USDA Marketing Loans Extended to 12 Months
Farmers now have more time to pay back Marketing Assistance Loans for corn, soybeans, wheat and other major crops as the USDA implements the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The loans will now mature in 12 months instead of 9 months. Crops that are currently under loan will be automatically extended the extra 3 months. Farmers used to call this program the "9 month CCC Loan Program.
Here is how it works. Farmers that have grain in the bin after harvesting last fall can get a USDA Marketing Assistance Loan for 12 months and use the grain in the bin as collateral. The interest rates are usually lower than bank rates. Then anytime before the loan matures farmers can sell the grain, pay off the loan and keep any funds left over. It is a great way to generate some cash to pay bills while still owning the grain while waiting for higher prices.