Montana FSA: Farm Service Agency Reminds Montana Wheat Producers of Marketing Loans

USDA Farm Service Agency (FSA) State Executive Director Bruce Nelson reminds Montana wheat producers that FSA Marketing Assistance Loans can help meet cash flow needs without selling commodities when market prices are at harvest-time lows.

“In the current marketing environment for wheat, producers are encouraged to contact our office to learn more about marketing loans so that they can make the best choice for their farming operations,” Nelson said.

Wheat producers who are eligible to obtain marketing loans may also be eligible for loan deficiency payments (LDPs) if they choose to forgo the marketing loan to obtain the LDP should the posted county price fall below the county loan rate. The producer would agree to forgo the marketing loan in order to obtain an LDP. Producers can also purchase a commodity certificate that may be exchanged for the outstanding loan collateral. Unlike LDPs, use of commodity certificates does not affect payment limitations. Producers can check their daily LDP rates in Montana online at http://www.fsa.usda.gov/FSA/ldppcpStateInfo?mystate=mt&area=home&subject=dalp&topic=landing.

For a commodity to be eligible for a loan, loan deficiency payment, or certificate, the producer must have beneficial interest in the commodity, defined as having title, possession and control of the commodity, and responsible for loss of or damage to the commodity. All related application forms must be completed at the local FSA office prior to loss of beneficial interest including page 1 of the CCC-633EZ form. Other eligibility requirements may apply; consult your local FSA office for more information.

Marketing assistance loans are also available for other commodities, such as corn, grain sorghum, barley, oats, soybeans and other oilseeds (including sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe and sesame seed), dry peas, lentils, small chickpeas, large chickpeas, grade and non-graded wool, mohair, unshorn pelts, honey and peanuts.

For more information, visit http://www.fsa.usda.gov/pricesupport and the Montana FSA website at http://www.fsa.usda.gov/mt. To find your local USDA Service Center, go to http://offices.usda.gov.