WASHINGTON, July 21, 2006 - The U.S. Department of Agriculture today announced that it will begin issuing final 2005-crop counter-cyclical payments for barley. The final payment rate is $0.13 per bushel. Barley producers will receive approximately $35 million in final payments, bringing the total amount of 2005-crop barley counter-cyclical payments to $46.6 million.

USDA makes final counter-cyclical payments at the end of an applicable crop's 12-month marketing year. The 2002 Farm Bill provides for two partial crop counter-cyclical payments. USDA issued the first 2005 barley crop payment in October 2005. USDA made the second in February 2006. USDA made an estimated $11.6 million in advance counter-cyclical payments for the 2005 barley crop. The final marketing year price for 2005-crop barley is $1.87 per bushel.

Producers who took first and second partial counter-cyclical payments on 2005-crop barley received $0.105 per bushel. They are due an additional $0.025 per bushel.

Producers will not receive 2005-crop counter-cyclical payments for wheat or oats since their effective prices exceed target prices. The final marketing year price for 2005 wheat is $3.42 per bushel. The final price for 2005-crop oats is $1.63 per bushel.

The counter-cyclical payment rate is the amount by which the "target price" of each commodity, specified by the 2002 Farm Bill, exceeds its effective price. The effective price equals the direct payment rate plus the higher of either: (1) the national average market price received by producers during the marketing year; or (2) the national average loan rate for the commodity.

The counter-cyclical payment is calculated by multiplying the payment rate by 85 percent of the farm's base acreage and then multiplying that number by the farm's counter-cyclical payment yield for each crop.

For more information on the direct and counter-cyclical payment programs, visit your local USDA

Service Center or the Farm Service Agency Web site http://www.fsa.usda.gov.