FSA programs explained: 2010 Average Crop Revenue Election (ACRE) | TSLN.com

FSA programs explained: 2010 Average Crop Revenue Election (ACRE)

For the July 30, 2011 edition of Tri-State Livestock News.

For those farmers that enrolled in Average Crop Revenue Election (ACRE) in the Direct and Countercyclical Program (DCP), it appears that 2010 ACRE payments rates will not be similar to 2009 ACRE payment rates when the Farm Service Agency paid for crop revenue losses for wheat, barley and oats.

The USDA has released the 2010 marketing year average price for wheat, oats and barley in conjunction with the state yields that were released back in March. Even though the USDA has not made an official announcement on ACRE payment rates, if you do the math, it does not appear that any of these crops will yield a payment in South Dakota, Wyoming, North Dakota and Nebraska.

The 2010 ACRE final prices for the 2010 crop year for wheat, oats and barley (as posted online at http://www.fsa.usda.gov/dcp) are $5.70, $2.52 and $3.22, respectfully. The guarantee price for the 2010 crop year was $5.83, $2.58 and $3.22. Whereas the 2010 crop year prices were slightly down from the guaranteed price, the ACRE program only offers a 90 percent guarantee of the total revenue. Therefore, the revenue includes the average state yield when determining the guarantee and it appears that yields for these crops during the 2010 crop year were at to above average for the year.

The 2010 ACRE program guarantee for South Dakota for wheat, oats and barley were: $225.55, $168.54, and $124.61 per acre. Actual revenue (as determined by the USDA based upon average price and average state yield) for these crops during the 2010 crop year were: $255.93, $181.54, and 128.80 per acre. If you live in another state, you may view these calculations for your state by visiting http://www.fsa.usda.gov/dcp and selecting the “ACRE Actual Yield Values” under Program year 2010.

If you are interested in crops other than wheat, barley and oats, the above listed Web site displays the current preliminary prices for all other crops as well. However, these prices will not be finalized until the end of their marketing year. For instance, the corn marketing year will not end until Aug. 31, 2011.

If you are interested in signing up for the ACRE program, the signup for the 2011 program year expired on June 1 of this year. However, you may still enroll in the 2012 year. This should be completed before you complete your 2012 DCP contract but no later than June 1, 2012.

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With prices remaining strong going into the 2011 marketing year, now might be a good time to look into ACRE for 2012. The ACRE guarantee price is based upon the past two year’s average market price. Therefore, if the average price in 2011 is higher than the 2010 average price, producers will receive the benefit by receiving a higher guaranteed price in 2012. However, those producers that have already enrolled in ACRE for 2011 may not receive a payment for 2011 revenue losses if the prices remain high.

For those farmers that enrolled in Average Crop Revenue Election (ACRE) in the Direct and Countercyclical Program (DCP), it appears that 2010 ACRE payments rates will not be similar to 2009 ACRE payment rates when the Farm Service Agency paid for crop revenue losses for wheat, barley and oats.

The USDA has released the 2010 marketing year average price for wheat, oats and barley in conjunction with the state yields that were released back in March. Even though the USDA has not made an official announcement on ACRE payment rates, if you do the math, it does not appear that any of these crops will yield a payment in South Dakota, Wyoming, North Dakota and Nebraska.

The 2010 ACRE final prices for the 2010 crop year for wheat, oats and barley (as posted online at http://www.fsa.usda.gov/dcp) are $5.70, $2.52 and $3.22, respectfully. The guarantee price for the 2010 crop year was $5.83, $2.58 and $3.22. Whereas the 2010 crop year prices were slightly down from the guaranteed price, the ACRE program only offers a 90 percent guarantee of the total revenue. Therefore, the revenue includes the average state yield when determining the guarantee and it appears that yields for these crops during the 2010 crop year were at to above average for the year.

The 2010 ACRE program guarantee for South Dakota for wheat, oats and barley were: $225.55, $168.54, and $124.61 per acre. Actual revenue (as determined by the USDA based upon average price and average state yield) for these crops during the 2010 crop year were: $255.93, $181.54, and 128.80 per acre. If you live in another state, you may view these calculations for your state by visiting http://www.fsa.usda.gov/dcp and selecting the “ACRE Actual Yield Values” under Program year 2010.

If you are interested in crops other than wheat, barley and oats, the above listed Web site displays the current preliminary prices for all other crops as well. However, these prices will not be finalized until the end of their marketing year. For instance, the corn marketing year will not end until Aug. 31, 2011.

If you are interested in signing up for the ACRE program, the signup for the 2011 program year expired on June 1 of this year. However, you may still enroll in the 2012 year. This should be completed before you complete your 2012 DCP contract but no later than June 1, 2012.

With prices remaining strong going into the 2011 marketing year, now might be a good time to look into ACRE for 2012. The ACRE guarantee price is based upon the past two year’s average market price. Therefore, if the average price in 2011 is higher than the 2010 average price, producers will receive the benefit by receiving a higher guaranteed price in 2012. However, those producers that have already enrolled in ACRE for 2011 may not receive a payment for 2011 revenue losses if the prices remain high.

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