WASHINGTON — Within three weeks of commodity title enactment in the 2008 farm bill, USDA is implementing marketing assistance loan and loan deficiency payment (LDP) provisions.
USDA also announced county loan rates for 2008 crop of wheat, corn, grain sorghum, barley, oats, soybeans, and other oilseeds.
The national loan rates for the 2008 crops of wheat, feed grains, oilseeds, rice, and pulses are at the following levels:
Wheat: $2.75 per bushel
Corn: $1.95 per bushel
Grain sorghum: $1.95 per bushel
Barley: $1.85 per bushel
Oats: $1.33 per bushel
Soybeans: $5 per bushel
Other oilseeds: $9.30 per hundredweight
As required by the 2008 farm bill, these national loan rates are established at the same levels as those established for the 2007 crop, with the exception of rice.
Marketing assistance loans provide producers interim financing at harvest time to 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 a loan, but who agrees to forgo the loan, may obtain a loan deficiency payment if such payments are available.