Now is a good time for DCP
It is now the middle of winter and, as time permits, producers are buying parts and performing maintenance on equipment, planning 2007 cropping patterns, marketing 2006 production, caring for livestock, purchasing fertilizer … the list could go on and on.
There always seems to be so much going on that there is never a slow time on the farm; but most producers would agree this is probably considered a "slow" time of year. Because of that, now might be a good time to plan on attending an educational meeting or a farm auction. There are plenty of each this time of year.
One good job that could be done this time of year is to visit the FSA office and complete contracts for the annual Direct and Counter-cyclical Program.
DCP is available on all farms that have an acreage base of one or more of the following crops: corn, soybeans, wheat, oats, barley or grain sorghum.
About 1,500 farms have an acreage base of one or more crops which could be enrolled. Although the enrollment deadline is not until June 1, April and May are a much busier period on most farms and early enrollment would be a good option.
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 22 percent of the direct payment on farms that are owned or controlled by a written lease. Final direct payments for 2007 will be issued beginning Oct. 1. Direct payment rates are fixed for all six years of the program, with 2007 being the final year.
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.
Producers may want to save some time by calling ahead so paperwork can be prepared in advance.
Luke Fritz is executive director of the Butler County Farm Service Agency.
