CCC loans provide flexibility in grain marketing

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

The use of CCC commodity loans declined significantly between 2008 and 2014, when grain prices hit their highest level in many years. But in recent years, the use of Marketing Assistance Loans (MALs), which are the same as CCC commodity loans, has again grown in importance. The MALs provide producers with additional options in setting up grain marketing plans for corn, soybeans and other crops.

MALs originate from the Farm Service Agency county offices after the grain is harvested. MALs are loans with a duration of 9 months from the establishment of the loan.

A CCC MAL loan can be established on both grain stored on the farm and 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 term, by repaying the loan principal amount plus accrued interest.

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