$82 Million paid to peanut producers
Agriculture Secretary Ed Schafer announced that USDA’s Commodity Credit Corporation (CCC) will issue $82 million in final 2007 counter-cyclical payments (CCP) to eligible producers with enrolled peanut base acres in the Direct and Counter-cyclical Program (DCP). USDA’s Farm Service Agency (FSA) makes final counter-cyclical payments on behalf of the CCC at the end of an applicable crop’s 12-month marketing year.
The final CCP rate for producers with enrolled peanut base acres is $49 per short ton. Peanut farmers, who accepted the first partial payment in February 2008 of $7.60 per ton, are now due an additional $41.40 per ton.
The CCP rate is the amount by which the "target price" of each commodity, specified by the 2002 Farm Bill, exceeds its effective price. The effective price equals the direct payment rate plus the higher of either: (1) the national average market price received by producers during the marketing year; or (2) the national average loan rate for the commodity. The counter-cyclical payment amount equals the CCP rate, times 85 percent of the farm’s base acreage, times the farm’s CCP yield.
No partial or final 2007-crop counter-cyclical payments were made for wheat, barley, and oats because prices averaged well above levels that would trigger counter-cyclical payments.
Final 2007-crop counter-cyclical payments for other commodities will be announced when final average farm prices for the marketing year become available. These prices are scheduled to be released by the National Agricultural Statistics Service as follows: Oct. 10, 2008, for upland cotton; Oct. 31, 2008, for corn, grain sorghum and soybeans; and Jan. 30, 2009, for rice.
For more information on the direct and counter-cyclical payment programs, visit your local FSA office or the FSA Web site: http://www.fsa.usda.gov.