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News Release

Release No. 0419.05
Contact:
Ed Loyd (202) 720-4623
Jillene Johnson (202) 720-9733

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USDA ANNOUNCES 2006 DCP SIGN-UP BEGAN OCTOBER 1

WASHINGTON, Oct. 4, 2005 - The U.S. Department of Agriculture today announced enrollment for the 2006 Direct and Counter-cyclical Payment Program (DCP) began Oct. 1, 2005 and continue until June 1, 2006.

2006 DCP Sign-up

Producers have until June 1, 2006, to enroll in the 2006 DCP. USDA will accept late applications through Sept. 30, 2006, when including a $100 late fee. Producers sign DCP contracts annually and can choose not to participate in the program in any given year.

Producers can visit any USDA Service Center, or their administratively-assigned center, to complete their 2006 DCP contract. In addition, sign-up can be done online, allowing producers to choose payment options, assign crop shares and sign and submit their contracts from any computer with Internet access. DCP participants can view and print out submitted contract options at any time.

The electronic service saves producers time, reduces paperwork and speeds up contract processing at USDA Farm Service Agency (FSA) offices. It is available to all producers who are eligible to participate in DCP and who obtain eAuthentication accounts. The service has strict security measures to protect participants' private information. Only federal employees with authorization have access to information submitted electronically.

The electronic service is available at http://www.fsa.usda.gov/egov/edcp_default.htm. To access the service, producers must have an active USDA eAuthentication Level 2 account, which requires filling out an online registration form at http://www.eauth.egov.usda.gov followed by a visit to the local USDA Service Center for identity verification.

DCP Payments

DCP payment computations use base acres and payment yields established for each farm. Producers receive direct payments at rates established by statute regardless of market prices. Counter-cyclical payment rates vary depending on market prices. Counter-cyclical payments are issued only when the effective price (which takes into account the direct payment rate, market price and loan rate) for a commodity is below the target price for the commodity. In the three years since this program was authorized by the 2002 Farm Bill, USDA has issued approximately $20 billion in DCP payments to America's agricultural producers.

FY 2006 crop year direct payment rates and maximum potential counter-cyclical rates:

 
Commodities Unit Direct ($/unit) Maximum Counter-Cyclical ($/unit)
Wheat bushel 0.52 0.65
Corn bushel 0.28 0.40
Grain Sorghum bushel 0.35 0.27
Barley bushel 0.24 0.15
Oats bushel 0.024 0.086
Upland Cotton pound 0.0667 0.1373
Rice hundredweight 2.35 1.65
Soybeans bushel 0.44 0.36
Other Oilseeds pound 0.0080 0.00
Peanuts ton 36.00 104.00
       

The payment schedule for the 2006 DCP is as follows:

  • Beginning December 2005: 50 percent advance direct payment;
  • October 2006: 50 percent final direct payment;
  • October 2006: first partial counter-cyclical payment (up to 35 percent of projected payment);
  • February 2007: second partial counter-cyclical payment (up to 70 percent of projected payment less first advance);
  • Dates vary by crop (in general, 30 days following the end of the marketing year): Final counter-cyclical payment (100 percent of actual payment, less any advances received).

For all years, refunds to USDA will be due if there is a violation of eligibility requirements or, in the case of counter-cyclical payments, if the total of advance payments exceeds the actual counter-cyclical payment.

More information on DCP is available at USDA Service Centers and on FSA's website at: http://www.fsa.usda.gov.