2012 ACRE Program
Category: Government Programs
Producers that previously enrolled in the ACRE for the 2009, 2010 or 2011 crop year will be enrolled in ACRE for 2012, provided that they sign-up for the 2012 Farm Program at County FSA offices, and meet all other program criteria. Other producers can enroll in ACRE for 2012 when they sign-up for the 2012 Farm Program, or at anytime until June 1, 2012. ACRE enrollment does require a signature from landlords on cash rental farm units, and results in a 20 percent reduction in direct payments for 2012. Producers are encouraged to analyze situations and scenarios that are more favorable for ACRE enrollment for 2012, as compared to continuing with the traditional DCP farm program.
Producers may sign-up for the 2012 “Direct and Counter-Cyclical” (DCP) Farm Program at any time at their County FSA office, and wait until a later date, up until June 1, to decide on enrollment in the ACRE Program. Only about 8 percent of crop producers nationwide, and about 13 percent of the total eligible acres, were enrolled in ACRE for the 2009 crop year, with a few more farms and acres being added for the 2010 and 2011 crop years.
Even though the ACRE program did not pay out in 2009 and 2010 for corn and soybeans in Minnesota, and will likely not result in an ACRE payment in 2011, producers should not automatically “write-off” ACRE program enrollment for the 2012 crop year. The likely increase in the ACRE price guarantees for 2012, will lead to higher revenue guarantees for the 2012 ACRE program. This increases the likelihood of ACRE payments for the 2012 crop year for corn and soybeans, as compared to previous years. However, the limitation of the 10 percent increase in the revenue guarantee for corn severely inhibits the likelihood of an ACRE payment for corn from the 2012 crop year. Current 2012 new crop corn prices for 2012 have been slightly above $5.00 per bushel for corn, and above $13.00 per bushel for soybeans. The 12-month national average prices (9-01-12 to 8-31-13) would have to be considerably lower than those price levels to earn an ACRE payment on 2012 corn and soybeans.