Please explain the 2010 state revenue guarantee estimates. How are they are made?
The 2010 state revenue guarantee varies by state. In Iowa, the estimated revenue guarantee for corn is $589.44 per acre and $445.69 per acre for soybeans. These numbers reflect the state’s benchmark yield for the Olympic average using the most recent 5-year period (2005-09). In 2010, Iowa’s benchmark corn yield is 171 bushels per acre and for soybeans 51 bushels per acre. This yield is multiplied times the most recent 2-year national average cash price; reflecting $3.83 per bushel for corn and $9.71 per bushel for soybeans. These prices were determined using USDA’s April 9, 2010 WASDE report midpoint for price range. This price can change slightly as there are still 5 months left in the 2009-10 marketing year. This state benchmark yield is multiplied times the most recent 2 years’ national average cash price times 90% to come up with the revenue guarantee estimates. What are the advantages of being in ACRE? Since ACRE is a revenue-based program; either a decline in yield or a drop in t
