By Tammy M. Goodyear
County Executive Director
USDA/Farm Service Agency
The 2014 Farm Bill authorized 2014-2018 crop year Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) for eligible growers of wheat, feed grains, honey and wool.
In Virginia, wheat prices are nearing a range where Loan Deficiency Payments (LDPs) may be applicable, so producers should become familiar with the process to access this assistance.
Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) provide financing and marketing assistance for wheat, as well as other commodities such as feed grains, soybeans, wool 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 harvest-time lows.
A producer who is eligible to obtain an MAL, but agrees to forego the loan, may obtain an LDP if such a payment is available.
To be eligible for an MAL or an LDP, producers must have a beneficial interest in the commodity, in addition to other requirements. A producer retains beneficial interest when control of and title to the commodity is maintained. For an LDP, the producer must retain beneficial interest in the commodity from the time of planting through the date the producer filed Form CCC-633EZ (page 1) in the FSA County Office. For more information, producers should contact their local FSA county office or view the LDP Fact Sheet.
For additional information on commodity loans or LDPs, producers are encouraged to contact the Patrick Farm Service Agency Office at (276) 694-3121.
