MEDIA RELEASE
October 11, 2002
Written By Kent Thiesse, U of M Extension Service
(507-389-8141)
Soybean LDP’S Available Again
Most farmers did not plan on seeing any eligibility for loan deficiency payments (LDP’s) this Fall on corn and soybeans, due to higher grain prices and the lowering of the soybean loan rate for 2002. However, lower soybean prices during late September and early October have allowed soybean prices to reach levels where a small LDP was available during the week of October 7-1l, according to Kent Thiesse, University of Minnesota Extension Service.
Thiesse said the National soybean loan rate for 2002 was lowered from $5.26 per bushel in 2001 to $5.00 per bushel, as part of the new Farm Bill. County loan rates in Minnesota were lowered $.25 per bushel for 2002, as compared to lat year. Most County soybean loan rates in Southern and Western Minnesota range from $4.80 to $4.91 per bushel for 2002. Anytime the daily "posted county price" (PCP) is below the County loan rate, farm operators are eligible to request a LDP from their County Farm Service Agency (FSA).
Thiesse reminds producers that they must complete a LDP request form, "Field Direct LDP" (Form #CCC-709), at the County FSA Office, if the soybeans are being delivered straight out of the field to a grain elevator, terminal, or processor. Many growers took advantage of improved soybean prices in late Summer to forward price some soybeans for harvest delivery. Farm operators that are storing grain for later delivery or sale can request a LDP at County FSA Offices on any day that a LDP is available between harvest and May 31st, 2003. This LDP request form (Form #CCC-633), known as a "Standard LDP", must be filed before the grain is delivered to the grain elevator or terminal. Producers can only request a LDP once on every bushel of corn and soybeans that they raise, when LDP’s are available. Grain that is placed under a CCC commodity loan at FSA Offices is not eligible for a LDP.
Thiesse says that the PCP for corn is still well above County loan rates, so it does not appear that here will be any LDP eligibility for corn in the near future. County corn loan rates in Minnesota for 2002 were raised $.06 per bushel, as compared to 2001 loan rates. Most County corn loan rates in Southern and Western Minnesota range from $1.76 to $1.84 per bushel. The National loan rate for corn under the new Farm Bill is $1.98 per bushel, which is $.09 higher than the 2001 loan rate.
For more information on LDP’s and commodity loan programs for corn and soybeans, producers should contact their County FSA Office. All County loan rates in Minnesota for corn, soybeans, and wheat are available on the University of Minnesota Extension Service Farm Bill web site (www.extension.umn.edu/farmbill).