DCP PROGRAM DEADLINE
Farm operators and landlords in share rental or custom farming agreements are reminded that June 1 is the deadline to sign up for the DCP farm program for 2005 at County Farm Service Agency (FSA) Offices. Failure to enroll in the DCP program could potentially cost producers about $70-80 per eligible corn base acre.
As of May 15, approximately 15% of the eligible producers in Minnesota had not yet signed up for the 2005 DCP program. Once producers sign up for the DCP program, they are eligible to receive one-half of the eligible direct payments for the 2005 crop year. The balance of the direct payment will be paid in October 2005. Direct payments are guaranteed payments each year, and are not affected by market prices for corn, soybeans, wheat, and other crops.
Producers must also be enrolled in the DCP program to be eligible for any potential counter-cyclical payments on eligible 2005 crops. According to farm program rules in the 2002 Farm Bill, farm operators are required to sign up for the DCP program each year. This has been somewhat confusing to some producers, since they signed up only once for the entire seven years (1996-2002) in the last Farm Bill. After June 1, farm operators will have to pay a penalty of $100 per farm to enroll farms into the DCP program for 2005. Please contact County FSA Offices for more details.
OTHER FSA DEADLINES
- May 31, 2005 is the final date to apply for CCC loans or to collect a LDP on the 2004 corn and soybean crop. After May 31, the PCP may still be used to release grain under loan.
- Eligible producers are also reminded to sign-up for the Crop Disaster Program at County FSA Offices on crop losses from the 2003 or 2004 crops. Many farm operators are likely to qualify for disaster payments as a result of reduced soybean yields, especially from the 2003 crop year.
Editors note: Kent Thiesse is a former University of Minnesota Extension educator and now is Vice President of MinnStar Bank, Lake Crystal, MN. You can contact him at 507-726-2137 or via e-mail at [email protected].