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Abstract
The 2008 Farm Bill provided an
option for receiving commodity
program payments through existing
programs or a new revenue-based
alternative – the Average Crop
Revenue Election (ACRE) program.
ACRE is a state-level revenue
program which, if elected, replaces
the price-based countercyclical
program. Enrollment requires the
forfeiture of 20 percent of a
producer’s direct payments and
reduces loan rates by 30 percent.
This article provides estimates of
long-term expected ACRE
payments for corn, soybean, and
wheat acres across a variety of states.
Within the cornbelt, expected
ACRE payments are similar across
regions for each of the crops
considered, and will likely exceed
the required reduction in direct
payments. Outside of the cornbelt,
expected ACRE payments vary
considerably.