Sources Confirm USDA Legal View is All DCP/ACRE Participants Treated Same Under Sequester

February 27, 2013 05:17 AM

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No difference between those signing up before or after March 1.

Whether producers signup before or after March 1 for the 2013 Direct and Countercyclical Payment (DCP) and Average Crop Revenue Election (ACRE) programs, the legal opinion at USDA is that all will be treated the same in the event that sequester cuts force a reduction in payments, according to government sources.

A legal question had been raised on whether those signing up for the 2013 farm program before the March 1 date would be affected by any sequester reductions as those would not take effect until after that date. But the legal opinion, contacts inform, is that all producers will be treated the same under any sequester-forced reductions whether they signed up for the 2013 programs before or after March 1.

As we previously noted, FSA included the following statement when they issued the Form CCC-509 Appendix, which covers the 2013 DCP and ACRE programs, included the following statements relative to the possible sequester reductions:

"Payments under the DCP and ACRE programs may be reduced by a certain percentage due to a sequester order required by Congress and issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985. Should a payment reduction be required, FSA will provide notice about the required percent of payment reduction that applies to direct, countercyclical and ACRE payments."

Agriculture Committee contacts had earlier indicated they, too, believed that all DCP/ACRE participants would be treated the same under a sequester, but were rechecking with USDA on the matter.


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