Table 3: ACRE Triggers and Payment Calculation |
Corn Example |
Your Example |
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State Trigger |
ACRE |
1. Benchmark State Yield (Item 1 from Table 2) |
160 |
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2. ACRE Guarantee Price (Item 2 from Table 2) |
$4.15 |
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3. State ACRE Guarantee (Item 3 from Table 2) |
$597.60 |
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Actual State Revenue |
4. Actual State Yield |
155 |
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5. National Average Market Price |
$3.78 |
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6. National Loan Rate (see Table 1) |
$1.95 |
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7. 70% of the National Loan Rate (70% times Item 6) |
$1.37 |
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8. ACRE Price (Higher of Item 5 or Item 7) |
$3.78 |
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9. Actual State Revenue (Item 4 times Item 8) |
$585.90 |
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10. Is Item 3 greater than to Item 9? If yes, State trigger has been met and continue to Item 11. If no, the crop is not eligible for ACRE payments. |
Yes |
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Farm Trigger |
Farm ACRE Benchmark Revenue |
11. Benchmark Farm Yield (Olympic average from 5 most recent crop yrs.) |
170 |
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12. Crop Insurance Premium per acre paid by producer for the crop |
$15 |
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13. Farm ACRE Guarantee ((Item 11 x Item 2) plus item 12) |
$720.50 |
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Actual Farm Revenue |
14. Actual Farm Yield (Production divided by planted acreage) |
185 |
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15. Actual Farm Revenue (Item 14 times Item 8) |
$699.30 |
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16. Is Item 13 greater than Item 15? If yes, Farm trigger has been met and continue to Item 17 to calculate the payment. If no, the crop is not eligible for payments. |
Yes |
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ACRE Payment |
17. Maximum Acres (Total base acreage on the farm) |
125 |
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18. Planted and Considered Planted Acreage for the crop |
150 |
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19. Payment Acreage (Item 18 times 83.3% (85% for 2012), not to exceed Item 17) |
125 |
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20. Farm Productivity Index Factor (Item 11 divided by Item 1) |
1.0625 |
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21. ACRE Program Guarantee minus Actual State Revenue (Item 3 minus Item 9) |
$11.70 |
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22. 25% of ACRE Program Guarantee (Item 3 times 25%) |
$149.40 |
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23. Projected ACRE Payment for the crop |
$1,554 |
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