Are you thinking about an operating loan for 2007 to help with the seed and fertilizer bills? Do you still have 2006 crop corn or soybeans stored in your bins? You can use the grain you have stored as collateral for your operating loan through your local FSA Office
The deadline for applying for such loans is May 31. The process is very simple. If you certify the loan you will provide the office with the diameter of the bin and the height of the grain in the bin. The county office will use your figures to calculate the grain you have stored. Once we have the figure you can take loan on the whole amount or any portion of the calculated grain. Test weight and pack factors can effect the final calculations when spot checks are completed. It is wise to take your loan on less bushels that what you have stored. Producers must be accurate in their figures or a finding of an incorrect certification could be determined if the quantity in the bin is less that stated. If you wish, your bins can be measured by our reporter who will provide you with a guaranteed measurement. There is a fee for this service. If you have a lien on your grain a lien waiver will be required from the lien holder. FSA commodity loans are for a nine month period. Producers are required to request a release, CCC-681-1 prior to moving their grain. Releases are for a 15- to 30-day period. During the release period the producer may move his grain to the elevator. The elevator will call the FSA Office and obtain a "pay-off" for the number of bushels delivered. The elevator then sends the FSA office a check for the number of bushels delivered. Any remaining balance is distributed to the producer. If you plan to feed your grain, you must pay for the quantity you plan to feed PRIOR to feeding.
Failure to call the office and put a release in place, or get a payoff for the grain you wish to feed, could result in what is known as an unauthorized disposition, which is basically moving or using the grain without permission. This and an incorrect certification are both loan violations that can be costly to the producer and jeopardize future farm stored loans. Producers are responsible for the quality of the grain as well as the quantity.
Read the rest of this story in Today's Reflector...