Farm Service News
•Sept. 1: 2016 MPP premium payment deadline; 2017 NAP Fall-Seeded Annual Crops sales deadline; 2017 NAP Value Loss Crops sales deadline; 2017 NAP Controlled Environment Crops sales deadline.
•Sept. 5: FSA Office closed for Labor Day.
•Sept. 15: CRP Managed Harvesting and Grazing ends – remove all livestock and bales.
•Sept. 25: CRP Managed Harvesting and Grazing reporting deadline.
Sept. 30: 2016 Expiring CRP reenrollment deadline; 2017 NAP Perennial Forage Crops sales deadline; 2017 NAP Select Fruits and Vegetables sales deadline; 2017 NAP Wild Rice sales deadline; 2016 Value Loss and Controlled Environment Crop Acreage certification deadline; 2017 MPP-Dairy enrollment deadline.
Ongoing - Continuous CRP sign-up
LDPs and current crop prices
With lower crop prices, many producers are inquiring about Loan Deficiency Payments (LDPs) and when they are likely to come into play again.
LDPs provide interim financing and marketing assistance for wheat, feed grains, soybeans, wool and honey to help producers meet cash flow needs after harvest, without having to sell the product when market prices are typically at their harvest-time lows.
A producer who is eligible to obtain a Marketing Assistance Loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available. To be considered eligible for an LDP, producers must have a CCC-633EZ, Page 1 form on file at the FSA Office before losing beneficial interest in the crop. A producer is considered to have beneficial interest if they have both, title to and control of, the commodity. Pages 2, 3 or 4 of the form must be submitted when payment is requested.
Before LDP disbursements can be made, producers must meet the FSA requirements of being considered actively engaged in farming, cash rent tenant and member contribution. Payment limitations for individuals or entities may not exceed $125,000 annually for Price Loss Coverage (PLC) payments, Agriculture Risk Coverage (ARC) payments, marketing loan gains (MLGs) and LDPs. In addition, a producer whose total applicable three-year average Adjusted Gross Income (AGI) exceeds $900,000 is not eligible to receive an LDP.
The LDP rate for a crop is the difference between the county loan rate and the daily value of the commodity, as determined by the Commodity Credit Corporation (CCC). This value, also referred to as Posted County Price (PCP), is the lower of the 30-calendar-day and the 5-calendar-day moving average price for that particular crop.
The 30-calendar-day PCP reflects a 30-calendar-day moving average of all terminal market prices for the crop, adjusted by the difference between the applicable national loan rate and county loan rate. For wheat, the rate is based on the terminal market prices for the specific class of wheat, adjusted by the difference between the applicable national average loan rate by class and county loan rate by class. For wool and honey, the rate is based on the average market prices during the preceding 30 calendar days.
For corn, soybeans, oats, wheat and barley, there is an alternative PCP rate based on a preceding 5-calendar-day period. This method reflects a 5-calendar-day moving average of terminal market prices, adjusted by the applicable county differential and the 5-calendar-day average of applicable terminal market adjustments. This method moderates fluctuations, lessens the effects of daily market volatility and provides more certainty for producers.
If the PCP is higher than the county loan rate, there will be no LDP in effect for that day.
Rock County loan rates for 2016 are $1.83 for corn, $4.89 for soybeans, $1.76 for barley, $1.41 for oats and $2.90 for spring wheat. With the PCP for corn currently around $2.80, and $9.30 for soybeans, this means that prices are still approximately $1.00 and $4.50, respectively above the loan rate and before LDPs will begin to work.
FSA is currently accepting requests for 2016 LDPs for wool and unshorn pelts. Requests for all other eligible commodities will be accepted as soon as the crop is harvested. The FSA Office will accept LDP requests for 2016 barley, oats, wheat and honey crops through to the March 31, 2017, deadline; and through to May 31, 2017, for corn and soybeans.
If you are planning on selling or contracting grain at harvest, please remember to sign a CCC-633EZ form before you lose beneficial interest.
For more information on FSA programs, please visit the Rock County FSA Office, go to www.fsa.usda.gov/conservation, or give us a call at 507-283-2369.