Should I consider ACRE enrollment?

ACRE (Average Crop Revenue Enrollment) was offered as an option in the 2007 Farm Bill to the traditional Counter Cyclical Program we have grown accustomed to. Basically ACRE attempts to incorporate both price and yield into a state revenue guarantee for commodities grown in the US. For Ohio we are primarily concerned with corn, soybeans and wheat. The deadline to make the final selection ACRE as the program farmers participate in for the 2009 crop season is August 14th. With the trends that corn, soybean and wheat markets have taken in the past 6 weeks, a reevaluation of ACRE is in order.

As stated, ACRE incorporates price and yield. The state guaranteed revenue is a combination of the average marketing year national cash price for a two year period and state Olympic 5 year yields. For corn and beans the marketing year is September- August and wheat is June-May.

The chart has predicted state guarantees based on current information. Yields are set, but two year average marketing price have to run through September to be know for corn and soybeans. The state guarantee for wheat is known at $394 per acre.

State Revenue Guarantee for 2009 Crop and 2009 Estimated Trigger State Revenue. Note + equals estimates subject to change. Actual payments subject to meeting farm level trigger as well.

Crop	5 Year Olympic Yield (A)	2-Year Average Market Year Price (B)+	State Revenue Guarantee (A*B)*.90 +	2009 Yield +	2009 Marketing Year Price +	2009 State Revenue +	State ACRE Payment +
Corn	150	$4.13	$557	154	$3.43	$528	$29
Soybeans	46	$10.05	$416	45	$9.36	$421	$0
Wheat	66	$6.63	$394	75	$5.58	$419	$0

The question of how much will acre pay will not be known until late 2010 when State Revenue is known. The official number for state yield will be known next March when Ag Statistic Release their official numbers of yield. Market year price for 2009 corn and soybeans will be known September 30, 2010 and wheat will be known on May 31, 2010. The chart attempts to put some prices in based on current Chicago Board of Trade prices which have not been adjusted to cash price by accounting for basis.

It was easy to ignore ACRE when prices looked to be above $4.00 cash price for corn but as prices have fallen lower, another look before the signup deadline may be a wise move. The best thing will be to look at your farm and your numbers. A good tool to download and use for estimating what ACRE might offer versus the traditional programs for corn, soybean and wheat is the University of Illinois Fast Tools. This is one of several tools available for farmers to put their numbers into to compare programs.

For additional information Chris Bruynis, OSU Extension Educator, Wyandot Coutny has put together a informational sheet. Chris has done a number of programs and visited with farmers across Ohio on this decision. Click on this link to download Chris's thoughts.