“With low commodity prices there are FSA commodity loans available that farmers could benefit from,” said Julie Fowler, Farm Service Agency County Executive Director. Producers can take advantage of low interest rates by obtaining nine-month commodity loans through the FSA for 2016 crops.
Eligible producers have the option of taking either farm-stored loans or warehouse stored loans. The rate applicable to the loan is the rate effective for the county in which the commodity is stored; Idaho County loan rates are below.
Commodity - Loan Rate
- Barley - $/Bu. - 2.13
- Canola - $/Cwt. - 8.49
- Oats - $/Bu. - 1.32
- Wheat – HRW $/Bu. - 3.31
- Wheat – HRS $/Bu. - 3.09
- Wheat - SWW $/Bu. - 3.30
- Lentils - $/Cwt. - 13.86
- Dry Peas - $/Cwt. - 5.97
The current interest rate is 1.875 percent and is updated the first of each month and applies for the life of the loan. After a loan is made, the rate is fixed except the interest rate for loans outstanding on Jan. 1; the interest rate will be adjusted to reflect CCC’s cost of borrowing, plus one percentage point. 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 is also 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 the 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,” commented Fowler.
For information, visit the FSA website or contact the Idaho County’s FSA office, 102 South Hall, Grangeville, 983-1050, ext. 2. Hours are Monday through Friday, 8 a.m. to 4:30 p.m.