The Agricultural Act of 2014 (2014 Farm Bill) authorizes nonrecourse marketing assistance loans (MALs) and loan deficiency payments (LDPs) for the 2014 through 2018 crops of honey.
Nonrecourse MALs and LDPs are administered by the Farm Service Agency (FSA) on behalf of the Commodity Credit Corporation (CCC).
Read the fact sheet Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments for general information about MALs and LDPs.
For the 2014-2018 crop years, there are payment limitations on any benefit associated with the MAL or LDP programs. The total amount of payments received for all covered commodities except peanuts, directly or indirectly, by a person or legal entity (except joint ventures or general partnerships) for Price Loss Coverage, Agricultural Risk Coverage, marketing loan gains and LDPs is limited to no more than $125,000 annually. Producers exceed the limit are still eligible for MALs but must repay at principal plus interest. Peanut producers have a separate $125,000 payment limit for benefits received from the same programs.
Read the Payment Limitation – 2014-2018 Fact Sheet for additional information for payment limitations for marketing loan gains and LDPs.
For the 2014-2018 crop years, producers or legal entities whose average adjusted gross income (AGI) exceeds $900,000, are not eligible for marketing loan gains and LDP payments; but are eligible for MALs that must be repaid at principal plus interest.
Honey MALs and LDPs may be requested beginning on April 1 in the year the honey was produced and extracted.
The final honey loan/LDP availability date is March 31 of the calendar year after the calendar year in which the honey was produced and extracted
The 2014 Farm Bill set the national loan rate for honey at 69 cents per pound for 2014 through 2018 crop years.
2-LP Loans and Loan Deficiency Payments for Honey – This handbook provides general instructions and information for administrating loans and LDPs for honey.