In a notice to state and county offices, USDA’s Farm Service Agency indicates that Direct Payments (DP) for the 2012 crop will be processed on or about Oct. 5. DPs for the 2012 crop represent the last year authorized under the Food, Conservation, and Energy Act of 2008 (2008 farm law). DPs are available to eligible participants enrolled in either the Direct and Counter-Cyclical Payment (DCP) Program or the Average Crop Revenue Election Program.

DPs to upland cotton base acres enrolled in the DCP program will be determined by multiplying the DP rate of $0.0667 per pound by eligible payment pounds. For the 2012 crop, payment pounds equal payment yield multiplied by 85 percent of enrolled base acres. As legislated in the 2008 farm law, the percent of base receiving DPs reverts to 85 percent for the 2012 crop, after being reduced to 83.3 percent for the 2008-2011 crops.