“USDA’s decision to make payments available was timely, especially for those growers trying to survive back-to-back droughts,” said Ron Litterer, chairman of NCGA’s Public Policy Action Team.
Total projected payment for corn is 22¢/bu. The partial projected rate, equal to 35% of the total amounts, is 7.7¢/bu. Under the Farm Bill, producers may elect to receive the countercyclical payments in three installments: the first in October, a second in February and the final at the end of the marketing year for each crop.
The payment rates are calculated from crop supply and demand information provided by the October World Agricultural Supply and Demand Estimates (WASDE) report. WASDE reports survey world supply, demand and price information and forecast future market conditions for agricultural commodities.
“It was a positive turn of events for corn growers that Agriculture Secretary Ann Veneman delayed her decision to providing partial countercyclical program payments until after the release of the October WASDE report. By waiting, USDA was able to better forecast the market for corn, Litterer added.
“Producers should remember that because supply, demand and price forecasts are highly variable there is a small chance the partial payment will have to repaid. If this is the case, payments will be deducted from future direct and countercyclical payments,” Litterer concluded.