Crop program offers safety net
Linda Hennen, director of the Minnesota State Farm Service Agency, announced that the Department of Agriculture will issue Average Crop Revenue Election (ACRE) payments for the 2009 crop year to Minnesota producers enrolled in the ACRE program for sunflowers and flaxseed. Of the $10 million in payments, about 95 percent are expected to be issued to sunflower producers in Minnesota, Nebraska, North Dakota and South Dakota.
Last month, USDA began issuing an estimated $420 million in ACRE payments for the 2009 crop year for corn, wheat and other commodities.
"The ACRE program can provide financial and risk management advantages to producers, part of USDA's revenue-based safety net for years when low yields and volatile prices threaten a producers bottom line," said Hennen. "USDA will make payments to those who signed up for ACRE in 2009 if state and farm revenue criteria are met."
Revenue triggers for a commodity must be met on both a state and farm basis in order for producers to be eligible to receive ACRE payments. Necessary 2009-10 marketing year average price data for calculating 2009 ACRE payments for large and small chickpeas, sunflowers, canola, flaxseed, mustard seed, rapeseed, safflower, crambe and sesame seed became available on November 30, 2010. The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) requires 2009 ACRE payments to be made as soon as practicable following the end of the marketing year.
Congress established ACRE as part of the 2008 Farm Bill to protect producers from farm market revenue declines. A list of state payment rates for the 2009 crops of large and small chickpeas, sunflowers, canola, flaxseed, mustard seed, rapeseed, safflower, crambe and sesame seed is available at http://go.usa.gov/a5M.
For more information on the ACRE program, visit a local FSA office or the website at http://www.fsa.usda.gov/dcp.