FAQ: I'm enrolled in USDA's Average Crop Revenue Election or ACRE program. Will there be an ACRE payment for corn or soybeans for the 2009-2010 marketing year?
Answer: Provided by William Edwards, Iowa State University Extension farm economist and Chad Hart, ISU Extension grain marketing specialist.
Following the recent completion of the 2009/10 marketing year, USDA in early September released its final monthly price estimates for corn and soybeans. For the September 2009 through August 2010 marketing year, the national average price for corn was $3.55 per bushel. This is $.51 less than the average price during the 2008/09 marketing year of $4.06 per bushel. For beans, the 2009/10 national average price was $9.60 per bushel, which is $.37 lower than the previous year's average price of $9.97 per bushel.
No ACRE payments this year in Iowa for corn or beans
One of the key USDA commodity programs that depend on marketing year prices is the Average Crop Revenue Election or ACRE program. Given the price levels for 2009/10, the ACRE program will not provide revenue deficiency payments in Iowa this year for either corn or soybeans. With Iowa's 2009 state average yields (as calculated by USDA's Farm Service Agency) of 182 bushels per acre for corn and 50.5 bushels per acre for soybeans, the 2009/10 national average prices needed to be below $3.49 per bushel for corn and $9.03 per bushel for soybeans in order to trigger ACRE payments.
The 2009/10 prices also help set the revenue guarantees for ACRE for the 2010 crops. The ACRE guarantee price is a rolling two-year average of the national price. For 2010, the ACRE guarantee prices will be $3.81 per bushel for corn and $9.79 per bushel for soybeans. The ACRE benchmark state yields are based on rolling Olympic 5-year averages. For Iowa in 2010, the ACRE benchmark yields are 51 bushels per acre for soybeans and 171 bushels per acre for corn.
These prices and yields imply that the Iowa ACRE revenue guarantees for the 2010 crops will be $586.36 per acre for corn and $449.36 per acre for soybeans. Iowa farmers still have the opportunity to enroll in the ACRE program for their 2011 and 2012 crops. For answers to your questions about ACRE, contact the local FSA office in your county.
If you have specific questions or need details regarding USDA farm programs, contact your local USDA Farm Service Agency office. You can also get news and information about DCP, ACRE and other USDA programs at www.fsa.usda.gov.
Two Iowa State University Extension Web sites have farm program information and analysis. They are ISU's Ag Decision Maker site at www.extension.iastate.edu/agdm and ISU Extension Specialist Steve Johnson's site at www.extension.iastate.edu/polk/farmmanagement.htm.
And be sure to read the regular column "Frequently Asked Questions about the Farm Program" that appears in each issue of Wallaces Farmer magazine and at www.WallacesFarmer.com