DCP, ACRE enrollment open
Producers have begun fall harvest of corn and soybeans, although the crops have been slow to dry down in the field. A lack of good harvest days has resulted in a limited harvest progress so far, and fall seeding of rye and wheat also is being significantly delayed.
When good harvesting weather does arrive, expectations are for a rapid pace to catch up once dry conditions prevail.
One advantage producers have is the harvest delay has given producers the time to ensure equipment is ready to go. The worst thing would be to just get started harvesting and an equipment breakdown occurs that possibly could have been avoided by performing some preventive maintenance during downtime. Although, with the age of some of the equipment being used today, that is easier said than done, especially considering available cash flow to purchase parts, labor, etc.
Another job producers could get done (not that there is a lack of jobs during downtime) would be to contact the Farm Service Agency to enroll in the 2010 Direct and Countercyclical Payment Program. For dairy producers, in particular, something to get done is to complete a new Adjusted Gross Income Certification for the 2010 MILC program.
Details on the 2010 DCP program are as follows:
• USDA computes DCP Program 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. USDA will issue advance direct payments beginning Dec. 1. Countercyclical payment rates vary depending on market prices. Countercyclical 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.
• The optional ACRE Program provides a safety net based on state revenue losses and acts in place of the price-based safety net of countercyclical payments under DCP. A farm's payment is based on a revenue guarantee calculated using a five-year average state yield and the most recent two-year national price for each eligible commodity. For the 2010 crop, the two-year price average will be based on the 2008 and 2009 crop years.
• An ACRE payment is issued when both the state and the farm have incurred a revenue loss. The payment is based on 83.3 percent (85 percent in 2012) of the farm's planted acres times the difference between the State ACRE guarantee and the state revenue times the ratio of the farm's yield divided by the state expected yield. The total number of planted acres for which a producer may receive ACRE payments might not exceed the total base on the farm. In exchange for participating in ACRE, in addition to not receiving countercyclical payments, a farm's direct payment is reduced by 20 percent, and marketing assistance loan rates are reduced by 30 percent.
• The decision to enroll in the ACRE Program is irrevocable. The owner of the farm and all producers on the farm must agree to enroll in ACRE. Once enrolled, the farm shall be enrolled for that initial crop year and will remain in ACRE through the 2012 crop year.
• The June 1 deadline is mandatory for all participants. USDA will not accept any late-filed applications.
For more information on DCP or ACRE, please visit your FSA county office or www.fsa.usda.gov.
Luke Fritz is executive director of the Butler County Farm Service Agency.
