USDA ANNOUNCES SECOND 2002-CROP COUNTER-CYCLICAL PAYMENTS TO BEGIN
WASHINGTON, D.C. - The U.S. Department of Agriculture announced that the second counter-cyclical program payments for 2002-crop upland cotton, rice and peanuts begins today, Feb. 3, 2003. Counter-cyclical payments are made to producers who participate in the Direct and Counter-cyclical Program (DCP), authorized by the 2002 Farm Bill.
"This action meets the schedule of the 2002 Farm Bill and provides timely benefits to farmers," Agriculture Secretary Ann M. Veneman said.
Producers are eligible for counter-cyclical payments only if effective prices are less than the target prices set in the 2002 Farm Bill. The law provides for two advance payments, in October and February, and a final payment after close of the marketing year.
The first partial counter-cyclical payment was 35 percent of the entire projected rate and began on Oct. 1, 2002. The first partial counter-cyclical payment rate for upland cotton was $0.0480 per pound; for rice, $0.58 per hundredweight; and for peanuts, $36.40 per short ton.
The second partial counter-cyclical payment rate for upland cotton is $0.096 per pound; for rice, $1.16 per hundredweight; and for peanuts, $72.80 per short ton. These payments are 70 percent of the total projected counter-cyclical payment, less any counter-cyclical payments already received in the first partial payment.
Final counter-cyclical payments will be determined at the end of the respective marketing year for each crop. Producers who receive total partial payments exceeding the actual counter-cyclical payment for each respective crop must repay any excess amounts.
There are no 2002 counter-cyclical programs for wheat, corn, grain sorghum, barley, oats, soybean and other oilseeds because the projected 2002 effective prices exceed the respective target prices.
For each commodity, the counter-cyclical payment equals the counter-cyclical payment rate times 85 percent of the farm's base acreage times the farm's counter-cyclical payment yield for each crop. The counter-cyclical payment rate is the amount by which the target price of each covered commodity exceeds its effective price. The effective price equals the direct payment rate plus the higher of: (1) the national average market price received by producers during the marketing year, or (2) the national loan rate for the commodity.
Producers can also request 2002 direct payments at their local USDA Service Center anytime during the sign-up period that runs from Oct. 1, 2002, through June 2, 2003. For each commodity, the direct payment equals the direct payment rate times 85 percent of the farm's base acreage times the farm's direct payment yield.
For more information on DCP, contact your local USDA Service Center or visit USDA Farm Service Agency's Web site at: http://www.fsa.usda.gov.