TITLE 1: COMMODITY
Average Crop Revenue Election (ACRE) Provisions

Starting with the 2009 crop year, producers may elect the Average Crop Revenue Election (ACRE) counter-cyclical rather than the Price Counter-Cyclical Program (PCCP) which was continued as an option from the 2002 Farm Bill. ACRE is a revenue-based farm program option for all covered commodities and peanuts for the 2009 – 2012 crops, 2010 – 2012 crops, 2011 – 2012 crops, or 2012 crops. Once the ACRE election is made, it is irrevocable through 2012. ACRE must be selected by the producer at sign up; otherwise they will default to the current PCCP.

ACRE consists of

• Direct payments equal to 80% of direct payments under the traditional direct payment program
• Marketing loan payments with loan rates set at 70% of marketing loan rates established in the 2008 Farm Bill
• ACRE revenue protection payments.

ACRE provides a revenue target based on a 2-year moving average of U.S. crop season average price and a 5-year Olympic moving average of state yields. A payment is made if a state’s realized revenue is less than its target revenue. Payment is based on planted acres. There are no advanced payments with ACRE.

ACRE state revenue guarantee equals:

• ACRE benchmark state yield per planted acre times the ACRE price guarantee times 90%
  • Benchmark yield is Olympic average of state’s yields for 5 most recent crop years
  • Price guarantee is the simple average of U.S. marketing year price average for the 2 most recent crop years.
  • For 2010 – 2012, the revenue guarantee cannot change more than 10% from previous guarantee
  • Separate state revenue guarantees will be created for irrigated and non-irrigated land if a state’s planted acres are at least 25% irrigated and at least 25% non-irrigated

ACRE actual state revenue equals:

• State yield per planted acre times the national average market price. National average market price equals the higher of the U.S. average cash price for the crop year or 70% of the crop’s marketing assistance loan rate

ACRE revenue protection payment to a farm equals:

• The lesser of a) ACRE state revenue guarantee minus state actual revenue, or b) 25% of ACRE state revenue guarantee
• Times 83.3% of the farm’s acres planted to a crop (85% for the 2012 crop)
• Times the farm’s Olympic average yield for the most recent 5 years divided by the state’s ACRE benchmark yield

ACRE Planted Acre Limitation:

• Planted acres that receive an ACRE payment cannot exceed a farm’s total base acres
• If a farm’s total planted acres exceed the farm’s total base acres, the farmer chooses which planted acres to enroll in ACRE

ACRE Eligibility Conditions:

• To receive an ACRE payment, a farm’s actual revenue for the crop must be less than the farm’s ACRE benchmark revenue for that crop year
  • Farm’s actual revenue for a crop equals: farm’s actual yield times U.S. market year price for that crop for that crop year
  • Farm’s ACRE benchmark revenue equals: (Olympic average of farm’s yields for 5 most recent years times ACRE guarantee price) plus (per acre crop insurance premium paid by the farmer for that crop for that year)

ACRE Payment Limitations For a Person or Legal Entity:

• Direct Payments: $40,000 minus amount equal to 20% reduction in direct payments
• ACRE Revenue Payments: $65,000 plus amount equal to 20% reduction in direct payments

	Go to Supplemental Agricultural Disaster Assistance
	Download entire Farm BIll Fact Sheet
	Download ACRE handout from U of I
	Read about IFB's Farm Bill grassroot policy