U.S. Department of Agriculture (USDA) Minnesota Farm Service Agency (FSA) Executive Director Joe Martin reminds producers that Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) are available to help producers through periods of low market prices. MALs and LDPs provide financing and marketing assistance for wheat, feed grains, soybeans and other oilseeds, pulse crops, rice, peanuts, cotton, wool and honey.
“With market prices above average the last few years, there hasn’t been a demand for commodity loans, said Martin. “However, with prices approaching harvest-time lows this year, it’s important that producers consider their options. FSA is now accepting requests for MALs and LDPs for all eligible commodities after harvest.”
MALs provide interim financing and allow producers to delay the sale of the commodity until more favorable market conditions occur. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP.
To be eligible, producers must have and retain beneficial interest in the commodity – having control or a title of the commodity – until the MAL is repaid or the Commodity Credit Corporation takes title to the commodity. Before MAL repayments and LDP disbursements can be made, producers must meet the requirement of actively engaged in farming, cash-rent tenant and member contribution.
To schedule an appointment to apply for a commodity loan or for more information on eligibility requirements, please visit your local FSA office or go to https://www.farmers.gov.
Eva Kramer, Rock County FSA office; 500 W. Gabrielson Road; Luverne MN Phone: 507-283-2369.
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