FSA NOTES Clay County Grain Loan Rates
Commodity Credit Corporation Loans and Loan Deficiency Payments (LDPs) are available for 1998 wheat, barley, oats, sorghum, corn and soybeans.
Producers must file an acreage report for which a grain loan or LDP is requested. Producers are required to be in compliance with Sodbuster/Swampbuster laws. The Clay County loan rates are: corn $1.73, soybeans $5.09, wheat $2.58 and oats $1.10.
1998 Commodity Loan Deficiency Payments
Due to the declining grain prices, opportunities to use Loan Deficiency Payments (LDPs) have developed in Clay County. LDPs are made to producers who agree to forego a CCC loan. The amount of the LDP is based on the County Loan Rate and the Posted County Price (PCP). If the PCP is lower than the county loan rate, the amount of the LDP is figured on the difference per bushel.
Example: 1998 corn rate is $1.73 per bushel and the PCP for September 14, 1998 is $1.43 per bushel. In this example, the producer would receive 30 cents times the number of bushels stored or delivered to the buyer.
To be eligible for a LDP the producer must have beneficial interest in the crop. This means it cannot be sold before the LDP is requested. If you are taking the grain directly to the elevator from the combine (either your share or the landlord's share) a field direct LDP can be requested.
This must be requested BEFORE the grain is harvested and sold. The price is established on a field direct LDP the day the grain is delivered. This may be a little confusing, therefore, please contact the Farm Service Agency office at 605-624-7060, Ext. #1 if you have questions.
Please notify our office if you have an operator or ownership change for 1999. It is important to amend the contract, so payments are issued to the correct individual.