Loan Deficiency Payments

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Loan Deficiency Payments

Marketing Assistance Loans (MAL) and Loan Deficiency Payments (LDP) are marketing tools available to producers beginning upon harvest or shearing. The MAL provides an influx of cash when market prices are typically at harvest-time lows, which allows the producer to delay the sale of the commodity until more favorable market conditions emerge. Allowing producers to store production at harvest or shearing provides for a more orderly marketing of commodities throughout the year.

Marketing assistance loans (MAL) provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.

Loan Deficiency Payments (LDPs) are payments made to producers who, although eligible to obtain a CCC loan, agree to forgo the loan in return for a payment on the eligible commodity.

More Information

Requirements for MAL/LDP Disbursement

Producer: An eligible producer must meet the following requirements.

  • Acreage report is filed showing a share in crop on which MAL/LDP is requested
  • AD-1026 completed and in compliance in accordance with Sodbuster/Swamp buster provisions
  • Applicable CCC-902 must be completed
  • CCC-941 completed and filed

Commodity: Eligible loan commodities must have been produced by an eligible producer.

  • Barley
  • Canola
  • Chick peas (large and small)
  • Corn
  • Crambe
  • Dry peas
  • Flaxseed
  • Grain sorghum
  • Honey
  • Lentils
  • Mohair
  • Mustard seed
  • Oats
  • Peanuts
  • Rapeseed
  • Rice
  • Safflower seed
  • Sesame seed
  • Soybeans
  • Sunflower seed
  • Upland cotton
  • Wheat
  • Wool (graded and ungraded)

Producers must also maintain beneficial interest in the commodity through out the term of the loan and/or at time of LDP request

Grain Harvest

Graze-Out Payments: Graze-out payments are payments made to eligible producers who although eligible to obtain a loan elect to use acreage planted to barley, oats, triticale and wheat for livestock grazing and also agree to forgo any other harvesting of the commodity on the acreage during the applicable crop year.