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The document is a Loan Deficiency Payment (LDP) Agreement and Request form from the U.S. Department of Agriculture's Commodity Credit Corporation. It outlines the eligibility requirements for producers to receive LDP benefits for various commodities, including necessary certifications, terms and conditions, methods of payment requests, and producer responsibilities. The form must be completed and submitted before losing beneficial interest in the commodities for which payments are requested.

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What is the payment of deficiency?

A type of agricultural domestic support, paid by governments to producers of certain commodities and based on the difference between a target price and the domestic market price or loan rate, whichever is the less.

How do deficiency payments work?

The difference between the sale price and the total debt is called a deficiency. For example, if you owe $20,000 on your car loan and the lender sells or auctions your auto for $15,000, the deficiency amount that you are still required to pay is $5,000.

What is a deficiency payment program?

The Loan Deficiency Payments (LDP) program, administered by the Farm Service Agency (FSA), offers payments to producers of eligible commodities who choose not to take out a Commodity Credit Corporation (CCC) loan when market prices fall below the loan rate.

How do loan supports and deficiency payments work?

Loan supports allow farmers to borrow against crops, Deficiency payments supply farmers with checks for the difference between the target price and the actual price.

How do loan deficiency payments work?

Loan Deficiency Payments (LDPs) are payments made to producers who, although eligible to obtain a CCC loan, agree to forgo the loan in return for a payment on the eligible commodity.

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What is the deficiency payment policy?

A deficiency payment scheme consists of direct government payments to farmers who participated in an annual program. The payment rate is based on the difference between an established target price and average market price for the commodity.

Get the up-to-date CCC-633 EZ Loan Deficiency Payment (LDP) Agreement and Request 2025 now

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How to modify CCC-633 EZ Loan Deficiency Payment (LDP) Agreement and Request in PDF format online

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