First Partial CCP Payments Available

Countercyclical payments are available to producers. Compiled by staff

Published on: Oct 22, 2004

Agriculture Secretary Ann M. Veneman today announced the availability of first partial 2004 crop year countercyclical program payments for wheat, corn, sorghum, barley, oats, soybeans, upland cotton, rice and peanuts and final counter-cyclical payments for the 2003 crop year.

Countercyclical payments are available to producers participating in the Direct and Counter-cyclical Program (DCP) if "effective" prices for each eligible commodity are less than the respective "target" prices set in the 2002 Farm Bill.

The 2004 crop year projected annual payment rates and the first partial payment rates, equal to 35% of the total amount, are:

Commodity

Unit

Total Projected Rate

First Partial Rate

(dollars per unit)

(dollars per unit)

Wheat

bushel

0.1

0.035

Corn

bushel

0.4

0.14

Sorghum

bushel

0.27

0.0945

Barley

bushel

0.15

0.0525

Oats

bushel

0.016

0.0056

Soybeans

bushel

0.26

0.091

Upland cotton

bushel

0.1373

0.0481

Rice

cwt.

0.9

0.315

Peanuts

short ton

73

25.55

 

A first installment payment is not available for other oilseeds because the projected effective price equals the target price. The 2003 crop year final countercyclical payment rates are $0.0393 per pound for upland cotton and $73.00 per short ton for peanuts. The final payment rates for wheat, corn, sorghum, barley, oats, soybeans and other oilseeds are zero; final payment rates for rice will be based on the market year average price reported by USDA’s National Agriculture Statistics Service, scheduled for release on Jan. 31, 2005.

The final countercyclical payment rate calculations and the first and second partial payment rates for each commodity can be found on FSA’s Web site. More information on DCP is available at local FSA offices and on FSA’s Web site.