There's a new form and a more streamlined process for signing up to receive loan deficiency payments (LDPs) this year. The new CCC-633 EZ form, which will be effective for 2005 and following crop years, aims to help ensure that producers get LDPs when they are requested and when they still have beneficial interest in the crop.

James R. Little, administrator of the USDA's Farm Service Agency (FSA), in mid-August noted some producers have been unable to collect LDPs in the past because they lost beneficial interest in the commodity before completing the required paperwork.

Producers will be able to fill out the new form annually to express their intentions of receiving LDPs for eligible crops. "This will help to ensure producers receive benefits and meet all eligibility requirements for LDPs," Little said.

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Before this change, to receive LDP benefits, producers had to complete and submit a CCC-633 LDP or a CCC-709, Field Direct LDP form before losing beneficial interest in the harvested commodity.

Now, while they still have beneficial interest in the commodity, producers will fill out the new CCC-633 EZ form each year at their FSA office to receive LDP benefits for eligible crops on all their farms. They'll then submit page 2 of the new form when they request LDPs.

A producer retains beneficial interest in the commodity if all of the following remain with the producer: control of the commodity; risk of loss; and title to the commodity.

Either at the time a producer first submits the CCC-633 EZ, or any time before the final loan availability date, the producer must request a payment for a specific quantity and provide acceptable production evidence. The LDP rate is based on the date of request for payment or the date beneficial interest is lost, whichever is earlier.

Filing a CCC-633 EZ doesn't prevent producers from obtaining marketing assistance loans on applicable crops. The LDP rate equals the amount by which the applicable loan rate where the commodity is stored exceeds the alternative loan repayment rate for the respective commodity.

You can print a copy of the new CCC-633 EZ form, and get the agreement and request, which includes instructions for filling it in and answers to common questions, online at www.fsa.usda.gov/dafp/psd