Enrollment for the 2008 Direct and Counter-cyclical Program started June 25 and will end Sept. 30. The 2008 DCP was authorized through the passage of the Food, Conservation, & Energy Act of 2008.
For the 2008-crop year, Farm Service Agency 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.
Producers receive direct or guaranteed payments at rates established by statute regardless of market prices. Advanced direct payments may be requested during signup.
Counter-cyclical payments provide support in relation to the cycle of market prices as part of a “safety net” in the event of low crop prices. These payments are only issued if the effective price for a commodity is below the target price for that commodity.
Counter-cyclical payment rates vary depending on market prices. If advanced payments are requested, they will not be paid until after the first 180 days of a specific crop’s marketing year.
Farms with base acres of 10 acres or less will not receive direct or counter-cyclical payments, unless the farm is totally owned by socially disadvantaged or limited resource farmers or ranchers.
If changes have occurred in the farming or ranching operation that would affect the financial status of the producer, then the producer must complete a revised form CCC-526, Average Adjusted Gross Income, to participate in DCP.
For 2008 marketing assistance loans with market gains, loan deficiency payments and other 2008 programs, producers must complete a revised CCC-526 to be eligible.
Producers and landowners who previously executed form FSA-211, Power of Attorney, authorizing an attorney-in-fact to act on their behalf for anything other than “all current and future programs,” will need to execute a new FSA-211 for all 2008-crop year programs.
Farm reconstitutions must be requested by Aug. 1. Reconstitutions for farms with base acres of 10 acres or less that have been requested after May 22 cannot be approved. An exception would be if the farm is to be combined with another farm and one of the farms has a change in ownership with the same shares.
Due to the brief time period being allowed for DCP signup, it is planned to mail 2008 farm DCP enrollment contracts to all county producers and operator tenants for their completion and return to the county office.
A letter will instruct producers to secure the signatures of each owner or landlord on their farm’s contracts as well as providing them with a copy of the DCP contract appendix rules.
Producers may still also choose to make an appointment to conduct the DCP signup duties by calling 620-382-3714. In either case, producers are encouraged to act soon to complete all their enrollment activities before the Sept. 30 deadline.
For more information about DCP and other FSA programs, please contact the local county FSA office.
Bill Harmonn is executive director of the Marion County FSA office in Marion.
