FSA Notes By Keith Zanter Opportunities to use Loan Deficiency Payments (LDPs) have developed for small grain due to the low prices. LDPs are made to producers who agree to forego a CCC loan. The amount of the LDP is based on the posted county price. If the posted county price is lower than the county loan rate, the amount of the LDP is figured on the difference per bushel.
Example: The Clay County 1999 wheat loan rate is $2.57 per bushel and the winter wheat posted county price for July 19, 1999 is $1.99 per bushel. In this example, the producer would receive 58 cents times the number of bushels delivered to the buyer. ($2.57 minus $1.99 equals 58 cents per bushel) Today, the oats LDP is 23 cents per bushel.
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. A CCC-709 form must be signed before the grain is harvested and sold. The price is established on a field direct LDP the day the grain is delivered.
Producers, who plan to harvest then store the small grain, can request the LDP on a CCC-666 prior to losing beneficial interest and prior to March 31, 1999.
Producers that roll, crack, crimp or hay their small grain are able to request the LDP prior to feeding or selling the altered grain on a CCC-666 form. Please feel free to contact the Clay County Farm Service Agency office at 605-624-7060 Ext. #2 if you have any questions.
1999 AMTA Payments
& Contract Changes
Please notify the Farm Service Agency (FSA) office of any owner or operator changes as they occur. All contract changes, updates and required documents must be in the FSA office by August 1, 1999 to receive the 1999 AMTA payments.