For the first time in over a decade, the Loan Deficiency Payment program (or LDP) has been in effect. With an above average harvest, coupled with low grain prices, the Posted County Price has been below the Barton County Loan rate of 3.14, triggering LDPs.
To be considered eligible for an LDP, producers must have for CCC-633EZ, page 1 in file at the FSA office before losing beneficial interest in their crop. The following pages 2, 3 or 4 of the form must be submitted when payment is requested. The LDP rate is based on Terminal Markets at Kansas City and the Texas Gulf, so the local markets are not a good guideline to base your decision on. You can go to www.fsa.usda.gov and click on the Daily LDP Rates ad PCP Data to obtain the rate for that day.
To collect LDPs/ gains, farmers must meet conservation requirements. They must also meet the means test that requires their AGI to be less than $900,000. Farmers must submit an acreage report to account for all cropland on all farms. Farmers must also have ownership of their wheat on the day they claim the LDP payment. With the 2014 Farm Bill, the combined payment limit is $125,000.
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. For any questions on your eligibility, or to start the paperwork for a LDP, contact your local FSA office. The Great Bend office is located at 1520 Kansas Ave. in Great Bend and their phone number is 620-792-5329.
Alicia Boor is the Agriculture and Natural Resources agent for Barton County K-State Research and Extension. You can contact her by e-mail at aboor@ksu.edu or calling 620-793-1910