Commodity Credit Corporation (CCC) commodity loans on collected corn, soybeans and wheat were frequently utilized by farm operators in the 1990s and early 2000s, in addition to from 2015 to 2019, as a grain marketing tool. Making use of CCC commodity loans dropped off substantially from 2008-2014 and again from 2020-2023 when grain prices reached their highest levels in several years. As farmers prepare for the 2025 harvest season, making use of marketing help loans (MALs), which are the exact same as the previous CCC commodity loans, has actually taken on more significance as an alternative in setting up post-harvest grain marketing prepare for corn and soybeans.

The CCC commodity loans (MALs) are stemmed through county Farm Service Agency workplaces after the grain has actually been gathered and are 9-month loans from the time of origination. A marketing assistance loan can be established both on farm-stored grain and on grain in commercial storage with a storage facility receipt. Producers get the worth of the loan at the time the CCC loan is developed. The loan can be paid back at any time throughout the 9-month loan period, by paying back the amount of the loan principal plus the accumulated interest.

The 2018 Farm Bill developed nationwide loan rates for the various commodities that are qualified for the marketing assistance loans; however, the Reconciliation Bill by Congress increased all nationwide loan rates by 10 percent for 2026. Following are the 2025 national loan rates for common crops in the Upper Midwest:

• Corn --------- $2.20 per bushel ($2.42/ bu. in 2026)

• Soybeans-- $6.20 per bushel ($6.82/ bu. in 2026)

• Wheat ------- $3.38 per bushel ($3.72/ bu. in 2026)

• Barley ------- $2.50 per bushel ($2.75/ bu. in 2026)

• Oats --------- $2.00 per bushel ($2.20/ bu. in 2026)

• Grain Sorghum-- $2.20 per bushel ($2.42/ bu. in 2026)

The county loan rates are then adjusted greater or lower than national rates, based upon local commodity price differentials compared to national price levels. Following is the series of 2025 County corn and soybean loan rates for MALs in the Upper Midwest States:

• Minnesota ------ Corn = $2.02 to $2.14/ bu.; Soybeans = $5.86 to $6.16/ bu.

• Iowa ------------ Corn = $2.07 to $2.30/ bu.; Soybeans = $6.07 to $6.33/ bu.

• Nebraska ------- Corn = $2.05 to $2.28/ bu.; Soybeans = $5.82 to $6.18/ bu.

• South Dakota-- Corn = $2.04 to $2.21/ bu.; Soybeans = $5.69 to $6.12/ bu.

• North Dakota-- Corn = $2.00 to $2.21/ bu.; Soybeans = $5.69 to $5.99/ bu.

• Wisconsin ------ Corn = $2.04 to $2.21/ bu.; Soybeans = $6.07 to $6.26/ bu.

The MAL loan interest rate is adjusted regular monthly and is set up at one percent above the CCC borrowing rate from the U.S. Treasury. The rate of interest on MAL loans is fixed for the entire term of the 9-month MAL, other than for a prospective CCC interest rate modification on January 1. The existing rates of interest on marketing support loans (since 8-01-25) is 5.0 percent, which compares to a rates of interest of 8 to 9 percent for short-term financing at lots of industrial ag loan provider. Producers just pay interest for the time that the MAL remains in location. (Example: a $500,000 MAL corn loan at 5.0 percent interest for 180 days = $12,500 interest payment for 6 months, which compares to $21,250 on a at 8.5 interest for 180 days).

Farm operators have the versatility to put grain under a MAL at a regional FSA workplace at any time after the grain has been harvested, so they might get the MAL in November or December 2025 or wait until after January 1, 2026. Producers likewise have the flexibility to treat the commodity loan as either "earnings" or as a "loan" when the loan profits are gotten. Either of these choices can have earnings tax ramifications, depending on how and when the loan profits are gotten. It is best to speak with a tax consultant before figuring out the timing and the favored approach of receiving the loan profits.

If product prices drop to levels that are lower than county loan rates, qualified producers would potentially be qualified to release the grain that is under a marketing help loan at a rate that is lower than the county loan rate. FSA concerns a "posted county rate" (PCP) for products that are eligible for MALs, which are upgraded and posted daily at local FSA workplaces, or offered 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 puts 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 $.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 shortage payment (LDP) on a commodity, in lieu of putting the grain under a product loan. The LDP computation resembles the computation for marketing loan gains. Grain that is currently under a product loan is not eligible for a LDP, and a LDP can only be utilized as soon as on the same bushels of grain. There has not been significant LDP eligibility for corn and soybeans because the early 2000s and we do not prepare for any LDP chances for the 2025 corn and soybean crop that is being positioned in storage.

Producers need to be eligible for USDA farm program benefits and must have sent an acreage report at the FSA workplace for 2025 to be eligible for marketing assistance loans on this year's crop production. Producers should keep "useful interest" in the grain while it is under a MAL. Beneficial interest indicates that the manufacturer keeps control and title of the product while it is under a product loan. Farmers should contact their regional FSA office to launch any grain that is under a marketing support loan before it is provided to market ("call before you haul").

Following are some factors that farm operators might wish to think about using marketing help loans as part of their grain marketing techniques:

• Provides short-term credit at relatively low and stable rates of interest.

• Loan funds can be used to pay post-harvest expenses and land rental payments for the existing year or for prepaid crop inputs (seed, fertilizer, and so on) for the following crop year.

• Loan funds can likewise supply the necessary funds to make year-end or January principal and interest payments on term loans and property loans.

• Allows a manufacturer to receive partial payment for corn and soybeans throughout or following the fall harvest season, when commodity rates are typically lower than average.

• Allows a manufacturer the versatility to market the grain in future months after the grain has actually been put under a MAL, including forward pricing the grain for future shipment. (Bear in mind that the product loan must be pleased at the FSA office before the grain is delivered.)

• Commodity loans can also be used by livestock manufacturers that prepare to feed the corn or other grain, which is followed by simply releasing the grain that is under loan as it is fed to animals.

• If product rates decrease listed below the county CCC loan rates, the grain that is under loan can be released at the lower rate or producers can gather a loan deficiency payment (LDP).

In Minnesota, FSA workplaces submit a Central Notification System (CNS) form with the Minnesota Secretary of State Office on all grain used as security for a marketing assistance loan. These types are similar to the CNS forms that are submitted by ag lenders for farm operating loans to ensure the transfer of funds when grain or livestock is sold to cover impressive loan balances.

For more information on USDA marketing assistance loans and county loan rates for different commodities, farm operators should call their regional FSA office, or go to the following website: https://www.fsa.usda.gov/programs-and-services/price-support/Index.

Kent Thiesse is a Farm Management Analyst from Lake Crystal, Minn. He can be reached at (507) 381-7960 or [email protected].