FACT SHEET

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY

Page 1

February 2011

 Honey Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments

Overview

The Food, Conservation, and Energy 

Act of 2008 (2008 Act) reauthorizes 

nonrecourse marketing assistance loans 

(MALs) and loan deficiency payments 

(LDPs), for the 2008-2012 crop of 

honey. 

 Nonrecourse MALs and LDPs are administered by the Farm Service Agency 

(FSA), on behalf of the Commodity 

Credit Corporation (CCC).

See the fact sheet Nonrecourse Marketing Assistance Loans/Loan Deficiency 

Payments for additional information 

about MALs and LDPs.

Honey Nonrecourse Marketing Assistance Loan

Honey nonrecourse MALs provide 

eligible producers with interim financing 

on their production and facilitate the orderly distribution of loan-eligible honey 

throughout the year, and allows the 

producer to delay the sale of their honey 

until more favorable market conditions 

emerge. A producer may satisfy the loan 

obligation by delivering to CCC the 

quantity of honey pledged as collateral 

for full payment of the loan at maturity.

Eligibility

To be eligible for a honey nonrecourse 

MAL or LDP, a producer must have:

• Produced honey in the United 

States during the calendar year for 

which the loan is requested and 

extracted honey on or before Dec. 

31, of the applicable crop year;

• Had a continuous beneficial interest 

in the honey through date of repayment of the loan and; 

• Been responsible for the financial 

risk of keeping the bees and producing the honey.

To be eligible for a MAL or LDP, the 

honey must:

• Have been produced by an eligible 

producer;

• Have been produced and extracted 

in the United States during the applicable calendar year;

• Be of merchantable quality deemed 

by CCC to be suitable for loan and;

• Be stored in acceptable containers.

Adjusted Gross Income

Producers or legal entities whose average adjusted gross nonfarm income 

exceeds $500,000 are not eligible for 

marketing loan gains or LDPs, but are 

eligible for MALs that must be repaid at 

principal plus interest.

Program Availability

The CCC makes nine-month nonrecourse MALs available to producers on 

2008-2012 crop honey.

Final Loan/LDP Availability Date

Eligible producers must submit requests 

for honey nonrecourse MALs on or 

before March 31 of of the calendar year 

following the applicable crop year.

Maturity Date

Loans mature on demand, but no later 

than the last day of the ninth month after 

the note and security agreement were 

approved.

Loan Rate

The 2008 Act sets the national loan rate 

for honey as follows:

• 60 cents per pound for 2008 and 

2009 crop years; 

• 69 cents per pound for 2010 

through 2012 crop years.

Where to Request Loans

If the honey is stored on the producer’s 

farm, the producer is required to apply 

at the FSA county office serving the 

area. If the honey is stored at a location other than the producer’s farm, the 

producer is required to apply at either 

(1) the county office serving the storage 

location, or (2) the county office serving 

the area in which the producer’s main 

business is located.

Other Program Provisions

• A loan service fee is collected at 

the time of loan disbursement.

• Interest is charged at a rate of 1 

percent higher than the CCC borrowing interest rate.

• Honey pledged as collateral for a 

loan must be from eligible floral 

sources and must be in containers 

that meet the type, size, cleanliness, 

strength, damage and fill requirements defined by regulations 

published by CCC in the Federal 

Register.

• Pre-loan inspections are required to 

ensure that honey inventory exists 

in approved storage containers and 

is of approximate certified weight.

Loan Deficiency Payment (LDP) Provisions

Producers who are eligible for a nonrecourse MAL, may choose to receive a 

LDP in lieu of a MAL. The LDP rate 

equals the amount by which the loan 

rate where the commodity is stored exceeds the effective repayment rate for 

the crop of honey.

For More Information

Further information on this and other 

FSA programs is available from local 

USDA Service Centers or on the FSA 

website at www.fsa.usda.gov.

The U.S. Department of Agriculture (USDA) prohibits 

discrimination in all of its programs and activities on the 

basis of race, color, national origin, age, disability, and 

where applicable, sex, marital status, familial status, parental 

status, religion, sexual orientation, political beliefs, genetic 

information, reprisal, or because all of part of an individual’s 

income is derived from any public assistance program. (Not 

all bases apply to all programs.) Persons with disabilities 

who require alternative means for communication of 

program information (Braille, large print, audiotape, etc.) 

should contact USDA’s TARGET Center at (202) 720-2600 

(voice and TDD). 

To file a complaint of discrimination, write to USDA, 

Assistant Secretary for Civil Rights, Office of the Assistant 

Secretary for Civil Rights, 1400 Independence Avenue, S.W., 

Stop 9410, Washington, DC 20250-9410, or call toll-free at 

(866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 

377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunity provider 

and employer.