Edward Hamill, executive director of USDA's Farm Service Agency in Missouri, reminds crop producers that the deadline to sign up for the 2011 Direct and Counter-cyclical Payment and the Average Crop Revenue Election or ACRE program is June 1, 2011.
Direct payments are calculated using base acres and payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices. Advance payments of 22% on the 2011 DCP program are available. The remaining 78% of the DCP payment will be issued after Oct. 1, 2011. Producers electing the ACRE option agree to have their direct payments reduced by 20%; however, they have revenue protection from low prices and yields if State and County triggers are met.
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).
"It is important that producers sign up for DCP or ACRE before June 1, because applications will not be approved after this date," Hamill notes.
Producers can apply for these programs at any USDA Service Center or online. To access the online service, producers must have an active USDA eAuthentication Level 2 account. To get a Level 2 account, producers must complete an online registration form at www.eauth.egov.usda.gov and then visit the local USDA Service Center to verify their identity.
For more information about DCP or ACRE, please contact your local County FSA office. Information can also be obtained online at www.fsa.usda.gov.
Source: Missouri USDSA Farm Service Agency office, Columbia