FAQ: Lease Arrangements and ACRE

Does it matter whether your cash rent or crop share in the new program?

FAQ: Does it make a difference for ACRE sign up, whether you cash rent or crop share?

Answer: Provided by Steve Johnson, ISU Extension farm management specialist

In cash rent situations, the tenant may sign up for ACRE and potentially receive the annual ACRE payment—if a payment is made. There is no guarantee that ACRE payments will be made each year.

The reason the tenant receives the payment is because the tenant is the one considered "at risk" as defined by FSA. The landlord's signatures will also be required for the ACRE contracts.

In a crop share situation, both tenant and landlord signatures will be required at ACRE sign-up.

Remember, the ACRE option is an election. Some farmers may choose specific farm numbers for ACRE and not other farm numbers. Other farmers may choose not to enroll farms in 2009, waiting until 2010 through 2012. But once you enroll a farm in the ACRE program, that farm is in it through the 2012 crop year.

If you have a question you'd like answered regarding the new USDA farm program, please send it to [email protected]. We will pass it on to the ISU Extension specialists or to the program specialists at USDA's Farm Service Agency office in Des Moines and they will send you the answer.

For more information and analysis of the new Farm Bill, see ISU's Ag Decision Maker site www.extension.iastate.edu/agdm. For clarification on farm program details contact your local FSA office.

TAGS: USDA
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