The Marketing Assistance Loans (MAL) program, administered by the Farm Service Agency (FSA), offers loans to producers of eligible commodities to help manage their cash flow needs and provide marketing flexibility. By using their harvested commodities as collateral, producers can obtain interim financing and delay the sale of their crops until market prices improve. MALs help stabilize agricultural income and ensure that farmers have the financial resources to continue their operations.
Program Features:
- Loan Terms: MALs provide short-term loans with terms up to nine months. The loans use the harvested commodity as collateral, and the loan amount is based on the established loan rate for the commodity.
- Loan Rates: Loan rates are established by the USDA and vary by commodity and location. These rates are intended to reflect local market conditions and storage costs.
- Repayment: Producers can repay the loan at the lesser of the loan rate plus interest or the posted county price (PCP). Alternatively, producers can forfeit the commodity to the CCC as full payment for the loan at maturity.
Additional MAL Benefits:
- Marketing Flexibility: MALs provide producers with the flexibility to sell their commodities when market conditions are more favorable, potentially increasing their revenue.
- Price Support: By offering interim financing, MALs help stabilize commodity prices and provide a safety net for producers during periods of low market prices.
- Eligible Commodities: In addition to common field crops, the program covers wool, mohair, honey, peanuts, and pulse crops such as lentils, small chickpeas, and dry peas.
How to Enroll: To apply for Marketing Assistance Loans, producers must complete and submit a loan application to their local FSA office. The application process includes providing documentation of the eligible commodity, production records, and proof of compliance with program requirements. 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 meet conservation and wetland protection requirements and provide sufficient documentation of their commodities. Producers must comply with all program requirements to qualify for a loan.
Eligibile commodities include:
- 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)
