Producers LDP-eligible who lost ‘beneficial interest’

The Farm Security and Rural Investment Act of 2002 has provided additional considerations to now be made available in granting eligibility for producers who still would like to request 2001 crop year loan deficiency payments (LDP), even though 2001 crop request deadlines are past.

The considerations extend 2001 LDP benefits to those who:

had produced Production Flexibility Contract (PFC) crops such as wheat, sorghum, corn, barley, and oats on farms that have not been participating in the PFC farm program;

had lost “beneficial interest” or ownership title to LDP eligible crops on either a PFC or non-PFC farm. Thus, any producer who has previously requested an LDP, but was disapproved due to the loss of “beneficial interest,” can now be eligible.

PFC-participating producers can immediately begin filing their LDP requests on qualifying quantities. The LDP payment rate applied will be the rate in effect on the date of request. A request deadline has not yet been established by U.S. Department of Agriculture.

The waiver of “beneficial interest” is allowed if the producer has not previously received a CCC commodity loan or LDP on the applicable crop quantity, submits this new LDP request within 30 calendar days of the yet unannounced publication of the Federal Register regulation, and provides acceptable production evidence (i.e. sales receipt) that indicates when “beneficial interests” were lost.

The LDP payment rate used will be that rate identified to the date that the producer marketed, fed, seeded, or otherwise lost “beneficial interest” in that crop.

Producers should remember that these special provisions apply to 2001 crop LDP requests only. The beginning of the 2002 crop harvest season has for some started, as wheat was being hayed or ensiled over the past few weeks and, with grain harvest soon approaching, interest will increase in LDP application.

Thus, producers will be permitted to file LDP requests on their 2002 amounts-however, they cannot be quoted a calculated payment rate until county loan rates have been released to us by USDA, which enables the LDP process to operate as formulated.

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