USDA Data Shows Continued Rise in Commodity Loan Use

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The level of corn, soybeans and wheat placed under loan for the 2015 crop year continues to move higher as farmers utilize the low-cost financing option, according to data from USDA’s Farm Service Agency (FSA).

While the level of all three crops placed under loan has continued to grow, a number of those loans have already been redeemed, according to the FSA data, as the level of outstanding loan quantities continues to decline. And, the pace of the loan entries has also slowed while the pace of loans being redeemed is picking up, for corn in particular.

States with the largest quantities of corn loans outstanding as of April 25 are Minnesota (143.286 mil. bu.), Iowa (117.490 mil. bu.), Illinois (36.697 mil. bu.), Nebraska (36.065 mil. bu.), Indiana (28.841 mil. bu.), and North Dakota (19.519 mil. bu.).

States with the largest quantities of soybean loans outstanding as of April 25 are Minnesota (15.440 mil. bu.), Iowa (15.223 mil. bu.), Indiana (5.392 mil. bu.), South Dakota (4.764 mil. bu.) and Illinois (4.033 mil. bu.).

States with the largest level of wheat loans outstanding as of April 25 are North Dakota (18.851 mil. bu.), Montana (11.324 mil. bu.), Minnesota (10.015 mil. bu.) and South Dakota (4.668 million bu.).

Comments: Loan use remains the heaviest for corn since the 2010 crop year when more than 801 million bushels were put under loan. For soybeans, this is the largest total put under loan since the 2008 crop year when more than 189 million bu. were put under loan. For wheat, this is the greatest use of the loan program since the 2009 crop year when more than 102 million bu. were put under loan.

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