To receive direct payments, producers with base acres must be enrolled in the DCP for an eligible commodity for the respective program year.
Direct-type payments are guaranteed and paid to all enrolled DCP contract share producers. Direct payments are tied to historical acreage bases and yields established for a farm, rather than the current farm’s production.
It is a complicated formula: for each commodity, the direct payment for each crop year equals 85 percent of the farm’s commodity base acreage, times the farm’s direct payment yield, times the direct payment rate.
The Commodity Credit Corp. reduces final direct payments by any advance direct payments producers have already received. Producers in Marion County were issued more than $2.5 million in these payments.
CRP is the nation’s primary program for protecting fragile natural resources and enhancing the environment. Under CRP, producers voluntarily retire environmentally sensitive cropland for 10 to 15 year periods.
To be enrolled, the land must be highly erodible, contribute to a serious water-quality problem, or provide important wildlife habitat. Marion County’s 950 CRP producers are receiving $696,000 in this year’s annual rental payment. Currently, 17,000 acres are enrolled in continuous and general CRP contracts in the county.
Earned payments for both DCP and CRP are disbursed by electronic funds transfer or direct deposit into producer’s chosen financial accounts.
A disbursement transaction statement is mailed to each contract shareholder itemizing payment amounts.
Bill Harmon is executive director of the Marion County FSA office.