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Marketing Assistance Loans (MAL) and Loan Deficiency Payments (LDP) are marketing tools available to producers beginning upon harvest or shearing. The MAL provides an influx of cash when market prices are typically at harvest-time lows, which allows the producer to delay the sale of the commodity until more favorable market conditions emerge. Allowing producers to store production at harvest or shearing provides for a more orderly marketing of commodities throughout the year.
Marketing assistance loans (MAL) provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.
Loan Deficiency Payments (LDPs) are payments made to producers who, although eligible to obtain a CCC loan, agree to forgo the loan in return for a payment on the eligible commodity.
Weekly Commodity Rates
Requirements for MAL/LDP Disbursement
Producer: An eligible producer must meet the following requirements.
Commodity: Eligible loan commodities must have been produced by an eligible producer.
Producers must also maintain beneficial interest in the commodity through out the term of the loan and/or at time of LDP request
Grain Harvest
Graze-Out Payments: Graze-out payments are payments made to eligible producers who although eligible to obtain a loan elect to use acreage planted to barley, oats, triticale and wheat for livestock grazing and also agree to forgo any other harvesting of the commodity on the acreage during the applicable crop year.
Apply Online
Eligible producers can apply for LDP by working directly with the Farm Service Agency (FSA) office at their local USDA Service Center. Applications will be accepted via mail, fax, hand delivery, or electronic means.
Alternatively, producers with an eAuthentication account may apply for LDP online. Applications will be completed, electronically signed, and submitted directly to your local USDA Service Center through this online system.