Commodity loans are currently available for producers of corn, wheat, and soybeans. Applicants must meet all eligibility requirements before receiving these USDA benefits.
To be eligible, a producer must maintain continual beneficial interest in the crop from harvest through the earlier of the date the loan is repaid or CCC takes title to the commodity.
Beneficial interest means retaining the ability to make decisions about the commodity; responsibility for loss or damage to the commodity; and title to the commodity. Once beneficial interest in a commodity is lost, the commodity is ineligible for loan - even if the producer regains beneficial interest.
These loans provide producers with immediate financing on their stored commodities held as loan collateral. Instead of selling the crop immediately after harvest, these loans allow the producer to store the crop for a maximum of 9 months to allow for market gains in the event of a depressed market at the time of harvest.
Applicants should allow 7-10 workdays for processing and disbursing the loan proceeds. Loans can be approved beginning at harvest and ending May 31. (Exception: Wheat ends March 31).
The 2011 crop year commodity loans rates for Cannon County are as follows:
Corn — $2.04 / bu.
Soybeans— $5.13/ bu.
Wheat — $2.27 / bu.
For October 2011, the CCC interest rate for marketing assistance loans is 1.125%.
Violating provisions of a marketing assistance loan may trigger administrative actions, such as assessing liquidated damages, calling the loan and denial of future farm-stored loans. The most common violations are removing or disposing of a commodity being used as loan collateral without prior authorization and providing an incorrect quantity certification.
For more information, call the Farm Service Agency at 563-4321, extension 2.