2011 Benchmark Prices
ACRE will make payments when state revenue is below a state guarantee. The state guarantee equals 90% times the five-year Olympic average of state yields times a benchmark price. The benchmark price equals the average of the last two national MYA prices.
The 2011 benchmark prices are not known yet with certainty as the 2010 market year is not over. Using the midpoint of World Agricultural Supply and Demand Estimates (WASDE), benchmark prices can be estimated. Corn is projected to have a $4.48 benchmark price, 67¢ higher than the 2010 benchmark price (see table). Soybeans have a 2010 MYA price estimate of $11.55, 77¢ higher than the 2010 price. Wheat’s benchmark price is projected at $5.24/bu., 59¢ lower than the 2010 price.