Hard White Wheat
Incentive Program Provisions


The following provisions explain the Hard White Wheat Incentive Program
included in the Farm Security and Rural Investment Act of 2002.

· Effective for the white wheat crops produced in 2003, 2004, and 2005

· Both domestic and export production will qualify for the incentive payment.

· Hard White wheat (HW) grown under contract and also for open production
qualifies for the incentive payment if the quality requirements are met.

· The incentive payments are capped at $20 million dollars over the three years of
the program.  Production enrolled in the program is capped at 2 million acres.

· Local markets for HW wheat will determine where the production of HW wheat
will occur.

· The HW wheat produced must grade #2, or better, to qualify for the incentive
payment.

· Protein will not be a determining factor of quality.

· A producer of HW wheat must certify his acres of HW wheat at the FSA office
and declare the variety to the purchaser at time of delivery.

· Certified seed will not be required; however, to encourage its use, a $2 per acre
payment will be made to a HW wheat grower who uses certified seed.  The
producer only qualifies for this $2 per acre payment during his/her first year of
participation in the program.

· In addition to the $2 payment if certified seed is used, all producers of HW
wheat, which meets the quality requirements, will receive an incentive payment
of 20 cents per bushel up to a maximum of 60 bushels per acre.

· The producer can collect his incentive payment anytime during the marketing
year by taking his elevator settlement sheet into his county FSA office and asking
for his Hard White Wheat incentive payment.  The settlement sheet must show
that the wheat sold is #2 grade or better.

August 2002