USDA Update

by Rod Johnson

January 3, 2003

Recent comments by the James Little, Farm Service Agency Administrator addressed concerns about the slow pace of signup in the new Farm Bill. I feel Kiowa County has done a pretty good job of getting farmers signed up and payments out to those who wanted payments prior to the first of the year. I want to especially thank Dawna Weirich and Charla Ferris who have been instrumental with dealing with the technicalities and frustrations of the signup and issuing payments for the Direct and Counter Cyclical Payment program. Thanks also to all of our producers who have done a good job of researching their base and yield options and organizing their production records. That really helps us to process your signup faster.

The authority for emergency grazing and haying on CRP acres was terminated effective December 31. All producers, who signed up for emergency grazing, have been mailed a DF-25 Certification of Participation to identify the acres actually grazed or hayed. Please check the acres for accuracy, sign and return to the FSA Office as soon as possible. We have to report total numbers by January 9.

We have not received a good explanation why further extension was not allowed other than USDA feels substantial assistance has already been granted under the Livestock Feed Program, Livestock Compensation Program, the Noninsured Crop Disaster Assistance (NAP) on grass, and the no-fee emergency grazing on CRP. We want to thank all CRP landowners that donated their CRP land to livestock producers who have really suffered due to the drought. If we can just get some rain this spring, these CRP fields should really benefit from the livestock activity and the elimination of an excess of old dead litter.

The FSA Office is making good progress on issuing advance Direct Payments to producers who requested payments by December 31, 2002. We have been getting calls from producers about why their 2003 advance payments are so small. Remember, you will only receive ONE HALF of your Direct Payment as an advance. The last one half will not be paid until October of next year. Under the previous program, you could receive 100% of your payment in advance. This is a major change in this farm bill. We stressed this several times at our meetings, but with all of the complexities and complications, some producers, especially nonresident landowners who did not attend the informational sessions, still don't understand this issue. Operators should make sure they inform their owners about this provision of the farm bill.

Producers who updated crop bases may see "COMMODITY CREDIT CORPORATION" under Payee Name/CCC Debt Repaid on their statement of payments for 2002 Direct and Counter Cyclical Payments. This occurs when one or more crop bases are reduced through the updating process, so the final payment on that commodity is less than what was previously paid in 2002. These reduced payments will be paid under other commodities where the bases increased on the farm. This is just the computer's way of tracking the adjustment in payments. When looking at the amounts on the payment statement, the amount you will receive is shown next to your name and not the bottom "Total Program Payment Earned" figure.

In an effort to obtain more complete and detailed precipitation and hail data throughout the state of Colorado, the Colorado Climate Center at Colorado State University wants to establish numerous precipitation and hail reporting sites. The project is part of the Community Collaborative Rain and hail Study (CoCoRahs). Volunteer observers will be furnished with a high quality rain gauge and "Hailpads" which are simple devices to measure the number, size, and hardness of hail stones. The Kiowa County Cooperative Extension, Farm Service Agency and Natural Resource Conservation Service will be cooperating to help get additional sites established and maintain supplies of the "Hail Pads". To register as an observer, visit their website at http://www.cocorahs.com or contact one of the USDA agencies in the county.

USDA has announced 2003 Kiowa County loan rates for wheat at $2.75 per bu, sunflower at $9.83 per cwt., barley at $1.93 per bu., and oats at $1.41 per bu. Grain sorghum and corn rates are not yet available. Note that loan rates can vary substantially across county lines. For instance, the wheat loan rate in Greeley County, Kansas is $2.65 per bu., 10¢ less than Kiowa County, Colorado. Loan rates for both warehouse and farm stored grain loans are based on the location where grain is stored and not the county where produced. Loan rates for all counties are available on the USDA/FSA web site @ www.fsa.usda.gov.