FSA Notes: 2011 DCP and ACRE sign-up under way

2011 DCP and ACRE Sign-up

Sign-up has started for the 2011 Direct and Counter-cyclical Payment (DCP) Program and for the Average Crop Revenue Election (ACRE) Program for crop year 2011. Participants are required to sign the CCC-509 annually. All owners will need to sign the contract unless the operator has a written cash lease. Sign-up will continue until June 1. The deadline is mandatory for all participants. FSA will not accept any late-filed applications.

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 2011, you may request to receive advance direct payments based on 22 percent of the direct payment for each commodity associated with the farm. FSA will issue advance direct payments later this month. Counter-cyclical payment rates vary depending on market prices and are issued only when the effective price for a commodity is statutorily set below its target price.

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 five-year average state yield and the most recent two-year national price for each eligible commodity. For 2011, the two-year price average will be based on the 2009 and 2010 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. 

Please contact the county office to schedule an appointment.

Disaster Program Sign-up for 2009 Crop Losses

Sign-up for the Supplemental Revenue (SURE) Program has begun. Producers can apply for the SURE program if they suffered crop production losses during the 2009 crop year. The SURE program will provide financial assistance to producers who have suffered crop losses due to eligible natural disasters.

SURE provides crop disaster assistance payments to eligible producers on farms that have incurred crop production or crop quality losses. The program takes into consideration crop losses on all crops grown by a producer nationwide. SURE provides assistance in an amount equal to 60 percent of the difference between the SURE farm guarantee and total farm revenue. The farm guarantee is based on the amount of Multi Peril Crop Insurance (MPCI) and Non-insured Crop Disaster Assistance Program (NAP) coverage on the farm. Total farm revenue takes into account the actual value of production on the farm, as well as insurance indemnities and certain farm program payments.

To be eligible for SURE, a producer must have a farming interest physically located in a county that was declared a primary disaster county or contiguous county by the agriculture secretary under a secretarial disaster designation and suffered at least a 10 percent production loss on a crop of economic significance; or, individual producers may also be eligible for SURE if the actual production on the farm is less than 50 percent of the normal production on the farm due to a natural disaster.

Producers must meet the risk management purchase requirement by either obtaining a policy or plan of insurance, under the Federal Crop Insurance Act or NAP coverage, for all economically significant crops. Producers considered socially disadvantaged, a beginning farmer or rancher, or a limited resource farmer may be eligible for SURE without a policy or plan of insurance or NAP coverage.

Application Closing Date for NAP is March 15

March 15 is the application closing date to sign up for Noninsured Crop Disaster Assistance Program (NAP) coverage on pasture, hay, and spring seeded crops for the 2011 crop year. NAP is designed to cover losses due to damaging weather conditions. The program covers losses of more than 50 percent of normal yields or the farm's yield calculated using actual production histories. Payments for production lost in excess of 50 percent are paid at 55 percent of the values established for the crop.

The cost per policy is $250 per crop per producer with a $750 cap per county. NAP coverage begins 30 days after the application is filed and the $250 administrative fee has been paid. The $250 administrative fee is non refundable. Producers must have all of their crops covered by crop insurance or NAP in order to be eligible for most of Disaster Assistance Programs.

Special Accommodations

Special accommodations will be made upon request for individuals with disabilities, vision impairment or hearing impairment. If accommodations are required, individuals should contact the county FSA office staff directly or by phone.

USDA is an equal opportunity provider and employer.

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