Bozeman, April 6, 2011 — Bruce Nelson, State Executive Director for the USDA’s Farm Service Agency (FSA) in Montana, reminds producers that signup for the 2011 DCP and ACRE programs is underway and will continue through June 1, 2011.
“It is critical for interested producers to contact their county office and set up appointments so they can begin the enrollment process as soon as possible,” Nelson said. “These payments have made a tremendous impact in Montana. More than $106 million in DCP payments were paid to more than 21,000 farms in fiscal year 2010 and more than $18.7 million in 2009 ACRE payments were issued last fall.”
Direct payments under both DCP and ACRE are computed using historic base acres and payment yields established for each farm. For 2011, eligible producers may request to receive advance direct payments based on 22 percent of the direct payment. FSA began issuing advance direct payments on Dec. 1, 2010. Counter-cyclical payment rates vary depending on market prices. Counter-cyclical payments are issued only when the effective price for a commodity is below its target price. The effective price is the higher of the national average market price received during the 12-month marketing year for each covered commodity and the national average loan rate for a marketing assistance loan for the covered commodity.
The optional ACRE Program provides a safety net based on state revenue and acts in place of the price-based safety net of counter-cyclical payments under DCP. A farm’s payment is based on a revenue guarantee calculated using a 5-year state yield and the most recent 2-year national price for each eligible commodity. For the 2011 crop year, the 2-year price average will be based on the 2009 and 2010 crop years. The decision to enroll in ACRE is irrevocable. The owner of the farm and all producers on the farm must agree to enroll in ACRE. Once enrolled, the farm shall be enrolled for that initial crop year and will remain in ACRE through the 2012 crop year.
An ACRE payment is issued when both the state and the farm have incurred a revenue loss. The payment is based on 83.3 percent (85 percent in 2012) of the farm’s planted acres times the difference between the State ACRE guarantee and the state revenue times the ratio of the farm’s yield divided by the state expected yield. The total number of planted acres for which a producer may receive ACRE payments may not exceed the total base acreage on the farm. In exchange for participating in ACRE, in addition to not receiving county-cyclical payments, a farm’s direct payment is reduced by 20 percent, and marketing assistance loan rates are reduced by 30 percent.
For more information about eligibility requirements and payments or about other FSA programs, contact your county FSA office and visit the state FSA website at: www.fsa.usda.gov/mt.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., SW, Washington, D.C. 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).
Source: USDA FSA
Posted by Haylie Shipp
