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Reporting Failed Corn Acreage Important for ACRE Program

It is important because it is anticipated a significant number of acres in North Dakota will go unharvested because of disaster-related conditions.

Failed acres reported to the Farm Service Agency (FSA) for wheat, barley, oats, corn and grain sorghum are used in the determination of the state average yield for ACRE payment calculations.

State yields for wheat, barley and oats already have been determined for 2009, but reporting failed acres of corn will impact the state yield and most likely increase the ACRE (average crop revenue election) payment for all corn growers who are enrolled in the program.

“This is particularly important because it is anticipated a significant number of acres in North Dakota will go unharvested because of disaster-related conditions,” says Andrew Swenson, North Dakota State University Extension Service farm management specialist.

With the current estimates of a $3.60-per-bushel national 2009 marketing year corn price and a state yield of 119 bushels per acre, a payment of $6.49 per acre is projected for corn under the ACRE program in North Dakota. ACRE producers must pass a farm-level test to be eligible and the payment is adjusted by a farm productivity ratio and made on 83.3 percent of a producer’s corn acreage.

The state yield is calculated by dividing total corn grain production by the sum of harvested and failed acres.

Typically, growers do not bother reporting failed acres to the FSA.

“However, taking the time to report failed acres should enhance corn ACRE payments in 2009 by reducing the state yield,” Swenson says. “Currently, the numbers indicate that for every 15,000 acres of failed corn acreage reported statewide, the payment would increase about $3.60 per acre for corn under ACRE.”

Aaron Krauter, North Dakota FSA executive director, says failed acreage is land that was timely planted with the intent to harvest, but because of disaster-related conditions, the crop failed before it could be brought to harvest.

To be approved as failed acreage, the acreage must have been reported as failed before the crop is destroyed. Providing the crop was reported as failed prior to its disposition, the failed acreage can be verified by crop insurance data, county committee knowledge or by a field visit. If a field visit is necessary to verify failed acreage, a FSA farm visit fee will be assessed.


NDSU Agriculture Communication

Source:Andrew Swenson, (701) 231-7379, andrew.swenson@ndsu.edu
Source:Aaron Krauter, (701) 893-5224, aaron.krauter@nd.usda.gov
Editor:Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu
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