U.S. Department of Agriculture (USDA) Vernon County Farm Service Agency (FSA) director Katharine Lewison reminded producers Oct. 15 that USDA offers interim financing at harvest time to help producers meet cash flow needs without having to sell commodities when market prices are at harvest-time lows.
The programs, known as Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs), were authorized by the 2014 Farm Bill for the 2014-2018 crop years.
“These are among the many tools offered by Farm Service Agency to help farmers navigate price and market conditions, so as we approach the harvest season, we encourage producers to consider these programs as a helpful option,” said Lewison.
A producer who is eligible to obtain a marketing loan, but agrees to forgo the loan, may obtain a loan deficiency payment if such a payment is available. The programs provide financing and marketing assistance for wheat, feed grains, soybeans and other oilseeds, pulse crops, wool, and honey. For eligibility, producers must control the commodity or a title to the commodity until the loan is repaid.
Interest rates for nine-month 2015 crop year crop loans are announced monthly and for loans disbursed in October the interest rate is 1.375%. The national loan rates for 2015 crops are $1.95/bu for corn, $5.00/ bu for soybeans, and $1.94/bu for winter wheat. Loan rates in Vernon County are $1.83/bu for corn and $4.94/bu for soybeans.
Producers will need to certify or provide evidence of their harvested production. Loan are calculated using the certified bushels, not to exceed the county committee established maximum yields per acre, times the local county loan rate. Monthly spot-checks are conducted to ensure the quantity and quality of the crop being stored.
FSA is now accepting applications for all eligible commodities. For expedited service, interested producers are encouraged to schedule an appointment. Other program restrictions may apply, including limits on total payments or gross income thresholds.
Contact the Vernon County office at 608-637-2183 for further details. For more information, visit www.fsa.usda.gov/pricesupport.