Problem's with the Farm Service Agency computer system has prompted Kansas FSA Director Bill Fuller to extend sign-up deadline for the 2007 Direct and Counter-cyclical Program to Aug. 3. Fuller announced the extension Friday.
"The extension is due to issues involving the performance of the Farm Service Agency's web-based computer system," Fuller says. The late-file fee of $100 will only be assessed for farms that are enrolled after August 3, 2007 and before September 30, 2007.
USDA computes DCP payments using base acres and payment yields established for each farm. Direct payments provide no incentive to increase production of any certain crop, because the payments are not based on producers' current production choices. Producers receive direct payments at rates established by statute regardless of market prices.
Counter-cyclical payments provide support counter to the cycle of market
prices as part of a "safety net" in the event of low crop prices. These payments are only issued if the effective price for a commodity (which takes into account the direct payment rate, market price and loan rate) is below the target price for the commodity. Counter-cyclical payment rates vary depending on market prices.
Enrollment in DCP for the 2007 contract period began October 1, 2006, and was scheduled to end June 1, 2007. The extension applies only to the enrollment time frame, and does not extend the DCP contract period.
For more information about DCP and other FSA programs, contact your local FSA office.