Crop producers have until June 3 to decide whether they will participate in the Average Crop Revenue Election plan or continue with the regular Direct and Counter-Cyclical Payment Program, according to the USDA Farm Service Agency.
"We understand that producers have gotten busy, but they can't forget to visit their county office and sign up for DCP or ACRE," said FSA Administrator Juan Garcia. "Just as farmers and ranchers plan their spring plantings, producers should plan to schedule an appointment to visit their USDA Service Center at the earliest possible time. It's best to complete the paperwork now rather than to stand in line the day before the deadline."
The sign-up for both DCP and ACRE programs began Feb. 19, 2013. The deadline to sign up for ACRE is June 3, 2013. The DCP sign up period ends Aug. 2, 2013.
The 2013 DCP and ACRE program provisions are unchanged from 2012, except that all eligible participants in 2013 may choose to enroll in either DCP or ACRE for the 2013 crop year. This means that eligible producers who were enrolled in ACRE in 2012 may elect to enroll in DCP in 2013 or may re-enroll in ACRE in 2013, and vice versa.
Purdue Extension agricultural economist Chris Hurt explained that under DCP, the two types of payments – direct and counter-cyclical – are each calculated using base acres and payment yields established on individual farms. But DCP only protects against low prices, and added farm payments under DCP would not start unless the U.S. average farm price for the 2013 corn crop dropped below $2.35 per bushel and soybeans below $5.56 per bushel.
Producers who choose ACRE could receive revenue-based payments instead of the price-based counter-cyclical payments under DCP. Revenue-based means that either low prices or low yields could trigger payments. ACRE participants are still eligible for 80% of their normal direct payments.