With sign-up for the ACRE program – Average Crop Revenue Election – for 2013 underway, a farm management specialist says it might be a good idea for producers to sign up because it’s good insurance against price declines.
Gary Schnitkey, with the University of Illinois, tells Brownfield Ag News, “All farmers will have the opportunity to sign up for ACRE, so, it might be a good idea not because it’s likely to make payments. But, if it does, we’re likely looking at much lower yields.”
Schnitkey says 2012 ACRE payments are likely for corn, not so much for soybeans, “It does depend on what happens at the market year average price. If we get market year average prices below about $6.90 we’ll get ACRE payments for corn in Illinois.”
ACRE was replaced in the Senate and House Ag farm bill proposals that advanced last year. However, the 2008 farm bill that was extended early this year keeps the program active. The sign up deadline for ACRE is June 3rd, 2013.