The USDA Marathon County Farm Service Agency (FSA) reminds producers that nine-month low interest commodity loans are available. Commodity loans are a valuable marketing tool by providing operating capital at competitive rates and offering flexible repayment at the time a commodity is sold or marketed.
The October interest rate is 1.125 percent for all commodity loans. Producers may obtain low interest, nine-month loans for 2012 crops stored on the farm in an eligible structure or at a public warehouse. The grain must be stored in a facility that is safe and accessible and must be repaid before it is fed. Producers with grain under loan that will be sold can request a Marketing Authorization which gives them permission to sell the mortgaged collateral to a designated buyer before the loan is repaid. Ag bags, silos, and oxygen-limited structures are also eligible storage facilities. Commodity loans will be adjusted for excess moisture.
Commodity loan eligibility also requires compliance with conservation and wetland protection requirements; beneficial interest requirements, acreage reporting and ensuring that the commodity meets Commodity Credit Corporation minimum grade and quality standards.
This marketing tool is a great way to pay-off higher interest notes with low interest money or to purchase next year’s inputs at discounted prices. For more information on commodity loans please contact the Marathon County FSA office at (715) 848-2330 or click here to visit the website.
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