Will ACRE trigger payment for the 2013 crop?

There are no doubt many questions about decisions involved with the 2014 Farm Bill, but farmers are still currently enrolled in programs from the previous farm bill, including the  Average Crop Revenue Program (ACRE).

Here is some insight on the likelihood of ACRE payments in 2014 from Chris Bruynis with OSU Extension.

Although only about 10% of the total acres in Ohio were signed into the Average Crop Revenue Program (ACRE), farmers’ enrolled might see a payment for corn if market prices continue to remain low. Calculating the numbers using state averages and USDA estimates, the state revenue guarantee for corn is approximately $758 per acre. When dividing that revenue guarantee by the five-year Olympic average state corn yield, the market year average price that corn would need to fall below to trigger a payment would be $4.59 per bushel. The current USDA estimate for the 2013-14 market year average is $4.45 per bushel. This would indicate that the state trigger would be met and farmers would need to start examining if their farm level conditions would be met to trigger a payment.

USDA estimates have the soybean market year average price at $13 for the 2013-14 market year. The revenue guarantee price assuming an average yield is estimated at $12.41. this means the MYA price would need to fall below $12.41 with average yields before the state trigger for an ACRE payment would be reached. Since the marketing year for the 2013 wheat crop is final, there will not be an ACRE payment in Ohio for the 2013 wheat crop. Farmers interested in learning more about the probability of and ACRE payment on those farms enrolled should contact their local Farm Services Agency office for more information.

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