Ask Andy by FSA Andy

Hello Again, and Happy New Year!

Happy New Year?

Many of you might be looking up to the top of the page right now to make sure you did not lose a few months, but I can assure you the calendar has not moved.

It is still October. But here at Farm Service Agency, October is the beginning of the new fiscal year and we are now officially in the 2011 program year.

One of the things the new program year brings is the start of the enrollment period for the 2011 Direct and Counter-cyclical Program (DCP). While signup will continue until June 1, 2011, early enrollment provides the opportunity to receive an advance payment on your estimated Direct payment.

Eligible producers can receive 22 percent of their expected Direct payment as early as December 2010. For those applicants who wish to receive all benefits in calendar year 2011 for accounting purposes, this is also an option.

Producers are able to select the month they wish to receive their advance payment at the time they enroll the farm. Operators are also eligible to receive advance payments on leased acres.

Persons requesting an advance payment be issued prior to June 1, 2010 on leased acreage are required to submit a written lease, rental arrangement, or other document signed by the landowner that proves that the producer has the land cash leased for 2011.

FSA can also accept the landowner’s signature on the CCC-509 program contract In lieu of the rental agreement. These signatures must be obtained prior to payments being issued.

Participation in the DCP program requires complying with conservation compliance (form AD-1026), payment eligibility (form CCC-902), and adjusted gross income (form CCC-926) regulations.

Conservation compliance and payment eligibility are continuous certifications. This means once filed, they can carry over from year to year as long as the applicable producer’s farm operation does not change.

Adjusted Gross Income certification must be completed on an annual basis. Your county FSA office can obtain these updated certifications when you file your 2011 DCP application.

The Adjusted Gross Income certifications apply to more than just DCP program payments. Other programs such as NAP, Marketing Loans, newer CRP contracts, and most disaster programs require this certification as well.

Several 2010 program applicants have received notice that they need to file an Adjusted Gross Income authorization sheet with the Internal Revenue Service.

The applicable forms are CCC-927 for an individual and CCC-928 for an entity.

Forms can be obtained at your local FSA office, or online at www.fsa.usda.gov. Select “Forms” at the top of the webpage, then “Browse Forms” on the left side of the next page.

Enter 927 or 928 as applicable in the “form number” box for a PDF document.

That’s all for now!

FSA Andy