Cotton farmers will soon be receiving 2004-crop counter-cyclical payments of 13.73 cents per pound and peanut growers $81 per short ton, Agriculture Secretary Mike Johanns announced.
When national average selling prices fall below the target price for a commodity, counter-cyclical payments are made after the end of the marketing year, Johanns said. Farmers previously could receive two partial 2004-crop CCP payments, one in October 2004 and one in February 2005.
The payment rate for upland cotton is at its maximum level due to market prices that have averaged well below the 52-cents-per-pound loan rate during the 2004-05 marketing year (Aug. 1-July 31). Because of the low prices, USDA is able to determine the final counter-cyclical rate at this time. Payments will be made on 85 percent of a grower’s acres.
Producers who accepted the first and second partial CCP payments for 2004-crop upland cotton received 9.61 cents per pound and are due an additional 4.12 cents-per-pound.
Producers who accepted the first and second partial CCP payments for 2004-crop peanuts received $41.30 per ton and are due an additional $39.70 per ton.
The final weighted average marketing year price for 2004-crop peanuts, which was announced on Aug. 31, 2005, is $378 per short ton, $23 higher than the $355 loan rate.