Corn producers encouraged to learn more about ACRE

There is a lot to consider when making a decision on whether to enroll land into the new Average Crop Revenue Election (ACRE) risk management program.

ACRE is intended to address losses that are not covered by insurance or disaster assistance programs by providing a state-level revenue guarantee, based on the five-year state average yield and the two-year national average price. When both state- and farm-level triggers are met, a payment is made.

Farmers who sign up for ACRE would forgo counter-cyclical payments, receive a 20 percent reduction in direct payments and a 30 percent reduction in loan rates. In addition, growers would be bound to ACRE through the 2012 crop year.

However, DTN's Marcia Zarley Taylor noted in her blog this week that: One of ACRE's advantages is that it locks in a relatively high guarantee based on the past two years' national-average prices and can only adjust down 10 percent per year after that. It also protects growers on actual planted acres, not historical base acres, so it more accurately reflects your risks and input costs.

Sign-up for ACRE is underway now - and wraps up August 14.

Since ACRE is new and its value can vary from farm to farm, the Nebraska Corn Board is encouraging corn producers get the facts.

“The ACRE program was adopted by Congress in the 2008 farm bill and represents fundamental reform in U.S. farm policy,” Dave Nielsen, chairman of the Nebraska Corn Board’s Government Affairs Committee, said in a news release. “We’re working with the state Farm Service Agency, University Extension and the National Corn Growers Association to make sure growers understand the new program.”

Nielsen, a farmer from the Lincoln area, said it is important for producers to gather as much information as possible before making a final decision on the new risk management tool.

One such way is by attending an hour-long webinar being held by the National Corn Growers Association and DTN on July 1.

Producers can access the free webinar on a computer by going to the NCGA website – www.ncga.com - and clicking on the ACRE icon. Producers can register in advance and then logon by 8 a.m. July 1 to attend.

During the webinar, Ohio State University economist Carl Zulauf will recap the decisions a producer needs to examine when considering the ACRE program. The Farm Service Agency’s top ACRE experts, Brad Karmen and Brent Orr, will also help with the webinar.