An Evaluation of the Supplemental Revenue Assistance (SURE) Program and Impact on Cotton Farms of the Texas High Plains

The enactment of the 2008 Farm Bill brought with it a new permanent disaster program to replace what had become a biennial exercise of passing ad hoc disaster legislation.  This new approach, known as the Supplemental Revenue Assistance (SURE) Program requires a fresh look at producers’ risk management decisions to maximize returns while maintaining eligibility in the program.  Eligibility issues are complicated by the requirement to purchase at least a bare minimum of catastrophic (CAT) coverage or Non-insurable Assistance (NAP) for every acre of the producers’ operation.  This study looks at the impact of various combinations of crop insurance purchase decisions and projected yields to determine the optimal returns from all sources.  The long-term impact of a typical producer's risk management decision is also evaluated for a Texas High Plains model farm using the FARM Assistance program.