These producers also have the opportunity to request a measurement service using the quantity determined by Farm Service Agency as their production evidence to pledge for the loan.
In 2007, a loan-request deadline of March 30 applies for all 2006 crop year wheat, barley and oats.
The base loan rates in Marion County are: wheat, $2.85 per bushel; barley, $1.75 per bushel; oats, $1.34 per bushel.
Base loan rates are adjusted for discounts and premiums according to the condition and quality of the commodity. Since these marketing-assistance loans are nonrecourse, producers have the option of delivering or forfeiting to the CCC the crops that were pledged as collateral at loan maturity in satisfaction of the indebtedness.
At the chosen time or repayment, a producer can “market repay” the loan at that crop’s CCC determined value or posted county price (PCP) and be credited with a market gain, only when the PCP is at or below the county loan rate.
Producers also have the option to lock in a PCP for repayment for up to 60 days during the loan term, except when the loan is within 14 days of maturity. Otherwise, normal settlement payments are calculated by taking the loan rate times quantity (principal) plus accumulated interest costs.
For more details about marketing-assistance loans, producers should contact the Marion County FSA office at 620-382-3714.
Bill Harmon is executive director of the Marion County FSA office.