Ask FSA Andy about marketing loans during fall harvest

0
13

Hello again!

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,
FSA Andy

STAY INFORMED. SIGN UP!

Up-to-date agriculture news in your inbox!

SHARE
Previous articlePlaying cat and mouse
Next articleLillie Farm: Adversity won’t keep this farm down
FSA Andy is written by USDA Farm Service Agency county executive directors in northeastern Ohio.

NO COMMENTS

LEAVE A REPLY

We are glad you have chosen to leave a comment. Please keep in mind that comments are moderated according to our comment policy.

Receive emails as this discussion progresses.