# Presentation: 758755

## Handling 2007-Crop Peanut Storage and In-Handling

**July 2007**

## The Farm Security and Rural Investment Act of 2002 (2002 Act), required CCC to pay storage, handling, and other associated costs for all peanuts placed in the MAL program through the 2006 crop year.  

This mandate was terminated with the 2007 crop year. 

- The Farm Security and Rural Investment Act of 2002 (2002 Act), required CCC to pay storage, handling, and other associated costs for all peanuts placed in the MAL program through the 2006 crop year.
- This mandate was terminated with the 2007 crop year.

## Based on the termination of this policy,  FSA has approved procedures and the method for collecting storage and       in-handling from producers who place their peanuts in the MAL program. 

- Based on the termination of this policy,  FSA has approved procedures and the method for collecting storage and       in-handling from producers who place their peanuts in the MAL program.

## FSA will allow offsets for:

Peanut Storage  

In-handling

- FSA will allow offsets for:
- Peanut Storage
- In-handling

## For storage and/or in-handling to be offset the producer must:

Present a bill or a statement of unpaid charges   with the warehouse receipt when requesting a marketing assistance loan (MAL).   

Complete a CCC-679. 
    (similar to cleaning/drying)

- For storage and/or in-handling to be offset the producer must:
- Present a bill or a statement of unpaid charges   with the warehouse receipt when requesting a marketing assistance loan (MAL).
- Complete a CCC-679.
-     *(similar to cleaning/drying)*

## Storage and/or In-handling will:

be deducted from the MAL proceeds as directed by each producer.

NOT be considered a LIEN.

Note:  Storage charges can be offset only if the   		     warehouse receipt indicates storage has been paid   	     or provided for, as applicable.

- Storage and/or In-handling will:
- be deducted from the MAL proceeds as directed by each producer.
- NOT be considered a LIEN.
- Note:  Storage charges can be offset only if the   		     warehouse receipt indicates storage has been paid   	     or provided for, as applicable.

## Warehouse-Stored MAL Peanuts Options

If the warehouse receipt is issued by the warehouse indicating that the storage charges HAVE BEEN paid through or provided for through loan maturity then:

FSA will not reduce the loan rate.

at the time the MAL is repaid, FSA will use the normal  repayment process.

- Warehouse-Stored MAL Peanuts Options
- If the warehouse receipt is issued by the warehouse indicating that the storage charges HAVE BEEN paid through or provided for through loan maturity then:
- FSA will not reduce the loan rate.
- at the time the MAL is repaid, FSA will use the normal  repayment process.

## If the warehouse receipt is issued by the warehouse indicating that storage charges have NOT BEEN or PARTIALLY paid through or provided for through loan maturity then CCC will:

- If the warehouse receipt is issued by the warehouse indicating that storage charges have **NOT BEEN**** or ****PARTIALLY** paid through or provided for through loan maturity then CCC will:

## reduce the loan rate by the amount of unpaid storage charges through loan maturity.  To establish the amount of unpaid storage FSA will use the “Date Storage Paid Through” to determine if it is earlier than the loan maturity date, thus calculating the number of month/days of unpaid storage from the day after “Date Storage Paid Through” to loan maturity.  (Note:  If “Date Storage Paid Through” is not provided, then the number of days of unpaid storage charges will be calculated from the “Date Documents Received” through loan maturity.)

- reduce the loan rate by the amount of unpaid storage charges through loan maturity.  To establish the amount of unpaid storage FSA will use the “Date Storage Paid Through” to determine if it is earlier than the loan maturity date, thus calculating the number of month/days of unpaid storage from the day after “Date Storage Paid Through” to loan maturity.  (**Note**:  If “Date Storage Paid Through” is not provided, then the number of days of unpaid storage charges will be calculated from the “Date Documents Received” through loan maturity.)

## before loan repayment, if the MAL was REDUCED, FSA will allow the producer/agent to provide proof that warehouse storage charges have been paid or provided for during the period for which the storage was previously deducted.  Accordingly, the dates and the loan amount will be adjusted to reflect the deducted storage amount and the MAL will be adjusted to account for an additional cash disbursement. 

- before loan repayment, if the MAL was **REDUCED**, FSA will allow the producer/agent to provide proof that warehouse storage charges have been paid or provided for during the period for which the storage was previously deducted.  Accordingly, the dates and the loan amount will be adjusted to reflect the deducted storage amount and the MAL will be adjusted to account for an additional cash disbursement.

## If the MAL is not repaid within the 9 month period and the peanuts are subsequently forfeited to CCC, storage charges will be handled as follows, if charges were: 

paid through maturity, then CCC will pay storage charges to the warehouse starting the day after loan maturity through final disposition.

- If the MAL is not repaid within the 9 month period and the peanuts are subsequently forfeited to CCC, storage charges will be handled as follows, if charges were:
- paid through maturity, then CCC will pay storage charges to the warehouse starting the day after loan maturity through final disposition.

## not fully paid and the loan rate is reduced by FSA, then CCC will pay storage charges to the warehouse from the later of the “Date Storage Paid Through” or the “Date Documents Received” through final disposition, when applicable.

paid beyond maturity, then CCC will refund to the producer all storage charges paid 

- not fully paid and the loan rate is reduced by FSA, then CCC will pay storage charges to the warehouse from the later of the “Date Storage Paid Through” or the “Date Documents Received” through final disposition, when applicable.
- paid beyond maturity, then CCC will refund to the producer all storage charges paid

## NOTE:  

	If the peanuts are forfeited to CCC 	then:

 	 CCC will pay the warehouse from Storage 	  	      	 Start through final disposition and the producer 
		 will be billed by FSA for the period cover the  	   	 Storage Start to Date Documents Received.   

- NOTE:
- 	If the peanuts are forfeited to CCC 	then:
-  	 CCC will pay the warehouse from Storage 	  	      	 Start through final disposition and the producer
- 		 will be billed by FSA for the period cover the  	   	 Storage Start to Date Documents Received**.****   **

## Questions concerning this policy contact:

Tonye Gross
   Peanut Program Manager
Farm Service Agency
Price Support Division
(202) 720-4319
(202) 690-1536
Tonye.Gross@wdc.usda.gov

- Questions concerning this policy contact:
- Tonye Gross
-    Peanut Program Manager
- Farm Service Agency
- Price Support Division
- (202) 720-4319
- (202) 690-1536
- Tonye.Gross@wdc.usda.gov