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Farmdoc Daily reports commodity program and Crop Insurance payments are a lower percentage of crop revenue since 2006 as compared to 2000 through 2005. Farmdoc economists say this lower percentage holds two implications. First, crop revenue has become more important as a revenue source. The second relates to a popular benchmark of appropriate cash rents. This measure is “cash rent as a percent of crop revenue” and likely needs to be adjusted downward.

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