AgWeb.com Editors

When USDA proposed its farm bill plan, it included several calls for reform of current programs utilized by farmers, such as the marketing loan program.

One of those shifts was to move the system of determining Loan Deficiency Payments (LDPs) from a daily system to one where those levels would be determined on a monthly basis. The administration also proposed ending the practice of letting farmers "lock-in" their LDP rates when those rates were high and then be able to hold the commodity until prices move higher and then sell the grain.

While not exactly the same, drafts of farm bill language in the Senate do contain a shift in when producers could claim the LDP to the day they lose beneficial interest in the crop.

It's one of several provisions planned for inclusion in the Senate bill which will differentiate that package from the one approved by the House in July. Jim Wiesemeyer has more perspective on the situation via his Inside Washington Today commentary on the Pro Farmer page.