The USDA Farm Service Agency will be releasing 2005 Final Direct Payment for the Direct and Counter-Cyclical Program (DCP) in early October, says Steven Johnson, farm management field specialist with Iowa State University Extension. These payments are typically direct deposited into a producerâ€™s bank account.
This payment represents about $14 per base acre of corn and $6 per base acre of soybeans in Iowa, but varies based on a farmâ€™s corn and soybean yields designated in signing up for the farm program back in 2003. This payment is the balance of the direct payment, with the initial one-half having been paid when the farm was enrolled in the 2005 farm program, likely last winter.
Another potential cash payment producers may receive in early October is the final 2004 Counter-Cyclical Payment (CCP) for corn of around 28 cents per bushel. Many farmers elected to take the first partial 2004 CCP for corn last October. It totaled 14 cents per bushel. Many also took the second partial 2004 CCP for corn last February, which totaled an additional 14 cents per bushel,
USDA to announce price on Sept. 30
Those that took the CCP and already received this 28 per bushel total might receive another $0.01 or $0.02. It depends on what USDA determines the National Average Price weighted for the 2004-05 marketing year is. That information will be released Sept. 30 by USDA.
However, the National Average Price for soybeans for this past marketing year was above the $5.36 per bushel trigger price. As a result, the first partial 2004 CCP of $0.091 per bushel and a similar second partial CCP of $0.091 will have to be repaid, explains Johnson.
This amount, totaling $0.182 per bushel will likely be subtracted from the farmâ€™s 2005 Final Direct Payment on soybeans for the Direct and Counter-Cyclical Program (DCP). Growers also have the option of making the repayment directly by contacting their FSA office in advance.
Visit FSA office if you have questions
In addition, there will likely be a 2005 First Partial CCP for corn available later in October based on the median cash price projection by the USDA in the October 12 World Agricultural Supply and Demand Estimate (WASDE). This amount will likely again be the $0.14 per bushel for corn that was also provided last fall.
Farmers who receive this 2005 First Partial CCP for corn later in October are those that checked yes for the First Partial CCP on FSA Form CCC-509 at the annual sign-up for the DCP last winter.
Johnson recommends growers visit their local Farm Service Agency office for answers to any questions regarding these transactions:
- Receipt of the 2005 Final Direct Payment
- Repayment of the 2004 Soybean First and Second Partial CCP
- The 2005 First Partial CCP for corn