FSA Notes Changes in loan, LDP provisions for 1998 crop Agriculture Secretary Dan Glickman announced several changes to the marketing assistance loan program and the loan deficiency payments (LDPs). These changes make the loan and LDP provisions available for producers who may not have been eligible prior to the changes. One of the major changes was allowing nonrecourse loans and LPDs on grain with high moisture. The South Dakota State FSA Committee set the high moisture limit at 35 percent. Previously, the limit was 28 percent, so this will make more grain eligible. Commodities that do not meet warehouse-stored loan standards, such as sample grade grain, are now eligible for a nonrecourse marketing assistance loan or LDP.
Another major change is the eligibility of LDPs and nonrecourse loans on all contract program crops and eligible oilseeds that have been harvested in an alternative manner, such as silage, ensilage, cobbage, earlage, hay, cracked, rolled or crimped, or using machinery that either mutilates the grain or mixes the grain with other parts of the plant that produced the commodity. Commodities harvested as other than grain will be eligible for a loan or LDP.
For commodities harvested in a form other than grain, producers will be required to first report the acres that were actually harvested in a form other than grain. Actual production will be required for the acreage that was harvested as grain. The actual yield from the acres harvested will be used to establish the bushels on the area not harvested as grain. Crop appraisals and crop insurance records will not be used to establish yields for this purpose. The local County Committee can use three similar farms to set yields in certain situations, such as if no acreage of the crop was harvested for grain on this farm.
Producers who were previously ineligible for an LDP or loan, and are now eligible due to these changes, need to go to their local FSA office and request an LDP by completing a CCC-666 LDP or CCC-709, depending on loss of beneficial interest. For previously ineligible quantities that were fed or sold prior to the change in policy, producers will be allowed to certify the date of the harvest and quantity, if fed. For sold production, the producer will need to provide the date of delivery and quantity. The LDP rate will be the rate in effect on the date of delivery or date of harvest.
Please stop in the Clay County Farm Service Agency for additional information or to sign the necessary forms. Beneficial interest must be maintained to be eligible for loans and LDPs and field direct LDPs can be requested when harvested grain goes directly from the field to a buyer, or is fed.