The U.S. Department of Agriculture announced it will begin issuing the second partial counter-cyclical payments (CCPs) to producers with 2006-crop upland cotton base acreage enrolled in the Direct and Counter-cyclical Payment Program.
The second partial rate is $0.0961 per pound, which is 70 percent of the projected total of $0.1373. For base-holders who received the first partial payment of $0.0481 in October ’06, they will receive $0.0480 (i.e. $0.0961 - $0.0481) in February. For those who elected not to take the first partial payment, they are eligible for the full amount of $0.0961.
Producers are eligible for CCPs when effective prices fall below target prices as specified in the 2002 Farm Bill. 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. USDA calculates CCPs based on historical base acreage and payment yields, not current production.
USDA also announced the second partial CCP rate for ’06 peanuts and the final rate for ’05 rice.
Full details can be found on the Farm Service Agency’s web site at http://www.fsa.usda.gov.