The LDP or Loan Deficiency Payment will kick in when the LDP Rate goes below the Barton County Loan Rate of $3.14. The LDP Rate is based on the average of the Texas Gulf and Kansas City Terminal Markets, not the local market price. You can go to www.fsa.usda.gov website and click on the Daily LDP Rates and PCP Data to obtain the LDP rate for that day.
To be considered eligible for an LDP, producers must have form CCC-633EZ, Page 1 on file at their local FSA Office before losing beneficial interest in the crop, which is when you lose “ownership” of your grain - Pages 2, 3 or 4 of the form must be submitted when payment is requested. As of June 29, the current county price trigger for a wheat LDP is $3.34 which is .20 cents higher than the county loan rate, (even though the local market is at or below the $3.14 loan rate – we use the posted county price. Remember the LDP rate is based on Terminal Markets at Kansas City and the Texas Gulf – not the local markets. Before you lose beneficial interest, - you will want to ensure you have Page 1 of the CCC-633EZ on file at your local Farm Service Agency. These forms are available on the www.fsa.usda.gov website and they may be e-mailed to the office or faxed to 855-768-6964. Faxes must be received by 6 a.m. the following day to receive the previous day’s LDP rate.
If you store your grain upon delivery, then decide to sell the grain, if you have the CCC-633EZ page 1 on file at your FSA office, you will receive the LDP rate the date that you SOLD the grain. You may come into the office at a later date, to complete page 2 to request the payment.
If you sell your grain across the scales, you have lost beneficial interest, therefore, you would receive the LDP rate for the date of delivery. You may come into the office at a later date, to complete page 2 to request the payment.
If your grain is in Open Storage, you maintain beneficial interest, you will have to come in/fax or e-mail CCC633EZ PAGE 2 in our office by 6 a.m. the following day to receive the LDP rate on the DAY that you request.
If you have a “forward contract” on your grain, you have to determine if you still have “ownership” of the grain prior to applying your grain on your contract. If you could get your grain out of the elevator, you still have ownership. If you cannot get your grain out of the elevator, you have lost beneficial interest. The date of delivery will be when you have lost beneficial interest.
Make sure the grain is delivered to the elevator or buyer using the exact name and shares as it was listed on the farm program contract. This is very important to maintain loan or LDP eligibility.