As of Tuesday, August 23, 2016
Commodity Loan Rates
Commodity Loan Rate
Barley - $/Bushel 2.13
Canola - $/Cwt. 8.49
Flaxseed - $/Cwt. 9.83
Oats - $/Bushel 1.32
Rapeseed - $/Cwt. 10.40
Wheat – HRW $/Bushel 3.31
Wheat – HRS $/Bushel 3.09
Wheat - SWW $/Bushel 3.30
Lentils - $/Cwt. 13.86
Dry Peas 5.97
Idaho County farmers feeling the pinch this harvest now have an option to receive assistance. Producers can take advantage of low interest rates by obtaining 9-month commodity loans through the FSA for 2016 crops.
“Idaho County looks beautiful right now and while yields are high, unfortunately, prices are not,” says Julie Fowler, Farm Service Agency County Executive Director. “There are FSA commodity loans available which farmers could benefit from.”
Eligible producers have the option of taking either farm-stored loans or warehouse stored loans. The rate which will be applicable to the loan is the rate effective for the county in which the commodity is stored. The current interest rate is 1.500 percent and is updated the first of each month and applies for the life of the loan. The final availability date for commodity loans is March 31.
For warehouse stored loans, a negotiable warehouse receipt must be obtained and storage must be paid for nine months. The amount the loan will be payable for is 100 percent of the net quantity on the warehouse receipt. Farm-stored loans require completing form CCC-666 for self-certification of the amount stored on the farm or a measurement service must be requested and paid for. A lien search will be performed at the Secretary of State’s Office for all loans after the loan request is filed and before the loan can be approved. The producer must obtain all necessary lien waivers before the loan can be disbursed by completing form CCC-679.
Discounts for grade 2-5, falling numbers and other normal factors such as test weight and damaged kernels are not applied at the time of disbursement but may be applicable if the grain is forfeited to Commodity Credit Corporation (CCC) at the end of the loan period. This means the producer may end up owing money to CCC at the end of the loan. The producer also is responsible for storage charges on warehouse-stored grain for the full life of the loan.
If the grade is listed as “sample,” the grain may be determined to be low quality and loan rate is reduced to 20 percent of the county rate. These loans are not eligible for forfeiture to CCC.
In order to be eligible for these loans, individuals or entities must comply with program requirements, such as the following:
Reporting acreage for applicable crops on FSA-578
Cannot be delinquent on any Federal non-tax debt
“While loan deficiency payments aren’t currently applicable, if prices keep dropping, they will be. Our office will have information available for anyone who wants it,” Fowler said.
For information, contact the Idaho County FSA office at 102 South Hall in Grangeville, 983-1050, ext. 2. Hours are Monday through Friday, 8 a.m. to 4:30 p.m.