Updated March, 2005
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William Edwards

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William Edwards, extension economist, 515-294-6161, wedwards@iastate.edu




decision tool in Excel format Use this decision tool to project Direct payments and Counter Cyclical Program Payments for the current farm bill.

The 2002 Farm Security and Rural Investment Act (FSRIA) provides for three different types of payments for an expanded list of farm commodities:

  • Direct Payment: a fixed payment paid twice a year.
  • Counter Cyclical Payment (CCP): available to offset low prices; paid up to three times per year.
  • Loan Deficiency Payment (LDP) or Marketing Assistance Loan: available to offset low prices, on application.

The crops that are covered by the bill include corn, soybeans, oats, wheat, grain sorghum, barley, upland cotton, rice, sunflowers, rapeseed, canola, safflower, flax, and mustard seed. In addition, loan deficiency payments are extended to long staple cotton, dry peas, lentils, small chickpeas, wool, mohair, and honey.

A thorough discussion of these topics is presented in the accompanying "pdf" file that you can access by clicking here or on the icon above.

For assistance in determining the amount and timing of payments, use the USDA Payment Calendar spreadsheet available by clicking here or on the icon above.

There are several useful web sites related to USDA commodity programs.

A forecast of this year's counter cyclical payments is available from Dr. Robert Wisner

Another site that tracks counter cyclical payments is available from Kansas State University

Check the USDA web site to find out the loan rates in your county

The USDA also maintains a web site with daily Projected County Price (PCP) and Loan Deficiency Payment (LDP) information

USDA marketing loans must be repaid within 9 months, plus interest at the current FSA rate, which is usually below market rates.