Higher Government Payments with ACRE

March 9, 2009 07:00 PM

Linda Smith, Top Producer Executive Editor
Projected corn Average Crop Revenue Election (ACRE) payments exceed foregone payments, according to analysis by the Food and Policy Research Institute, leading FAPRI to project that 60% of corn growers will sign up this year, followed by 70% for the out years. "We believe some growers will hesitate the first year to see what happens with the program, explains Pat Westhoff, University of Missouri economist and co-director of FAPRI.
That's too bad, because on a national basis, FAPRI shows traditional payments under $5/acre and ACRE payments at $14/acre this year. The difference narrows by 2014, then widens out again, given their assumptions.

(click to enlarge)
ACRE appears likely to appeal most to corn, soybean, wheat, barley, oats and sunflower producers; less likely to peanut and cotton growers.
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You can e-mail Linda Smith at lsmith@farmjournal.com.

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