Now is a good time for grain producers to enroll in the Direct and Counter-cyclical Program.

DCP is available on all farms that have an acreage base of one of the following crops: corn, soybeans, wheat, oats, and barley or grain sorghum.

About 1,500 farms have an acreage base of one or more crops that could be enrolled. Although the enrollment deadline is not until June 1, April and May are much busier periods on most farms and early enrollment would be a good option this time of year.

Direct payments are calculated using 85 percent of the established DCP base acres and the direct payment yield for each covered commodity on the farm.

Advance payments may be requested on 50 percent of the direct payment on farms that are owned or controlled by a written lease. Final direct payments for 2005 will be issued beginning Oct. 1.

Direct payment rates are fixed for all six years of the program.

Target prices are established as follows: Wheat: $3.92; corn: $2.63; grain sorghum: $2.57; barley: $2.24; oats: $1.44; soybeans: $5.80; and other oilseeds: $0.1010.

If the posted county price for a marketing year is below the established level, a counter-cyclical payment could be applicable.

To date, counter-cyclical payments have never been applicable except for 2004 corn base acres.

The counter-cyclical payment rate is the difference between the target price and the effective price.

The effective price is equal to the higher of the 12-month marketing year farm price or the national average loan rate plus the direct payment rate.

Payments, if authorized, will be made on 85 percent of the base acres (payment acres).

Payments will be calculated by multiplying the commodity's counter-cyclical payment rate times the payment acres times the counter-cyclical payment yield.

Counter-cyclical payments, if authorized, will be issued in July of the year that follows the applicable program year for barley, oats and wheat and in October of the year that follows the applicable program year for corn, grain sorghum and soybeans.

In addition to signing up by the applicable deadlines and as a condition for DCP payment eligibility, producers must:

File crop acreage reports for all cropland

Comply with the highly erodible land and wetland conservation provisions

Limit any planting of fruits or vegetables to non-base acres on participating farms

Control erosion and weeds on base acres.

While all of this seems very complicated, the best idea would be to visit or call the office for a farm- specific, simple explanation.