AgAlerts 2009 From Griggs County
By John Swenson, Griggs County Extension Agent

                                                                                                                        NDSU Crop Pest Reports
Issue # 10, August 7, 2009

• ACRE Yes or No for 2009

• Corn Growing Degree Days For Dazey and McHenry NDAWN Data

• Pesticide Container Collections

ACRE Yes or No for 2009 
(by Tim Semler, Bottineau County Extension Agent )

    While producers were relieved and given extra time to decide whether to enroll their farms in the new ACRE program at USDA this spring, the August 14^th deadline is now looming quickly.  With the 2009 harvest just about underway, there is little time to make a final decision and get the paperwork done at FSA.  ACRE looks promising because the high commodity prices in 2007 and 2008 are used in calculating state revenue guarantees for 2009. State revenue guarantees cannot change more than 10 percent from year to year, so they should remain relatively high in 2010.   By not enrolling the farm in 2009 and waiting until 2010, producers will give up the opportunity to capture the high farm revenue averages generated by the high commodity price averages for the 2007 and 2008 marketing years.  Producers enrolling in 2010, will then have to accept the apparent lower farm revenue averages for the 2008 and 2009 marketing years.
    There still is much indecision about “paying” approximately $1.50 - $2 per acre per year for ACRE.  Producers need to keep in mind that even if they enroll the farm in ACRE, they will still receive 80 percent of their on-going farm program or DCP payments. Besides a known cost of about$1.50 - $2 (20 percent of a direct payment), a producer also opts out of the counter-cyclical payment program and has the marketing assistance loan rate reduced by 30 percent when he or she enrolls in ACRE. Prices are unlikely to drop low enough to activate these other opportunity costs of enrolling in ACRE. If they did, ACRE payments most likely would compensate because lower prices also would lower actual state revenue.  The advantage at this late date in time for enrolling in ACRE is that we now have a fairly clear picture of crop yields and potential commodity prices for 2009 – 2010.  2009 North Dakota ACRE revenue guarantees have already been established at $210.64 per acre for wheat, $202.64 per acre for barley and is estimated to be around $280 per acre for soybeans, $430 per acre for corn, $260 per acre for sunflowers, $235 per acre for canola, $210 per acre for flax, $218 per acre for field peas and $300 per acre for lentils.  If 2009 ACRE state average revenues and your farm revenues fall below these levels, ACRE payments will kick in. 

ACRE Positives 

• Enrolling for 2009 captures high revenue levels for the farm from the high commodity price averages generated during 2007 and 2008
• High revenue levels captured for 2009 can only be reduced 10% by USDA for 2010
• The 20% reduction in direct payments is relatively small for the revenue guarantee by ACRE – in most cases this amounts to $1.50 - $2 per acre per year.
• Producers will still receive 80% of their on-going DCP (direct) farm program payments
• FSA Power of Attorneys have now been approved for entering rented farms into ACRE
• Farms with an oilseed base are almost guaranteed an ACRE payment for 2009

ACRE Negatives 

• 20% of the direct farm payments are foregone to participate in ACRE
• CCC Loan Rates and LDP’s are reduced by 30% - barley (8/5/09) has a 5 cent LDP
• ACRE election and enrollment at USDA-FSA must be completed by Friday, August 14^th
• High 2009 state average and county average yields might prevent wheat and barley from qualifying for 2009 ACRE payments - which would be issued in October 2010

 Corn Growing Degree Days for Dazey and McHenry NDAWN Data

Plastic pesticide containers will be collected for recycling in 13 North Dakota communities in September.South Carolina-based Container Services Network, LLC, has been contracted by the Ag Container Recycling Council (ACRC) to conduct the North Dakota recycling effort. Containers up to 55 gallons in size will be collected.  The containers must be triple rinsed or pressure rinsed.  Labels, caps and foil, must be removed from the containers.  Producers must deliver their containers BEFORE THE SCHEDULED COLLECTION DATE, and should call the local contact before delivering containers.  A list of dates, locations and local contacts for area locations is as follows:

Tuesday, Sept. 8--Arthur Company, Arthur, 701-967-8312 and Tall Towers AG, Page, 701-668-2302.
Wednesday, Sept. 9--Reynolds United, Portland, 701-786-3020; Central Valley Aviation, Buxton 701-847-2043; and Triangle Ag, Cooperstown, 701-797-3707.

    ACRC is a non-profit organization that collects and recycles plastic crop protection product or pesticide containers. ACRC member companies formulate, produce, package and distribute crop protection and other pesticide products. For more information, see www.acrecycle.org.

NDSU is an equal opportunity institution

Please Contact Our Office For Additional Information
E-mail: john.swenson@ndsu.edu
Go to the 2008 AgAlert Index Page