Rates affect corn harvest
Corn producers will want to keep an eye on Loan Deficiency Payment (LDP) rates this fall as the harvest progresses.
LDPs are available on harvested production. Producers can either wait until harvest is complete to request an LDP or request LDP on a specific quantity as harvest progresses. Most LDP requests are filed via the fax machine, although they can be done through the mail or at the office.
Corn silage LDPs will not be processed until the county committee assigns a grain yield. Assigned yields are generally based on the grain yield on the farm or the grain yield on similar farms.
Since the LDP rate is now in excess of 40 cents per bushel, producers should make sure they qualify. It makes sense to monitor the LDP situation since input costs are soaring and the market prices are depressed. LDPs are applicable to production that will be fed or sold.
Anyone who uses liquid fuels (gasoline or diesel) in the production of agricultural products is eligible for a tax reimbursement.The filing period is on a fiscal year basis, which runs from July 1 through June 30. Claim forms are mailed to all persons registered by June 15 and the deadline for filing is Sept. 30. Once your name is on the mailing list, you should receive a claim form each year.In order to be placed on the mailing list, producers should contact the Board of Finance and Revenue Motor Fuels Section at 1101 South Front Street, Suite 410, Harrisburg, PA 17104-2540, or call them at 717-787-6534.Producers will need to provide their name, address, county the farm is located in, telephone number and type of farming operation. An account number will then be assigned, which will remain the same as long as the operation is in business.What fuels are eligible for refund? It is acceptable to claim reimbursement of tax paid on diesel fuel provided the tax has been paid on the fuel. Dyed diesel fuel is, generally, not taxed. Home heating oil cannot be included in the claim.Receipts for the purchase of fuels are required in support of the claim. Fuel used in operating regular licensed vehicles used in farm production is acceptable, as long as exclusive use is within a 25-mile radius of the farm. Trucks, pickups, vans and 4-wheel-drive vehicles are all acceptable. Cars are not.In order for the claim to be processed, receipts, copies of receipts or a statement from the dealer verifying fuel purchased and taxes paid must be remitted with the claim. Receipts will not be returned.Before mailing your claim, check to be sure the claim form is completed and signed along with receipts and/or a statement from the dealer for fuels purchased. Remember the earlier the claim is submitted, the earlier they can process your claim and give you your refund.Luke Fritz is executive director of the Butler County Farm Service Agency.
