The Agricultural Act of 2014 (2014 Farm Bill) authorizes nonrecourse marketing assistance loans (MALs) and loan deficiency payments (LDPs) for the 2014 through 2018 crops of rice.
Nonrecourse MALs and LDPs are administered by the Farm Service Agency (FSA) on behalf of the Commodity Credit Corporation (CCC).
About the Program
Payment Limitations
For the 2014-2018 crop years, there are payment limitations on any benefit associated with the MAL or LDP programs. The total amount of payments received for all covered commodities except peanuts, directly or indirectly, by a person or legal entity (except joint ventures or general partnerships) for Price Loss Coverage, Agricultural Risk Coverage, marketing loan gains and LDPs is limited to no more than $125,000 annually. Producers exceed the limit are still eligible for MALs but must repay at principal plus interest. Peanut producers have a separate $125,000 payment limit for benefits received from the same programs.
Read the Payment Limitation Fact Sheet for additional information for payment limitations for marketing loan gains and LDPs
Adjusted Gross Income
For the 2014-2018 crop years, producers or legal entities whose average adjusted gross income (AGI) exceeds $900,000, are not eligible for marketing loan gains and LDP payments; but are eligible for MALs that must be repaid at principal plus interest.
Final Loan/LDP Availability Date for Rice
The rice crop loan/LDP availability date is May 31 of the calendar year after the calendar year the rice is harvested.
Loan Rates
The 2014 Farm Bill set the national loan rate for 2014-2018 crops of long grain and medium/short grain rough rice at $6.50 per hundredweight (cwt). To achieve the national average rate and provide rate adjustments for different classes and milling out-turns, separate loan rates are provided for whole kernels by class and broken rice.
Table 1 – 2014 Crop Milled Loan Values for Rice per Hundredweight (cwt)
| Loan Values for Whole Kernel and Broken Rice | |
|---|---|
| Rice Classes | 2014 Crop ($ per cwt) |
| Long Grain – Whole Kernels | $10.25 |
| Medium/Short Grain - Whole Kernels | $9.63 |
| Broken Rice | $6.18 |
Loan Values for whole and broken kernel rice are used to determine loan proceeds for warehouse stored rice as the milling out-turns are determined when the rice is delivered to the warehouse and registered on the warehouse receipt.
Loan rates for farm-stored rice (or rice for which the grade and milling yield are not determined) are based on state average milling out-turns for the prior five years and the national whole and broken kernel loan rates for that current crop year.
Table 2 –2014 Crop Farm-Stored Loan Rates for Rice per Hundredweight (cwt)
| State | 2014 Crop | |
| Long Grain ($ per cwt) | Medium/Short Grain ($ per cwt) | |
| Arkansas | $6.46 | $6.22 |
| California | $6.33 | $6.59 |
| Louisiana | $6.46 | $6.29 |
| Mississippi | $6.63 | $6.50 |
| Texas | $6.81 | $6.48 |
| National Average | $6.50 | $6.50 |
The national average rough rice loan rate is used to determine the farm-stored loan proceeds in states other than the six major rice-producing states.