Some Counter-Cyclical Payments Going Out

Most crops exceeded price levels needed to trigger payments.

Published on: Mar 8, 2010

Agriculture Secretary Tom Vilsack says USDA will issue approximately $121 million in partial 2009-crop counter-cyclical payments to producers with upland cotton and peanut base acres enrolled in USDA's Direct and Counter-cyclical Payment program. USDA will not issue final 2008-crop counter-cyclical payments for long grain rice and short and medium grain rice because their average market prices exceed levels that would trigger these payments.

 

The partial 2009-crop upland cotton counter-cyclical payment rate is 1.03 cents per pound, equal to 40% of the difference between the target price of 71.25 cents per pound and an effective price of 68.67 cents per pound.  The effective price is equal to the projected average market price of 62 cents per pound plus the direct payment rate of 6.67 cents per pound.

 

The partial 2009-crop peanuts counter-cyclical payment rate is $9.20 per ton, equal to 40% of the difference between the target price of $495.00 per ton and an effective price of $472.00 per ton.  The effective price is equal to the projected average market price of $436.00 per ton plus the direct payment rate of $36.00 per ton.

 

For all commodities other than upland cotton and peanuts, the market price projections exceed levels that would trigger these payments. Also, USDA will not issue final 2008-crop counter-cyclical payments for rice.