Based on these calculations, and the USDA crop production and average price estimates as of Sept. 1, 2009, the recommended crop priority order for ACRE payments for the 2009 would be: corn, wheat and then soybeans. The current estimated ACRE payment level of $33.69/eligible ACRE payment acre for corn is slightly below the projected 2009 payment level of $35.61/acre for wheat. However, the maximum payment potential for corn acres is much higher at $124.93/acre, compared to $62.01/acre for wheat, if corn market prices continue to drop in the coming months. In addition, most farms in southern and western Minnesota will be more likely qualify for enhanced payments for higher farm-level corn yields with corn, as compared to wheat or soybeans.  

Acreage priority for potential 2009 ACRE payments will likely vary a lot among farm units; however, producers should make sure that the potential for 2009 corn ACRE payments is analyzed before minimizing corn acres for potential ACRE payments. For many farm units, this is a non-issue, since all crop acres will likely be eligible for potential 2009 ACRE payments. Farm operators who want more information on acreage priority in the ACRE program are encouraged to contact their county FSA office.

Editor’s note: Kent Thiesse is a former University of Minnesota Extension educator and now is Vice President of MinnStar Bank, Lake Crystal, MN. You can contact him at 507-726-2137 or via e-mail at kent.thiesse@minnstarbank.com.