Producers are reminded that enrollment for the 2012 Direct and Counter-Cyclical Program and the average Crop Revenue Election program began on Jan. 23 and continues through June 1. Sign up into either program is to be done on an annual basis during the targeted enrollment period. Enrollment is performed on a contract identified as form CCC-509.
The DCP provides two types of benefits to eligible producers. “Direct” payments are guaranteed and calculated using 85 percent of FSA crop base acres times payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices. Farm Bill provisions percent the issuance of advanced payments for 2012. All DCP payment earnings will be provided as a single disbursement after Oct. 1.
Counter-cyclical payments vary depending on market prices, and are issued only when the effective price for a commodity is below its target price.
Under the ACRE program, producers may receive revenue based payments as an alternative to getting the price based counter-cyclical payment. A decision to participate in the ACRE program is irrevocable through Sept. 20, 2012. Producers of ACRE farms must report acreage and production to FSA on a yearly basis.