ACRE Insider

The deadline to sign up for ACRE for the 2013 crop year is Monday, June 3. Due to the extension of the 2008 Farm Bill, producers have a chance to opt into ACRE (if not already in) or opt out (if they are already in) for just the 2013 crop year. By participating in ACRE, the producer will forgo 20 percent of the direct payment, as well as give up CCP, and have a 30 percent reduction in marketing loan rates. Given the high prices for all commodities, the 20 percent reduction in direct payments is the only real impact for producers.

If a producer is at the direct payment limit, then a 20 percent reduction would not impact cash flow, and the decision to participate in ACRE is really a situation where the producer can participate in the program with no cost. If a producer is not at the direct payment limit, then it all comes down to whether the ACRE program payment can breakeven with the loss of the direct payment. The other caveat in this is timing as direct payments will come in October of 2013 and ACRE payments will come in October of 2014.

The FSA has a dedicated page for 2013 ACRE participation here. This is a good page for getting details of the program. The key question for producers is if it would pay to participate. National Sorghum Producers’ analysis shows the chance of recouping direct payment losses is much better in some states than others. Texas has a good chance of paying for wheat and non-irrigated cotton, New Mexico for non-irrigated wheat, and Kansas may not be a good choice for wheat with sorghum being a huge unknown. The analysis for grain sorghum is unclear due to the fact that the High Plains has not planted many acres and still has time to benefit from potential rains. However, if the drought hangs on and sorghum yields do not rebound from last year, then ACRE could also pay for sorghum.

If you do participate in ACRE, remember all landowners must participate and understand that they will also have a 20 percent reduction in direct payments.

Congress Out of Session for Memorial Day Recess

Both the House and Senate were out of session this week for the Memorial Day holiday, which was Monday. Both chambers are scheduled to return on Monday, June 3, and remain in session until a week-long recess over the Fourth of July holiday.

Farm Bill Debate to be Continued in Senate Next Week

As the Senate resumes next week, plans to continue work on farm bill legislation remains a priority. Senate Agriculture, Nutrition and Forestry Committee members appear optimistic in passing their version of the farm bill sometime next week. Before leaving for Memorial Day recess, Senators debated and voted on amendments for three days, but what amendments will be voted on in the coming week still remain in question. As for the House, farm bill legislation is still expected to be taken up on the floor sometime in mid-June.

CSP Deadline Extended to June 14

The Natural Resources Conservation Service's Conservation Stewardship Program will provide about $175 million in funding for up to 12.6 million additional acres in enrollment this year. Although applications are accepted all year, farmers, ranchers and forestland owners interested in CSP should submit applications by June 14 to their local NRCS office to ensure they are considered for this year's funding. The deadline was extended from May 31. To learn more, click here.

SICNA Registration Open

The annual Sorghum Improvement Conference of North America (SICNA) will be held in Lubbock, Texas, Aug. 28-30, 2013. SICNA focuses on promoting communication in the areas of research and development relating to improvement of sorghum as a crop.  Those interested in attending the SICNA meeting may find registration information at sicna.net.

Crop Report

Producers had planted 43 percent of the sorghum crop by May 26, twenty-two percentage points behind last year and 7 points behind the 5-year average. Kansas fieldwork progressed this week with rainfall in some areas. Heading was underway in portions of central Texas by week’s end. State planting percentages as of May 26 are as follows: Arkansas – 89 percent; Colorado – 10 percent; Illinois – 20 percent; Kansas – 14 percent; Louisiana – 96 percent; Missouri – 39 percent; Nebraska – 39 percent; New Mexico – 5 percent; Oklahoma – 25 percent; South Dakota – 23 percent; Texas – 77 percent.