FSA office reminder to producers about loan deficiency payment program
Fergus/Petroleum County USDA Farm Service Agency Executive Director Bryan H. Schoenfelder reminds producers that the 2014 Farm Bill authorized Loan Deficiency Payments for the 2014-2018 crop years for certain crops, including wheat.
Producers who are eligible to receive a Marketing Assistance Loan, but who agree to forgo the MAL, may obtain an LDP payment under certain market conditions. The LDP payment rate equals the amount by which the applicable loan rate where the commodity is stored exceeds the effective MAL repayment rate for the respective commodity.
On July 5, The Alternative PCP (changes daily) for Hard Red Winter (HRW) Wheat is $2.96 in Fergus County with the Loan Rate being $2.90. As of this date, the LDP is $0.07 away from an LDP payment rate occurring. The LDP amount equals the LDP rate times the quantity of the commodity for which the LDP is requested.
Producers of the commodity, and the commodity itself, must meet certain eligibility requirements to qualify for the program. One of the most important requirements is that a producer is not eligible for an LDP payment if they do not maintain beneficial interest in the commodity on the date the LDP is requested. In order to maintain beneficial interest the producer must have control and title of the commodity. To protect producers from losing eligibility for an LDP payment due to loss of beneficial interest, Schoenfelder strongly encourages producers of HRW Wheat to file a CCC-633EZ form with the Fergus/Petroleum County FSA office prior to harvest.
Producers can contact the office at 538-3489 with any questions or to request the form. The form can also be obtained online at: http://forms.sc.egov.usda.gov//efcommon/eFileServices/eForms/CCC633-EZ.PDF.