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   Home / Crops / Insurance / Risk Management

 

Disclaimer: This web page is designed to aid farmers with their marketing and risk management decisions. The risk of loss in trading futures, options, forward contracts, and hedge-to-arrive can be substantial and no warranty is given or implied by the author or any other party. Each farmer must consider whether such marketing strategies are appropriate for his or her situation. This web page does not represent the views of Kansas State University. 

NASS Final MYA Price Released for 2009 ACRE[1]

The National Agricultural Statistic Service (NASS) released the Marketing Year Average (MYA) price for the 2009/10 marketing year.  This is the final number needed to calculate the ACRE payment for the 2009 crop in most states.  There are a few states that the Farm Service Agency (FSA) has listed yields as pending.  Those states with pending yields were not included in the ACRE payments calculated in the tables below.  The final guarantee and final 2009 yield will need to be finalized in those states by FSA to calculate the ACRE payment. 

The ACRE payments were calculated for corn, wheat, sorghum and soybeans for the states that had their final data posted on the FSA Web site.  The ACRE payments calculated in the tables below should only be off by a rounding error, less than a penny.  FSA will have specific rules on rounding when calculating the official number.

This is not the final step for ACRE enrolled farmers.  Farmers must have a farm level loss to collect the ACRE payment in states and crops that trigger an ACRE payment.  The farm level ACRE payment trigger can only prevent an ACRE payment, it cannot trigger a payment.  The first ACRE payment trigger is the state level revenue must be below the state level revenue guarantee.

Farmers who farm in states that meet the state level ACRE payment trigger and they meet the farm level ACRE payment trigger will then collect an ACRE payment.  They will be paid based on a ratio of their 5 year Olympic average farm yield divided by the 5 year Olympic average state yield times the state ACRE payment calculated in the tables below.  If their farm yield is greater than the state yield, then the ratio will be greater than 1.0 so their payment will be larger than the state ACRE payment posted in the tables below.  The reverse is also true for farmers with an Olympic average yield below the state Olympic average yield. 

The farm level ACRE payment is then paid on the lesser of 83.3% of the planted acres or the base acre acres.  Farmers who planted 20% more acres than their base will be paid on their entire base.  Farmers who planted beyond 120% of their base have been asked by FSA to identify the crop(s) they wish to receive the ACRE payment on.  For example, Texas irrigated corn and wheat farmers who planted over 120% of their base would pick wheat for the ACRE payment because Texas irrigated corn did not trigger payment at the state level.  The other factor to consider when selecting crops for payment is the selected crop must meet the farm level loss trigger too. 
 

Table 1.  The 2009 State Wheat ACRE Payment Based on Final Yield and Final Price of $4.87 (Data Source: FSA and NASS Web sites)

Table 2.  The 2009 State Corn ACRE Payment Based on Final Yield and Final Price of $3.55 (Data Source: FSA and NASS Web sites)


Table 3.  The 2009 State Grain Sorghum ACRE Payment Based on Final Yield and Final Price of $3.22 (Data Source: FSA and NASS Web sites)


 

Table 4.  The 2009 State Soybean ACRE Payment Based on Final Yield and Final Price of $9.59 (Data Source: FSA and NASS Web sites)


[1]Prepared by G. A. (Art) Barnaby, Jr., Professor, Department of Agricultural Economics, K-State Research and Extension, Kansas State University, Manhattan, KS 66506, September 29, 2010, Phone 785-532-1515, e-mail barnaby@ksu.edu.

 

 
Department of Agricultural Economics   K-State Research & Extension   College of Agriculture   Kansas State University