Posted: 03.20.2010

A new program might help farmers get started with spring planting chores. Local Farm Service Agency office can provide Marketing Assistance Loans (MAL) and Loan Definciency Program (LDP) payments to producers for different market price situations.

A MAL provides the advantage of a low interest rate and repayment options. Repayment of commodity loans is usually made at the loan rate plus interest. However, if daily prices (the Posted County Prices) drop below the loan rate at any time throughout the 9-month loan period, the repayment for that day can be made with a market gain at the lower Posted County Price without interest. As commodity market prices drop, the possibility exists that the posted prices may fall below county loan rates. Producers must complete and file page 1 of the CCC-633 EZ form at the county office before beneficial interest is lost in the commodity in order to be eligible for possible LDP payments. This requirement applies to all commodity crops, minor oilseeds, honey and wool, mohair, and unshorn pelts. If you receive a LDP payment, you give up the right to put that production under a loan.

There is currently a LDP payment on wool and unshorn pelts. For 2010 wool, mohair and unshorn pelt production, the deadline to apply for benefits is January 31, 2011. For more information about MALs and LDPs, please contact your local FSA office.

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