By DAVID GRONER
FSA reminds producers that USDA offers interim financing at harvest time to help producers meet cash flow needs without having to sell commodities when market prices are at harvest-time lows. The programs, known as Marketing Assistance Loans (MALs) were re-authorized by the 2018 Farm Bill for the 2019-2022 crop years.
Recent events may make this a more viable option this year. The programs provide financing and marketing assistance for wheat, grain sorghum, soybeans, rice, peanuts, cotton, wool and honey plus other oilseed and pulse crops. Eligibility for loans requires that producers must control the commodity or a title to the commodity until the loan is repaid.
Producers with grain stored in bins on the farm are eligible even if the grain is under contract to be delivered to an elevator later.
2021 loans rates are as follows: wheat, $3.35 per bushel; corn, $2.35 per bushel; soybeans, $6.41 per bushel; grain sorghum, $2.29 per bushel; and rice, $3.18 per bushel. Cotton base loan rate is 52 cents per pound.
Commodity Credit Corporation loans have been available since 1933. During years with low harvest season prices, commodity loans are often utilized by producers to pay off production loans with lenders or to pay on production expenses without having to sell the crop when prices are low. The current tariff and export situation have resulted in low commodities prices, especially for soybeans, and this may make the CCC loan an attractive option again this year — even for producers that have traditionally not taken advantage of commodities loans.
Farm-stored and warehouse-stored loans are available for grains like corn, soybeans, rice, wheat and grain sorghum. Cotton is limited to warehouse-stored loans.
Producers with grain stored in metal on-farm storage bins are the most common type loans in Tallahatchie County. To be eligible for these loans, a producer must obtain lien waiver from their primary lenders and give FSA a first lien through the filing of UCC with Mississippi Secretary of State in Jackson. No loan proceeds may be disbursed until the SOS confirms acceptance of the lien. Therefore, we ask producers who are interested in pursuing a commodity loan with FSA to contact the office prior to the date CCC loan funds are needed to get the liens recorded and waived.
Measurement service from FSA is available to help determine grain bin quantities or producers may certify if the quantity is known. Most commodity loans are for nine months and give producers time to wait for price increases after the harvest season or even into the start of the next crop-growing season.
For more information, contact the Tallahatchie County Farm Service Agency office at 662-647-8857, ext 2.
