By Senator Tom Harkin

As planting season and a new crop year unfolds, I would encourage all crop farmers to evaluate farm program options and take a look at the new ACRE program and the potential benefits that go along with it. I wish everybody the best for a successful and safe crop season.

Q: What is ACRE?

A: The Average Crop Revenue Election (ACRE) Program is a new and creative alternative to the direct and countercyclical programs (DCP) currently in place, and will be a beneficial safety net for many producers both in Iowa and across the country. ACRE was authorized by the 2008 farm bill and the Farm Service Agency administers it.

Q: What are the basic pros and cons of participating in the ACRE program?

A: The ACRE program is an attractive revenue protection program for many producers and an alternative to the current DCP sought after by many farm groups. For one, the safety net is not based solely on crop price, rather it is based on farm revenue, so it can pay out as a result of either a price or a yield decrease. Additionally, it is based on state-level yields and not national yields, thus helping participants by reflecting production conditions closer to individual level. It also pays based on a farm’s current crop mixture, not the combination of crops planted years ago. However, by participating in ACRE, producers elect to forgo counter-cyclical payments and must give up 20% of their direct payments and 30% of their loan rates. In addition, the decision to join binds the farm to the program through the 2012 crop year.

Q: How do I sign up for ACRE and DCP?

A: The DCP sign-up process is similar to last year, but you may be asked to provide additional information to verify payment eligibility. The ACRE sign-up requires an election to participate in the program that is agreed to by all producers on a farm and all land owners. After this, the farm is enrolled in ACRE for the 2009 crop year. Once a farm is enrolled in ACRE it must remain in the program through the 2012 crop year. However, if you decide not to sign up for ACRE for the 2009 crop year, you will have the chance to do so for subsequent crop years, or until the current farm bill expires in 2012.

Q-What is the sign up deadline?

A- For the 2009 crop year, the sign-up deadline for farm programs has been moved from June 1 to August 14, 2009. Secretary of Agriculture Vilsack moved the deadline back by 10 weeks in order to give producers additional time to decide whether to participate in ACRE or remain in DCP. Since this is the first year producers can participate in ACRE, the extension will allow farmers extra time to consider program options and to discuss these alternatives with their lenders and with the owners of rented land.

Q-How can I get more information about ACRE, DCP and other price support programs?

A-You can either visit your local FSA county office or simply go to http://fsa.usda.gov.