Silage, high moisture corn eligible for LDP The U.S. Department of Agriculture (USDA) has made alterations to the marketing assistance loan program and the loan deficiency payments (LDPs) program to make them more flexible to use during this harvest.
These changes will give South Dakota farmers the opportunity to maximize their cash-flow, said U.S. Senator Tim Johnson.
"These changes will provide producers essential marketing assistance for their 1998 crops, Johnson said. "With prices remaining at record low levels, farmers need to be treated fairly with every option available to enhance pricing opportunities."
USDA said these changes will allow farmers participating in the farm program to obtain marketing assistance loans or LDPs for all of their production of wheat, corn, grain sorghum, oats, and barley. Similarly, all producers of soybeans and designated minor oilseeds will be able to take advantage of these changes.
Producers who harvest eligible feed grains in forms other than whole kernel, such as silage, cobbage, cracked, rolled or crimped, will also be eligible for a farm-stored nonrecourse marketing assistance loan or LDP.
Feed grains with moisture levels exceeding standards that are in place when the commodity is delivered to USDA in satisfaction of the loan, such as corn harvested for silage, will be eligible for farm-stored marketing assistance loans or LDPs.
Farmers with crops that do not meet USDA's established loan quality standards or who have feed grains containing natural contaminates, such as corn with aflatoxin, that were previously ineligible for these benefits will now be eligible to obtain marketing assistance loans or LDPs.
To treat all crops producers in an equitable fashion, these changes will go into effect for all 1998 crops. Program details will be available in area or county Farm Service Agency (FSA) offices.
"At a time when corn prices are reaching historic lows, we need a multi-faceted approach to helping producers, which includes everything from opening export markets to ensuring that producers are able to take full advantage of all existing programs," said Congressman John Thune.
"As we continue to press Congress and the Administration to respond to the current farm crisis, this action will help farmers get through the current slump," added Senator Tom Daschle.