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Production Flexibility Payments for Contract Commodities
Published on AidPage by IDILOGIC on Jun 24, 2005
Possible uses and use restrictions...
Producers enrolled in the 7-year Production Flexibility Contracts during the one-time sign-up held in 1996 are eligible to receive contract payments. All contracts, except those executed after the expiration of Conservation Reserve Program contracts (with an associated crop acreage base reduction), began with the 1996 crop and extend through the 2002 crop. A farm was eligible for enrollment if it had a wheat, corn, grain sorghum, barley, oats, upland cotton, or rice crop acreage base established for 1996. Once the farm is enrolled, the crop acreage base becomes contract acreage. Commodity- specific contract payment rates are determined annually based on the statutory spending levels and the amount of enrolled contract acreage. Farm level commodity payments are equal to the contract payment rate multiplied by 85 percent of the contract acreage multiplied by the farm program payment yield. To be eligible for contract payments producers are required to: (a) comply with the conservation and wetland protection requirements on all of the producer's farms; (b) comply with planting flexibility requirements; (c) use the contract acreage for an agricultural or related activity; and (d) obtain at least the catastrophic level of crop insurance for each crop of economic significance or provide a written statement that waives any eligibility for emergency crop loss assistance; and (e) file annual acreage reports on any fruit or vegetable plantings on contract acreage. Annual payments are made no later than September 30 of each of fiscal years 1996-2002. For fiscal year 1996-1998, producers could elect to receive 50 percent advance payments on December 15 or January 15 of the respective fiscal year. For fiscal years 1999-2002 payments, producers may choose to receive fiscal year 1999-2002 production flexibility contract payments as two 50 percent payments or one 100 percent payment at any time during the respective fiscal year. Final payments will be paid by September 30 of the respective fiscal year.
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