The American Taxpayer Relief Act of 2012 extended the authorization of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill) for many Commodity Credit Corporation (CCC) commodity, disaster, and conservation programs through 2013. This includes the Direct and Counter-Cyclical Program (DCP) and Average Crop Revenue Enhancement Program (ACRE).
Sign up for the 2013 DCP enrollment began on February 19, 2013 and will end August 2, 2013. Producers can either sign up on-line using the eDCP automated website or they can visit the Grundy County FSA office to complete their 2013 DCP contract. The Grundy County office is using an appointment system again to help with the sign up process. Producers that did not receive an appointment time by either e-mail or postcard should contact the office to make an appointment to sign up.
Payments are calculated using base acres and payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices. Counter-cyclical payments vary depending on market prices, and are issued only when the effective price for a commodity is below its target price (which takes into account the direct payment rate, market price and loan rate).
Producers can also elect the ACRE option. The 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. In exchange for participating in ACRE, a farm's direct payment is reduced by 20 percent, and marketing assistance loan rates are reduced by 30 percent.
All eligible participants in 2013 may choose to enroll in ACRE for the 2013 crop year. This means that eligible producers who were enrolled in ACRE in 2012 will need to enroll in DCP in 2013 or may re-enroll in ACRE in 2013. The ACRE sign-up period will end on June 3, 2013.
ISU Extension has developed a 2013 calculator that can assist producers in making the decision of whether or not to enroll in ACRE. This calculator can be found at: www.extension.iastate.edu/agdm/crops/xls/a1-45acrecalculator.xls
As producers begin considering shares for the 2013 DCP or ACRE contracts, they are reminded that: All producers planting on DCP bases acres must be identified on the DCP/ACRE enrollment contact and receive a proportionate share of DCP/ACRE payment for the farm. Changes in ownership, producers, or the crop share arrangement on the farm made after enrolling in DCP/ACRE must be reported to your local FSA offices.
Producers should note that changes to their 2013 DCP/ACRE enrollment contacts cannot be made after September 30, 2013. The contract cannot be approved until all required producer's signatures on the contract, including those with a zero share of the payment, have been submitted to our office.
The 2008 Farm Bill extension states that no 2013 advance direct payments for DCP and ACRE are to be issued. Direct payments at rates established by statute are expected to be made in October 2013.