Estimated Acre Payments for 2013 Crop Year
The old farm bill provided an option for producers called ACRE (Average Crop Revenue Election). The option, at that time, was a little bit complicated and required a reduction in other payments to participate. However, the payment amounts per acre were very substantial in certain years for various crops.
FarmDOC Daily just issued a report on the estimated ACRE payments for the 2013 crop year. The ACRE calculations are very similar to the new ARC program. However, where ARC limits payments to 10% of benchmark revenue and is based on county revenue, ACRE limits the payments to 25% and is based upon state yields and revenues. This can result in very high payments for various producers in certain states.
For example, Montana corn growers (there are several in the state) who participated in ACRE for the 2013 crop year will receive an estimated payment of $165 per acre. Other larger corn producing states will receive $52 (Minnesota and Iowa), $64 (North Dakota) and $38 (Missouri).
Many producers assumed there would no payments received this year from the farm bill. These payments are actually from the old farm bill and the timing of the new farm bill payments will be very similar to this. Payment should be received before the end of the year.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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