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Changes in DCP advance payment percentages

Feb. 9, 2006.  Yolo County FSA Office.  On February 8, 2006, the President signed the Agricultural Reconciliation Act of 2005 (2005 Act) into law, which provides for modifications to the Direct and Counter-Cyclical Program (DCP) direct advance payment percentages for the 2006 and 2007 fiscal years.

 The 2005 Act amends the Farm Security and Rural Investment Act of 2002 (2002 Farm Bill) by providing that, "At the option of the producers on a farm, up to 50 percent of the direct payment for a covered commodity for any of the 2003 through 2005 crop years, up to 40 percent of the direct payment for a covered commodity for the 2006 crop year and up to 22 percent of the direct payment for a covered commodity for the 2007 crop year shall be paid in advance."

 The provisions of the 2005 Act are applicable for contracts (CCC-509) enrolled after passage of the 2005 Act.  A contract is considered "enrolled" once all required signatures have been obtained from all producers sharing in base acres on the farm.  Therefore, the applicable 2006 DCP direct advance payment percentage is 50 percent for contracts
enrolled on or before February 8, 2006 and 40 percent for those contracts enrolled between February 9 and September 30, 2006.

 The revised CCC-509 Appendix applicable to February 9th and later enrollees is attached.

 Only 12 weeks remain to enroll farms in the 2006 DCP without a $100 per farm late-file fee.  Call (530) 662-3096 x 108 today to make an appointment for your annual DCP sign-up.

 Please feel free to call me at (530) 662-2986 x 104 if you have any questions.

Marianne Morton