John Whitaker, executive director for USDA's Farm Service Agency in Iowa announced last week that preparations are being made to issue Conservation Reserve Program and also Direct and Counter Cyclical Program payments for farmers participating in these two USDA programs. The annual rental payments for CRP and the direct payments for DCP are generally made in October and will begin after FSA receives the authorization to issue payments.
"These payments are considered timely when they are issued within 30 days of the authorized date," says Whitaker. "Many people are not aware of the amount of work that goes into ensuring the payment process goes smoothly. Our county offices know in years such as this, these funds support the agricultural economy and also support the responsible stewardship of America's production acreage."
Several different factors can affect these payments for 2012
Many variables will go into this year's payment process. "Producers who were part of the Adjusted Gross Income or AGI review may need to file these and others forms before payments can be issued," says Whitaker. While the AGI review is one example of how payments are affected, producers who signed up for emergency haying and grazing of CRP acres will see their annual payment reduced by the acreage that was hayed or grazed, if this was not prepaid.
Conservation Reserve Program land was open for grazing through the end of September and haying through the end of the month of August. Farmers had to first get FSA's permission before they could harvest the hay or graze the CRP acres. USDA allowed this emergency use of CRP land because of the forage shortage caused by this year's summer drought.
Farmers affected by FSA office mergers should receive payments on time
Whitaker also points out that those producers who are affected by FSA county office consolidations should not see payments delayed due to this reason alone. "Our agency has taken steps to ensure that these payments will be generated at the same time that the rest of the state's payments are issued," he says.
Iowa producers hold over 106,000 CRP contracts and approximately 154,000 DCP contacts in the state. For more information on CRP, DCP, or other programs administered by FSA, contact your local FSA office or visit FSA's Website.