WASHINGTON — The Marketing Assistance Loans (MAL) and Loan Deficiency Payments (LDP) program have implemented new regulations in accordance with the 2008 farm bill.
Marketing Assistance Loans and Loan Deficiency Payments provide financing and marketing assistance for wheat, rice, feed grains, soybeans, other oilseeds, peanuts, pulse crops, honey, wool and mohair.
This assistance is available to eligible producers beginning with harvest or shearing season and extending through the program year.
The 2008 farm bill included several changes to marketing assistance loan provisions. The regulation for Marketing Assistance Loans and Loan Deficiency Payments redefines rice as long grain and medium grain.
Large chickpeas are included as an eligible pulse crop beginning with crop year 2009. The 2008 crop year marketing loan and loan deficiency payment benefits were subject to a limit of $75,000 per person.
No more limit
Starting with the 2009 crop year, these benefits will no longer be subject to a payment limit.
As part of USDA’s efforts to streamline the loan process, the Commodity Credit Corporation will no longer adjust loan rates on warehouse-stored loans by premiums and discounts at loan making time.
Loan rates will be adjusted by premiums and discounts only at loan settlement, if the commodity is either farm-stored delivered or warehouse-stored forfeited. This change starts with the 2009 crop year and does not apply to peanuts.
For more information, visit a FSA county office or www.fsa.usda.gov.