Apply for Loan Deficiency Payments for 2024 cotton is May 31, 2025
The USDA’s Farm Service Agency (FSA) is offering Loan Deficiency Payments (LDP) to cotton producers in New Mexico. LDPs are available to producers who choose to forgo the Marketing Assistance Loan and receive a payment on eligible cotton crops instead. The deadline to apply for LDPs for the 2024 crop-year cotton is May 31, 2025.
“Under current market conditions, 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.
LDP eligibility is triggered when the adjusted world price (AWP) for cotton falls below the loan rate. For 2024, the loan rate for base quality upland cotton is $0.52 per pound. Extra-long staple cotton does not qualify for LDPs.
To be eligible, producers must have beneficial interest in the cotton, meaning they must hold title, possession, and control over the commodity.
Producers must also have submitted the LDP Agreement and Request, form CCC-633EZ, Page 1, to the local FSA office before losing beneficial interest. When requesting payment, the producer must submit Page 3 of the form, no later than May 31 of the following year.
LDPs are not subject to payment limitations or actively engaged in farming rules, but producers must meet adjusted gross income provisions. For further information and to ensure eligibility, producers are advised to consult their local FSA office.
FSA helps farmers and ranchers across the U.S. by providing crucial agricultural support through various programs.
For more details, visit fsa.usda.gov.