A.C.R.E. revisited

IaGary · Aug 5, 2009

Your payments on A C R E do not kick in till the State averages below the trigger price or yield.

It is not farm by farm.

In other words. Your revenue or yield average could be low in your area and not get a dime cause the State average was high enough.

That is the biggest drawback to the program.

Also the target price is high this year but will change year to year depending on what the price does. It is based on the previous years prices. It is high for this year because of last years high corn price.

Once you sign up you are locked in for 4 years.

Gary

Anonymous-0 · Aug 5, 2009

And Iowa has enough fine ground and diversity that the odds of the whole state going down is zero. Bad odds for the bet that is A.C.R.E.

Gerald J.

Anonymous-0 · Aug 6, 2009

Univ of Illinois did a study, using 175 and 50 bu corn and bean yields. Over the past 30 years, if we would have had ACRE, it would have paid 13 times for an average of $53/A. Pro-rate that 53 paid 13 times of the 30 years, and it AVERAGED paying $17 per acre. So $5 gets you 17 (average)--I'll do that any day. And in a good year you won't miss the $5, but in a bad year the $53 would be manna from heaven.

I'm in--already signed up.

David from Kansas · Aug 6, 2009

From what I understand, if you have a bad year, you won't get payment until more than a year later.

IaGary · Aug 6, 2009

Remember to get that $17 dollar average you give up part of the DCP payment.

So the gain is not so great.

But it is everyone's personal choice to be in or out.

I have landlords that do not want the farm in. Cause once it is in, it is in for 4 years.

No way I am going to fight trying to keep crops separated from farms that are in and those that are not when it comes time to prove yields.

Gary

NEIADan · Aug 7, 2009

I have read many of these posts and the one issue that has not been talked about is how the ACRE program pays on 100% of the planted crop. Where we have only a 60% corn base and plant continuous 100% corn we are far better protected with ACRE program. I also, agree it is to much hassle to bring up the question with landlords. way to much red tape. none of us will ever really know how good or bad the program works until it is over. How many times in the past did the USDA sweeten a program after it was closed for enrollment. Remember the PIC or released or early released hay acres on set aside.
As for keeping individual farm unit yield data we are already required to do that under most Multi Peril crop policies, at least those with the farm unit option, and the ACRE program will accept that same data. We learned last year that with havin acreage spread out for 20 miles sure pays to have each farm stand on it's own. That extra $500 of insurance paid out an extra $25,000. Some land paid nothing others paid big.

A.C.R.E. revisited

IaGary

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Anonymous-0

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Anonymous-0

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David from Kansas

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IaGary

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NEIADan

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