FSA Notes by Keith Zanter Harvest reminders for LDPs/loans
"LDPs are working" on corn and soybeans. Today, there is a 28-cent LDP on corn and 18-cent LDP on soybeans. The "Field Direct" CCC-709 forms must be signed and in the office before grain is harvested. These forms cover grain hauled directly to the elevator from the field.
LDP payments are made to producers who agree not to obtain a nine-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 receive 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 their 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.
Remember: The "Field Direct" CCC-709 forms must be signed and in the office before harvest begins. These forms cover grain hauled directly to the elevator from the field. Operators � please check with your owners to make sure they have completed and returned their 709s!
CCC grain loans
CCC Marketing Loans are available to producers who wish to pledge their 2004 crops as collateral. The 2004 Crop Loan rates for Clay County are as follows: Corn � $1.80; soybeans � $4.88; spring wheat � $2.93; winter wheat � $2.79; oats � $1.34; wool � $.40/lb.
Loans mature the last day of the ninth month after the month in which disbursed. Loans accrue interest at a comparatively low interest rate. The interest rate for October 2004 marketing loans is 3.00 percent.
A marketing loan can be settled one of three ways:
* Repay Principal Plus Interest
* Repay at Posted County Price (CCC Determined Value)
* Deliver Commodity to CCC at Maturity
Loan collateral may be stored either on the farm or in the warehouse. Producers who wish to have a grain loan on the farm may certify the quantity, provide measurements to the office, or pay the office for measurement service. Producers who will store collateral in a warehouse must submit a negotiable warehouse receipt and pay storage through loan maturity.
Producers should schedule an appointment at least a week prior to requesting a loan. Lien searches must be done, and lien waivers mailed and returned. This also gives the office an opportunity to set up an appointment so you can be served timely during this busy season.