With ups and downs in commodity prices, the Logan County Farm Service Agency, County Executive Director, Sherry Lederhos, is asking wheat producer to come into the office and sign form CCC-633EZ, page 1, Loan Deficiency Payment (LDP) Agreement Request for the 2017 crop. The form must be signed before the crop is sold or contracts are filled.
“Loan Deficiency Payments (LDP) are a marketing tool available to producers beginning upon harvest” said Lederhos. “The LDP helps agricultural producers to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows, allowing the producer to delay the sale of the commodity until more favorable market conditions emerge.”
The Agricultural Act of 2014 (2014 Farm Bill) authorizes loan deficiency payments (LDPs) for wheat, corn, grain sorghum, barley, oats, soybeans, other oilseeds (including sunflower seed, rapeseed, canola, safflower, flaxseed), nongraded wool, mohair, and unshorn pelts.
Eligible producers may obtain an LDP under certain market conditions. The LDP rate equals the amount by which the applicable loan rate where the commodity is stored exceeds the effective Marketing Assistance Loan (MAL) repayment rate for the respective commodity. The LDP amount equals the LDP rate times the quantity of the commodity for which the LDP is requested.
Please stop in the office as soon as possible to sign the LDP form.
Daily LDP rates can be found on the following:
For more information, please contact the Logan County FSA Office.