FSA Marketing Assistance Loans Can Help Cash Flow Needs When Market Prices Are Low

Jul 13, 2016

Oklahoma USDA Farm Service Agency (FSA) Executive Director Terry Peach 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 our office to learn more about marketing loans so that they can make the best choice for their farming operations,” said Peach.

Wheat producers who are eligible for marketing loans are also eligible for loan deficiency payments (LDPs) should the posted county price fall below the county loan rate. 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 here.

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.

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