Commodity loans are currently available for producers of corn, wheat, and soybeans who have crop year 2022 commodities in storage. Applicants must meet all eligibility requirements before receiving these USDA benefits. To be eligible, a producer must maintain continual beneficial interest in the crop from harvest through the earlier of the date the loan is repaid or CCC takes title to the commodity. Beneficial interest means retaining the ability to make decisions about the commodity; responsibility for loss or damage to the commodity; and title to the commodity. Once beneficial interest in a commodity is lost, the commodity is ineligible for loan – even if the producer regains beneficial interest.
These loans provide producers with immediate financing on their stored commodities held as loan collateral. Instead of selling the crop immediately after harvest, these loans allow the producer to store the crop for a maximum of 9 months to allow for market gains in the event of a depressed market at the time of harvest. Applicants should allow 3-4 workdays for processing and disbursing the loan proceeds.
Loans can be approved until March 31 for wheat and, until May 31 for corn and soybeans. The 2022 crop year commodity loans rates for DeKalb and Cannon Counties are as follows:
Corn—$2.31 / bu.
The CCC interest rate for marketing assistance loans changes each month. For March 2023, the interest rate is 5.75%.
Violating provisions of a marketing assistance loan may trigger administrative actions, such as assessing liquidated damages, calling the loan and denial of future farm-stored loans.
For more information, call the DeKalb/Cannon County Farm Service Agency at 615-597-8225, extension 2.