Talk for the NC Ag Agents meeting in Raleigh, NC.

8. STATE ACRE Guarantee = 90% * 5- year Olympic State Avg. Yield * 2-year Natl. Average Marketing Year Price Restricted to < 10% change/ year Actual State Revenue = Actual State Planted Acre Yield * MAX [ Natl. Average Marketing Year Price OR 70% of the loan rate]. Farm ACRE Benchmark = Farm’s 5-yr. Olympic Avg. Yield * 2-year Natl. Average Marketing Year Price + Crop Insurance Premium per acre Actual Farm Revenue = Actual Farm’s Planted Acre Yield * MAX [Natl. Average Marketing Year Price OR 70% of the loan rate] > AND > THEN Farm Payment = 0.833 (.85 in 2012) * Actual Planted or Considered Planted Acres * [Farm’s 5-year Olympic Average Yield/State’s 5-year Olympic Average Yield] * MIN[State ACRE Guarantee – Actual State Revenue) OR State Acre Guarantee * 25%] Note: All Yields are Planted Acre Yields IF

9. Source: USDA, FSA

10. Source: USDA, FSA State-Level Guarantees – Estimated as of 6/11/09