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.
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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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