2010 DCP and ACRE signup will end June 1, 2010


Hello Everyone!

Spring is one of my favorite seasons, especially this year after the cold, white winter we endured. It has never been more exciting to feel the warm sunshine with the cool breeze, to view the new spring growth, and to hear the loud roars of the tractors as the farmers being their spring fieldwork. Spring is also a busy time in your local Farm Service Agency office with the 2010 Direct and Counter-cyclical (DCP) and Average Crop Revenue Election (ACRE) program deadline rapidly approaching.

The 2010 DCP and ACRE signup will end June 1, 2010. This is a mandatory deadline for all participants and USDA will not be accepting any late filed applications. So, don’t hesitate to sign-up!

Producers can visit any USDA Service Center to complete their 2010 DCP or ACRE contract. Producers must also furnish all supportive necessary contractual documents, such as cash leases, to their local FSA office by the applicable deadline. This year’s deadline is different than last year and requires all necessary signatures to be obtained in the local FSA by June 1. If necessary paperwork is not received, the farm will be ineligible for all 2010 DCP/ACRE payments.

USDA computes DCP payments using base acres and payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices. For 2010, eligible producers may request to receive an advance payment of 22 percent of the direct payment for each commodity associated with the farm. USDA will issue advance direct payments as soon as practical after enrollment. Final direct payments will be issued after Oct. 1.

Producers still have the option to enroll in the 2008 Farm Bill’s ACRE program. The ACRE Program is a revenue-based program that provides a safety net to producers when there are shortfalls in revenue.

It provides protection on the crops a producer actually plants on individual farms. ACRE requires producers to forgo counter-cyclical payments, receive a 20% reduction in Direct payments and receive a 30% reduction in marketing assistance loan rates. In exchange, producers are provided revenue protection, which is based on a calculated dollar per acre guarantee. If final crop yields and prices calculate out to less than the guarantee, producers will be paid the difference.

If you have not done so, remember to get in and visit your local FSA county office to sign up for the 2010 DCP or ACRE program. There isn’t much time left!

That’s All for Now, FSA Andy

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