New Options For Getting2005 Cotton LDP's

Friday,August 12, 2005                           By Shawn Wade

      Farmprograms may not change much from year to year, but occasionally a proceduralchange comes along that opens a whole new realm of possibility and opportunityfor growers.

      The2005 marketing year appears to be one of those times for cotton producers sinceUSDA announced one Loan Deficiency Payment program change and added cotton tothe electronic Loan Deficiency Payment (eLDP) program that started in 2004.

      Withthe changes, USDA brings new options to producers that will ultimately reducethe number of trips they have to make to the Farm Service Agency office.

      Thebiggest change was announced last week and allows growers to fill out a newform (CCC-633 EZ) and indicate their intent to request LDP payments oncommodities they produce.

      Completingpage one of the form will establish basic LDP eligibility for all crops that aproducer grows. Later in the season cotton producers can use page 3 of the formto request LDP benefits on specific lots of cotton or lock-in LDP rates onharvested cotton in modules much as they have in the past.

      Usingthe new form and establishing LDP eligibility does not affect a producer'sability to enter cotton into the government's marketing loan program. What itwill do is ensure that when producers sell a commodity and subsequently losebeneficial interest that they do not lose the opportunity to receive LDPbenefits on that production.

      Thenew form, CCC-633 EZ, will be available for growers to request Loan DeficiencyPayments on the 2005 crop. The form acts as a global LDP request establishingLDP eligibility on all crops the producers has beneficial interest in at thetime.

      Usingthis form a producer can establish LDP eligibility for 100 percent of theirproduction as long as it is filled out at the beginning of the marketing seasonand before beneficial interest is lost. Having the form on file allowsproducers to request an LDP on cotton after they have lost beneficial interestin the crop.

      TheLDP's can be requested anytime during the loan/LDP availability period for thecrop and the LDP rate will be based on the rate in effect on the day thatbeneficial interest was lost.

      Thiscould be an extremely beneficial tax-planning tool for growers who need thesupport provided by the LDP, but also wish to delay receipt of that benefituntil after the start of the next tax year.

      Prior to the 2005 crop producers who failed to request an LDP before beneficialinterest in the crop was lost were ineligible for LDP benefits on those bales.

      Fillingout a CCC-633 EZ will not impact a producer's ability to put cotton under loaninstead of obtaining an LDP.

      CountyFSA offices will be encouraging all producers to fill out the form. A producer willonly have to fill out and submit one CCC-633 EZ form, as it covers all of theproducer's loan eligible production for that year and copies will be providedto all county offices as necessary by FSA. This procedure is also available forother LDP eligible commodities.

Cotton eLDP Option Also AvailableFor 2005

      Inaddition to guaranteeing eligibility for LDP payments at the beginning of themarketing season, cotton growers will also be able to take advantage of theelectronic Loan Deficiency Payment (eLDP) system that was opened to grain cropsin 2004.

      Usingthe eLDP system growers can fill out their LDP request from home, or anywherethey can establish a connection to the internet, and not have to actually gointo their county Farm Service Agency office.

      Toparticipate in the program growers must complete an online application toobtain what is known as a USDA eAuthentication Level 2 Account.

      Signingup for the secure eAuthentication Level 2 account is an easy two-step process.The first step is to go online (, create a user ID and password and provide a validemail address. The second step in completing the eAuthentication process is togo to the county FSA office for identity verification. If they have not alreadydone so, FSA personnel will also set up a customer profile for the grower andvalidate their farming and crop information.

      Oncethe eAuthentication account is set-up a grower simply has to log in to thesecure system via the internet. The system is available 24 hours a day andallows producers to receive LDP benefits by direct deposit usually within 48hours.

      For more informationabout signing up for either of these program options, contact the FSA at theUSDA Service Center nearest you.


High Plains Crop Tour & Field Day Schedule *

August/September 2005


August 12


Regional Alfalfa Workshop, Muleshoe, 9:00 a.m. Contact Curtis Preston, CEA-AG, at 272-4584.

August 15

Cochran County Small Grains Workshop. Contact Jeff Wyatt, CEA-AG, at 266-5215.

August 23

Scurry/Borden County Small Grains Workshop. Contact Greg Gruben, CEA-AG, at 325-573-5423 or Dennis Poole, CEA-AG, at 756-4336.

August 24

Crop Conference, Tulia. Contact Michael Clawson, CEA-AG, at 995-3721.

August 26

Lubbock Chamber of Commerce Ag Appreciation Breakfast and Farm Tour, Reservation required for Breakfast, call 761-

August 31

Gaines County Ag Tour. Contact Terry Millican, CEA-AG, at 432-758-4006.

Sept. 9

Swisher County Forage Meeting. Contact Michael Clawson, CEA-AG, at 995-3721.

Sept. 13

Yoakum County Crop Tour. Contact Arlan Gentry, CEA-AG, at 456-2263.

Sept. 14

Lubbock County Crop Tour. Contact Mark Brown, CEA-AG, at 775-1680.

Sept. 15

D&PL Field Day, eight miles south of Lorenzo on the Steve Chapman Farm, 9:00 a.m.

Sept. 20

Floyd County Ag Tour. Contact J.D. Ragland, CEA-AG, at 983-4912.

Sept. 21

West Texas Ag Chemicals Institute Annual Meeting, Holiday Inn Lubbock Plaza Hotel, Lubbock, TX

Sept. 22

Bayer CropScience/FiberMax Field Day, phone 765-8844 for more information

Sept. 22

Lynn County Crop Tour. Contact Bryan Reynolds, CEA-AG, at 561-4562.

*To add an event to this calendarcontact PCG at 806-792-4904