Payments issued in October
Annual rental payments for the CRP program are scheduled to be issued the week of October 1. Those participants utilizing direct deposit should see the payments in their accounts the week of October 8.
DCP and ACRE direct payments will be processed after CRP, and participants should see those disbursements around October 15.
Changes to 2012 1099-G
2012 brings several changes to the way FSA reports a producer's farm program payments to the producer and to IRS.
With payments being issued next month, program participants should keep these changes in mind.
Keep track of your payment statements from FSA in preparation for 2012 income taxes.
In past years, IRS Form 1099-G would be issued to show all program payments received from the Farm Service Agency, regardless of the amount.
Starting with calendar year 2012, producers whose total reportable payments from FSA are less than $600 will not receive IRS Form 1099-G (Report of Payments to Producers).
Additionally, producers who receive payments from more than one county will only receive one Form 1099-G if the total of all payments from all counties is $600 or more
Producers who receive less than $600 in combined payments should consult a tax advisor to determine if these payments must be reported on their tax return.
If the payments were subject to withholdings a Form 1099-G will be issued regardless of the total amount of the payments.
These changes will also apply vendors who normally receive IRS Form 1099-MISC from FSA.
NAP sales closing date
Producers have until Monday, October 1, 2012, to purchase coverage through the Noninsurable Crop Disaster Assistance Program (NAP) for all Fall-seeded Forages and Small Grains including Wheat.
The sales closing date is actually September 30, 2012, but producers have until Monday, October 1, 2012, to purchase coverage this year because September 30 falls on a weekend.
NAP provides coverage on commercially produced crops for which traditional crop insurance is not available.
Friday, September 28 is the last day to apply for ECP-Drought cost-share assistance.
It is also the last day to certify and turn in bills for Mid-Contract Management practices and food plots for CRP.
Also those who hayed and/or grazed CRP under Managed or Emergency Haying and Grazing must certify and pay for the acres actually used by this Friday.
If not paid for by this Friday, then we will reduce the annual CRP payment by the amount of acres that were originally intended to be used.