Analyzing the ACRE Program

The new farm bill enacted by Congress in June 2008 includes a new revenue-based safety net, the Average Crop Revenue Election (ACRE) Program, that is available to producers beginning with the 2009 crop year. While final details and implementation of the program is yet to be announced by the USDA Farm Service Agency (FSA), an analysis of the mechanics of ACRE and the relevant yields and prices to include in ACRE can help producers assess whether ACRE will be a good choice for this crop year and beyond.

Making an ACRE Decision for 2009

The initial sign-up period for 2009 farm commodity programs and the choice between the new ACRE (Average Crop Revenue Election) program and the existing DCP (Direct and Counter-Cyclical Payment) program is quickly winding down. But as the current August 14 deadline approaches, producers know more and more about the potential safety net provided under the ACRE program, and have a better opportunity to analyze the economics of choosing ACRE versus the DCP program before visiting their USDA Farm Service Agency (FSA) office.