The following information is bonus material from Top Producer. It corresponds with the Moneywise department by Linda Smith. It can be found on page 6 of the Summer 2008 issue.
The introduction of the Average Crop Revenue Election (ACRE), a new commodity program included in the farm bill, may have you puzzled. With its various crop coverage eligibilities, you may be questioning whether it offers you better options than enrolling in the traditional commodity programs.
The Center for Agricultural and Rural Development (CARD) at Iowa State University recently released a set of calculators to help you determine which program will work best for you. They can help farmers:
- understand how ACRE works
- compare the likely payments from ACRE relative to traditional farm programs
The calculators show potential outcomes based on different crop prices and yield scenarios. They are offered as spreadsheets in Microsoft Excel and are available for corn, wheat and soybeans.
Users enter specific data about their state, expected commodity price for the 2009/10 marketing year, 2008 marketing year price and 2008 average yield per planted acre. The calculator then provides the 2009 ACRE price, ACRE yield, and ACRE revenue guarantee.
-- Sara Muri, Top Producer Business & Crops Online Editor
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