OU 355

October 5, 2000

Production Flexibility Contract Payment Rates for 2001
C.E. Curtis, Jr., Extension Ag. Economist

The USDA has announced Production Flexibility Contract (PFC) payment rates for fiscal year 2001. South Carolina producers are expected to receive an estimated $22 million of the approximate $4.1 billion contract payments to be distributed nationwide in FY 2001. The payments, also commonly referred to as agricultural market transition payments (AMTA), were provided for in the FAIR Act of 1996 to replace income support protections producers received in the form of deficiency payments in previous legislation. These payments have been reducing during the life of the FAIR Acts, which covers the 1996 through 2002 crop years.

Table 1. Production Flexibility Contract Payment Rates for 2001

According to USDA's Farm Service Agency, there has been a change payment request procedure effective this year which provides farmers greater flexibility in the timing of receiving their PFC payments. Producers may request to receive payments during any month from October 2000 through September 2001. Those who do not choose a payment option will receive their full payment near the end of that period. As a practical matter producers will normally opt to receive payment immediately upon eligibility or shortly after January 1, 2001. Eligibility and payment amount is also affected by rental arrangements. Producers should contact their local Farm Service Agency office for further information regarding payment eligibility options.

The Clemson University Cooperative Extension Service offers its programs to people of all ages, regardless of color, sex, religion, national origin, disability, political beliefs, sexual orientation, marital or family status and is an equal opportunity employer.

Clemson University Cooperating with U.S. Department of Agriculture, South Carolina Counties, Extension Service, Clemson, South Carolina. Issued in Furtherance of Cooperative Extension Work in Agriculture and Home Economics, Acts of May 8 and June 30, 1914.

Outlook Update Index   Ag Econ Home

updated 10/5/00