Integrating ACRE and Crop Insurance: A Comprehensive Risk Management Strategy

The new optional Average Crop Revenue Election (ACRE) program in the 2008 Farm Bill has potential to substantially reduce risk to grain farmers IToman unexpected drop in revenue. As a result, grain farmers will need to re-evaluate their risk management strategies. The objectives of this project are: I) Help Kentucky grain farmers understand and decide ifthey should participate in the upcoming ACRE program, and 2) If they do participate, help them determine which crop insurance policies and grain marketing contacts will best complement the ACRE program. The target audience will be county agents and Kentucky grain farmers. Through ten educational workshops, over 200 participants will learn and understand the benefits and costs in selecting the ACRE program, how to integrate prop insurance and grain marketing with ACRE, and in general how to most efficiently reduce their risk in the current era of volatile grain markets.