ORIGINALLY WRITTEN BILL HARMON- FARM SERVICE AGENCY
Farmers who have not yet renewed or signed up a 2007 Direct & Counter-cyclical Program (DCP) contract on their farms are encouraged to do so during these winter weeks and avoid the last minute rush prior to the busier periods in the spring when farming activities become their main concern.
Completing contract paperwork is not complicated, however depending upon the size and complexity of the farm, the process for some can be time consuming.
Only about 30 percent of producers have enrolled their contracts at this half way point in the DCP enrollment season. The deadline for submitting a signed 2007 year DCP contract without incurring a $100 per farm late filing fee is June 1.
Planned appointments are encouraged and can be scheduled by calling the county FSA office at 620-382-3714.
When producers enroll their contracts they have the option of selecting whether and when to receive the direct and counter-cyclical payments offered by the program.
Under DCP provisions, all producers receive a direct payment based on their historical crop base acreage and yield for eligible commodities.
Producers can elect to receive an advance direct payment with the balance final payment issued in October 2007.
A DCP’s counter-cyclical payments are made for commodities only when a commodity’s effective price is below a national target price, which is established by law.
Unlike in prior years, there is no potential for advance counter-cyclical payments that have been based on price projections.
The final challenge in the DCP process is for producers to secure all of the required signatures on applicable contract(s).
All producers, including owners and tenants, who will share in the contract payments on the farm must sign contracts before the county FSA committee can initiate their approval.
U.S. Department of Agriculture requires that a careful and detailed review of individual producer and farm eligibility be performed by FSA prior to approving and issuing any farm program benefits to a program participant.
Bill Harmon is executive director of the Marion County FSA office in Marion.
