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Market price levels prevent counter-cyclical payments for wheat producers

By WILLIAM J. HARMON

Executive Director

Marion County FSA

Increases in 2004-05 crop prices will require wheat and oats producers, who received advance partial counter-cyclical farm payments last October and February under the Direct and Counter-cyclical Program (DCP), to refund them.

Affected producers will have two options of refunding these unearned payments that was explained in letters sent to them in May.

The default option will be to reduce any DCP payments received between October 2005, and March 2006, to satisfy the obligation. The second option allows producers to write a check to Commodity Credit Corp. (CCC) for the indebted amount. A total of 540 Marion County producers received advance counter-cyclical payments.

Final 2004 year counter-cyclical payment rates for wheat and oats are zero because the effective prices equaled, in the case of wheat, and exceeded, in the case of oats, the respective target prices.

Barley is entitled to a final counter-cyclical payment at a rate of $0.045/bu if earlier advance payments were accepted or $0.15/bu if no advances were taken.

The end of the 2004 counter-cyclical marketing year for corn, sorghum, and soybeans is Aug. 31 with payment earnings to be determined in October 2005.

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