The possibility of payments from the USDA Average Crop Revenue Election (ACRE) program increases as Kentucky average corn and soybean yield prospects decline. Kentucky corn crop conditions as of July 8th are rated at 34% very poor, 38% poor, 23% fair, 5% good, and 0% excellent. Kentucky soybean crop condition as of July 8th is rated at 23% very poor, 39% poor, 30% fair, 8% good, and 0% excellent. The following short discussion provides a brief review of the ACRE program and an analysis of potential for payments as of mid-July 2012.
Kentucky yield prospects are dropping to unexpected levels. At this point it is unclear whether ACRE payments will occur and if so, the size of the payment. Currently it appears there is a good chance for corn ACRE payments in Kentucky for 2012/13 given the current crop conditions. Soybean ACRE payments appear less likely at this point, especially with the recent rainfall, but continuation in dryness with high temperatures would increase the possibility of soybean ACRE payments.
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