Farmers enrolled in the Direct and Counter-Cyclical Program will not receive final 2008 counter-cyclical payments for wheat, barley and oats. Average prices for those crops were higher than the levels needed to trigger the payments.
The counter-cyclical payment rate is the amount by which the target price of each commodity, specified by the 2008 Farm Bill, exceeds its effective price. The effective price equals the direct payment rate plus the higher of either the national average market price received by producers during the marketing year, or the national average loan rate for the commodity.
According to the National Agricultural Statistics Service, the final marketing year prices per bushel are $6.78 for wheat, $3.82 for barley and $3.15 for oats. These prices also establish the 2009 Average Crop Revenue Election Program final guarantee prices based on the 2007 and 2008-crop market year average prices. These prices are needed to calculate potential ACRE payments for the 2009 crop year. The ACRE information page at http://www.fsa.usda.gov/ provides both the 2007 and 2008-crop year market average prices and the 2009 market price forecast for eligible program crops.
NASS is scheduled to announce the final market year average price for peanuts, the next commodity that may be eligible for final counter-cyclical payments, on Aug. 31, 2009.