U.S. Farmers Net $1.15B Payout

WASHINGTON - Jul; 7/08 - SNS -- The USDA will issue up to $1.15 billion in 2008 advance direct payments starting today.

To receive direct payments, an individual or entity must be a producer on a farm with base acres enrolled in the DCP. Producers may elect to receive a 22% advance payment when they enroll in the DCP. Base acres are established on a farm for covered commodities and peanuts based on historical plantings.

For each covered commodity and peanuts, the direct payment for 2008 equals 85% of the farm's base acreage for the crop, times the direct payment yield for that crop, times the direct payment rate for that crop. The Commodity Credit Corporation reduces the final direct payment by any advance direct payment. Final direct payments will be issued after October 1, 2008.

Commodities with base acres eligible for direct payments and their 2008 rates are: barley, $0.24 per bushel; corn, $0.28 per bushel; grain sorghum, $0.35 per bushel; oats, $0.024 per bushel; soybeans, $0.44 per bushel; other oilseeds (canola, crambe, flaxseed, mustard seed, rapeseed, safflower, sesame seed, sunflower seed), $0.80 per hundredweight; peanuts, $36 per ton; long grain and medium grain rice, $2.35 per hundredweight; upland cotton, $0.0667 per pound; and wheat, $0.52 per bushel.