Each year, several producers sell or feed their grains before visiting the Farm Service Agency office to claim their Loan Deficiency Payment, only to find out they are ineligible due to a term called "beneficial interest." This means that a risk of loss, title and control occurred before signing the proper form for the agency.

In an effort to simplify the LDP program, the agency recently developed a new form that allows producers to indicate intentions to receive LDP benefits before loss of beneficial interest, and allows producers to submit an LDP request for benefits at any time during the loan/LDP availability period. This form will be effective for 2005 and subsequent crop years.

Although it is too late for this year, next year we plan on having the CCC-633 EZ form signed when producers visit the office to report acres. This will save a trip to the office and preserve the opportunity to claim an LDP on field direct and fed commodities at a later date.

Loan deficiency payments are payments made to producers who, although eligible to obtain a marketing assistance loan, agree to forgo the loan in return for a payment on an eligible commodity. LDPs are currently requested on CCC-709, CCC-633 LDP, and through the online eLDP process. LDPs must be requested before beneficial interest is lost and before the final loan availability date for the eligible commodity.

FSA is promoting the new CCC-633 EZ as a simpler process for producers requesting LDP benefits. Although currently only available for barley production, corn producers may want to stay posted as it appears that we may see corn LDPs this fall.

At least by completing the CCC-633 EZ now, sold or fed production will qualify later. Contact the office for more specific questions or to request a form be mailed out.

Dairy producers participating in the Milk Income Loss Program are being reminded that there is a payment rate for June production. There is no payment rate for July or August.Milk prices have remained strong throughout the past 12 months, although price increases in fuel, fertilizer, new equipment and parts will result in expenses higher than last year. Hopefully revenue will increase this year for the dairy producers.