Applications for commodity-based loans, deficiency payments now at Marion office

ORIGINALLY WRITTEN STAFF
Price support commodity based loans and loan deficiency payments on

1999 crop corn, grain sorghum, soybeans and sunflowers will be

available to producers through May 31.



To qualify, producers need to be participating in compliance with the

1996-2002 Production Flexibility Contract federal farm program.

Producers also must have ?beneficial interests? in the crop in which

the plan to make a loan or LDP request.



A ?beneficial interest? means the producer is obligated to have

control, title and assume the risk of any loss for the commodity.



Marion County loan rates are $1.98 per bushel for corn, $5.11 per

bushel for soybeans, $3.02 per cwt for grain sorghum and $9.24 per cwt

for sunflowers (oil).



Marketing loans are accepted on farm or warehouse stored quantities

and have a nine month term with a variable interest rate assigned

depending on when the request is made.



In lieu of obtaining a loan, producers may pledge their eligible

production for an LDP. An LDP compensates producers for low crop

prices by providing a direct cash payment at a rate that daily USDA

Posted County Prices are below county loan rates. The PCP also can be

used to settle a loan during depressed grain price periods by allowing

a reduced repayment rate and interest charge waiver.



According to William Harmon, Farm Service Agency county executive

director, many producers have found loans and LDPs as a way to obtain

low cost operating funds while holding their grain off the market for

future deliveries when price levels may be more favorable. He said

producers should keep the May 31 deadline in mind before they make

decisions to sell or otherwise dispose of the 1999 feed grain crops

this spring.



May 31 also is the last day producers of wheat, barley and oats can

file acreage reports or certifications. Acreage reports are required

before producers can be issued annual payment benefits under

Conservation

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