USDA Announces October Price Projections
Will be Used to Calculate 2004-Crop First Partial Counter-Cyclical Payment Rates
WASHINGTON, Sept. 22, 2004 - Agriculture Secretary Ann M. Veneman announced today that first partial counter-cyclical program payment rates for 2004-crop wheat, feed grains, upland cotton, rice, soybeans, other oilseeds and peanuts will be announced soon after the October World Agriculture Supply and Demand Estimates (WASDE) that is scheduled for release on Oct. 12, 2004. By statute, 2004-crop first partial counter-cyclical payments are to be made during October to the extent practicable.
"By using the October report, we can incorporate the most current supply and demand information into the projections," said Veneman. "This is also the same approach and timing used for last year's program."
Counter-cyclical; payments are available to producers participating in the 2004 Direct and Counter-cyclical Program (DCP).
Calculating; First Partial Counter-cyclical Payments
Producers are eligible for counter-cyclical payments if effective prices are less than the target prices set in the 2002 Farm Bill. For each DCP commodity, the counter-cyclical payment equals the counter-cyclical payment rate times 85 percent of the farm's base acreage times the farm's counter-cyclical payment yield. The counter-cyclical payment rate is the amount by which the target price of each DCP commodity exceeds its effective price. The effective price equals the direct payment rate plus the higher of: (1) the national average market price received by producers during the marketing year for the commodity, or (2) the national average loan rate for the commodity.
The first partial payment may be up to 35 percent of the total projected counter-cyclical payment, at the discretion of the Secretary. First partial rates will be equal to 35 percent of the total projected rates. A second partial payment may be issued in February. The final counter-cyclical payments will be determined based on USDA's final-season average market price at the end of the marketing year for each commodity.
More; information on DCP is available at local USDA Farm Service Agency (FSA) offices and on FSA's Web site at: www.fsa.usda.gov.
