WASHINGTON, D.C. — While 2019 is in full swing, the deadline for the USDA’s 2018 crop year Marketing Assistance Loan program is quickly approaching.
This program is designed to provide nonrecourse market assistance loans to farmers to help maintain short-term cash flow at harvest time.
According to the USDA’s Farm Service Agency (FSA), a nonrecourse market assistance loan is a type of loan that helps meet the financial needs of farmers without the producer having to sell their crop when prices are usually at the lowest point during harvest season.
In a press release Friday, the FSA stated that nonrecourse loans may be redeemed by either repaying the loan itself or by presenting a collateral, in this case crops, to the Commodity Credit Corporation (CCC) at loan maturity.
Should commodity prices within a county fall below the county loan rates, then a grower may be able to repay the loan at a rate less than the principal, plus interest and other charges. This provides a market loan gain to the farmer.
The deadline to apply for a loan if May 31st, 2019.
For more information, visit the Farm Service Agency’s website.