For Immediate Release
September 28, 2011
Dan Steinkruger, State Executive Director, at (402) 437-5581 or email@example.com
LINCOLN, NE (September 28, 2011) – Dan Steinkruger, State Executive Director for the USDA’s Farm Service Agency, reminds producers of the interim financing provided by obtaining commodity loans with Commodity Credit Corporation (CCC) for eligible harvested production. The CCC nine month marketing assistance loan provides financing allowing producers to store production for later marketing.
The 2011 marketing assistance loans are available for producers who share in the risk of producing the eligible crop and maintain beneficial interest in the eligible crop through the duration of the loan. 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 you regain beneficial interest.
For commodities to be eligible, they must have been produced by an eligible producer, be in existence, and in a storable condition. Commodities harvested from ACRE and non-ACRE farms must be distinguished separately and placed under separate loans. The county commodity loan rate will be reduced by 30 percent for the ACRE enrolled commodity quantities placed under loan.
The 2008 Farm Bill established national loan rates. The county commodity loan rates are based on each commodity’s national loan rate and vary by county based on the average prices and production of the county where the commodity is stored. The 2011 National Loan Rates are as follows:
The interest on the commodity loan is accrued at the interest rate set at 1 percentage point above CCC’s cost of borrowing from the U.S. Treasury at the time the loan is made. Once a loan is disbursed, the rate is fixed, except a loan outstanding on January 1 is adjusted to reflect CCC’s cost of borrowing on January 1, plus 1 percentage point. The September commodity loan interest rate is 1.125 percent.
Final 2011 commodity loan availability dates are as follows:
2011 Commodity Final Loan/LDP Availability Date
Steinkruger added “Farmers who utilize loans need to coordinate their loan request with their local FSA Office for loan disbursements before December 31 or immediately after January 1. Producers should allow up to two weeks before December 31 to get the loan requested, processed, and funds disbursed if they want the income in 2011.”
Additional information about FSA commodity farm-stored loans is available at your local FSA office or online at http://www.fsa.usda.gov
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