FSA Notes by Keith Zanter 2003 Crop Loan Deficiency Payments (LPDs)
If commodity prices fall below our county loan rates at harvest, LDP's will be available for 2003 crops. LDP payments are made to producers who agree not to obtain a 9-month loan on the eligible quantity, but in return receive a payment based on the difference between the County Loan Rate and the Posted County Price (PCP).
The PCP is calculated based on the previous day closing price of major terminal markets assigned to a county. The PCP is not based on the price you received at the local elevator.
Producers marketing their grain directly from the field may lose "beneficial interest" when the grain is dumped at the elevator. Producers who anticipate being in this situation need to file a CCC-709 form BEFORE harvesting your crops.
Producers who store grain, whether at the elevator or on the farm, will need to complete form CCC-633 before they lose beneficial interest in their crop, in order to collect their LDP. The bushel quantity requested can be certified or measured. Remember, certified quantities are subject to spot-check if selected. The cost for a measured quantity is $25 for the first bin and $5 for each additional bin.
The 2003 Crop Loan rates are as follows: Corn, $1.81; Soybeans, $4.85; Spring Wheat, $2.91; Winter Wheat, $2.88; Oats, $1.35.
Loans and LDP's are available until May 31, 2004 for corn and soybeans; and March 31, 2004 for small grains.
Date to Remember
The Clay County FSA Office will be closed on Monday, October 13, 2003, in observance of Columbus Day.