EC Nebraska | JCBFarmsND - 8/23/2024 15:13
I'm too young to have known how the LDP program works, and I don't recall learning about it in college. How exactly does it work?
You had to have your fields signed up with the FSA. The control office for your farm had a county loan rate and a posted county price. Those both could vary by county. The PCP was based on yesterday’s markets, so it could change daily.
Loan rate minus PCP gave you the daily LDP rate. It didn’t matter where you sold the grain, or the price you got for it. You got the LDP rate on the day you applied.
You had to still have beneficial interest in the grain when you applied for the LDP. So you couldn’t sell it till after you faxed in the application.
The fact that the PCP was based on yesterday’s market meant that you hoped for a big up day to price uncontracted grain.
And 10 cents in corn was a big up day. Then you had the coop fax over the application before price the grain
Those were the good ol’ days. |
LDP program
