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ACRE Payment for 2009 Wheat Appears Unlikely

ACRE Payment for 2009 Wheat Appears Unlikely
Corn, beans and barley are a tougher call.

It doesn't appear likely that there would be an Average Crop Revenue Enrollment payment for wheat in 2009 in North Dakota, says Dwight Aarke, NDSU Extension economist.

Projected prices and yields are above levels that would trigger a payment.

"Producers with farm units that are primarily planted to wheat this year may be better off delaying ACRE enrollment until 2010 or later," he says.

If 25 to 30% of your farm is planted to flax, sunflowers and dry peas, the ACRE program looks like a better deal.

Other crops, such as corn, soybeans and barley, also may be eligible for ACRE payments for 2009, but the outcome is less certain.

"Corn, soybeans and barley are a tougher call in North Dakota," Aakre says. "The projected national average prices for 2009 for these crops are down from the two-year average price used to calculate the state guarantee, but not low enough to trigger a payment without some drop in yield below the five-year average. It seems unlikely that the state barley yield will be down when the state wheat yield is expected to be considerably above average."

Source: NDSU Extension Commuications

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