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ACRE Decision Aid
The ACRE Decision Aid is provided to assist farm operators and landlords in analyzing the ACRE vs. DCP decision. The 2008 farm bill offers farmers the option to continue receiving DP, CCP, and LDP/MLG payments (DCP), or receive average crop revenue election (ACRE) payments, with a 20% reduction in DP and a 30% reduction in loan rates for LDP/MLG. The decision to elect ACRE is irrevocable over the life of the farm bill. Signup is for each farm unit, so farmers do not have to elect ACRE or DCP for all farm units.
ACRE and ACRE Decision Aid References
The decision to continue with DCP or elect ACRE must consider the farm’s yield risk, the state’s yield risk, and the national price risk for 2016-2013. The ACRE Decision Aid uses a farms’ data and simulates the farm for 500 different possible yields and prices based on historical risk for these variables, as well as the risk for state yields and national prices.
The Agricultural and Food Policy Center appreciates the support of FSA-USDA by providing data and advice during development and implementation of the Decision Aid. We wish to recognize the sponsors listed below who underwrote a portion of the costs to make the ACRE Decision Aid available to producers in every county of the U.S. via the web.
Before getting started you will benefit from gathering crop base acres, direct and counter-cyclical payment yields for the program crops on the farm and expected planted acreage, expected yields, and yield histories for the crops you intend to plant over the next year.
This software is intended for educational use. It was developed solely to provide information so producers could better understand the cash flow implications of the ACRE/DCP decision. The ACRE Decision Aid uses the most current NASS state yields for the crops and these values will be updated from time to time. As a result, the Decision Aid calculations may differ slightly from the official state yield benchmarks developed by FSA.
By clicking the I Agree box below, You acknowledge that projected outcomes generated by the software are for demonstration purposes, are not forecasts of future outcomes, and do not guarantee any future outcomes or results.
The ACRE Decision Aid has been run 16,316 times.
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