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Loan Deficiency Payments (LDP)

 
 
  • A producer who is eligible to obtain a loan, but who agrees to forgo the loan, may obtain a Loan Deficiency Payment (LDP). The LDP rate equals the amount by which the applicable loan rate where the commodity is stored exceeds the alternative loan repayment rate for the respective commodity. The LDP equals the LDP rate times the quantity of the commodity for which the LDP is requested. Check with your local FSA office to determine the final date to request a LDP.

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