Colorado Farm Service Agency Reminds Wheat Producers of Marketing Loans
DENVER, CO, July 11, 2016 – USDA Farm Service Agency (FSA) State Executive Director Leland Swenson reminds 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 their local FSA office to learn more about marketing loans so that they can make the best choice for their farming operations,” said Leland Swenson.
Wheat producers who are eligible for marketing loans are also eligible for loan deficiency payments (LDPs) should the loan rate fall below the posted county price. Producers also can 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 online at www.fsa.usda.gov.
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. 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 and honey.