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NE IOWA/ SE SD | Yes you are right, you will get a payment, I was referring an actual ACRE payment for a year when you have large crop loss, but the state does not.
I agree that ACRE can be used as cheap insurance for a price decline, but in theory, if a person was really worried about corn price going below much below $3, why not just sell 25% of your proven yield for 2010, 2011, & 2012. Dec. 2010 @ $3.86 Dec. 2011 @ $4.06 and Dec 2012 @ $4.11. In theory, $4.00 corn.... 170 bu. yield *25% = 42.5 bu. if prices go to $3.00 you would make $42.50 per acre....if price go to $2.00, you make $83.00 /acre. However the hole in this theory is if prices go up to $5.00 and stay there for a full year margin money could cost you $11/ac......but on the flip side your also selling $5 corn.
Once again I am not against ACRE I just want to discuss scenarios. | |
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Well....I signed up for ACRE today
