Marketing Assistance Loan Update

Price Support Division at the FSA national office has reported that The President signed the Consolidated Appropriations Act, 2016 on 18 December 2015.

Section 740 of the Consolidated Appropriations Act, 2016, amended the 1996 Farm Bill to include provisions for the issuance of commodity certificates beginning with the 2015 crop year for marketing assistance loans (MALs).  By redeeming a loan with commodity certificates, the MLG, if available, is not subject to AGI or the $125,000 payment limitation.

The Price Support Division indicated their intent is to provide detailed policy as soon as practicable through Notices and Handbook amendments to FSA handbooks 7-CN, 8-LP, and 1-CMA.  Software enhancements are also necessary to accommodate the MAL loan redemptions and other provisions impacted with the availability of commodity certificate exchanges authorized by the Consolidated Appropriations Act, 2016  

There will be training for FSA State Offices in early January, 2016, to provide more detailed information.  They will also schedule a conference call with the CMA/DMA/LSAs .  Until the notices and VTCs are held county offices will continue to redeem cotton which is currently in a Market Gain status in the normal manner.  Future notices will provide instructions that will permit commodity certificate exchange for all of the impacted 2015 crop MAL repayments and redemptions.   Commodity certificate exchange is not applicable to LDPs.


Darren G. Owens
Chief Common Management and Price Support
Texas State FSA Office
Office: 979.680.5190