2016 County Loan Rates for Corn, Wheat, Soybeans & Other Crops

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Marketing assistance loan rates by county for 2016 crops of wheat, corn, grain sorghum, barley, oats, soybeans and each “other oilseed” (canola, crambe, flaxseed, mustard seed, rapeseed, safflower, sesame seed and sunflower seed) have been announced by USDA’s Commodity Credit Corporation (CCC).

The rates are posted on the Farm Service Agency (FSA) website at
www.fsa.usda.gov/programs-and-services/price-support/commodity-loan-rates/index.

The national average loan rates are as follows:

Marketing assistance loans provide interim financing to producers so that commodities can be stored after harvest, when market prices are typically low, to be sold later, when price conditions are more favorable.

Marketing assistance loans for 2016 crops of barley, canola, crambe, flaxseed, oats, rapeseed, sesame seed and wheat crops are available through March 31, 2017, and for the 2016 corn, grain sorghum, mustard seed, safflower, soybean and sunflower seed crops through May 31, 2017.

Use of the marketing loan program has increased dramatically for 2015 crops, with corn, soybean, sorghum and wheat loans taken out on considerably higher quantities compared to the levels seen for 2014 crops.

Comments: With current prices and the interest rate on commodity loans now at 1.625% after having been equal to that or lower during the loan availability period so far for 2015 crops, it is clearly providing much-needed financing at favorable costs to producers as they seek to weather the current low prices for corn, soybeans and wheat.

NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.