USDA's Farm Service Agency reminds farmers and landowners that they have until Tuesday, June 1, to sign up for the 2010 Direct and Countercyclical Program and the Average Crop Revenue Election Program. More than 75% of an expected 1.7 million farmers have already enrolled.
"Producers must be aware of these deadlines and take action," says Jonathan Coppess, FSA administrator.
USDA calculates DCP payments using base acres and payment yields established for each farm. Farms with base acres are eligible for DCP. Eligible producers receive direct payments at rates established by the 2008 Food, Conservation and Energy Act. For 2010, eligible producers may receive an advance payment of 22% of the direct payment for each covered commodity and peanuts on the farm. USDA will issue advance direct payments as soon as practical after enrollment. Final direct payments will be issued in October 2010. Counter-cyclical payments vary depending on market prices and are issued only when the effective price for a commodity is below its target price (which takes into account the direct payment rate, market price and loan rate).
ACRE provides a risk-management tool for producers by offering a revenue-based alternative to the traditional countercyclical program. Producers may elect to participate in ACRE even if they have already received an advance DCP payment for 2010. Last year, over 130,000 farms chose to participate in ACRE.
For more information to help you with your ACRE decision, visit fsa.usda.gov/dcp.