2012 DCP & ACRE Sign-up ends June 1
The USDA Farm Service Agency (FSA) is wrapping up enrollment for the 2012 Direct and Counter-Cyclical Program (DCP) and also the 2012 Average Crop Revenue Election Program (ACRE) Program. Sign-up began on January 23rd, 2012 and ends on June 1st, 2012.
The 2012 DCP and ACRE contract signatures for enrollment are also due by the signup deadline of June 1st. It is the responsibility of the operator and owners of a farm to obtain and submit all necessary signatures on election and enrollment forms by this deadline.
The DCP provides producers an income safety net in the form of annual direct payments. Also, counter-cyclical
payments can be provided when commodity prices fall below certain price levels. Some of the delay in this year’s sign-up might have been the fact that there will be no advanced direct payment for the 2012 crop year. Entire direct payments will be issued after October 1st, 2012 and will reflect on 85% of your farms’ base acres.
The ACRE program provides eligible producers a state-level revenue guarantee, based on the 5-year state Olympic average yield and the 2-year national average price. ACRE payments are made when both state and farm-level triggers are met.
By participating in ACRE, producers elect to forgo counter-cyclical payments, receive a 20-percent reduction in direct payments and a 30-percent reduction in loan rates. The decision to elect ACRE binds the farm to the program through the 2012 crop year.
The projected 2012 ACRE state trigger revenue for Iowa is $709.50 per acre. It might be difficult to trigger the ACRE payment in Iowa for the 2012 crop. Considering an Iowa average corn yield of 171 bushels per acre, the national average cash price for corn in the 2012-13 marketing year would need to fall below $4.15 per bushel.
The USDA World Agricultural Supply & Demand Estimates (WASDE) forecast on May 10th that the national average cash price for corn will range between $4.20 and $5.00 per bushel for the 2012-13 marketing year.
If you have specific questions or need details regarding USDA farm programs including DCP or ACRE, contact your local USDA FSA office. You can also get news and information about USDA programs at www.fsa.usda.gov.