Focus on ag: CCC loans provide grain marketing flexibility

Kent Thiesse
Farm Management Analyst and Vice President, MinnStar Bank
Kent Thiesse

Commodity Credit Corporation commodity loans on harvested corn, soybeans and wheat were regularly used by farm operators in the 1990s and early 2000s as a grain marketing tool.

The use of CCC commodity loans dropped off considerably from 2008-2014, when grain prices reached their highest levels in many years. But in recent years, the use of marketing assistance loans (MALs), which are the same as CCC commodity loans, have again taken on more significance. MALs offer producers additional options in setting up grain marketing plans for corn, soybeans and other crops.

MALs originate through Farm Service Agency county offices after the grain has been harvested. The MALs are 9-month loans from the time the loan is established.

A CCC MAL loan can be established both on farm-stored grain and on grain in commercial storage with a warehouse receipt. Producers receive the value of the loan at the time the MAL loan is established. The loan can be repaid at any time during the 9-month loan period, by repaying the amount of the loan principal plus the accrued interest.

The 2018 Farm Bill established national loan rates for the various commodities that are eligible for CCC MALs. Following are the 2021 national loan rates for common crops in the Upper Midwest:

  • Corn: $2.20 per bushel
  • Soybeans:  $6.20 per bushel
  • Wheat: $3.38 per bushel
  • Barley: $2.50 per bushel
  • Oats: $2.00 per bushel
  • Grain sorghum: $2.20 per bushel
  • Canola: $0.1009 per pound
  • Sunflowers: $0.1009 per pound

The county MAL loan rates are then adjusted higher or lower than national rates, based on local commodity price differentials compared to national price levels.

2021 loan rates in Minnesota counties range from $2.01 to $2.13 per bushel for corn and $5.81 to $6.15 per bushel for soybeans. Iowa loan rates range from $2.07 to $2.30 per bushel for corn and $6.07 to $6.33 for soybeans. South Dakota loan rates range from $2.03 to $2.20 per bushel for corn and $5.66 to $6.09 per bushel for soybeans. North Dakota loan rates range from $1.99 to $2.19 per bushel for corn and $5.66 to $5.96 per bushel for soybeans. Nebraska loan rates range from $2.10 to $2.27 per bushel for corn and $5.81 to $6.18 per bushel for soybeans.

The commodity loan rates for all U.S. counties are available at:

The CCC loan interest rate is adjusted monthly and set up at 1% above the CCC borrowing rate from the U.S. Treasury. The interest rate on CCC loans is fixed for the entire term of the 9-month marketing assistance loan (MAL), except for a potential CCC interest rate adjustment on Jan. 1.

The current interest rate on CCC commodity loans is only 1.125% interest, which has been steady for several months. Producers only pay interest for the time that the MAL is in place.

(Example: $100,000 MAL corn loan at 1.125% interest for 90 days …… ($100,000 x .0125) / 365 x 90 = $308.22 interest payment).

Farm operators have the flexibility to place grain under CCC loan at a local FSA office any time after the grain has been harvested. Producers also have the flexibility to treat the CCC commodity loan as either “income” or as a “loan” when the loan proceeds are received. This can have income tax implications, depending on how and when the loan proceeds are received.

It is best consult with a tax consultant before determining the timing and the preferred method of receiving the loan proceeds

If commodity prices drop to levels that are lower than county loan rates, eligible producers would potentially be eligible to release the grain that is under a CCC MAL loan at a rate that is lower than the county loan rate.

FSA issues a “posted county price” (PCP) for commodities that are eligible for MAL loans, which are updated and posted daily at local FSA offices, or available on county FSA websites. If the PCP is lower than the county loan rate, the producer could realize a “marketing loan gain” (MLG), if the grain is released at that lower PCP.

Example: a producer places corn under a MAL at $2.10 per bushel, a few months later the PCP is $1.90 per bushel, resulting in the potential of a marketing loan gain of $0.20 per bushel on the day the corn loan is released.

If the PCP drops below the county MAL loan rate, producers also have the option to collect a loan deficiency payment (LDP) on a commodity, in lieu of putting the grain under an MAL loan. The LDP calculation is similar to the calculation for marketing loan gains. Grain that is already under a MAL loan is not eligible for an LDP, and a LDP can only be utilized once on the same bushels of grain.

There has not been significant LDP eligibility for corn and soybeans since the early 2000’s.  

Producers must be eligible for USDA farm program benefits and must have submitted an acreage report at the FSA office for 2021 to be eligible for CCC marketing assistance loans on this year’s crop production.

Producers must maintain “beneficial interest” in the grain while it is under a MAL commodity loan. Beneficial interest means that the producer maintains control and title of the commodity while it is under a CCC loan. Producers should contact the FSA office to release any grain that is under a MAL with the CCC before it is delivered to market (“call before you haul”).

Following are some reasons that farm operators may want to consider utilizing CCC marketing assistance loans (MALs) as part of their grain marketing strategies:

  • MALs provide short term credit at relatively low and stable interest rates
  • MAL loan funds can be used to pay post-harvest expenses and land rental payments for the current year or for prepaid crop inputs (seed, fertilizer, etc.) for the following crop year
  • MAL loan funds can also provide the necessary funds to make year-end or January principal and interest payments on term loans and real estate loans
  • A MAL allows a producer to receive partial compensation for corn and soybeans during or following the Fall harvest season, when commodity prices are traditionally lower than average

A MAL allows a producer the flexibility to market the grain in future months after the grain has been placed under a CCC loan, including forward pricing the grain for future delivery (the CCC loan must be satisfied at the FSA office before the grain is delivered.)

CCC MAL loans can also be used by livestock producers that plan to feed the corn or other grain, which is followed by just releasing the grain that is under loan as it is fed.

If commodity prices decline below the county CCC loan rates, the grain that is under a MAL loan can be released at the lower price or producers can collect a loan deficiency payment (LDP).

For further information on marketing assistance loans (MAL’s) through the CCC and LDP’s, farm operators should contact their local FSA office or go to the following website:

For additional information contact Kent Thiesse, farm management analyst and senior vice president, MinnStar Bank, Lake Crystal, Minn., at 507-381-7960 or, or visit