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For Immediate Release DATE: 10/26/09
Contact: 614-255-2527
COLUMBUS, Ohio -- October 26, 2009 -- State Executive Director for the Ohio Farm Service Agency (FSA), Steve Maurer announced that enrollment for the 2010 Direct and Counter-cyclical Payment (DCP) Program and the Average Crop Revenue Election (ACRE) program has began online and at local FSA offices and will continue until June 1, 2010.
"I encourage all producers to make use of the eDCP automated website to sign-up for this important program," said Maurer. "This service makes DCP more accessible to the public, and I encourage producers with Internet access to use the system." However, producers can visit any USDA Service Center or their administratively assigned center, to complete their 2010 DCP contract. The June 1, 2010 deadline is mandatory for all participants and USDA will not accept any late-filed applications.
The electronic DCP (or eDCP) service saves producers time, reduces paperwork and speeds up contract processing at FSA offices. It is available to all producers who are eligible to participate in the DCP Program and can be accessed at: www.fsa.usda.gov/dcp and then click on the "Access eDCP/eACRE Online Services" link, under the "I Want to Section". To access the service, producers must have an active USDA eAuthentication Level 2 account, which requires filling out an online registration form at: http://www.eauth.egov.usda.gov and then click on the "Create an Account Page" link, and lastly followed by a visit to the local FSA Service Center for identity verification.
USDA 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 2010, eligible producers may request to receive advance direct payments based on 22 percent of the direct payment for each commodity associated with the farm. USDA will issue advance direct payments beginning Dec. 1, 2009. Counter-cyclical payment rates vary depending on market prices. Counter-cyclical payments are issued only when the effective price for a commodity falls 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 rate for a marketing assistance loan for the covered commodity.
The optional ACRE Program provides a safety net based on state revenue losses 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 average state yield and the most recent 2-year national price for each eligible commodity. For the 2010 crop, the 2-year price average will be based on the 2008 and 2009 crop years.
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 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, in addition to not receiving counter-cyclical payments, a farm's direct payment is reduced by 20 percent, and marketing assistance loan rates are reduced by 30 percent.
The decision to enroll in the ACRE Program 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. For more information on DCP or ACRE, please visit your local FSA office or www.fsa.usda.gov.
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