Deadline looms for crop program

Agriculture

Discussion

May 26, 2006

By Mike Lee The Democrat Fri May 26, 2006, 09:15 AM CDT

Agricultural producers have until June 1, 2006, to sign up for the 2006-crop Direct and Counter-cyclical Payment Program (DCP).

USDA will accept late-filed DCP applications through Sept. 30, 2006, if accompanied by a $100 late fee. Producers will be unable to apply for 2006 DCP payments after Sept. 30, 2006. Sign-up for the 2006 DCP began Oct. 1, 2005.

I encourage farmers and growers to sign up for DCP by June 1 by visiting the USDA FSA office or by using the convenient online DCP service. This program plays an important role in providing producers income support.

The program provides payments to eligible owners, operators, landlords, tenants, or sharecroppers on farms enrolled for the 2002 through 2007 crop years.

There are two types of DCP payments – direct payments and counter-cyclical payments. Direct payments are tied to acreage bases and yields.

Because direct payments provide no incentive to increase production of any certain crop, the payments support farm income without distorting producers’ current production decisions.

Counter-cyclical payments provide support counter to the cycle of market prices as part of a federal farm program “safety net” in the event of low crop prices.

Counter-cyclical payments for a commodity are only issued if the effective price for a commodity is below the target price for that commodity.

Online DCP sign-up: Producers may also sign up for DCP online at http://www.fsa.usda.gov/egov/edcp_default.htm. Applicants must have an active USDA eAuthentication Level 2 account to use the service.

This requires filling out an online registration form at http://www.eauth.egov.usda.gov and visiting the local FSA office for identity verification.

The online service allows producers to choose 2006 DCP payment options, assign crop shares, as well as sign and submit their contracts over the Internet.

The service was designed to reduce paperwork and speed up contract processing at FSA offices.

The DCP was authorized by the Farm Security and Rural Investment Act of 2002 (2002 Farm Bill) and is administered by the U.S. Department of Agriculture’s Farm Service Agency.

More information on DCP is available at local FSA offices and in the DCP fact sheet posted online at: http://www.fsa.usda.gov/pas/publications/facts/html/dcp06.htm. FSA’s Web site is www.fsa.usda.gov.

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