Ag payment program sign-up continues

2008-07-11 / Lometa Reporter

Sign-up for the 2008 Direct and Counter-cyclical Payment program, which offers the option of an advance payment, continues at U.S. Department of Agriculture service centers until Sept. 30.

Producers can sign up online or fill out a DCP contract at any USDA service center. Producers can choose payment options, assign crop shares, and sign and submit their contracts from any computer with Internet access. They also can view and print submitted contract options.

USDA 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 2008, eligible producers may request to receive an advance payment of 22 percent of the direct payment for each commodity associated with the farm. USDA will issue direct payments as soon as practical after enrollment. Final direct payments will be issued after Oct. 1.

Counter-cyclical payments vary, depending on market prices, and they are issued only when the effective price for a commodity is below its target price -- calculated based on the direct payment rate, market price and loan rate.

Since 2002, USDA has issued approximately $40 billion in DCP payments to producers.

Electronic service is available at www.fsa.usda.gov/FSA/edcp under "Access eDCP Service." Producers must have an active USDA eAuthentication Level 2 account. To create an account, producers must complete an online registration form at www.eauth.egov.usda.gov and then verify their identity at a USDA service center.

The online service has strict security measures to protect participants' private information. Only authorized federal employees have access to information producers submit electronically.

Additional DCP information, including a fact sheet, is available at fsa.usda.gov/FSA/webapp?area= home&subject=dccp&topic= landing.

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