Is 2012 the Year to Elect the Average Crop Revenue Election (ACRE)?

By: Chris Bruynis, Assistant Professor & Extension Educator

Ohio farmers have previously had three opportunities to elect into the Average Crop Revenue Election provision as create by the 2008 Farm Bill. Looking back, the question is was it a good decision for those farmers that elected in previously?  There are many ways to answer that question. From a risk management perspective, the answer is yes. The downside revenue protection that was provided was worth the approximate $4.00 per acre in reduced direct payments. From a cash flow perspective, the answer is mostly no (except under certain circumstances) because the ACRE payments for wheat in 2009 and 2010 were not enough to offset the reduction in direct payments. Farmers are now into the fourth year and have the final opportunity to elect into ACRE provision. Click here to read Estimated ACRE Coverage Levels for 2012

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