Farmers Enroll 255 Million Base Acres

Growers have two options: ACRE and DCP.

Published on: Oct 26, 2009
Approximately 255 million base acres on about 1.7 million farms were enrolled in the Direct and Counter-cyclical Program and in the Average Crop Revenue Election  program. USDA will issue nearly $4 billion in 2009 final direct payments to eligible producers on approved contracts, says Ag Secretary Tom Vilsack. Producers have already received advance payments of approximately $900 million.

"The sign-up numbers demonstrate that producers value having the option of two programs from which to choose the greatest benefit to their individual farming operation," said Vilsack. "I also want to remind all producers that 2010 sign up for DCP and ACRE has already started and the deadline is June 1, 2010."

Producers who signed up their farm under DCP are eligible for direct payments, counter-cyclical payments and marketing assistance commodity loans.

The optional ACRE program, added under the 2008 Farm Bill, is an alternative revenue-based safety net to the price-based safety net provided by counter-cyclical payments for crop years 2009 through 2012. Producers participating in the ACRE program are also eligible for direct payments and marketing assistance loans, but direct payments are reduced by 20 percent and the loan rate is reduced by 30 percent with respect to covered commodities and peanuts on a farm.  This was the first year of the ACRE program and approximately eight percent of the total number of farms enrolled in the 2009 DCP and ACRE programs elected to participate in ACRE, representing nearly 13 percent of the base acres. Of the 22 different crops eligible for enrollment, corn had the highest number of base acres enrolled, followed by wheat and soybeans, and producers mainly planted these three crops. The states with the largest number of base acres enrolled are Illinois, Nebraska, Iowa, South Dakota and North Dakota.