USDA will issue $384 million in final 2007 counter-cyclical payments to eligible producers enrolled in the acres in the Direct and Counter-cyclical Program.
The final counter-cyclical payment rate for producers with enrolled upland cotton base acres is 6.43 cents per pound. Upland cotton farmers who accepted the first partial payment in February 2008 of 3.09 cents per pound, are now due an additional 3.34 per pound.
The counter-cyclical payment rate is the amount by which the target price of a commodity, specified by the 2002 Farm Bill, exceeds its effective price. The effective price equals the direct payment rate plus the higher of either: (1) the national average market price received by producers during the marketing year for the commodity as determined by the Secretary; or (2) the national average loan rate for the commodity. The counter-cyclical payment amount equals the counter-cyclical payment rate, times 85 percent of the farm's base acreage, times the farm's counter-cyclical payment yield.
No partial or final 2007-crop counter-cyclical payments were made to producers with enrolled corn, grain sorghum and soybean base acres because effective prices averaged well above levels that would trigger counter-cyclical payments.
Final 2007-crop counter-cyclical payments for rice, if triggered, will be announced when the final average farm price for the marketing year becomes available. This price is scheduled to be released by the National Agricultural Statistics Service on Jan. 30, 2009.