Latest ACRE Payment Projections for 2009 Crop Released

The U.S. Department of Agriculture reports released on Jan. 12 provided the latest estimate of average state yields for the major crops, as well as estimates of the marketing year average price for those crops. This information can be used to estimate the potential Average Crop Revenue Election (ACRE) payments for producers who enrolled in the ACRE program for 2009.

Projections for North Dakota include per acre payments of $30.66 for sunflowers, $19.14 for flax, $16.83 for barley, $6.54 for dry peas and $2.38 for oats.

The calculations for Minnesota producers project a per acre payment of $45.99 for barley, $34.71 for wheat, $28.84 for flax and $12.30 for oats. Producers in South Dakota could be eligible for a payment of $35.44 for wheat, $28.30 for oats, $24.26 for sunflowers and $14.89 for barley. Montana producers are expected to be eligible for a payment of $35.02 for dry peas, $18.06 for wheat and $3.09 for flax.

“These are estimated payment values at this time and very likely will change in the final calculation,” says Dwight Aakre, North Dakota State University Extension Service farm management specialist. “We are just a few months into the marketing year for many crops, so prices for several more months need to be finalized before the marketing year average price can be determined.”

The ACRE payment for 2009 is determined by subtracting the product of the state average yield and the national average marketing price from the state guarantee. The shortfall becomes the base payment rate for the state. This rate is adjusted up or down based on a farm’s benchmark yield divided by the state benchmark yield. This rate is paid on 83.3 percent of planted and considered planted acres on eligible farms.

“Individual farms must meet an eligibility test to receive a payment if the state is eligible for a payment,” Aakre says. “The farm yield for 2009 multiplied by the national average marketing year price, plus the per acre crop insurance premium paid, must be less than the farm’s benchmark revenue in order to be eligible for payment.”

NDSU Agriculture Communication