For Immediate Release

January 23, 2012

Contact:

Ethel Truly 601-965-4300, ext.102

JACKSON, Miss., Jan. 23, 2012 — Michael R. Sullivan, Mississippi Executive Director of the USDA Farm Service Agency (FSA), announced today's opening of the enrollment period for the 2012 Direct and Counter-cyclical Program (DCP) and the Average Crop Revenue Election Program (ACRE). The last day for producers to sign up for either program will be June1, 2012.

Since 2009, producers have had the option to participate in either DCP or ACRE. A producer who initially chose to enroll in DCP has the option to switch to ACRE during the 2012 enrollment period; however, producers who chose to enroll in ACRE cannot switch back to DCP.

New for 2012 is an additional average Adjusted Gross Income (AGI) limitation of $1 million applicable to all recipients of 2012 direct payments. All 2012 direct payments are subject to this average AGI limitation in addition to the $500,000 average nonfarm AGI and the $750,000 average farm AGI limitations.

Producers can sign up through the electronic DCP (eDCP) automated website or can visit an FSA office to complete a 2012 DCP or ACRE contract. eDCP is available at www.fsa.usda.gov/dcp to all producers eligible to participate in the DCP and ACRE programs. It saves time, reduces paperwork and speeds up contract processing at FSA offices. To access the service, producers must have an active USDA eAuthentication Level 2 account, which can be obtained by filling out the Level 2 online registration form followed by a visit to the local FSA office for identity verification.

FSA computes DCP program payments using base acres and payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices.

For 2012, advance direct payments are not authorized by the Food, Conservation, and Energy Act of 2008. 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 for each covered commodity is the higher of the national average market price received during the 12-month marketing year and the national average loan rate for a marketing assistance loan for that commodity.

The ACRE Program provides a safety net based on state revenue losses. When a producer chooses the ACRE option, USDA provides the farming operating with a revenue guarantee in place of the price-based safety net of counter-cyclical payments under DCP. The guarantee for each eligible commodity starts with multiplying a five-year state average yield for the commodity times its most recent two-year national average price. For the 2012 crop year, the two-year price average will be based on the 2010 and 2011 crop years. When all criteria are considered in calculating the target and the farm's annual revenue is lower than the revenue guarantee, the farm is eligible for support under ACRE, assuming all other qualifications are met.

An ACRE payment is issued when both the state and the farm have incurred a revenue loss. The 2012 crop year ACRE payment is based on 85 percent 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 on the farm.

In exchange for participating in ACRE and forgo counter-cyclical payments, a farm's direct payment will be reduced by 20 percent, and marketing assistance loan rates are reduced by 30 percent.

For more information on DCP or ACRE, contact a nearby FSA Service Center or visit the FSA website at available at www.fsa.usda.gov/dcp.

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