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USDA Commodity Loans Available to Kentucky Producers

(Lexington, KY), September 8, 2015

U.S. Department of Agriculture (USDA) Kentucky Farm
Service Agency (FSA) Executive Director, John W. McCauley 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) and Loan Deficiency Payments (LDPs), were authorized
by the 2014 Farm Bill for the 2014-2018 crop years.
“These are among the many tools offered by Farm Service Agency to help farmers navigate price
and market conditions, so as we approach the harvest season, we encourage producers to
consider these programs as a helpful option,” said McCauley.

A producer who is eligible to obtain a marketing loan, but agrees to forgo the loan, may obtain a
loan deficiency payment if such a payment is available. The programs provide financing and
marketing assistance for wheat, feed grains, soybeans and other oilseeds, pulse crops, rice,
peanuts, cotton, wool and honey. For eligibility, producers must control the commodity or a title
to the commodity until the loan is repaid.

FSA is now accepting applications for all eligible commodities. For expedited service, interested
producers are encouraged to schedule an appointment. Other program restrictions may apply,
including limits on total payments or gross income thresholds. Consult your local FSA office for
further details. For more information, visit www.fsa.usda.gov/pricesupport. To find your local
USDA Service Center, go to http://offices.usda.gov.

MALs and LDPs were reauthorized by the 2014 Farm Bill, which builds on historic economic
gains in rural America over the past six years, while achieving meaningful reform and billions of
dollars in savings for the taxpayer. Since enactment, USDA has made significant progress to
implement each provision of this critical legislation, including providing disaster relief to
farmers and ranchers; strengthening risk management tools; expanding access to rural credit;
funding critical research; establishing innovative public-private conservation partnerships;
developing new markets for rural-made products; and investing in infrastructure, housing and
community facilities to help improve quality of life in rural America. For more information, visit
www.usda.gov/farmbill.


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