Commodity Credit Corporation (CCC) commodity loans on gathered corn, soybeans and wheat were frequently used 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 once again from 2020-2023 when grain costs reached their greatest levels in many years. As farmers get ready for the 2025 harvest season, the use of marketing support loans (MALs), which are the exact same as the previous CCC product loans, has taken on more significance as a choice in setting up post-harvest grain marketing strategies for corn and soybeans.

The CCC commodity loans (MALs) are stemmed through county Farm Service Agency offices after the grain has actually been collected and are 9-month loans from the time of origination. A marketing assistance loan can be developed both on farm-stored grain and on grain in industrial storage with a storage facility receipt. Producers receive the value 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 duration, by repaying the quantity of the loan principal plus the accrued interest.

The 2018 Farm Bill developed nationwide loan rates for the various products that are qualified for the marketing support loans; nevertheless, the Reconciliation Bill by Congress increased all national loan rates by 10 percent for 2026. Following are the 2025 nationwide 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 changed higher or lower than nationwide rates, based on local commodity price differentials compared to national rate 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 rates of interest is adjusted monthly and is set up at one percent above the CCC borrowing rate from the U.S. Treasury. The interest rate on MAL loans is fixed for the entire term of the 9-month MAL, other than for a possible CCC rates of interest modification on January 1. The present interest rate on marketing support loans (as of 8-01-25) is 5.0 percent, which compares to an interest rate of 8 to 9 percent for short-term funding at lots of industrial ag loan provider. Producers just pay interest for the time that the MAL is in place. (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 comparable loan at 8.5 interest for 180 days).

Farm operators have the flexibility to place grain under a MAL at a local FSA office whenever after the grain has been gathered, so they could take out the MAL in November or December 2025 or wait up until after January 1, 2026. Producers also have the flexibility to deal with the commodity loan as either "earnings" or as a "loan" when the loan proceeds are received. Either of these choices can have earnings tax implications, depending upon how and when the loan proceeds are gotten. It is best to talk to a tax advisor before determining the timing and the preferred method of getting the loan earnings.

If commodity costs drop to levels that are lower than county loan rates, eligible manufacturers would possibly be qualified to release the grain that is under a marketing support loan at a rate that is lower than the county loan rate. FSA concerns a "published county price" (PCP) for products that are qualified for MALs, which are upgraded and posted daily at regional FSA offices, or offered on county FSA websites. If the PCP is lower than the county loan rate, the manufacturer could recognize 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 launched.)

If the PCP drops below the county MAL loan rate, producers also have the alternative to gather a loan deficiency payment (LDP) on a commodity, in lieu of putting the grain under a product loan. The LDP calculation resembles the estimation for marketing loan gains. Grain that is already under a commodity loan is not eligible for a LDP, and a LDP can only be used once on the very same bushels of grain. There has actually not been substantial LDP eligibility for corn and soybeans since the early 2000s and we do not anticipate any LDP chances for the 2025 corn and soybean crop that is being placed in storage.

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

Following are some factors that farm operators may desire to think about using marketing assistance loans as part of their grain marketing strategies:

• Provides short-term credit at reasonably low and steady rate of interest.

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

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

• Allows a producer to get partial payment for corn and soybeans throughout or following the fall harvest season, when product costs are typically lower than average.

• Allows a producer the flexibility to market the grain in future months after the grain has actually been put under a MAL, including forward pricing the grain for future delivery. (Keep in mind that the commodity loan need to be pleased at the FSA office before the grain is delivered.)

• Commodity loans can likewise be used by livestock manufacturers 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 to livestock.

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

In Minnesota, FSA offices file a Central Notification System (CNS) form with the Minnesota Secretary of State Office on all grain utilized as security for a marketing help loan. These kinds are similar to the CNS forms that are submitted by ag lending institutions for farm operating loans to guarantee the transfer of funds when grain or animals is sold to cover impressive loan balances.

For further info on USDA marketing assistance loans and county loan rates for various commodities, farm operators need to contact their regional FSA office, or go to the following site: 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 kentthiesse@gmail.com.