In the most recent WASDE Supply/Demand report, USDA made its first estimate of the 2012/13 Market Year Average (MYA) price of $0.65 to $0.85 (mid-point of $0.75). If a $0.75 MYA price is realized for the 2012/13 Upland cotton marketing year, then it might be worth looking at a nearly forgotten provision of the 2008 Farm Bill – the Average Crop Revenue (ACRE) program.
Fortunately for cotton producers there is still a little time (two weeks) to weigh this option and possibly switch to ACRE. The deadline for notifying the Farm Service Agency of an election to participate in the 2012 ACRE program is June 1.
Before going too far in evaluating ACRE as an alternative for 2012, cotton producers who have signed agreements to market 2012 production through a marketing pool, or other mechanism, are STRONGLY ENCOURAGED to contact the entities with which they are dealing to make sure there is no prohibition on participation in the ACRE program in signed contracts signed.
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