USDA issues advance direct payments


WASHINGTON — U.S. farmers will receive up to $1.15 billion in 2008 advance direct payments.

Distribution began July 7.

Signup began June 25 for the USDA’s direct and counter-cyclical payment program and distribution started to those producers who elected to receive a 22 percent advance payment at enrollment.

To receive direct payments, an individual or entity must be a producer on a farm with base acres enrolled in the direct and counter-cyclical payment program. Producers may elect to receive a 22 percent advance payment when they enroll.

For each covered commodity, the direct payment for 2008 equals 85 percent of the farm’s base acreage for the crop, times the direct payment yield for that crop, times the direct payment rate for that crop.

The Commodity Credit Corporation reduces the final direct payment by any advance direct payment.

Final direct payments will be issued after Oct. 1, 2008.

2008 rates

Commodities with base acres eligible for direct payments and their 2008 rates are: barley, 24 cents per bushel; corn, 28 cents per bushel; grain sorghum, 35 cents per bushel; oats, 2.4 cents per bushel; soybeans, 44 cents per bushel; and wheat, 52 cents per bushel.

USDA’s Farm Service Agency distributes direct payments for the Commodity Credit Corporation. For more information on DCP, visit your local USDA Service Center or


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