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ACRE payment calculators

AgDM Newsletter
August 2008

Average Crop Revenue Election, or ACRE, is a new commodity program included in the Food, Conservation, and Energy Act of 2008.  The revenue guarantee equals 90 percent of the product of the ACRE yield and the ACRE price. The ACRE yield is the average of the state yields during the previous five years after the highest and lowest yield in the five years are eliminated. So, for example, if state yields for corn in 2004 through 2008 were respectively 180, 140, 150, 160, and 100 bushels per acre, the ACRE yield for 2009 would be 150, which is the average of 140, 150, and 160. The ACRE price is the average of the two previous years’ season average prices as reported by the National Agricultural Statistics Service. So for 2009, the ACRE price used to set the 2009 guarantee will equal the season average prices for the 2007/08 marketing year and the 2008/09 marketing year.

To help farmers and others understand how ACRE works and to compare the likely payments from ACRE relative to traditional farm programs, the Center for Agricultural and Rural Development (CARD) researchers have prepared a fact sheet about ACRE, as well as three computer calculators. The fact sheet provides detailed information about ACRE and a brief description of how to use the calculators. The calculators are crop specific: one for corn, one for soybeans, and one for wheat. All ACRE calculations assume that ACRE sign-up is for the 2009 crop year, and all calculations are based on 2009 market conditions.

The information is provided at

We welcome your comments about the usefulness of the calculators (e-mail