Enrollment for the 2008 Direct and Counter-cyclical Program began June 25, 2008 and continues until September 30, 2008. USDA made the announcement last week, says Derryl McLaren, state executive director for USDA's Farm Service Agency in Iowa.
The 2008 DCP direct payment rates are: corn, $0.28 per bushel; soybeans, $0.44 per bushel; wheat, $0.52 per bushel; barley, $0.24 per bushel. Producers may request a 22% advance payment to be paid by September 30, 2008, with the remainder to be paid after October 1, 2008.
Many of the rules for the 2008 version of these two programs are similar to the 2007 rules, says McLaren.
One change that takes effect immediately
DCP 2008 will be administered exactly like the 2007 DCP with the following exception: farms that have 10 base acres or less shall not receive direct or counter-cyclical payments unless that farm is wholly-owned by socially disadvantaged or limited resource farmers or ranchers. This change from last year is being put into effect immediately.
For FSA, a socially disadvantaged farmer or rancher is a farmer or rancher who is a member of a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities.
A limited resource farmer or rancher is a farmer or rancher who meets both of the following: directly or indirectly has gross farm sales not more than $100,000 in both of the previous two years (the limit is increased annually beginning in 2004 to adjust for inflation using the Prices Paid by Farmer Index compiled by NASS); has a total household income at or below the national poverty level for a family of four, or less than 50% of county median household income in both of the previous two years (to be determined annually using Commerce Department Data).
DCP provides payments to eligible producers on farms enrolled for the 2008 crop year. There are two types of DCP payments - direct payments and counter-cyclical payments. Counter-cyclical payments under this program are only made when market prices fall below established target prices for each commodity. Both payments are computed using the base acres and payment yields established for the farm. DCP was re-authorized by the 2008 Farm Bill. For more information about DCP and other FSA programs visit www.fsa.usda.gov.