Marketing Assistance Loans/Loan Deficiency Program
Administrative Agency:
Federal Agency: U.S. Department of Agriculture, Farm Service Agency (FSA)
Program Goals:
Marketing Assistance Loans and the Loan Deficiency Program provide a safety net to promote agriculture in Alaska through payments on commodities when market conditions dictate. Marketing Assistance Loans allow a producer growing eligible crops to store production and use the loan proceeds to meet cash-flow needs without selling the crop. Loan Deficiency Program payments are price support payments.
Resource Provided:
Loans and cash payments.
Eligibility:
Marketing Assistance Loans are non-recourse, because the producer pledges the crop as collateral and has the option of delivering the pledged commodity to the Commodity Credit Corporation as full settlement of the loan at maturity. The producer must sign up for the program each year and must certify their crop acreage each year as part of the program. Loan Deficiency Payments are for producers who forego the Marketing Assistance Loans. This price support payment is limited to actual production.
Alaska Program Status:
Loan Deficiency Payments have been available in Alaska since June 2005 when loan rates were adjusted to more accurately reflect the market conditions in local areas, thus allowing for the possibility of payments.
Comments:
Eligible commodities include wool and mohair, barley, oats, canola, dry peas, and hard red spring wheat.
Program Contact: (Primary Contact listed first.)