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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
2009 – 2012 MALs and LDPs
 General Policy for Grains,
 Oilseeds, Peanuts, Pulse
  Crops, Wool, Mohair and
          Honey
        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
    Commodity Eligibility and MAL Rates
(Orange indicates change from 2002 Farm Bill)

                         2009 Crop Year   2010 through 2012 Crop
        Crop
                           Loan Rate         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
    Commodity Eligibility and MAL Rates
(Orange indicates change from 2002 Farm Bill)

                    2009 Crop Year   2010 through 2012 Crop Years
       Crop
                      Loan Rate               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
   Commodities Eligible Only for LDPs


• Hay

• Silage

• Unshorn Pelts
        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
                 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
       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
           Payment Limitations


• CCC will NO longer limit MLGs and LDP
  payments

• Refer to 4-PL
     Actively Engaged Determination


• NOT required for producers requesting MALs
  and LDPs

• Refer to 4-PL
                   UGRSA
              Except 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
                   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
         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
         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
      Warehouse-Stored Loan Making
   Before 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
     Commodity Assessments



CCC may NO longer charge any fees
   for the collection of commodity
            assessments.
           Lien Searches



 County Offices shall conduct lien
searches on all commodities pledged
as collateral for loan amounts greater
            than $50,000.
        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
Questions?
 New Loan Repayment Rate
Methods for All Eligible MAL
Commodities, Except Cotton,
     Peanuts and Rice

  Effective April 15, 2009
         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
         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
         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
            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 the
    effective loan repayment rate
          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)
          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
          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
          30-Calendar Day Method


•   Wool, mohair and honey


•   Will reflect a preceding 30-calendar day
    average of market prices
    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
        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
    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
                  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
Questions?

				
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posted:2/9/2010
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