You can't be sure whether it will pay you more to go with the new Average Crop Revenue Election (ACRE) or stick with the traditional farm programs, says Carl Zulauf, Ohio State University Extension economist. "However, because ACRE protection cannot decline or rise more than 10%, we can project the minimum coverage,” he says. As the chart shows, the new program tops the old.
Only cotton and peanuts appear likely to get more payments from the traditional program, based on the assumptions Zulauf used. "There are a number of calculators available to estimate your benefits. I'd compare several because one might better match the way you think about your decision than another,” he says.
However, Zulauf says, the real question you want to investigate is, Which will manage my risk? "In other words,” he says, "which choice best matches financial stress you might face.”
Deadline is Aug. 14; don't wait too long, as Farm Service Agency offices could look like the post office on tax day!