United States Department of Agriculture

Agricultural Marketing Service

Commodity 

Management Branch

The Warehouse and Commodity Management 

Division of the Fair Trade Practices Program is home 

to the Commodity Management Branch (CMB). 

CMB is responsible for the establishment of Posted County Prices 

(PCPs) for the Farm Service Agency (FSA) and the acquisition, 

management, and disposition of commodities, primarily those 

forfeited under FSA's Non-Recourse Marketing Assistance Loan 

(MAL) Program. 

Posted County Prices (PCPs):

CMB calculates over 350,000 PCPs daily for more than 2,800 counties, 

which includes 30 terminal markets and 22 commodities. PCPs are used 

by the FSA to aid in the calculation of loan rates and alternative repayment rates. PCPs are also used to determine loan deficiency payments 

(LDPs) and marketing loan gains (MLGs). MALs and LDPs are marketing 

tools available during harvest or shearing.

Commodity Exchanges, Sales, and Other Disposition Actions:

CMB acquires, manages, and disposes of commodities in certain 

situations, primarily those forfeited under FSA’s Non-Recourse MAL 

Program. Forfeited MALs become Commodity Credit Corporation 

(CCC)-owned inventory once the MALs mature and are not repaid. 

Usually a very small percentage of MALs are forfeited, but when this 

occurs, CMB manages the disposition of the commodities through 

exchanges, sales, or other actions.

Marketing Assistance Loans (MALs): 

MALs are low interest, short-term commodity loans that provide 

interim financing at harvest time to help agricultural producers 

meet cash flow needs without having to sell their commodities 

when market prices are typically at harvest-time lows. This enables 

producers to delay selling the commodity until more favorable 

market conditions emerge. Storing production at harvest (or at 

shearing for wool and mohair) allows more orderly commodity 

marketing throughout the year.

Marketing Loan Gains (MLGs): 

A producer realizes a MLG if the alternative loan rate, or PCP, is less 

than the original loan rate plus interest. The MLG rate equals the 

amount by which the applicable loan rate exceeds the MAL repayment rate plus interest.

Loan Deficiency Payments (LDPs):

LDPs are direct payments made in lieu of a MAL when the PCP 

determined value, which is based on the current local price in a 

county, is below the applicable county loan rate. The payment is the 

difference between the two rates. For a commodity to be eligible for 

a LDP, the producers must have beneficial interest in the commodity, 

in addition to other eligibility requirements.

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Agricultural Marketing Service Commodity Management Branch

How MALs Work: 

A non-recourse MAL can be redeemed by repayment or by delivering 

the agricultural commodity that was pledged as collateral to the 

CCC as full payment for the loan upon maturity.

Eligible MAL Commodities:

• Barley 

• Canola 

• Chickpeas - Small and Large

• Corn

• Cotton - Upland and Extra-Long Staple

• Crambe 

• Dry Peas

• Flaxseed 

• Grain Sorghum

• Honey

• Lentils

• Mohair

• Mustard Seed 

• Oats

• Peanuts

• Unshorn Pelts (eligible for LDP only)

• Rapeseed 

• Rice - Long Grain and Medium Grain

• Safflower 

• Sesame Seed 

• Soybeans 

• Sunflower Seed 

• Wheat

• Wool - Graded and Non-Graded

Commodities harvested as other than grain may also be eligible 

for a LDP.

The commodity must:

• Have been produced, mechanically harvested, or shorn from 

live animals 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 

MALs.

For additional information: 

go.usa.gov/x7t3y (pdf)

USDA is an equal opportunity provider,

 employer, and lender. December 2020 www.ams.usda.gov