By TIM ALEXANDER
Illinois Correspondent

BLOOMINGTON, Ill. — The USDA has warned that the Average Crop Revenue Election (ACRE) program contained in the new farm bill could trigger an additional $16 billion in budget costs over the five-year span of the bill.
Representatives from leading Illinois agriculture groups, however, are calling the voluntary program a crucial update to an antiquated piece of legislature that won’t cost the government as much as the USDA fears.
Concerns that ACRE could generate a producer “windfall” are “something of a stretch,” according to Illinois Farm Bureau (IFB) risk management specialist Doug Yoder. The ACRE provision gives farmers an option to get a potential payment based on crop revenue – not price – during the 2009-12 crop years.
Though USDA is warning of the potential for significant cash outlays as a result of the program, the U.S. Congressional Budget Office said ACRE would save money in terms of budget scoring.
ACRE is based on a two-year national average and 90 percent of a five-year state average yield, with the high and low yields omitted, according to the IFB. Ag economist Art Barnaby of Kansas State University calculates Illinois corn growers would have received ACRE payments seven times since 1980, while soybean producers would have received payments four times and wheat growers, eight times.
“Our members are looking for reform in farm legislation that will provide an effective safety net when it is needed most, so we are excited to see the inclusion of the (ACRE) program, which is revenue-based,” stated Art Bunting, president of the Illinois Corn Growers Assoc. (ICGA), shortly before the farm bill was approved by Congress over the veto of the president.
“Past farm bill approaches will not work in this current market environment.”
ICGA, along with the National Corn Growers Assoc. (NCGA), played an instrumental role in developing the ACRE provision, Bunting noted. He also commended Democrat Illinois Sen. Dick Durbin and representatives Tim Johnson (R-Ill.) and Phil Hare (D-Ill.) for their efforts in “pointing the way for future improvements to federal farm legislation that meets the needs of farmers and consumers alike.”
NCGA President Ron Litterer said today’s market environment demonstrates the need for the ACRE program.
“With commodity prices above historical levels and rising input prices, the optional ACRE program allows producers to better manage their farm’s risk,” he said.