FAQ: What are the likely prices that will trigger an ACRE payment for the 2009 crop?
Answer: Provided by Steve Johnson, Iowa State University Extension farm management specialist
The 2009 ACRE trigger prices as of July 10 are $3.71 per bushel for corn, $9.05 per bushel for soybeans and $5.97 per bushel for wheat. The corn estimates changed slightly with the July 10 WASDE (World Supply and Demand Estimates) report issued by USDA.
You should use the midpoint of the cash price range for the 2009-10 marketing year which is given in each WASDE report as the best indicator for a potential 2009 ACRE payment. Those 2009-10 national cash price estimates in the July 10 report are $3.75 per bushel for corn, $9.30 per bushel for soybeans and $5.30 per bushel for wheat.
States with 2009 wheat yields per planted acre below their 5-year benchmark yields will likely trigger ACRE payments, but only if a farm in that state is enrolled in ACRE by August 14, 2009.
What about corn and soybeans?
There's a chance for an ACRE payment on both corn and soybeans in 2009, but triggering at the state level comes down to each state's final 2009 yield times the 2009-10 marketing year average cash price. This actual state revenue will need to fall below the state revenue guarantee to trigger at the state level.
ACRE payments are calculated at the state level, with an adjustment for the farm's Olympic average yield. The farm's yields have a minimum effect on the actual amount of an ACRE payment, but still must be triggered annually for an ACRE payment to be made.
Remember, if an ACRE payment is made, it is paid on the farm's actual planted acres for that crop as certified that year. The ACRE payment just can't exceed the total base acres on that farm. A farm that plants over their base acres can prioritize program crop acres annually by September 30.
Keep in mind that the USDA WASDE numbers issued in July aren’t scheduled to change again until August 12. That’s the same day USDA issues the August 2009 Crop Report, which will contain the first in-the-field yield estimates for both the corn and soybean crops in 2009. And it is just two days before the August 14 deadline for farmers to sign up for the 2009 ACRE program.
For more information about ACRE, DCP and other programs, visit your local USDA Service Center or your FSA county office. You can also get information on-line at www.fsa.usda.gov.
If you have a question you'd like answered regarding the new USDA farm program, please send it to firstname.lastname@example.org. We will pass it on to the ISU Extension specialists or to the program specialists at USDA's Farm Service Agency office in Des Moines and they will send you the answer.
Also, ISU Extension farm management specialist Steve Johnson keeps Iowa farmers and landowners updated using his ACRE Answers web page at www.extension.iastate.edu/polk/farmmanagement.htm