FACT SHEET

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY

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February 2013

Pulse Crops Marketing Assistance Loans and Loan Deficiency Payments

Overview

The Food, Conservation, and Energy 

Act of 2008 (2008 Farm Bill) authorizes nonrecourse marketing assistance 

loans (MALs) and loan deficiency 

payment (LDPs) for the 2008 through 

2012 pulse crops of dry peas, lentils, 

and small chickpeas, adding large 

chickpeas for the 2009 through 2012 

crop years. The American Taxpayer 

Relief Act of 2012 (ATRA) extends 

the MAL and LDP provisions for these 

pulse crops for the 2013 crop year. 

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 at 

www.fsa.usda.gov/Internet/FSA_File/

mal_ldp_2013.pdf 

Pulse Crops Nonrecourse MALs and 

LDPs

Pulse crop MALs provide eligible 

producers interim financing on their 

production. Instead of selling the crop 

immediately at harvest when prices are 

often at their annual lows, producers 

may pledge their production as loan 

collateral, receiving loan proceeds 

equal to the loan rate times the quantity 

placed under loan. MALs mature at the 

end of the ninth month following the 

month in which the loan is approved.

A producer who is eligible to obtain 

a MAL, but who agrees to forgo the 

MAL, may obtain a LDP. The LDP 

rate equals the amount by which the 

applicable loan rate where the commodity is stored exceeds the effective 

MAL repayment rate for the respective 

commodity. The LDP amount equals 

the LDP rate times the quantity of 

the commodity for which the LDP is 

requested. 

To be eligible for a MAL or LDP, the 

pulse crop must:

• Have been produced, mechanically harvested by an eligible producer and be in storable condition;

• Be merchantable for food, feed, or 

other uses as determined by CCC 

and;

• Meet specific CCC minimum 

grade and quality standards for 

non recourse MALs.

Loan Rates

The 2008 Farm Bill and ATRA set 

national loan rates at the levels shown 

in Table 1 (shown below). Regional 

loan rates are established for dry peas 

and lentils, but not for large or small 

chickpeas. The national loan rates of 

$11.28 and $7.43 per cwt are always 

applicable to large and small chickpeas, respectively. 

Two dry peas and lentils regional 

markets were identified for all the crop 

years covered in the 2008 Farm Bill 

and ATRA. The West region includes 

all counties in the Palouse (Idaho, Oregon and Washington) and other states 

west of the Rocky Mountains (Alaska, 

Arizona, California, Hawaii, Nevada, 

New Mexico and Utah). East region 

includes all counties in Montana and 

North Dakota, plus all counties in all 

other states not in the West Region. See 

Table 2, for the 2013 crop year regional 

loan rates for dry peas, lentils, large 

chickpeas and small chickpeas.

Premiums and Discounts

Premiums and discounts are determined according to the grade and 

quality of a specific quantity of a 

commodity that a producer pledges as 

loan collateral. Premium and discount 

schedules vary considerably by commodity and are applied to the loan rate 

in the county where the commodity is 

stored. Premiums and discounts are 

applied at the time of settlement. 

Beneficial Interest

Producers must have beneficial interest in the pulse crop at the time of 

the request to obtain a MAL or LDP. 

Beneficial interest occurs when the 

producer maintains control of and title 

to the pulse crop. 

For further information, see the FSA 

fact sheet on “Beneficial Interest 

Requirements For MALs and LDPs” at 

www.fsa.usda.gov/Internet/FSA_File/

benint11.pdf

Loan Repayment Rates

A producer may repay a MAL any 

time during the loan period at the lesser 

of the:

• Loan rate plus accrued interest 

and other charges or;

• Alternative loan repayment rates 

as determined by CCC.

CCC determines and announces 

regional posted prices for dry peas and 

lentils and national posted prices for 

large and small chickpeas. Pulse crop 

loan repayment rates are established 

on a weekly basis and announced 

each Friday at 7 a.m. Eastern time 

and are available at each FSA county 

office. The loan repayment rates are 

established by CCC based on previous 

30-day and five-day market prices for 

each pulse crop. 
FACT SHEET

Pulse Crops MALs and LDPs February 2013

Table 1 Pulse Crop National Loan Rates per Hundredweight (cwt): 2008-2012

Pulse Crop 2008 2009-2013

Dry Peas $6.22 $5.40

Lentils $11.72 $11.28

Small Chickpeas $7.43 $7.43

Large Chickpeas NA $11.28

Table 2 Pulse Crop 2013 Crop Year Regional Loan Rates per Hundredweight (cwt)

Region States Loan Rates

2013 Dry Peas 2013 Lentils 2013 Small 

Chickpeas

2013 Large 

Chickpeas

West, 

which 

includes the 

Palouse

Alaska, Arizona, 

California, 

Hawaii, Idaho, 

Nevada, New 

Mexico, Oregon, 

Utah and 

Washington. 

$5.55 per cwt. $13.51 per 

cwt.

$7.43 per cwt. $11.28 per 

cwt.

East Montana and 

North Dakota, 

plus all other 

states not in the 

West region.

$5.35 per cwt. $10.68 per 

cwt.

$7.43 per cwt. $11.28 per 

cwt.

Marketing Loan Gains 

A producer realizes a marketing loan 

gain (MLG) if the loan is repaid at 

less than the loan principal. The MLG 

rate equals the amount by which the 

applicable loan rate exceeds the loan 

repayment rates.

Adjusted Gross Income 

Producers or legal entities whose average adjusted gross nonfarm income 

exceeds $500,000 are not eligible for 

MLGs and LDP payments; however, 

the person or entity is eligible for a 

MAL, but the MAL must be repaid at 

principal plus interest.

Average Crop Revenue Election 

(ACRE)

MAL rates will be reduced by 30 percent if production comes from a farm 

participating in the ACRE program. 

Alternative loan repayment rates will 

not be adjusted by 30 percent. The

 LDP rate for commodities produced 

on farms enrolled in ACRE must 

include the 30 percent reduction from 

the MAL rate before determining the 

LDP rate. See fact sheet entitled ACRE 

Program, or contact a local USDA Service Center, or visit the FSA website at 

www.fsa.usda.gov.

Final Loan/LDP Availability Dates 

for Pulse Crops

The final pulse crop loan/LDP availability date is May 31 of the calendar 

year after the calendar year the pulse 

crop is harvested.

For More Information 

Additional information on MALs 

and LDPs for pulse crop producers is available from local USDA 

Service Centers and 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 or part of an individual’s 

income is derived from any public assistance 

program. (Not all prohibited 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.

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