LEXINGTON - The Farm Service Agency provides Loan Deficiency Payments to maintain a floor price for commodities in times of sub-standard market levels. LDP rates change daily, and are determined by the difference between the posted county price and the established loan rate.
The agency's electronic Loan Deficiency Payment Service is an Internet-based service allowing producers to request LDPs online and, in most cases, receive approval and payment by direct deposit within 48 hours. LDP benefits are still available at the local FSA county office. However, eLDP services provide greater flexibility to producers who conduct business online and want to avoid travel time to and from the local FSA office.
Grain taken directly to an elevator during harvest must be covered, before harvest, by a field direct CCC-709 to be eligible for an LDP. The CCC-709 is also required for grain being chopped or fed to livestock. Farm stored grain is eligible for the LDP rate in effect on the day the producer files the form CCC-633 LDP. The CCC-633 can be a self-certification or based on a paid measurement service conducted by FSA staff.