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DCP deadline June 1; no late enrollments

Producers who own or operate farms with acreage bases will have until June 1 to enroll in the Direct and Counter-cyclical Program, or DCP.

June 1 is fast approaching and, so far, enrollment stands at about 30 percent of the eligible farms.

Last year, the Farm Service Agency extended the deadline. However, just so there isn't any confusion, we have been notified there will be no extension and no late-filing provisions this year.

Sometimes producers get confused with the deadline since there are a few different dates to be aware of: June 1, for DCP enrollment; June 15, the final day to report small grains; and July 15, the final day to report all other crops, including CREP acreage and fruits and vegetables.

DCP benefits are provided to participating farms depending on the acreage bases and yields that are established for the farm.

Base acres are the average reported acres of a grain crop to FSA for the years 1998 through 2001. It is possible for a farm with 100 cropland acres to have only a 5-acre corn base. The entire 100 acres could have been reported and planted to a grain crop the last five years and the DCP base would still be only 5 acres. Producers have not been able to update base acres under the provisions of the last two Farm Bills.

The U.S. Department of Agriculture computes DCP payments using base acres and payment yields established for each farm.

Eligible producers receive direct payments at rates established by statute, regardless of market prices. For 2010, eligible producers may request to receive advance direct payments based on 22 percent of the direct payment. Counter-cyclical payment rates vary depending on market prices. Counter-cyclical payments are issued only when the effective price for a commodity is below its target price. The effective price is the higher of the national average market price received during the 12-month marketing year for each covered commodity and the national average loan rate for a marketing assistance loan for the covered commodity.

Again, the June 1 deadline is mandatory for all participants. The USDA will not accept any late applications. For more information on the DCP, visit your FSA county office or log on to www.fsa.usda.gov.

Luke Fritz is executive director of the Butler County Farm Service Agency.

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