Ask FSA Andy about the direct and counter-cyclical payment program

Hello Again!

Once again the Direct and Counter-Cyclical Payment Program (DCP) and the Average Crop Revenue Election (ACRE) Program are being offered for the 2013 crop year under the 2008 farm bill extension.

New contracts are required annually for each of these programs and all signatures must be obtained by the deadline. Enrollment for the both programs began Feb. 19. The DCP sign-up period will end Aug. 2 and ACRE sign-up will end June 3.

The only program change from 2012 to 2013 is that all eligible participants in may choose to enroll in either DCP or ACRE for the 2013 crop year. This means that eligible producers who were enrolled in ACRE in 2012 may now elect to enroll in DCP in 2013 or may re-enroll in ACRE in 2013 (and vice versa).

There are two types of DCP payments — direct payments and counter-cyclical payments. Both are calculated using the base acres and payment yields established for the farm. Under the ACRE Program, producers may receive revenue-based payments as an alternative to receiving price-based counter-cyclical (CC) payments.

To be eligible for DCP/ACRE payments, participants must:
• share in the risk of producing a crop on base acres on a farm enrolled in DCP/ACRE;
• Annually report the use of the farm’s cropland acreage;
• comply with conservation and wetland protection requirements on all of their land; and
• protect all base acres from erosion, including providing sufficient cover and controlling weeds.

Also, producers on participating ACRE farms must annually report production to FSA. We encourage producers to call their county office and set up an appointment to begin the enrollment process as soon as possible, before planting season arrives. DCP and ACRE program information and fact sheets are available to download at www.fsa.usda.gov/dcp.

That’s all for now,
FSA Andy

About the Author

FSA Andy is written by USDA Farm Service Agency county executive directors in northeastern Ohio. More Stories by FSA Andy

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