FSA Andy for July 10, 2008

Hello again,

The start of July doesn’t seem to have brought much help to us in the hay making department.

Thank God for Sunfilm and tube wrappers as dry hay is just about impossible in central eastern Ohio.

Wheat harvest will need to crank up soon or I don’t see too many double crop beans getting put in. I guess that’s farming.

DCP. There is plenty happening at your local FSA office. The 2008 Direct and Counter-Cyclical Payment program sign-up is taking place as this is written. The new farm bill authorized a continuation of the Direct and Counter-Cyclical Payment (yearly sign-up) program through 2012.

FSA will continue to use the bases previously established for farms, there will be no new base farms created, with the exception of some crops typically not raised here.

The payments will be based on the base acres and payment yields established for each farm. Eligible producers will receive direct payments at rates established by statute. They are almost identical to the rates received in the past.

Advance payments will be offered in the amount of 22 percent of the projected payment. Payments will be made as soon as practical.

Counter-cyclical payments (payments dependent on market prices) will also be made when the price is determined to be below the target price, and those have changed.

Sign-up will be ongoing through Sept. 30.

Producers who have farms that need reconstituted (i.e.: sale of land from farm ground) need to request a reconstitution before Aug. 1.

FSA has to have all recons initiated by Aug. 14.

Changes. One change in the farm bill is that no payments will be issued to farms having less than 10 base acres unless (the owner) is a socially disadvantaged producer or a limited resource person.

FSA will determine who is a limited resource person and combinations of farms of less than 10 base acres are not permissible.

Quality loss. Quality loss sign-ups for 2005, 2006 and 2007 are also underway. Producers must have applied for a quantity loss payment to be eligible, but did not need to qualify to be eligible for quality payments. Sounds goofy huh?

Quality loss participants will need to provide actual evidence showing quantity price and quality factors to receive a payment.

Bottom line — if you didn’t have Noninsured Crop Disaster Assistance Program insurance or Federal Crop Insurance Corporation for the above years you are not eligible.

Don’t forget that sign-up ends July 18 for Livestock Compensation Program and Livestock Indemnity Program.

Sign-up was for pasture losses, animal losses and increased feed cost for the years ’05, ’06 and ’07. Producers with eligible losses qualify.

Many new things are going on at FSA and we will try to keep you updated on those issues as best as possible. When in doubt or if you have questions, don’t hesitate to call your local FSA office.

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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