USDA Marketing Assistance Loans for commodities

Check the commodity and ownership requirements

USDA Marketing Assistance Loans are a specific federal commodity-credit mechanism, not a general loan against any crop expected to be harvested. A producer must meet the relevant program requirements and maintain the required interest in eligible production. Commodity type, crop year, location and quality can affect how the loan is assessed. FSA publishes the applicable information and administers applications through its offices, so the producer should check the relevant crop’s deadline and documentation before relying on the facility.

Follow the release and repayment rules

Warehouse receipts, quantity records and existing liens help establish what can validly secure the borrowing. Ask FSA to explain the permitted repayment or settlement options and the consequences of moving or selling pledged commodities. The program’s loan rate is a financing parameter rather than a promise about the market price ultimately achieved. Include storage and handling charges when evaluating whether retaining the crop is worthwhile, and keep a clear record of proceeds and program statements for both the lender and the farm’s accounts.