FAQ: I didn't enroll my farm in ACRE last year. I'm wondering if I should consider it in 2010? Not many farmers chose the ACRE option last year.
Answer: Provided by Kevin McClure, state program specialist for USDA's Farm Service Agency in Des Moines.
Whether to enroll in USDA's Average Crop Revenue Election program was a major decision for farmers a year ago. Not very many chose to enroll. However, if you didn't enroll in 2009, there's another chance to enroll in ACRE this year.
Compared to the national average, a slightly higher percentage of Iowans who signed up for the traditional USDA farm program-the Direct and Countercyclical Program--went ahead and elected to enroll in the new ACRE option in 2009. In Iowa, 11% of the producers who signed up for the farm program chose ACRE over the DCP. Nationally it was 6%. Thus, out of the total number eligible, not very many farmers elected to enroll in ACRE last year.
Q: How many Iowa farmers actually are in ACRE? How many farmers nationally?
A: In Iowa, 17,540 farms enrolled in ACRE in 2009. Of the total number of farms participating in the traditional USDA farm program or DCP, that's 11% in ACRE. Approximately 137,260 farms in Iowa were enrolled in DCP. Nationally, about 128,620 farms enrolled in ACRE, or 6%, in 2009.
Q: Can I still consider the ACRE option this year?
A: Yes, sign-up for both ACRE and DCP are underway. Note that the signup period for both of these programs ends much earlier this year than last year. The last date to sign up in either program, DCP or ACRE, for 2010 is June 1.
Keep in mind that ACRE enrollment and sign up for DCP are two separate steps. Once you sign up for DCP, then you can decide whether or not to enroll in ACRE. A farmer still has to sign up annually for the Direct and Counter-Cyclical Program at their county FSA office.
If you enrolled in ACRE last year, you automatically remain in it, but you still must sign up for 2010 to be eligible for any potential ACRE payment. The decision to enroll in ACRE is an election that can be made separately by FSA farm number. It amends the traditional DCP contract on that farm—it reduces the direct payment by 20%. In other words, when you enroll a farm in ACRE you give up 20% of any potential direct payment that might be made.
Another consideration is that once you elect to enroll in ACRE, you don't have the option of getting out. You are in ACRE for the remainder of the current USDA farm program, which runs through 2012. But you still need to visit your local FSA office and sign up for the DCP each year to be eligible to get a potential ACRE payment.
If you are not in ACRE, here's a Web site you can use to track ACRE yields and prices as you decide if you want to participate www.fsa.usda.gov/dcp.
If you have specific questions or need details regarding USDA farm programs, contact your local USDA Farm Service Agency office. You can also get news and information about DCP, ACRE and other USDA programs at www.fsa.usda.gov.
Two Iowa State University Extension Web sites have farm program information and analysis. They are ISU's Ag Decision Maker site at www.extension.iastate.edu/agdm and ISU Extension Specialist Steve Johnson's site at www.extension.iastate.edu/polk/farmmanagement.htm.
And be sure to read the regular column "Frequently Asked Questions about the Farm Program" that appears in each issue of Wallaces Farmer magazine and at www.WallacesFarmer.com
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