Average Crop Revenue Election (ACRE)
Program FSA is now accepting applications for the Average Crop Revenue Election (ACRE) Program. Interested persons should make an appointment with their FSA office. Producers are reminded that participation in ACRE is a two-contract process. The first contract is an election to get in; the second is to participate for the year. August 14, 2009, is the deadline to file and return signatures for both of these contracts for 2009.
The decision to participate in ACRE may be difficult for some. Robert Coats, Professor of Economics from the University Of Arkansas Division Of Agriculture, Cooperative Extension Service has written an article on “The ACRE Decision, The Knowns of the Traditional Program and the Unknowns of ACRE.” The article gives great detail and helps producers evaluate their options. Producers are encouraged to read the article from http://www.aragriculture.org/agfoodpolicy/ACRE.htm.
DCP and ACRE Signup Deadline Extended
The Direct and Counter-Cyclical (DCP) and Average Crop Revenue Election (ACRE) Program deadline has been extended to August 14, 2009. Producers wanting to participate in these programs must enroll and have all required signatures returned by this date to be eligible for 2009 program benefits. However, it is extremely important that producers understand that June 1, 2009, is still the date FSA uses to determine ownership interest in farming operations, and is similar to a status date. 2009 payment limits for direct attribution are calculated from the way the farming operation is structured on June 1, 2009. For example, a producer has 50 percent stock in Corporation on June 1, but sells 25 percent of his share on or after June 2. FSA will still attribute 50 percent of the corporation’s payment to the producer for 2009 payment limitation. Because the sale occurred after June 1 it cannot be recognized for the 2009 program payments.
Value-added Grants Available
The Rural Business-Cooperative Service (RBS) has approximately $18 million in competitive grant funds for fiscal year 2009 to help independent agricultural producers enter into value-added activities.
Ten percent of the available funds are reserved to fund applications submitted by Beginning Farmers and Ranchers and Socially Disadvantaged Farmers or Ranchers as defined at 7 U.S.C. 1991(a) and 2003(e).
The deadline for reserved funds is June 22, 2009. The deadline for applications for unreserved funds is July 6, 2009.
Awards may be made for planning activities or for working capital expenses, but not for both. The maximum grant amount for a planning grant is $100,000 and the maximum grant amount for a working capital grant is $300,000. The grant will fund one of the following activities:
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Developing feasibility studies or business plans (including marketing plans or other planning activities) needed to establish a viable value-added marketing opportunity for an agricultural product;
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Acquiring working capital to operate a value-added business venture or an alliance that will allow the producers to better compete in domestic and international markets.
Value-added products are:
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Commodity processing by changing the physical state or form of the product (such as milling wheat into flour or making strawberries into jam).
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Increasing value by raising the commodity using a "nonstandard" production method (such as organically produced products; no feasibility study in this category).
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The physical segregation of an agricultural commodity or product in a manner that results in the enhancement of the value of that commodity or product (such as an identity preserved marketing system).
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Increasing value by marketing the commodity within state or within 400 miles of the farm (locally produced products).
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On-farm renewable energy by transforming natural resources into energy on the farmstead (such as wind, solar, on-farm biodiesel).
For more information about the grants visit http://www.rurdev.usda.gov/rbs/coops/vadg.htm. The website includes application information and former award recipients. The in-state contact is:
Rural Business/Cooperative Development Program
Mr. Timothy S. Smith, Program Director
Phone: 501-301-3280
Fax: 501-301-3294
tim.smith@ar.usda.gov