OXFORD – The Oxford County Farm Service Agency will begin issuing 2003 counter-cyclical payments for corn to eligible farmers enrolled in the Direct and Counter-Cyclical Program. Payments are authorized based on analysts’ predictions that the market prices for 2003 year corn will remain below the corn target price in the 2002 Farm Bill.

A payment of 7.7 cents per bushel for corn will be issued to producers who requested advance counter-cyclical payments. This figure is based on 35 percent of the projected corn payments rate of 22 cents per bushel. The estimate could be revised as the marketing year evolves.

Second, partial counter-cyclical payments may be issued to producers in February. Final counter-cyclical payments will be determined after Aug. 31, the end of the marketing year for corn.

Commodity payment rates are calculated using information in October’s World Agricultural Supply and Demand Estimates report.

Given historic variability in early season market price calculations, a small partial payment has some chance of requiring producer repayment. Should the market price for a crop increase slightly from the current projected levels, payments may have to be deducted from producers’ future program payments.

A first installment payment is not available for barley, oats or soybeans because their projected prices exceed their target prices.

For additional information on Counter-Cyclical payments and this program, contact the Oxford County FSA office at or go online at www.fsa.usda.gov.

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