FSA’s 2007 national compliance and spot-check review
FSA is committed to delivering accurate program payment to America’s agricultural producers. The accuracy of the payments not only benefits farmers and ranchers, but also maximizes taxpayer dollars and government efficiency. As part of the 2007 National Compliance Review, FSA’s National Office is requiring local FSA county offices to conduct compliance reviews and spot checks of certain producers selected by the national office through a statistical sampling method. A statistical sample of FSA employees, County Committee (COC) and State Committee (STC) members have also been selected for review using this same process. If your operation has been selected for this review a representative of FSA will contact you and arrange an appointment to review your operation. FSA may review a producer’s operations in multiple states and counties, depending on the scope of the producer’s operations. FSA will review both the accuracy of the representations made by the selected producers in connection with participation in FSA programs as well as the producer’s compliance with applicable program requirements. The reviews may need to be conducted at various times through the year depending on the FSA programs in which the producer is participating.
No counter cyclical payment for wheat, barley or oats for 2007
The Farm Security and Rural Investment Act of 2002 provides for Counter Cyclical (CC) payments for covered commodities and oilseeds beginning with crop years 2002 through 2007. Wheat, barley, and oats did not receive an advance CC payment. Final 2006 CC payment rates for wheat, barley, and oats are zero because their effective price exceeds their respective target prices. The effective price equals the direct payment rate, plus the higher of the national average loan rate or the national average farm price. For example, the target price for wheat was $3.92. To calculate the CC Wheat payment the higher of the national average farm price or the established loan rate is used, plus the amount of the direct payment producers received. This establishes the effective price. For 2006 the effective price for wheat was $4.78, which exceeds the target price established for wheat by $.86. In any year that the effective price exceeds the target price, counter cyclical payments are not issued for that crop.
Did you certify your crops for 2007?
Your county office has tried its best to remind you of the need to certify your land use for 2007. If you missed the July 15 deadline to certify your crops and you participate in any FSA programs, you will need to file a late file certification to be eligible for your payments. The fee to late file is a minimum of $46 per farm. Program benefits cannot be issued for 2007 program participation until your certification is in place.
Time is running out for DCP enrollment
During certification we have found many producers who have “base” on their farms but have not enrolled in the Direct and Counter Cyclical (DCP) program. Any farm that has base and is capable of being farmed can be enrolled in the program. Payments are based on the history, or base you have on the farm, not what you planted on the farm in 2007. Even if you did not plant a crop on your land, if you have “base” you can receive a payment. If you have base on your farm and you wish to enroll in the DCP program, you need to call your FSA office immediately and establish an appointment. The final date to enroll for this year is Aug. 3. While you can enroll after that date, a late filing fee of $100 per farm will be assessed.