ACRE Farm Program Update

May 29, 2009 at 7:30 am

The proposed Average Crop Revenue Election (ACRE) program is generating many questions. I certainly won’t be able to answer all, but I can shed light on a few questions thanks to information I received from FSA Executive Director Michelle Stahl.

ACRE County Yield for Van Wert County:

  • Corn 145 bushels/acre
  • Soybeans 46 bushels/acre
  • Wheat 68 bushels/acre

Ohio State Benchmark Yield

  • Corn 150 bushels/acre
  • Soybeans 46 bushels/acre
  • Wheat 66 bushels/acre

Suggestions to move forward with ACRE (*suggestions from me, not Ms. Stahl)~

  1. It’s in a producer’s best interest to establish a strong Benchmark Farm Yield because the higher the Benchmark Farm Yield the more likely it is that the farm trigger is met and the higher the payment per acre will be should both triggers be met.
  2. If you wish to enroll in ACRE but you cannot establish a yield then you may use a default yield equal to 95% of the ACRE County Yield.
  3. If a particular farm unit has historical yields below the county average, there is no financial benefit for the producer to prove yields. In those instances, accepting 95% of ACRE County Yield is a good option.
  4. Because of the potential for additional information, the prudent thing to do may be to remain the traditional DCP-counter cyclical farm program.
  5. If you choose to remain in the traditional DCP-counter cyclical farm program, you should re-examine the ACRE program in the spring of 2010 and then decide between ACRE and traditional farm program.

    Entry filed under: Farm Bill, farm management.

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