in shallow loss...