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ACRE story
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94farm
Posted 3/12/2010 12:52 (#1117065 - in reply to #1116836)
Subject: RE: ACRE story


se ne

I think Acre will work best for the farmers that have ground that can vary in yield from year to year because of rainfall.  Here in S.E. Neb if you have dryland and don't get that good couple rains at the right time it can swing your corn yield 70 bu. easily.  The point about loosing the LDP is right, but people not in acre don't get an acre payment if there is one, they get the counter cyclical.  If your state and the farm triggers are met then the payment is made based on prices and yields.  The potential for a payment is good for many, but not for everyone and every farm.  I havn't run any numbers but I am guessing if the prices stay or continue to decline their could be a payment, this won't be known until fall.  Under the counter cyclical program I think I only got a payment 1 out of 5 years, so giving up 20% of my direct payment was worth it to me for a chance at a much larger payment through Acre.  I don't consider the Direct payment in the cash flows for breakeven prices and selling.

 

EDIT : As I said I havn't run numbers but I believe there will be a large Acre payment before we reach the LDP levels for corn and beans here.  That was one main reason why I signed up for it.  If a producer is using the Loan program yearly then I don't think Acre would be for them unless they could get other financing to cover the loss.



Edited by 94farm 3/12/2010 12:59
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