Deadline for LDP, loan applications is March 31

Depressed grain prices continue to trigger loan deficiency payments (LDPs) for producers among all major commodities.

Producers have until March 31 to apply at their county Farm Service Agency offices for LDPs or make commodity marketing loan requests for the 1999 crops of wheat, barley and oats. An LDP compensates producers for losses when daily USDA posted county prices are below individual County CCC loan levels.

Another option of USDA?s price support program allows producers to pledge crop quantities for nine month term loan in lieu of obtaining an LDP. Loan program borrowers must secure either warehouse receipts or maintain in acceptable on-farm storage program crop grains and receive disbursements at $2.62 per bushel for wheat, $1.69 for barley and $1.12 for oats.

Because special marketing provisions apply to the loan program, when PCPs are below the county loan rate and a producer decides to repay or otherwise settle a loan, a gain can be realized since repayment can be made at the PCP level and interest charges are waived.

In an effort to prevent the forfeiture and delivery of loan collateral to CCC during loan maturities, USDA has authorized the issuance of commodity certificates to producers to utilize in repayment of CCC commodity loans.

Commodity certificates can be made available to all producers without regard to payment limitations. However, there is no financial advantage in purchasing certificates for repayment of commodity loans.

More from article archives
ORIGINALLY WRITTEN Jost, Schroeder plan wedding reception The public is invited to...
Read More