Corn and soybean producers that are just finishing up their harvesting are being reminded of price support options.

One option is a commodity loan, in which the bushels pledged for loan is the collateral. Commodity loans have a nine month maturity date. At all times, the loan collateral must be present and in good, storable condition. Prior to feeding or selling, a specific quantity needs to be repaid. The current interest rate for this loan is 3.375 percent.

However, when the posted county price is below the loan rate, the repayment rate is the lower of daily market price or loan rate plus interest. In some cases, a market gain is realized. For example, corn loan rate is $2.14 per bushel but the market price on the day of repayment is $2. The repayment rate then would be $2, and no interest would be charged along with a 14 cent gain.

Eligible commodities include corn - dry shelled, ear, high moisture, cracked, rolled or crimped - soybeans, wheat, oats and barley.

Commodity loans are a popular choice for some producers. Operating capital can be derived from the loan proceeds until grain is sold at a later date. Another feature that some farmers like is that loan proceeds can be used to make crop input purchases now when discounts often apply or for tax planning purposes. If interest is assessed, it is quite nominal to the savings that can be realized.

Another popular form of price support is Loan Deficiency Payments (LDP). LDPs are applicable when the posted county price drops below the loan rate for a specific commodity. Corn acreage planted and harvested on all farms is eligible proved an acreage report is on file. A fee is associated with all late-filed reports. Eligible producers must also certify to conservation compliance. Producers can certify to bushels harvested as grain. Corn silage production receives a county committee assigned yield times the number of acres certified. To summarize, in order to be eligible for a Loan Deficiency Payment, you must have:

Beneficial interest in crop. This means you have title, risk and control of the crop.

The crop must be in existence and in a storable condition.

The crop must be merchantable for food or feed.

The crop must not be substituted or purchased.

For information purposes, the LDP rates as of Dec. 3 are: Corn, 28 cents per bushel; soybeans, 11 cents per bushel; and barley, 30 cents per bushel.

For more information, contact the Farm Service Agency at 724-482-4800.