Extension and Ag Research News


NDSU Offers Program to Analyze ACRE Signup Decision

When a producer enrolls in ACRE, there is the opportunity to receive payments on crops if certain criteria are met.

The decision whether to enroll in the Average Crop Revenue Election (ACRE) program can be difficult because of the complexity of the program and the unknowns of future yields and prices.

The deadline for ACRE signup has been extended to Aug. 14, 2009. This will give producers more time to analyze the program. It also will remove some of the uncertainty about 2009 prices and yields and, therefore, the probability of an ACRE payment.

North Dakota State University developed a software program, ACRE Analyzer, to help producers make their decision.

“When a producer enrolls in ACRE, there is the opportunity to receive payments on crops grown when the revenues of that crop, statewide, are below a state revenue guarantee, which is based on recent state yields and national average prices,” says Andrew Swenson, NDSU Extension Service farm management specialist. “However, there is a cost to enroll in ACRE. The producer forgoes any counter-cyclical program payments and 20 percent of direct payments, and loan rates are reduced by 30 percent on all covered commodities grown on the enrolled farm.”

Once enrolled, the farm is locked in the program through 2012. However, the ACRE Analyzer program considers all benefits and costs of enrolling during the four-year (2009 through 2012) period.

The Web site for the ACRE Analyzer program for North Dakota and Minnesota is at http://www.ag.ndsu.nodak.edu/aginfo/farmmgmt/farmmgmt.htm.

Information about ACRE can be found on the U.S. Department of Agriculture’s Web site at http://www.fsa.usda.gov/dcp.

NDSU Agriculture Communication

Source:Andrew Swenson, (701) 231-7379, andrew.swenson@ndsu.edu
Editor:Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu
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