By Jamie Martin
Cotton producers in New Mexico can apply for Loan Deficiency Payments (LDPs) through the USDA Farm Service Agency (FSA). These payments are designed to help cotton farmers by offering a financial alternative to Marketing Assistance Loans.
The deadline for submitting applications for the 2024 crop-year cotton is May 31, 2025. “Loan Deficiency Payments can provide cash flow and help cotton producers stabilize farm income and manage risk,” said Brenda Archuleta, deputy state executive director in New Mexico.
To be eligible for LDPs, cotton producers must meet specific conditions. For the 2024 crop year, the loan rate for base quality upland cotton is set at $0.52 per pound. However, extra-long staple cotton is not eligible for these payments.
Producers need to demonstrate beneficial interest in the cotton, meaning they must have control over the commodity and are responsible for its loss or damage.
To qualify for payments, they must submit the LDP Agreement and Request, form CCC-633EZ, Page 1 to the local FSA office before losing beneficial interest. The completed form must be submitted by May 31 of the following year when requesting payment.
LDPs do not have payment limits or restrict actively engaged farming participants, although producers must comply with adjusted gross income requirements. Additional eligibility details can be obtained from the local FSA office.
The USDA’s FSA offers essential agricultural services, including marketing and conservation programs, to help farmers manage risk and ensure sustainability.
For more information, visit fsa.usda.gov.
Categories: National