The Farm Service Agency administers Average Crop Revenue Election (ACRE), a new program authorized by the 2008 Farm Bill that begins in crop year 2009. Through ACRE, USDA offers producers an alternative to Direct and Counter-cyclical (DCP) payments. The ACRE alternative provides eligible producers a state-level revenue guarantee, based on the 5-year state Olympic average yield and the 2-year national average price. ACRE payments are made when both state- and farm-level triggers are met. By participating in ACRE, producers elect to forgo counter-cyclical payments, receive a 20-percent reduction in direct payments and a 30-percent reduction in loan rates. ACRE sign-up dates will be announced soon, or a producer can choose to stay with DCP. A decision to elect ACRE binds the producer to the program through the 2012 crop year, the last crop year covered by the 2008 Farm Bill.

The data tables and supporting documentation are important for both producers and the agriculture industry because they provide preliminary estimates on the program revenue guarantee for the new ACRE Program. This data will be updated each month on approximately the 15th of the month, after each new WASDE report is released to the public, until the end of the crop year for each respective crop. Stakeholders need this provided data because it will impact the state-level guarantee due to the fact that the state-level trigger determines the payment rate. With the continuing high input costs, considerable market volatility, and other challenges, this program provides an additional risk management tool for producers. Lastly, ACRE's revenue-based approach makes payments based on price and yield movements relative to the guarantee.

Because of tradeoffs with electing ACRE over DCP and the irrevocable commitment to ACRE, producers are encouraged to review ACRE decision tools from State extension and other sources to help evaluate the choices.

The 2009 Benchmark State Yields, ACRE Guarantee Prices and computed State ACRE Guarantees will be finalized after USDA's National Agricultural Statistics Service reports the final 2008/09 average market prices and 2008-crop production data. The posting dates for the final data is as follows:

The Direct and Counter-cyclical Payment Program (DCP) provides payments to eligible producers on farms enrolled for the 2008 through 2012 crop years. There are two types of DCP payments - direct payments and counter-cyclical payments. Both are computed using the base acres and payment yields established for the farm. DCP is authorized by the Food, Conservation and Energy Act of 2008 (2008 Farm Bill) and is administered by the U.S. Department of Agriculture's Farm Service Agency (FSA).

Secretary Schafer Announces 2009 DCP Signup Begins December 22, 2008 (December 19, 2008)