Written by Bill Harmon / Farm Service Agency Tuesday, 03 April 2007 23:41The signup deadline for producers enrolling in the the 2007 Direct and Counter-cyclical Program has been extended to Aug. 3.
The extension of time is being offered due to issues involving the recent ineffective performance of the Farm Service Agency’s Web-based computer system. <p><p>Enrollment in DCP for the 2007 contract period began Oct. 1, 2006, and was scheduled to end June 1, 2007. <p><p>The late-file fee of $100 will be assessed only for farms that are enrolled after Aug. 3 and before Sept. 30. <p><p>Also, this extension applies only to the enrollment period and does not prolong the acreage certification established deadline of June 1 for wheat and other small grain crops. <p><p>U.S. Department of Agriculture computes DCP payments using base acres and payment yields established for each farm. Direct payments provide no incentive to increase production of any certain crop, because the payments are not based on producers’ current production choices. <p><p>Producers receive direct payments at rates established by statute regardless of market prices. <p><p>Counter-cyclical payments provide support counter to the cycle of market prices as part of a “safety net” in the event of low crop prices. <p><p>These payments are only issued if the effective price for a commodity (which takes into account the direct payment rate, market price and loan rate) is below the target price for the commodity. Counter-cyclical payment rates vary depending on market prices. <p><p>The Farm Security and Rural Investment Act of 2002 authorizes DCP, which is administered by FSA.<p><p>Bill Harmon is executive director of the FSA office in Marion County.