USDA Announces First Partial 2004 Crop Year and Final 2003 Crop
Year Countercyclical Payments, NCGA Notes
(10-25-04)
With the recent announcement of advance countercyclical (CC) payments
by U.S. Department of Agriculture (USDA) Secretary Ann Veneman,
the 2002 farm bill continues to provide a well balanced, market-oriented
range of benefits to producers, according to the National Corn
Growers Association (NCGA).
“The countercyclical payment program has definitely strengthened
the farm safety net,” said NCGA Public Policy Action Team
Chair Steven Pigg. “NCGA fought to have more timely and effective
assistance for growers during periods of sharp price declines.
For our federal budget, the countercyclical program has also proven
to be a more fiscally disciplined approach for dealing with volatile
commodity markets.”
The CC program payments recently announced include the first partial
2004 crop year payments for corn, wheat, sorghum, barley, oats,
soybeans, upland cotton, rice and peanuts, and final CC payments
for the 2003 crop year.
The CC payments are
available to producers who are participating in the Direct and
Countercyclical Program (DCP) if “effective” prices
for each eligible commodity are less than the respective “target” prices
set in the 2002 farm bill.
For corn, the 2004 crop year projected annual payment rate is
$0.40 dollars per unit, larger than the rate announced this time
last year. The first partial payment rate, equal to 35 percent
of the total amount, is $0.1400 dollars per unit.
According to NCGA, corn growers are also looking at overpayments
of $0.077 per bushel for the 2003 crop year, which will be deducted
from the 2004 and subsequent crop year DCP payments.
“Obviously, growers ultimately want to get their profits
from a demand-driven market, however, when the corn crop is as
bountiful as it is this year, these programs go a long way to help
us meet increasing production costs,” Pigg said.
The second partial CC payment is expected to be issued to producers
next February. The amount most likely will not exceed 70 percent
of the projected CC payment, less any payments already received.
Final CC payments will be determined at the end of the marketing
year for each crop. The end of the 2004-2005 marketing year for
corn is August 31, 2005.
The final CC payment rate calculations and the first and second
partial payment rates for each commodity is available on the FSA
website at www.fsa.usda.gov/pas/farmbill/mya_entry.htm.