As you harvest your crops this fall, keep in mind that you can obtain marketing loans through our office that enable you to obtain cash to operate while you are holding onto your crop for future marketing opportunities or for feeding.
These marketing loans are nine-month, non-recourse loans. They can be farm stored or stored in a state-licensed warehouse that issues warehouse receipts according to state law.
Loan rates vary by county, but are around $1.95 for corn and $5.06 for soybeans.
The interest rate for September is 1.25 percent, and is locked in until January, when it will switch to the crop loan interest rate announced Jan. 1. The loans can be repaid at anytime during the nine-month period.
Non-recourse loans can also be obtained on high-moisture corn or cracked, rolled, or crimped corn. The loan for commodities stored in structures that can be measured is 100 percent of the base county loan rate. For commodities that cannot be measured, it is 75 percent of the base county loan rate. Structures that are sealed are considered structures that “cannot be measured.”
If you plan on feeding this grain, you must submit a repayment schedule so the grain is repaid prior to feeding. This it typically in monthly increments.
If you sell the grain, you must either repay the quantity being selling or before moving, or get a release to the elevator that you are delivering to, and the elevator will repay CCC for the grain you delivered that was under loan.
The quality of the grain under loan is the responsibility of the producer.
Remember your farm safety rules this fall harvesting, and have a safe and bountiful harvest.
That’s all for now,
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