USDA announces first partial 2006-crop-year counter-cyclical payments

Agriculture Deputy Secretary Chuck Conner has announced the U.S. Department of Agriculture will soon begin issuing first partial 2006-crop-year counter-cyclical payments for producers with base acres enrolled in USDA's Direct and Counter-cyclical Program (DCP).

The 2002 farm bill requires that these payments be made in October.

"Most eligible producers with base acres will not receive these counter-cyclical payments because of solid market prices," said Conner. "But producers with peanut and upland cotton base acres will receive benefits very quickly."

USDA projects counter-cyclical payment (CCP) rates using the October World Agricultural Supply and Demand Estimates (WASDE), released on Oct. 12, 2006.

USDA's World Agricultural Outlook Board issues periodic WASDE reports, which provide the most current supply-and-demand forecasts available.

Producers enrolled in DCP may receive CCPs when "effective" prices for eligible commodities are less than their respective "target" prices as set in the 2002 farm bill. USDA calculates CCPs based on historical base acreage and payment yields, not current production.

The 2006-crop-year projected first partial payment rates, equal to 35 percent of the total projected amount, are $0.0481 per pound for upland cotton and $30.45 per short ton for peanuts

First installment payments are not available for producers who have wheat, corn, grain sorghum, barley, oats, rice, soybeans and other oilseeds base acres because the effective prices for those crops equal or exceed their respective target prices.

More information on DCP is available at local FSA offices and on FSA's Web site at:

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