Farm Programs & Ag Insights: FSA Marketing Assistance Loans Offer Cash Flow Flexibility

Commodity Credit Corporation (CCC) product loans on harvested corn, soybeans and wheat were routinely used by farm operators in the 1990s and early 2000s, as well as from 2015 to 2019, as a grain marketing tool. Using CCC product loans dropped off considerably from 2008-2014 and once again from 2020-2023 when grain prices reached their highest levels in several years. As farmers get ready for the 2025 harvest season, making use of marketing support loans (MALs), which are the same as the previous CCC commodity loans, has handled more significance as a choice in establishing post-harvest grain marketing prepare for corn and soybeans.

The CCC commodity loans (MALs) are originated through county Farm Service Agency workplaces after the grain has been harvested and are 9-month loans from the time of origination. A marketing help loan can be established both on farm-stored grain and on grain in industrial storage with a storage facility invoice. Producers get the value of the loan at the time the CCC loan is developed. The loan can be repaid at any time throughout the 9-month loan period, by paying back the amount of the loan principal plus the accrued interest.

The 2018 Farm Bill established nationwide loan rates for the different commodities that are eligible for the marketing help loans; however, the Reconciliation Bill by Congress increased all national loan rates by 10 percent for 2026. Following are the 2025 nationwide loan rates for common crops in the Upper Midwest:

• Corn --------- $2.20 per bushel ($2.42/ bu. in 2026)

• Soybeans-- $6.20 per bushel ($6.82/ bu. in 2026)

• Wheat ------- $3.38 per bushel ($3.72/ bu. in 2026)

• Barley ------- $2.50 per bushel ($2.75/ bu. in 2026)

• Oats --------- $2.00 per bushel ($2.20/ bu. in 2026)

• Grain Sorghum-- $2.20 per bushel ($2.42/ bu. in 2026)

The county loan rates are then adjusted greater or lower than nationwide rates, based on regional commodity rate differentials compared to nationwide rate levels. Following is the variety of 2025 County corn and soybean loan rates for MALs in the Upper Midwest States:

a href="https://mike.mavebs.com"> Minnesota ------ Corn = $2.02 to $2.14/ bu.; Soybeans = $5.86 to $6.16/ bu.

• Iowa ------------ Corn = $2.07 to $2.30/ bu.; Soybeans = $6.07 to $6.33/ bu.

• Nebraska ------- Corn = $2.05 to $2.28/ bu.; Soybeans = $5.82 to $6.18/ bu.

• South Dakota-- Corn = $2.04 to $2.21/ bu.; Soybeans = $5.69 to $6.12/ bu.

• North Dakota-- Corn = $2.00 to $2.21/ bu.; = $5.69 to $5.99/ bu.

• Wisconsin ------ Corn = $2.04 to $2.21/ bu.; Soybeans = $6.07 to $6.26/ bu.

The MAL loan interest rate is changed monthly and is established at one percent above the CCC interest rate from the U.S. Treasury. The rates of interest on MAL loans is repaired for the entire term of the 9-month MAL, other than for a potential CCC rate of interest change on January 1. The existing rates of interest on marketing help loans (since 8-01-25) is 5.0 percent, which compares to an interest rate of 8 to 9 percent for short-term financing at numerous business ag loaning organizations. Producers just pay interest for the time that the MAL remains in place. (Example: a $500,000 MAL corn loan at 5.0 percent interest for 180 days = $12,500 interest payment for 6 months, which compares to $21,250 on a similar loan at 8.5 interest for 180 days).

Farm operators have the versatility to place grain under a MAL at a regional FSA office any time after the grain has been harvested, so they might get the MAL in November or December 2025 or wait up until after January 1, 2026. Producers also have the versatility to treat the product loan as either "earnings" or as a "loan" when the loan earnings are received. Either of these choices can have income tax implications, depending upon how and when the loan proceeds are gotten. It is best to speak with a tax consultant before identifying the timing and the favored method of getting the loan proceeds.

If commodity rates drop to levels that are lower than county loan rates, eligible producers would possibly be qualified to release the grain that is under a marketing support loan at a rate that is lower than the county loan rate. FSA concerns a "published county cost" (PCP) for products that are qualified for MALs, which are upgraded and published daily at regional FSA workplaces, or offered on county FSA sites. If the PCP is lower than the county loan rate, the producer might understand a "marketing loan gain" (MLG), if the grain is launched at that lower PCP. (Example: a producer positions corn under a MAL at $2.10 per bushel, a couple of months later the PCP is $1.90 per bushel, resulting in the potential of a marketing loan gain of $.20 per bushel on the day the corn loan is launched.)

If the PCP drops listed below the county MAL loan rate, manufacturers likewise have the choice to collect a loan deficiency payment (LDP) on a product, in lieu of putting the grain under a product loan. The LDP estimation is similar to the estimation for marketing loan gains. Grain that is already under a product loan is not qualified for a LDP, and a LDP can only be made use of when on the same bushels of grain. There has not been considerable LDP eligibility for corn and soybeans because the early 2000s and we do not prepare for any LDP chances for the 2025 corn and soybean crop that is being placed in storage.

Producers should be qualified for USDA farm program advantages and need to have submitted an acreage report at the FSA workplace for 2025 to be qualified for marketing help loans on this year's crop production. Producers must maintain "advantageous interest" in the grain while it is under a MAL. Beneficial interest indicates that the producer keeps control and title of the product while it is under a commodity loan. Farmers should call their local FSA workplace to release any grain that is under a marketing help loan before it is delivered to market ("call before you transport").

Following are some factors that farm operators may want to consider making use of marketing support loans as part of their grain marketing strategies:

• Provides short-term credit at reasonably low and stable interest rates.

• Loan funds can be utilized to pay post-harvest expenses and land rental payments for the current year or for pre-paid crop inputs (seed, fertilizer, and so on) for the following crop year.

• Loan funds can also offer the necessary funds to make year-end or January primary and interest payments on term loans and real estate loans.

• Allows a producer to get partial payment for corn and soybeans during or following the fall harvest season, when product prices are traditionally lower than average.

• Allows a manufacturer the versatility to market the grain in future months after the grain has actually been placed under a MAL, including forward pricing the grain for future shipment. (Bear in mind that the product loan need to be satisfied at the FSA workplace before the grain is provided.)

• Commodity loans can likewise be utilized by livestock producers that plan to feed the corn or other grain, which is followed by just launching the grain that is under loan as it is fed to animals.

• If commodity prices decline below the county CCC loan rates, the grain that is under loan can be launched at the lower cost or producers can gather a loan shortage payment (LDP).

In Minnesota, FSA workplaces file a Central Notification System (CNS) form with the Minnesota Secretary of State Office on all grain utilized as security for a marketing support loan. These forms resemble the CNS forms that are filed by ag lending institutions for farm operating loans to guarantee the transfer of funds when grain or animals is sold to cover impressive loan balances.

For more info on USDA marketing help loans and county loan rates for various products, farm operators ought to call their regional FSA workplace, or go to the following site: https://www.fsa.usda.gov/programs-and-services/price-support/Index.

Kent Thiesse is a Farm Management Analyst from Lake Crystal, Minn. He can be reached at (507) 381-7960 or kentthiesse@gmail.com.