Direct and Counter-cyclical Payments Program

DCP
Number: 10.055
Agency: Department of Agriculture
Office: Farm Service Agency

Program Information 

Program Number/Title (010):
10.055 Direct and Counter-cyclical Payments Program
Popular Name (020):
(DCP)
Federal Agency (030):
Farm Service Agency, Department of Agriculture
Authorization (040):
The Farm Security and Rural Investment Act of 2002, Public Law 107-171.
Objectives (050):
To provide income support to eligible producers of covered commodities.
Types of Assistance (060):
DIRECT PAYMENTS FOR A SPECIFIED USE
Uses and Use Restrictions (070):
With respect to Fiscal Year 2002 payments, CCC will offer to enter into a contract with eligible producers of covered commodities on October 1, 2002 through the date announced by CCC. With respect to Fiscal Years 2003 through 2007, CCC shall offer to annually enter into a contract with an eligible producer on a farm having base acreage with respect to a covered commodity at the beginning of each such fiscal year 2003 through 2007 through the date announced by CCC for each such year.
Eligibility Requirements (080)
Applicant Eligibility (081):
To be eligible for payments under DCP, owners, operators, landlords, tenants, or sharecroppers must (1) share in the risk of producing a crop on base acres on a farm enrolled in DCP, and be entitled to share in the crop available for marketing from the base acres, or would have shared had a crop been produced; (2) annually report the use of the farm's cropland acreage; (3) comply with conservation and wetland protection requirements on all of their land; (4) comply with planting flexibility requirements; (5) use the base acres for agricultural or related activities; and (5) protect all base acres from erosion, including providing sufficient cover as determined necessary by the county FSA committee, and control weeds.
Beneficiary Eligibility (082):
DCP provides payments to eligible producers on farms enrolled for the 2002 through 2007 crop years.
Credentials/Documentation (083):
As a condition of eligibility for direct and counter-cyclical payments, the operator or owner must submit a report of all cropland acreage on the farm. Reports of production evidence for all covered commodities shall be provided to the county committee of the county where the farm is administratively located, by farm and crop in such manner as required by CCC on a CCC-approved standard, uniform form designated by CCC. When disposition of production has been through commercial channels, CCC may require the producer to furnish documentary evidence in order to verify the information provided on the report of production. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process (090)
Preapplication Coordination (091):
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedures (092):
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The CCC-509 must be submitted. The following documents are required and applicable determinations must be made before the county committee can approve a producer's share on the CCC-509 for payment: (1) a farm operating plan (CCC-502 and related forms); (2) an average adjusted gross income certification (CCC-526); (3) a certification of compliance with highly erodible land and wetland conservation provisions (AD-1026). A certification of the acreage of all cropland on the farm (FSA-578) is needed before final payments can be issued.
Award Procedure (093):
Producers may elect to receive their direct payments in two installments per year: (1) the first payment, available in December of the fiscal year, is up to 50 percent of the total payment; (2) the balance of the total direct payment is available in October of the fiscal year after the fiscal year the payment is earned. Producers who do not elect to take the first direct payment will receive the entire direct payment at this time. Producers may elect to receive up to three counter-cyclical payments per year: (1) first partial payments are available in October of the calendar year in which the crop is harvested. These payments cannot exceed 35 percent of the total projected payment; (2) second partial payments, up to 70 percent of the projected payment, minus the amount of the first partial payment, are available the following February (the year after the crop is harvested); (3) final payments are made after the end of the marketing year for the crop. Producers who do not elect to take the first and second advance payments will receive the entire counter-cyclical payment at this time.
Deadlines (094):
Dec 22, 2008 to Jun 01, 2009 Please contact the program contact listed in the Information Contacts section below.
Range of Approval/Disapproval Time (095):
From 15 to 30 days. Approval of payments depends on farmer compliance with conservation and wetland protection requirements on all of the producers' farms, planting flexibility requirements and other eligibility requirements mentioned above, and is fairly routine and prompt.
Appeals (096):
From 15 to 30 days. A producer may obtain reconsideration and review of any adverse determination made under this part in accordance with the appeal regulations found at parts 11 and 780 of Title 7 Agriculture.
Renewals (097):
Farm producers must apply for DCP on an annual basis and can opt out of participating in DCP for any year if they so choose.
Assistance Consideration (100)
Formula and Matching Requirements (101):
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance (102):
The DCP payment schedule for 2002 and 2003 crop years is in the hyperlink provided below. The payment schedule for the 2004-2007 crop years parallels the schedule for the 2003 crop year, though the Deficit Reduction Act of 2005 reduced the advance direct payment rate to a maximum of 22 percent. http://www.fsa.usda.gov/pas/publications/facts/html/dcp03.htm. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements (110)
Reports (111):
No reports are required.
Audits (112):
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.
Records (113):
An owner or any other individual or entity receiving assistance for DCP shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which assistance was provided.
Financial Information (120)
Obligations (122):
(Direct Payments with Unrestricted Use) FY 11 $123,959,000; FY 12 est $10,183,000; and FY 13 est $0 - Counter-Cyclical Payments. (Direct Payments with Unrestricted Use) FY 11 $4,744,958,000; FY 12 est $3,959,767,000; and FY 13 est $4,958,209,000 - Direct Payments.
Range and Average of Financial Assistance (123):
No Data Available.
Program Accomplishments (130):
Not Applicable.
Regulations, Guidelines, and Literature (140):
Program is announced through news media and in letters to agricultural producers in the counties. Regulations published in the Federal Register, 7 CFR Part 1412.
Information Contacts (150)
Regional or Local Office (151) :
See Regional Agency Offices. Consult the local phone directory for location of the nearest county FSA office. If no listing, contact the appropriate State FSA office listed in the Farm Service Agency section of Appendix IV of the Catalog or on the WEB at http://www.fsa.usda.gov/edso/.
Headquarters Office (152):
Candace Thompson, 1400 Independence Avenue, SW, Stop 0517, Washington, District of Columbia 20250-0517 Email: candy.thompson@wdc.usda.gov Phone: (202) 720-7641 Fax: (202) 690-2130.
Website Address (153):
http://www.fsa.usda.gov .
Related Programs (160):
Not Applicable.
Examples of Funded Projects (170):
Not Applicable.
Criteria for Selecting Proposals (180):
Not Applicable.