Timetable For Direct And Counter-Cyclical Payments

Some provisions of the 2002 Farm Bill take effect immediately. Other provisions, such as the new loan rates take effect upon harvest. Other provisions, such as direct and counter-cyclical payments, will take effect when producers sign contracts later this year. Certain provisions in the 1996 farm bill will continue for the balance of this fiscal year, such as availability of production flexibility contract payments.

For the 2002 crop, payments under the new farm bill will begin to be made as soon as local FSA offices determine bases and program payment yields for the covered crops and signup is complete. The payment schedule for 2002 and 2003 crop years is in the following table. The payment schedule for the 2004-2007 crop years parallels the schedule for the 2003 crop year.

Direct or counter-cyclical payments will not be affected by planting choices in 2002. The payments through 2007 are based on the landowners’ one-time option they will select at program signup, which is based on information from previous years. A producer’s planting choices (other than restricted crops) in 2002 will have no effect on the 2002 and subsequent years’ direct or counter-cyclical payment amounts.