The Loan Deficiency Payments (LDP) program, administered by the Farm Service Agency (FSA), offers payments to producers of eligible commodities who choose not to take out a Commodity Credit Corporation (CCC) loan when market prices fall below the loan rate. LDPs provide immediate cash flow to producers, helping to manage financial risk and stabilize farm income during periods of low market prices. This program covers a variety of crops, including grains, oilseeds, and other designated commodities.

‍

Program Features:

• Payment Rates: LDPs are calculated based on the difference between the applicable loan rate for the commodity and the market price, known as the Posted County Price (PCP), on the day the payment is requested.
• Application Process: Producers must submit an LDP application to their local FSA office. Applications must include documentation of the eligible commodity, such as production records and proof of ownership.
• Benefits: LDPs provide immediate financial support without the need for taking out a loan, reducing the producer's debt burden and interest costs.

How to Enroll: To apply for Loan Deficiency Payments, producers must complete and submit an LDP application to their local FSA office. The application process includes providing documentation of the eligible commodity, production records, and proof of ownership. Detailed enrollment instructions and deadlines are available through the local FSA office or the official USDA website.

Eligibility: Eligible applicants include producers of designated commodities who agree to forego a CCC loan. Producers must provide sufficient documentation of the commodity and meet all program requirements.

‍

Commodity: Eligible LDP commodities must have been produced by an eligible producer.

• Barley
• Canola
• Chickpeas (large and small)
• Corn
• Crambe
• Dry peas
• Flaxseed
• Grain sorghum
• Honey
• Lentils
• Mohair
• Mustard seed
• Oats
• Peanuts
• Rapeseed
• Rice
• Safflower seed
• Sesame seed
• Soybeans
• Sunflower seed
• Upland cotton
• Wheat
• Wool (graded and ungraded, and unshorn pelts)

Producers must also maintain beneficial interest in the commodity throughout the term of the loan and/or at time of LDP request, or when the CCC-633EZ Page 1 is submitted in the county office.

‍