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Texas Agriculture Archive

October 18, 2002

Counter-cyclical payments are made to eligible producers who participate in the 2002 direct and counter-cyclical program. The sign-up period for the program began Oct. 1. Producers are eligible for counter-cyclical payments only if effective prices are less than the target prices set in the 2002 Farm Bill.

The first partial counter-cyclical payment rate for upland cotton is 4.8 cents per pound; for rice, 57 cents per hundredweight; and for peanuts, $36.40 per short ton. Producers with wheat, corn, grain sorghum, barley, oats, soybean and other oilseeds base acreage will not receive a first partial counter-cyclical payment because the projected 2002 effective prices exceed the respective target prices. Grain and oilseed rates are zero because reduced production of those crops around the world has led to declining inventory levels and sharply higher U.S. farm prices.

After counter-cyclical payment rates are re-estimated in January, a second counter-cyclical payment may be issued to producers. These payments will be up to 70 percent of the projected counter-cyclical payment, less any counter-cyclical payments already received. Final counter-cyclical payments will be determined at the end of the respective marketing year for each crop.
Source: AFBF Executive Newswatch, Sept. 30, 2002

IMF calls for reduced farm subsidies
The International Monetary Fund has called for a significant reduction in worldwide farm subsidies. According to a recently released report, farmers around the world, on average, received nearly a third of every dollar they earned last year (31 percent) from direct and indirect government support, subsidies, and trade barriers.

Farmers from the United States were considerably under the world average, but still came in at 22 cents out of every dollar they earned originating from government support. The support varied widely, from a high of 69 percent in Switzerland to a low of 1 percent in New Zealand. The 15 nation European Union came in at 35 percent.

The current worldwide average of 31 percent of farm income from government support is down from 38 percent during the period of 1986-1988, according to the IMF.
Source: AFBF Executive Newswatch, Sept. 19, 2002

Ag cash rent: Paying too much or too little?
The U.S. average cropland cash rent in 2002 is $71.50 per acre, up from $71 last year.

Texas average cropland cash rent is $21 for non-irrigated and $51 per acre for irrigated.

The average U.S. pasture rental rates are $9.20 per acre, unchanged from last year.

Texas pasture land stayed the same at $7.20 per acre.

U.S. average farm real estate values climbed to $1,210 per acre on Jan. 1, 2002, up 5.2 percent from the revised 2001 average.

The Texas cropland average value per acre is $833, up 4 percent from 2001. Texas pasture land average is $640 per acre, a 4.9 percent increase.
Source: Doane's Agricultural Report, USDA Agricultural Cash Rents, August 2002