If you haven't signed up for ACRE yet, you still can for 2010. The guarantees are based on the state's five-year "Olympic” average. Iowa's benchmark corn yield this year is 171 bu./acre and soybeans are 51 bu./acre, which are multiplied by the most recent two-year national average cash price ($3.83/bu. for corn and $9.71/bu. for soybeans as of the April 9 report).
Prices would need to drop to 90% of the guarantee or $3.45/bu. for corn or $8.74/bu. for soybeans in order for payments to be triggered at those yields. "Thus, ACRE payments could be made at much higher national cash prices than would the countercyclical payment, which has not been triggered since the 2005 crop year,” points out Steven Johnson of Iowa State University.
To enroll, you give up 20% of the farm's direct payment each year (about $5 in Iowa). You need the farm's yields for the most recent five years or you can use the farm's crop insurance Actual Production History. Once enrolled, you must report actual yields.
For more information, see http://www.fsa.usda.gov/FSA/webapp?area=home&subject=dccp&topic=landing. Or Iowa State: http://www.extension.iastate.edu/agdm/info/farmbill.html