|
SIGN-UP FOR DIRECT AND COUNTER-CYCLICAL PROGRAM ANNOUNCED
WASHINGTON-- Enrollment for the 2004
Direct and Counter-cyclical Program (DCP) begins today. "Today's announcement begins the second year of
successful implementation of the 2002 Farm Bill,"
said Agriculture Secretary Ann Veneman. "These programs will have made available some $8
billion to America's producers by the end of this month." Producers must sign contracts annually under the DCP,
which is a change from Production Flexibility Contract
requirements under previous farm legislation. Producers have until June 1, 2004, to enroll for the
2004 DCP. Late-filed applications will be accepted through
Sept. 30, 2004, if accompanied by a $100 late fee.
Producers can opt out of participating in the program any
year if they choose. For both the 2002 and 2003, more than
98 percent of the eligible base acres were enrolled. The 2002 Farm Bill authorizes direct and
counter-cyclical payments to enrolled producers. Both
payments are computed using the base acres and payment
yields established for each farm. Producers receive direct
payments at rates established by statute regardless of
market prices. Counter-cyclical payment rates, on the other
hand, vary depending on market prices. Counter-cyclical
payments are issued only when the effective price (which
takes into account the direct payment rate, market price and
loan rate) for a crop is below the target price for the
commodity. For "other oilseeds," because of the existing
loan rate, the maximum counter-cyclical payment rate is
zero. The following are the 2004 crop year direct payment rates
and maximum potential counter-cyclical rates:
|
Commodity
|
Unit
|
Direct
($/unit)
|
Maximum
Counter-Cyclical
($/unit)
|
|
Wheat
|
bushel
|
0.52
|
0.65
|
|
Corn
|
bushel
|
0.28
|
0.40
|
|
Grain Sorghum
|
bushel
|
0.35
|
0.27
|
|
Barley
|
bushel
|
0.24
|
0.15
|
|
Oats
|
bushel
|
0.024
|
0.086
|
|
Upland Cotton
|
pound
|
0.0667
|
0.1373
|
|
Rice
|
pound
|
2.35
|
1.65
|
|
Soybeans
|
bushel
|
0.44
|
0.36
|
|
Other
Oilseeds
|
pound
|
0.0080
|
0.00
|
|
Peanuts
|
ton
|
36.00
|
104.00
|
The following is the schedule of payments for the 2004
DCP:
Beginning December 2003: 50 percent advance direct payment;
October 2004: 50 percent final direct payment
October 2004: first advance counter-cyclical payment (up to
35 percent of projected payment);
February 2005: second advance counter-cyclical payment (up
to 70 percent of projected payment less first advance);
Dates vary by crop: In general, 30 days following the end of
the marketing year: Final counter-cyclical payment (100
percent of actual payment, less any advances received). By the end of October 2003, producers will have
received some $8 billion in DCP payments for the 2002 crops
and the direct and the first advance counter-cyclical
payments (if any) for the 2003 crops. For all years, refunds
to USDA's Commodity Credit Corporation (CCC) will be due if
there is a violation of eligibility requirements or, in the
case of counter-cyclical payments, if the advance payments
exceed the final payment rate.
|
More Headlines...
