FSA announces new LDP form for 2005 commodities years ago
By WILLIAM J. HARMON
Executive Director
Marion County FSA
A new Loan Deficiency Payment (LDP) form has been designed that will simplify the process for producers interested in filing LDP requests.
In the past, many producers have failed to submit an LDP request before beneficial interest (BI) was lost in the commodity which made them ineligible for payment. The new form CCC-633EZ, Page 1, when filed before loss of beneficial interest, allows producers to indicate their intention to receive LDP benefits.
The CCC-633EZ, Page 2, allows producers to submit an LDP request for benefits at any time during the loan/LDP availability period whether they have maintained beneficial interest or not. Since it only is an intention, producers must have a Page 1 signed and submitted to their local county FSA office before they can submit Page 2, the actual request for LDP payment.
The process is simple, operators and owners need to sign a CCC-633EZ, Page 1, before harvest (i.e., hay, silage, combine) is started on their 2005-crop of cotton, corn, sorghum, soybeans, sunflowers, and other minor oilseeds; or before shearing for wool and mohair. We are urging producers to sign this form before they start harvest or begin shearing because many of them lose beneficial interest in these commodities at that time.
Multi-county producers only have to sign one CCC-633EZ, Page 1. This form covers all eligible commodities, including wool, mohair, and unshorn pelts, on all farms, in all counties. Operators and owners must sign separate forms.
Once a CCC-633EZ, Page 1, is on file, producers can file a CCC-633EZ, Page 2, to request benefits anytime before the final loan/LDP availability date for the commodity. Page 2 is the request for benefits. Producers retain the ability to obtain marketing assistance loans on the commodity, unless a CCC-633EZ, Page 2, is filed on the quantity.
The LDP rate will depend on whether the producer still has beneficial interest (risk, title, control) in the commodity.
If the producer still has beneficial interest, the LDP rate will be the rate in effect for the county where the commodity is stored on the date the Page 2 is filed.
If beneficial interest has been lost, the LDP rate will be the rate in effect for the administrative county where the farm records are maintained on the day beneficial interest was lost. Documentation will need to be provided for FSA to determine the date that beneficial interested was lost.
The new CCC-633 EZ form is effective for 2005 and subsequent years. However, for 2005 crop year only, the CCC-709, CCC-709Pelt, CCC-633LDP, CCC-633Pelt, and e-LDP also will be authorized methods of requesting LDP benefits. Producers are reminded if a CCC-633LDP is used instead of the new form, beneficial interest in the commodity must be maintained on the date the LDP is requested.
Producers with a CCC-709, Field Direct, already on file will continue with that form for the quantity that is covered by the specific option selected on the CCC-709 unless they cancel the CCC-709 before harvest or shearing begins and file CCC-633EZ, Page 1.
Producers who have CCC-709s on file also should file a CCC-633EZ, Page 1, before they lose beneficial interest in order to cover any production that might not be covered by the CCC-709. Producers with CCC-709s on file can contact their FSA county office to discuss their options.
The CCC-633EZ will be available to the public on the Internet at: http://forms.sc.egov.usda.-gov/eforms/mainservlet. Copies of the form also will be available at grain elevators and warehouses in the area. Producers are reminded they must have a form FSA-237 on file before forms can be faxed to FSA county offices.
