Counter-cyclical payment (CCP) — Under the

Direct and Counter-cyclical Program The Direct and Counter-cyclical Payment Program (DCP) of the USDA provides payments to eligible producers on farms enrolled for the 2002 through 2007 crop years. There are two types of DCP payments – direct payments and counter-cyclical payments. ...

(DCP) created by the

2002 farm bill The Farm Security and Rural Investment Act of 2002, also known as the 2002 Farm Bill, includes ten titles, addressing a great variety of issues related to agriculture, ecology, energy, trade, and nutrition. This act has been superseded by the 2007 ...

(P.L. 101-171, Sec. 1101-1108), counter-cyclical payments are made to participating producers when the

marketing year A marketing year is a period of one year (or sometimes less), designated for reporting and (or) analysis of production, marketing and disposition of a commodity. (Disposition of an agricultural crop might include such uses as food, animal feed, ind ...

average price received by farmers for a covered commodity is less than the target price. The total payment to a producer is the payment acres (85% of

base acres In United States agricultural law, a farm’s base acreage is its crop-specific acreage of wheat, corn, grain sorghum, barley, oats, upland cotton, soybeans, canola, flax, mustard, rapeseed, safflower, sunflowers, and rice eligible to enroll in the ...

) times the payment rate (

target price Target price may mean: *A stock valuation In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, pot ...

minus average

market price A price is the (usually not negative) quantity of payment or Financial compensation, compensation given by one Party (law), party to another in return for Good (economics), goods or Service (economics), services. In some situations, the pr ...

, except not more than the difference between the target price and the sum of the national loan rate and the direct payment rate).

References

* {{DEFAULTSORT:Counter-Cyclical Payment United States Department of Agriculture Agricultural subsidies