Loan Deficiency Payments (LDP)

What It Is
Under President Trump and Secretary Rollins’ leadership, USDA has timely implemented policy changes outlined in the Working Families Tax Cuts Act, also known as the One Big Beautiful Bill Act, as we celebrate the one-year anniversary of signing the act into law. The Act makes a historic investment in American agriculture including expanding marketing assistance and risk management opportunities for producers.

What It Is

The Loan Deficiency Payments (LDP) program, administered by the Farm Service Agency (FSA), offers payments to producers of eligible commodities who choose not to take out a Commodity Credit Corporation (CCC) loan when market prices fall below the loan rate. LDPs provide immediate cash flow to producers, helping to manage financial risk and stabilize farm income during periods of low market prices. This program covers a variety of crops, including grains, oilseeds, and other designated commodities. They include:

  • Barley
  • Canola
  • Chickpeas (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, and unshorn pelts)
Who Is Eligible

Eligible applicants include producers of designated commodities who agree to forego a CCC loan. Producers must provide sufficient documentation of the commodity and meet all program requirements. Producers must also maintain beneficial interest in the commodity throughout the term of the loan and/or at time of LDP request or when the CCC-633EZ page 1 is submitted in the county office.

Working Families Tax Cuts Act Program Updates

The Working Families Tax Cuts Act extends Marketing Assistance Loans and Loan Deficiency Payments through crop year 2031 with loan rates increasing for all eligible commodities starting in 2026. Additionally, FSA is improving MALs and LDPs for cotton and producers by:

  •  Upland Cotton Refund: The Act authorizes refunds for upland cotton loan redemptions when the Adjusted World Price (AWP) declines within 30 days of the loan repayment date to ensure producers benefit from a refund if the market prices drop shortly after repayment. This change is retroactive to July 4, 2025.   
    • Producers who request an LDP in lieu of a MAL will receive an additional LDP disbursement if a lower AWP is announced during the 30-day period immediately following the request. 
 
Important Dates

Applications are accepted year-round, but must be submitted by the final loan/LDP availability date for the commodity or before beneficial interest is lost.

How To Apply

To apply for a Loan Deficiency Payment, producers must complete and submit an LDP application to their local FSA office. The application process includes providing documentation of the eligible commodity, production records, and proof of ownership. Detailed enrollment instructions and deadlines are available through the local FSA office. Page 1 of the CCC_633 EZ must be on file before beneficial interest is lost.  It is a good idea to complete the Page 1 during acreage reporting.

NOTE: Page 1 of the CCC-633 EZ form must be on file before beneficial interest is lost. Producers are encouraged to complete Page 1 while completing crop acreage reports.

Link
Find Your FSA Location
How It Works

Program Features

  • Payment Rates: LDPs are calculated based on the difference between the applicable loan rate for the commodity and the market price, known as the Posted County Price (PCP) or Alternative Repayment Rate, on the day the payment is requested or beneficial interest is lost.
  • Benefits: LDPs provide immediate financial support without the need for taking out a loan, reducing the producer's debt burden and interest costs.
Additional Resources