agenda agenda national office roll call state offices roll call 2009 mal and ldp general policy new...
TRANSCRIPT
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Agenda
AGENDA
• National Office Roll Call
• State Offices Roll Call
• 2009 MAL and LDP General Policy
• New Loan Repayment Rate Methods
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2009 – 2012 MALs and LDPs General Policy for Grains,
Oilseeds, Peanuts, Pulse Crops, Wool, Mohair and Honey
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Eligibility Requirements
• Follow policy in 8-LP, paragraphs 100 – Producer, 126 – Commodities, 132 - Quantity
• States, local governments, political subdivisions, and agencies thereof, are NO longer eligible to receive any MAL benefit or LDP payment
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Commodity Eligibility and MAL Rates(Orange indicates change from 2002 Farm Bill)
Crop2009 Crop Year
Loan Rate2010 through 2012 Crop
Years Loan Rate
Wheat $2.75/bu $2.94/bu
Corn $1.95/bu $1.95/bu
Grain Sorghum $1.95/bu $1.95/bu
Barley/ Hulless Barley $1.85/bu $1.95/bu
Oats/ Hulless Oats $1.33/bu $1.39/bu
Long Grain Rice $6.50/cwt $6.50/cwt
Medium Grain Rice $6.50/cwt $6.50/cwt
Soybeans $5.00/bu $5.00/bu
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Commodity Eligibility and MAL Rates(Orange indicates change from 2002 Farm Bill)
Crop2009 Crop Year
Loan Rate2010 through 2012 Crop Years
Loan Rate
Other Oilseeds $9.30/cwt $10.09/cwt
Dry Peas $5.40/cwt $5.40/cwt
Lentils $11.28/cwt $11.28/cwt
Small Chickpeas $7.43/cwt $7.43/cwt
Large Chickpeas $11.28/lb $11.28/lb
Graded Wool $1.00/lb $1.15/lb
Nongraded Wool $0.40/lb $0.40/lb
Mohair $4.20/lb $4.20/lb
Honey $0.60/lb $0.69/lb
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Commodities Eligible Only for LDPs
• Hay
• Silage
• Unshorn Pelts
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Removal of Quality Grades for Pulse Crops
• 2008 Act removed authority of basing loan rates and repayment rates on “feed” and “Number 3” grade
• Loan repayment rates will now reflect values of “food” and “Number 1” grade
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ACRE Program
• Reduces applicable loan rates by 30 percent
• Production from an ACRE-enrolled farm will have a 30 percent reduction in applicable loan rates
• Applicable loan repayment option will NOT be adjusted with a 30 percent reduction
• Wool, mohair, honey – NOT subject to
ACRE provisions
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Adjusted Gross Income (AGI)
• Person or legal entity with an average adjusted gross nonfarm income exceeding $500,000 is not eligible for MLGs and LDPs payments
• Person or legal entity is eligible for a MAL, but must repay at principal plus interest, or a commodity certificate may be exchanged for the loan collateral (2009 crop only)
• Refer to 4-PL
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Payment Limitations
• CCC will NO longer limit MLGs and LDP payments
• Refer to 4-PL
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Actively Engaged Determination
• NOT required for producers requesting MALs and LDPs
• Refer to 4-PL
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UGRSAExcept for peanuts
CCC will NO longer require UGRSAs in either:
• Federally licensed, or
• State licensed with an operating licensing program
• CCC reserves the right to require UGRSA
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UGRSA
• CCC may require UGRSAs in storage facilities that are neither:
• Federally licensed, nor
• State licensed with an operating licensing program
• A future LP-Notice will provide specific policy
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Premiums and Discounts
Except for peanuts
• CCC will NO longer adjust loan rates for warehouse-stored loans at loan making
• Software will be modified to allow data to be entered without grading factors and P&Ds
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Premiums and Discounts
• A future PS-Notice will provide instructions on processing forfeitures to record grading factors and P&Ds
• Milling factors for rice will be used to adjust the loan rate using a separate worksheet to calculate the applicable loan rate to be used
• A future LP-Notice will provide specific policy before rice loan availability
period
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Warehouse-Stored Loan MakingBefore disbursing a WS-MAL, except for peanuts
• Discontinue applying P&Ds to the loan rate
• Require in-handling charges on the receipt to be pre-paid or provided for
• Discontinue applying storage deduction at loan-making if storage is NOT paid through loan maturity date
• Only apply storage deductions if loan is
forfeited
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Commodity Assessments
CCC may NO longer charge any fees for the collection of commodity
assessments.
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Lien Searches
County Offices shall conduct lien searches on all commodities pledged as collateral for loan amounts greater
than $50,000.
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Price Support Software
Since April 6, County Offices can:
• Process 2009 crop LDP payments using eLDP software
• Disburse 2009 wool and mohair MALs through APSS
• Not process LDPs through APSS
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Questions?
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New Loan Repayment Rate Methods for All Eligible MAL
Commodities, Except Cotton, Peanuts and Rice
Effective April 15, 2009
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Loan Repayment of MALs
At a repayment rate that is lesser of:
1. Loan rate plus interest; OR
2. A rate that:
• is based on average market prices during a preceding 30-day period; and
• will minimize discrepancies in marketing loan benefits across State and County boundaries; OR
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Loan Repayment of MALs
3. A rate that will minimize:
• potential loan forfeitures
• accumulation of stocks
• storage costs
• market impediments
• discrepancies in marketing loan benefits across State and County boundaries
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Repayment of MALs
Repaid at the lesser of:
1. Loan rate plus interest
2. 30-calendar day method
3. Alternative method
a. 5-calendar day method
b. Current method
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Repayment of MALs
Important Reminders
• Repayment rates are NOT crop year specific and will apply to all:
• Outstanding 2008 crop MALs
• 2009 MALs and LDPs
• PCPs or PRPs for 2008 warehouse-stored MALs will have to be adjusted by any P&Ds applied at loan making to obtain theeffective loan repayment rate
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30-Calendar Day Method
• Feed grains, soybeans, minor oilseeds
• Will reflect a preceding 30-calendar day moving average of ALL terminal market prices for the crop, adjusted by
• Subtract National Loan Rate (NLR)
• Add County Loan Rate (CLR)
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30-Calendar Day Method
• Wheat
• Will reflect a preceding 30-calendar day moving average of ALL terminal market prices for the specific class, adjusted by
• Subtract National Average Loan Rate (NALR) by class
• Add CLR
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30-Calendar Day Method
• Pulse crops (lentils, dry peas, small and large chickpeas)
• Will reflect a preceding 30-calendar day moving average of market prices, adjusted by
• Subtract NLR
• Add applicable Regional Loan Rate (RLR)
• No adjustment for small chickpeas
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30-Calendar Day Method
• Wool, mohair and honey
• Will reflect a preceding 30-calendar day average of market prices
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Alternative 5-Calendar Day Method
• Wheat, feed grains, soybeans, canola, flaxseed and sunflower seed
• Will reflect a preceding 5-calendar day moving average of applicable terminal market prices for the crop, adjusted by
• Subtract assigned county differential for applicable terminal markets
• Subtract a 5-calendar day average of terminal market adjustments for applicable terminal market
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Alternative Current Method
• Pulse crops, crambe, mustard seed, rapeseed, safflower, sesame seed, wool and mohair
• CCC will determine alternative repayment rate using current methodology
• Honey – will have NO alternative loan repayment rate
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Loan Repayment Publication Frequency
• Daily, except on weekends – wheat , feed grains, soybeans, canola, flaxseed and sunflower seed
• Weekly, except on weekends – pulse crops, crambe, mustard seed, rapeseed, safflower, sesame seed, wool and mohair
• Monthly, except on weekends – honey
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Exhibits
• Corn loan repayment option example
• PCP postings based on previous days
• New pulse crop loan repayment spread sheet
• New wool and mohair loan repayment spread sheet
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Questions?