Projections Made for October DCP Rates

Agriculture Secretary Ann Veneman announced Wednesday that first partial countercyclical 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) scheduled for release Oct. 12, 2004. By statute, 2004-crop first partial countercyclical 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," says Veneman. "This is also the same approach and timing used for last year's program."

Countercyclical payments are available to producers participating in the 2004 Direct and Countercyclical Program (DCP).

Calculating First Partial Countercyclical Payments

Producers are eligible for countercyclical payments if effective prices are less than the target prices set in the 2002 Farm Bill. For each DCP commodity, the payment equals the countercyclical payment rate times 85% of the farm's base acreage times the farm's countercyclical payment yield.