2009 Crop Commodity Loans Now Available
"Marketing assistance loans provide grain producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest time lows," stated John K. Johnston, county executive director of the Fulton County Farm Service Agency. The commodity loan program allows producers to store their 2009 grain crop production at harvest and provide for a more orderly marketing or use of their commodity throughout the year.
To be eligible for marketing assistance loans producers must: comply with conservation and wetland protection requirements; report their current planted cropland acreage; maintain beneficial interest in the commodity on the date the loan is requested and retain that beneficial interest while the loan is outstanding; and ensure that the commodities meet CCC minimum grade and quality standards.
Loans mature on the last day of the ninth calendar month following the month in which the loan is approved. A producer may settle an outstanding nonrecourse loan during the loan period by repaying the loan or upon maturity by forfeiting the commodity to Commodity Credit Corp., (CCC).
The interest rate charged on a commodity loan is set at 1 percentage point above CCC's cost of borrowing from the U.S. Treasury at the time the loan is made. July 2009's commodity loan interest rate is 1.5 percent APR. Once a loan is made, the rate is fixed except that the interest rate for loans outstanding on January 1 is adjusted to reflect CCC's cost of borrowing on January 1, plus 1 percentage point.
The 2009 commodity loan rates are as follows: barley - $1.57/bu.; corn - $2.12/bu.; oats - $1.34/bu.; grain sorghum - $3.67/cwt.; soybeans - $5.06/bu.; sunflowers - $6.54/cwt.; and wheat - $1.94/bu. A small loan service fee applies to each loan application.
"Eligible grain producers who wish to use the 2009 commodity loan program should telephone or visit the Fulton County FSA office located at 216 N. Second St., McConnellsburg, PA 17233," Johnston said. Producers need to know the dimensions of the grain storage structure and the height of the grain in the structure when they make their loan application.
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activitie on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's Target Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410, or call 800- 795-3272 (voice) or 202-720-6382 (TDD). USDA is an equal opportunity provider and employer.