New regulations for Marketing Assistance Loans and Loan Deficiency Payments program have been implemented in accordance with the 2008 Farm Bill. As a result, the Commodity Credit Corporation will no longer adjust loan rates on warehouse-stored loans by premiums and discounts at loan making time. Loan rates will be adjusted by premiums and discounts only at loan settlement, if the commodity is either farm-stored delivered or warehouse-stored forfeited. This change starts with the 2009 crop year and does not apply to peanuts.
As part of USDA's modernization of delivering services CCC will no longer require the execution of a storage agreement in storage facilities that are either federally-licensed or in compliance with applicable state laws and issue warehouse receipts. There are case by case exceptions. This modification in the regulation is expected to benefit warehouse operators and producers by eliminating redundant costs without increasing financial risk for CCC. This change starts with the 2009 crop year and does not apply to peanuts.
The regulation for Marketing Assistance Loans and Loan Deficiency Payments redefines rice as long grain and medium grain. Large chickpeas are included as an eligible pulse crop beginning with crop year 2009. The 2008 crop year marketing loan and loan deficiency payment benefits were subject to a limit of $75,000 per person. Starting with the 2009 crop year, these benefits will no longer be subject to a payment limit.