Deadline Approaching for 2018 Crop Year Marketing Loans

(WASHINGTON, DC) Producers interested in utilizing marketing assistance loans for the 2018 crop year are facing a deadline on Friday. Loans are available for feed grains, upland cotton, soybeans, and minor oilseeds and provide short-term financing, allowing producers to meet interim cash flow needs and market their crops following a timeline that is the most advantageous. Marketing assistance loans are nonrecourse, which means they can either be redeemed by repaying the loan or delivering the pledged crop at loan maturity to the Commodity Credit Corporation (CCC) as full payment. In situations where the county commodity price falls below the county loan rate, producers may repay loans at less than loan rate (principal) plus accrued interest and other charges which would yield a marketing loan gain. Producers who are eligible for marketing loans are also eligible for Loan Deficiency Payments (LDP) should the county price fall below the county loan rate. The 2018 Farm Bill simplified market loan gains and LDP provisions by removing payment limitations, actively engaged in farming provisions and cash-tenant rules; however, adjusted gross income rules still apply. To apply for a loan, contact your local FSA office before May 31st.