Commodity loans available from FSA

From Press Reports

 

Webster County USDA Farm Service Agency Acting Executive Director Arlin McGee reminds farmers that commodity loans from the Commodity Credit Corp. are available from FSA.

“Farmers who choose to store their 2013 crops after harvest for later delivery to the market can apply for CCC commodity loans through the Farm Service Agency,” stated acting CED McGee. “Shortly after harvest, many farmers pledge their harvested commodity as collateral for a CCC low-interest loan to pay off higher interest-rate operating loans.”

The commodity can be stored in on-the-farm grain bins or in a commercial warehouse that is state or federally licensed and issues warehouse receipts. During times when the commodity price falls and the CCC determined repayment rate for the commodity is less than the loan rate, producers may choose to forgo the loan and request a Loan Deficiency Payment . However, the LDP must be requested before loss of beneficial interest.

“All producers and landowners who may share in the proceeds of the loans or LDPs are encouraged to sign Form CCC-633 EZ, Page 1 prior to harvest. Signing this form prior to loss of beneficial interest protects the producer or landowner if loan or LDP benefits are not requested prior to loss of beneficial interest. Signing the form does not take away any option to request a commodity loan or an LDP,” added McGee.

The most common crops pledged for CCC loan in Mississippi are cotton, rice, peanuts, soybeans, corn, grain sorghum, wheat, oats and honey.

Additional information regarding commodity loans or LDPs may be obtained by calling 258-2357, or visiting the Webster County FSA Office at 1391 Veterans Memorial Blvd., Eupora.