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USDA Issues Final 2006-Crop Counter-Cyclical Payments (CCP) for Upland Cotton and Peanuts


WASHINGTON.– USDA has announced that eligible producers with enrolled base acres in the Counter-cyclical Payment Program (CCP) will begin receiving final 2006-crop upland cotton and peanut counter-cyclical payments today.

In contrast, strong 2006-crop market prices for corn, grain sorghum, soybean and rice have caused the effective prices of these crops to exceed their respective target prices. Thus, USDA will not issue any 2006-crop CCPs for these crops.

The counter-cyclical payment rate is the amount by which a commodity’s target price exceeds its effective price. The effective price equals the direct payment rate plus the higher of: (1) the national average market price received by producers during the marketing year, or (2) the national average loan rate for the commodity. The counter-cyclical payment amount equals the CCP payment rate, times 85 percent of the farm’s base acreage, times the farm’s CCP yield per crop

Upland Cotton

The final 2006-crop upland cotton counter-cyclical rate is 13.73 cents per pound. This is the maximum upland cotton payment rate permitted, and occurs because of market prices averaging well below the 52-cent-per-pound loan rate for the marketing year. Because of these low market prices, USDA is able to calculate the final counter-cyclical payment rate for upland cotton at this time. If market prices were higher, USDA would calculate the payment rate after USDA’s National Agricultural Statistics Service (NASS) announces the national average market price in October.

The 2002 Farm Bill made it possible for farmers and landowners to receive partial 2006-crop CCP payments in October 2006 and in February 2007. Producers who accepted the two partial payments received 9.61 cents per pound. They are now due an additional 4.12 cents per pound.


USDA also announced that producers with enrolled peanut base acres will receive 2006-crop counter-cyclical payments of $104 per short ton, the maximum payment rate permitted. The final weighted average marketing year price for 2006-crop peanuts, which NASS announced on Aug. 31, 2007, is $354 per short ton, $1 lower than the $355 per ton national average loan rate.

Peanut farmers who accepted the first and second partial payments in October 2006 and February 2007 received $72.80 per ton and are now due an additional $31.20 per ton.

For more information on the direct and counter-cyclical payment program, contact your local USDA Service center or access the following Internet site: Click on I Want To… Find FSA Fact Sheets. Under Topic, select Income Support. Under Year, select 2006. Click GO, and look for Direct and Counter-cyclical Payment Program (Mar 1, 2006).


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