NB_440_20_1 - NB 440-20-1 PGM - Index Payment Rate (IPR) in the Program Contracts System
NB 440-20-1 PGM - Index Payment Rate (IPR) in the Program Contracts System
National Bulletin: 440-20-1 Date: October 7, 2019
Subject: PGM – Index Payment Rate (IPR) in the Program Contracts System

Purpose.  To provide an update to the Index Payment Rate for Fiscal Year (FY) 2020.   
Expiration Date.  December 31, 2020
Background.  In accordance with language in the applicable contract appendix for contracts funded between FY 2007 and February 7, 2014, payment for any practice implemented on or ahead of the original practice scheduled date will be updated to reflect an IPR in effect for the year the practice is completed, subject to the availability of funds. Programs that may be eligible for the rate increase include the Agricultural Management Assistance Program (AMA), Agricultural Water Enhancement Program (AWEP), Chesapeake Bay Watershed Initiative (CBWI), Wildlife Habitat Incentives Program (WHIP) and the Environmental Quality Incentives Program (EQIP).     

Explanation.  ProTracts enabled processing of the FY 2020 payments on the evening of October 7, 2019, pending FMMI availability to accept FY 2020 transactions. The new index payment rates will be applied to all eligible practice payments certified and approved after this date. The rates by fiscal year and the applicable program for the IPR for FY 2020 payments are as follows:

Rates           Multiplier       Program
40.703%      1.40703           FY07 WHIP
27.689%      1.27689           FY08 WHIP
30.053%      1.30053           FY09 WHIP
26.458%      1.26458           FY10 WHIP
18.437%      1.18437           FY11 EQIP, WHIP
14.672%      1.14672           FY12 AMA, CBWP, EQIP, WHIP
12.797%      1.12797           FY13 AMA, AWEP, CBWP, EQIP, WHIP
8.751%        1.08751           FY14 WHIP

*IPR is not authorized for contracts funded under the 2014 or 2018 Farm Bills.

All obligation increases resulting from the implementation of the IPR will be funded from the program cost overrun account for the applicable budget fiscal year. The appendix language for the IPR specifically states it is “subject to the availability of funds.”

The IPR is calculated by the National Resource Economic, Analysis, and Policy Division and is a weighted index based on the 60 percent of the Engineering News Record (ENR) construction index and 40 percent on the National Agricultural Statistics Service Commodities and Services Interest Taxes and Wage Rates (PPITW) prices paid.     

Contact.  Questions should be directed to the FAPD SharePoint site.


 Deputy Chief for Programs
[NB_440_20_1 - ]