Commodity Loans and Loan Deficiency Payments
Department Of Agriculture, Farm Service Agency
To improve and stabilize farm income, to assist in bringing about a better balance between supply and demand of the commodities, and to assist farmers in the orderly marketing of their crops. Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. Allowing producers to store production at harvest facilitates more orderly marketing of commodities throughou
Jargon-free version
Helps farmers get short-term loans to cover costs until they sell their crops. Also provides direct payments if they choose not to harvest.
Quick Facts
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What Is This Program?
What Benefits Are Offered?
Marketing Assistance Loans provide producers interim financing at harvest time to meet cash flow needs without having to sell commodities when market prices are typically low. Loan Deficiency Payments supplement producer income when market prices fall below established loan rates.
Who Is Eligible?
Industries: agriculture, farming
Region: United States
Other Criteria: agricultural producers, must have beneficial interest in the commodity, producers of eligible agricultural commodities, actively engaged in farming, in compliance with conservation regulations
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📋What Are the Application Steps & Timeline?
- 📝Steps to Apply
- Complete an application form
- Submit the application to the local FSA office
- Provide production records
- Select desired coverage level
- 🌐Application Portal
- http://www.fsa.usda.gov/resources/income-support/dairy-margin-coverage-program-dmc
- 📤Submission Method
- in-person
- 📅Key Dates
- Feb. 26, 2026Enrollment period closed
- 🔄Intake Type
- fixed-deadline
📄What Documents Are Required?
- ✅Required Documents
- SF-424 (Application for Federal Assistance)
- SF-424A (Budget Information - Non-Construction)
- SF-424B (Assurances)
- Project Narrative
- Budget Narrative
- indirect cost rate agreement
- 📐Format Requirements
- PDF only, max 10MB
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💰What Expenses Are Eligible?
- 🧾Eligible Expenses
- financial assistance when the margin between the all-milk price and average feed cost falls below a coverage level
- 💳Payment Model
- mixed
- ⏪Retroactive Expenses Eligible
- Yes
🤝Is Matching Funding Required?
- 🔀Matching Required
- No
- 📚Stacking Rules
- Yes, can combine with other government funding.
📊What Are the Reporting Requirements?
- 🔍Audit Requirements
- OMB Uniform Guidance Single Audit if the recipient expends $750,000 or more in federal awards in a fiscal year
- 🗄️Record Retention Period
- 3 years post-final-report
How Do I Apply?
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FAQFrequently Asked Questions
Visit the program page for detailed eligibility requirements.
Contact the program administrator for funding details.
This program accepts applications on a rolling basis.
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