Missouri producers will see a change in the Loan Deficiency Payment (LDP) program with the beginning of the 2006 crop year. New policies will affect how the LDP rate is determined for all quantities sold.
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"LDP rates for commodities stored or sold will be based on the county where the commodity is physically stored, marketed, sold, or fed," said Kirby Payne, executive director for the Daviess County FSA.
Under old procedure, producers requesting an LDP on quantities where beneficial interest (title and control of the commodity) was lost were given the LDP rate based on the county where his or her administrative records were kept. The procedure for stored commodities remains the same; the producer will get the LDP rate for the county where the grain is stored.
Producers must have page 1 of the form CCC-633 EZ on file with the FSA county office prior to losing beneficial interest. A request for payment must be completed on the CCC-633 EZ pages 2, 3, or 4, depending on the commodity.
The 2002 Farm Bill provides for Marketing Assistance Loans and LDPs for the 2002-2007 crops of wheat, corn, grain sorghum, barley, oats, soybeans, other oilseeds (including sunflower seed, canola, safflower, flaxseed, rapeseed, mustard seed, crambe and sesame seed), rice, upland cotton, peanuts, honey, wool, mohair, dry peas, lentils and small chickpeas.
Commodity Credit Corporation (CCC) made the changes in Chapter 7 of the Code of Federal Regulations, Part 1421 (7 CFR Part 1421) through a final rule issued June 6, 2006. The rule is posted online at http://www.fsa.usda.gov/dafp/psd/7cfr1421.pdf.