Producers may now enroll into the Direct and counter-cyclical (DCP) program at the Farm Service Agency. The 2008 Farm Bill was extended for one more year so DCP is again an option for producers with a crop acreage base. Dairy producers can enroll into DCP at the same time they update their Milk Income Loss Contracts (MILC) as the MILC program was extended also.

DCP enrollment will end on Aug. 2. Landowner signatures are required if this is the first year operating the farm.

Producers can visit the FSA office to enroll or request their DCP contracts be mailed out. Some may want to wait and report planted acres and enroll into DCP at the same time. Acreage reports must be completed to qualify for DCP benefits.

USDA computes DCP program payments using base acres and payment yields established for each farm. Eligible producers receive direct payments in October at rates established by statute regardless of market prices. Normally payments run around $12 — $20 per base acre.

For 2013, advance direct payments are not authorized in accordance to the American Taxpayer Relief Act of 2012. 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. Since loan rates are low compared to actual market prices, it is unlikely there will be a counter-cyclical payment.

One final note is that producers must report acreages by the June 15 (small grains) and July 15 (all other crops and land uses) acreage reporting deadlines.

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