USDA stops partial advance payment on some crops

Due to sustained high market prices, USDA has announced there will be no partial advance of 2007 counter-cyclical payments for corn, sorghum or soybeans?payment options pro?vided through the 2002-07 Direct & Counter-cyclical farm program.

By statute, counter-cyclical payments can only be issued in two cycles for 2007, one 40 percent advance payment to be followed later by a final payment. In previous years, two advance payments along with a final payment had been authorized.

Producers are eligible for counter-cyclical payments when effective prices fall below target prices as specified by farm program law. The effective price equals the direct payment rate plus the higher of either: (1) the national average market price received by producers during the marketing year, or (2) the national average loan rate for the commodity.

USDA calculates these payments based on historical base acreage and payment yields, not current production

The projected 2007 counter-cyclical possible final payment dates are scheduled as follows: wheat and oats after July 2008; corn, sorghum and soybeans after October 2008.

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