USDA Provides Details on Average Crop Revenue Election (ACRE) Farm Program



The U.S. Department of Agriculture (USDA) on March 18 released updated information on the new average crop revenue election (ACRE) program authorized under the 2008 farm law.  

ACRE is an alternative to direct and counter-cyclical payments under the farm programs.  The ACRE alternative provides eligible producers a state-level revenue guarantee, based upon the five-year state Olympic average yield and the two-year national average price.  ACRE payments are made when both state- and farm-level triggers are met.  ACRE’s revenue-based approach provides payments based upon price and yield movements, relative to the guarantee.  Producers enrolling in ACRE – the sign-up dates are to be announced soon – agree through the 2012 crop year to forego counter-cyclical payments, receive a 20-percent reduction in direct payments and have loan rates reduced 30 percent.  Unless enrolling in ACRE, producers will remain eligible for the direct and counter-cyclical payment programs.

As part of its information, USDA issued tables containing preliminary estimates on the ACRE program’s revenue guarantee, which will affect the state-level guarantee that determines the payment rate.  It said these data will be updated on approximately the 15th of each month, following the issuance of each new World Agricultural Supply and Demand Estimate report.  The data will be updated until the end of the crop year for each respective crop, USDA said.  

Click the following links to access the updated information issued by USDA: