"A situation that puts ACRE sign-up in the gray area is when farms likely are to have 2009 yields significantly higher than their five-year Olympic average farm yields," Swenson says. "This will make it more difficult to show a revenue shortfall at the farm level, which is necessary, as well as a shortfall at the state level to receive an ACRE payment. This is the case for farms that typically have yields much higher than the county average but must use plug yields (95% of the county average) for their farm history because they cannot prove their actual yields."

Another example of this situation is areas of the state where yields have been unusually low during the past five years but are looking very good in 2009.

Another situation that should give producers pause before enrolling in ACRE are farms with low total base acres in which multiple program crops are grown each year. The reason is a rule that limits the number of acres eligible for ACRE payments to the total base acres of a farm. The maximum potential payment acres for each crop are 83.3% of planted and prevented-planted acres.

"The best way to understand the total base acre limit is that it only restricts potential ACRE payments when total planted and prevented-planted acres of covered commodities exceed 120 percent of the total FSA farm base acres," Swenson says. "It becomes a concern if more than one covered commodity is grown in the year a producer's total plantings exceed 120% of the total base acres. If this occurs, a producer must designate a crop priority order by Sept. 30 or payment acreage will be prorated for each crop. In either case, the crop acres that do not trigger an ACRE payment can count against the acreage limit the same as if they actually had earned an ACRE payment."

More information on the ACRE program can be found at North Dakota Farm Management or at USDA - Farm Service Agency.