Sign-up for the 2005 Direct and Counter-cyclical Payment Program (DCP) is underway at USDA Service Centers, and producers may also enroll online starting October 20.

Secretary of Agriculture Ann Veneman says, "This month, we will be making an additional $2.6 billion in final direct payments for the 2004 crop year."

The electronic DCP service allows producers to choose 2005 DCP payment options, assign crop shares and sign and submit their contracts electronically from any computer with Internet access. The electronic service will be available online starting Oct. 20, 2004, by clicking HERE. To access the service, eligible producers must have an active USDA eAuthentication Level 2 account, which requires filling out an online registration form followed by a visit to the local USDA Service Center for identity verification.

DCP Contracts Due by June 1, 2005

Producers have until June 1, 2005, to enroll for the 2005 DCP. USDA will accept late-filed applications through Sept. 30, 2005, if accompanied by a $100 late fee. Producers must sign contracts annually under DCP and can opt out of participating in the program in any year. In addition to the new electronic DCP service, USDA is providing expanded service for producers who choose to travel to a USDA office to complete their 2005 DCP contract.

DCP Payments DCP payments are computed using the base acres and payment yields established for each farm. Producers receive direct payments at rates established by statute regardless of market prices. Countercyclical payment rates vary depending on market prices. Countercyclical payments are issued only when the effective price (which takes into account the direct payment rate, market price and loan rate) for a commodity is below the target price for the commodity. For "other oilseeds," because of the existing loan rate, the maximum countercyclical payment rate is zero.

The 2005 crop year direct payment rates and maximum potential countercyclical rates are as follows:

The schedule of payments for the 2005 DCP is as follows: