USDA Sets Marketing Assistance Loan Rates

USDA Sets Marketing Assistance Loan Rates

USDA prepares to accept Marketing Assistance Loan and Loan Deficiency Payment requests.

FAQ: When will Marketing Assistance Loans, and LDPs, as provided in the new 2014 Farm Bill, be made available by USDA?
Answer: USDA's Farm Service Agency will begin accepting requests for marketing assistance loans, or MALs, and loan deficiency payments, or LDPs, for eligible 2014 commodities. Notice of the authorization was published in the March 28 Federal Register.

MALs and LDPs for the 2014 crop year become available to eligible producers beginning with harvest/shearing season and extending through a specific commodity's final loan availability date. 

Sugar commodity loans for 2014 crop will be available to sugar processors beginning Oct. 1, 2014. 

PROGRAMS PROVIDE HELP: Marketing Assistance Loans and the Loan Deficiency Payment Program offered by USDA provide financing and assistance for a number of commodities.

MALs and LDPs provide financing and marketing assistance for wheat, feed grains, soybeans, and other oilseeds, pulse crops, rice, peanuts, cotton, wool, mohair and honey. MALs provide producers interim financing after harvest to help them meet cash flow needs without having to sell their commodities when market prices are typically at harvesttime lows. Allowing farmers to store their products at harvest facilitates a more orderly marketing of commodities throughout the year. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available.

Marketing loan provisions and LDPs are not available for sugar and extra-long staple cotton.

Question: What does the new farm bill say about payment limits?
Answer:
The 2014 Farm Bill also establishes payment limitations per individual or entity not to exceed $125,000 annually on certain commodities for the following program benefits: price loss coverage payments, agriculture risk coverage payments, marketing loan gains, or MLGs, and LDPs. These payment limitations do not apply to MAL loan disbursements. Please consult your local FSA office for details.

Adjusted Gross Income, or AGI, provisions were modified by the 2014 Farm Bill, which states that a producer whose total applicable three-year average AGI exceeds $900,000 is not eligible to receive an MLG or LDP.

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National loan rates for commodities: The 2014 Farm Bill establishes national loan rates for the 2014 crops of wheat, feed grains, oilseeds, pulse crops, milled rice, peanuts, extra-long staple cotton, wool, mohair, sugar and honey. The 2014 Farm Bill requires the upland cotton base quality loan rate to be determined annually according to the applicable statutory provisions. The 2014 crop loan rates are: 

Wheat

$2.94 per bushel

Corn

$1.95 per bushel

Grain Sorghum

$1.95 per bushel

Barley

$1.95 per bushel

Oats

$1.39 per bushel

Soybeans

$5.00 per bushel

Other Oilseeds

$10.09 per hundredweight for each "other oilseed"

Small Chickpeas

$7.43 per hundredweight

Large Chickpeas

$11.28 per hundredweight

Dry Peas

$5.40 per hundredweight

Lentils

$11.28 per hundredweight

Long grain rough rice

$6.50 per hundredweight

Medium/short grain rough rice

$6.50 per hundredweight

Peanuts

$355.00 per ton

Upland Cotton

$0.52 per pound *

Extra Long Staple Cotton

$0.7977 per pound

Graded Wool

$1.15 per pound

Nongraded Wool

$0.40 per pound

Mohair

$4.20 per pound

Raw Cane Sugar

$0.1875 per pound

Refined Beet Sugar

$0.2409  per pound

Honey

$0.69 per pound

*The 2014-crop upland cotton loan rate was previously announced on Feb. 18, 2014.

County loan rates announced: County loan rates also are announced for the 2014 crops of wheat, corn, grain sorghum, barley, oats, soybeans and other oilseeds (sunflower seed, flaxseed, canola, rapeseed, safflower, mustard seed, crambe and sesame seed); national milled rice loan rates by class and state rough rice loan rates by class for the 2014 rice crop; and regional loan rates for 2014 pulse crops (dry peas and lentils). The rates are posted on the FSA website.

Later announcements will include peanut loan rates by type, refined beet sugar loan rates by region, raw cane sugar loan rates by state, and the schedule of premiums, discounts and other related information. For more information, visit a nearby USDA Service Center or FSA's website.

TAGS: Soybean USDA
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