The Agricultural Act of 2014 (2014 Farm Bill) authorizes nonrecourse marketing assistance loans (MALs) and loan deficiency payments (LDPs) for the 2014 through 2018 pulse crops of dry peas, lentils, large chickpeas, and small chickpeas.
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.
A fact sheet specific to pulse crops is also available: Pulse Crop Marketing Assistance Loans and Loan Deficiency Payments.
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.
The final pulse crop loan/LDP availability date is May 31 of the calendar year after the calendar year the pulse crop is harvested.
The 2014 Farm Bill set national loan rates at the levels shown in the table below.
Table 1 - Pulse Crop National Loan Rates per Hundredweight (cwt)
|Pulse Crop||2014-2018 Rates/cwt|
Regional loan rates are established for dry peas and lentils, but not for large or small chickpeas. The national loan rates of $11.28 and $7.43 per cwt are always applicable to large and small chickpeas, respectively.
Table 2 – Pulse Crop 2014 Crop Year Regional Loan Rates per Hundredweight (cwt)
|2014 Crop Year Regional Loan Rates|
|Region||West (includes the Palouse)||East|
|States||Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah, and Washington||Montana and North Dakota plus all other States not in the West Region|
|Small Chickpeas||$7.43 per cwt||$7.43 per cwt|
|Large Chickpeas||$11.28 per cwt||$11.28 per cwt|
8-LP Marketing Assistance Loans and Loan Deficiency Payments for 2008 and Subsequent Crop Years (pdf) – This handbook provides general instructions and information for administrating loans and LDPs.