Written by Bill Harmon Tuesday, 31 January 2012 15:19
Producers are reminded that enrollment for the 2012 Direct and Counter-cyclical Program (DCP) and the Average Crop Revenue Election (ACRE) program began Jan. 23 and continues through June 1.
Signup for either program is to be done annually during the targeted enrollment period. Enrollment is performed on a contract identified as form CCC-509.
The DCP provides two types of benefits to eligible producers. “Direct” payments are guaranteed and calculated using 85 percent of Farm Service Agency crop-base acres times payment yields established for each farm.
Eligible producers receive direct payments at rates established by statute regardless of market prices. Farm bill provisions prevent the issuance of advanced payments for 2012. Therefore, all DCP payment earnings will be provided as a single disbursement after Oct. 1.
“Counter-cyclical” payments vary depending on market prices, and are issued only when the effective price for a commodity is below its target price, which takes into account the direct payment rate, market price and loan rate.
Since the beginning of the current farm-bill based DCP in 2008, counter-cyclical payments have not been made due to commodity prices remaining above target price levels.
Under the ACRE program, producers may receive revenue-based payments as an alternative to getting the price-based counter-cyclical payment. A decision to participate in the ACRE program is irrevocable through Sept. 30. Producers of ACRE farms must report acreage and production to FSA on a yearly basis.
Farms enrolled during the signup period are no longer considered enrolled following a farm change or reconstitution. Changed farms must re-enroll in order to remain eligible for program participation. (See chart for recognized rates for DCP)
As DCP/ACRE enrollment is being done, producers should plan at the same time to file 2012 crop plantings by acreage reporting or certification. An accurate and complete acreage report of all cropland and uses is mandatory to stay in compliance with program rules.
May 31 is the final date to report wheat and any other crops seeded last fall for harvest in 2012 and July 15 is the deadline for filing feed crops and the balance of all other acreages.
Producers are encouraged to contact the Marion County FSA office as soon as possible at 620-382-3714 to set up an appointment for the enrollment and acreage-certification processes.
Bill Harmon is executive director of the Marion County FSA office.