WASHINGTON, April 9, 2020 – Agricultural producers now have more time to repay Marketing Assistance Loans (MAL) as part of the U.S. Department of Agriculture’s implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The loans now mature at 12 months rather than nine, and this flexibility is available for most commodities.

An official website of the United States government

Here’s how you know

**Official websites use .gov** A **.gov** website belongs to an official government organization in the United States.

**Secure .gov websites use HTTPS** A **lock** ( Lock           A locked padlock           ) or **https://** means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

**

Farm Service Agency

U.S. DEPARTMENT OF AGRICULTURE

                      - About FSA
                      - Ask USDA
                      - Contact Us
                      - Forms

- Home
- Programs & Services  - ARC/PLC Program
- Civil Rights
- Certified Mediation Program
- Climate Adaptation Plan
- Conservation Programs
- Cooperative Agreements
- Dairy Margin Coverage Program
- Disaster Assistance Programs
- Economic & Policy Analysis
- Emergency Relief
- Environmental & Cultural Resource Compliance 
- Farm Bill Home
- Farm Labor Stabilization & Protection Pilot Grants
- Farm Loan Programs
- Financial Management Information
- Increasing Land Access
- Initiatives
- Laws and Regulations
- Margin Protection Program for Dairy
- Market Facilitation Program
- MIDAS
- Organic Certification Cost Share Program
- Outreach & Education
- Payment Eligibility
- Price Support
- Rice Production Program

- State Offices
- Online Services  - LDP
- eARC/PLC
- Farmers.gov (FSA Farm+)
- FSA Online Data Resources
- Loan Assistance Tool

- Newsroom  - Fact Sheets
- News Releases
- Emergency Designations
- Stakeholder Information
- eFOIA
- Meetings & Events
- Public Service Announcements
- County Committee Elections
- Fence Post

# USDA Announces Loan Maturity for Marketing Assistance Loans Now Extended to 12 Months

Contact: FPAC.BC.Press@usda.gov

*Provides Producers with Marketing Flexibilities Amid COVID-19 Uncertainties*

**WASHINGTON, April 9, 2020** – Agricultural producers now have more time to repay Marketing Assistance Loans (MAL) as part of the U.S. Department of Agriculture’s implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The loans now mature at 12 months rather than nine, and this flexibility is available for most commodities.

“Spring is the season when most producers have the biggest need for capital, and many may have or are considering putting commodities under loan. Extending the commodity loan maturity affords farmers more time to market their commodity and repay their loan at a later time,” said U.S. Secretary of Agriculture Sonny Perdue. “We are extremely pleased that USDA can offer these marketing flexibilities at this critical time for the agriculture industry and the nation.”

Effective immediately, producers of eligible commodities now have up to 12 months to repay their commodity loans. The maturity extension applies to nonrecourse loans for crop years 2018, 2019 and 2020. Eligible open loans must be in good standing with a maturity date of March 31, 2020, or later or new crop year (2019 or 2020) loans requested by September 30, 2020. All new loans requested by September 30, 2020, will have a maturity date 12 months following the date of approval.

The maturity extension for current, active loans will be automatically extended an additional 3 months. Loans that matured March 31 have already been automatically extended by USDA’s Farm Service Agency (FSA). Producers who prefer a nine-month loan will need to contact their local FSA county office. Loans requested after September 30, 2020, will have a term of nine months.

Eligible commodities include barley, chickpeas (small and large), corn, cotton (upland and extra-long staple), dry peas, grain sorghum, honey, lentils, mohair, oats, peanuts, rice (long and medium grain), soybeans, unshorn pelts, wheat, wool (graded and nongraded); and other oilseeds, including canola, crambe, flaxseed, mustard seed, rapeseed, safflower, sunflower seed, and sesame seed. Seed cotton and sugar are not eligible.

**About MALs**

Placing commodities under loan provides producers interim financing to meet cash flow needs without having to sell their commodities when market prices are low and allows producers to store production for more orderly marketing of commodities throughout the year. 

These loans are considered nonrecourse because the commodity is pledged as loan collateral, and producers have the option of delivering the pledged collateral to the Commodity Credit Corporation (CCC) for repayment of the outstanding loan at maturity.

**MAL Repayment**

Under the new maturity provisions, producers can still repay the loan as they would have before the extension:
                            - repay the MAL on or before the maturity date;
                            - upon maturity by delivering or forfeiting the commodity to CCC as loan repayment; or
                            - after maturity and before CCC acquires the farm-stored commodity by repaying the outstanding MAL principle and interest.

**Marketing Loan Gains**

A Marketing Loan Gain occurs when a MAL is repaid at less than the loan principal. If market gain is applicable during the now-extended loan period, producers can receive a gain on the repayment made before the loan matures.

For more information on MALs, contact the nearest FSA county office. USDA Service Centers, including FSA county offices, are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

USDA is an equal opportunity provider, employer and lender.

** Return to the list of News Releases

----

                        - Placeholder   

## Recent News

                        - USDA Announces 2024 Wool and Mohair Marketing Assistance Loan Rates  
WASHINGTON, Dec. 27, 2023 – The U.S. Department of Agriculture (USDA) Commodity Credit Corporation today announced Marketing Assistance Loan rates for 2024-crop graded wool by micron class. Loan rates for ungraded wool and mohair are unchanged and remained the same from the prior crop year.
 
                        - USDA Appoints New Members to the Federal Advisory Committee for Urban Agriculture and Innovative Production   WASHINGTON, Dec. 20, 2023 – Agriculture Secretary Tom Vilsack appointed four new members to the Urban Agriculture and Innovative Production Federal Advisory Committee (Committee). The new members are replacing four members whose terms are expiring and rotating off the Committee. The Committee is part of the U.S. Department of Agriculture’s (USDA) efforts to support urban agriculture and innovative production, creating a network for feedback. 
                        - Agriculture Risk Coverage and Price Loss Coverage Programs Receive 2018 Farm Bill One Year Extension, Farmers Can Now Enroll for the 2024 Crop Year   WASHINGTON, Dec. 18, 2023 – The U.S. Department of Agriculture (USDA) today announced that agricultural producers can now enroll in the Farm Service Agency’s (FSA) Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2024 crop year. Producers can enroll and make election changes for the 2024 crop year starting Dec. 18, 2023. The deadline to complete enrollment and any election change is March 15, 2024. 

- Home
- Programs & Services
- State Offices
- Online Services
- Newsroom

- Farmers.gov
- USA.gov
- USDA.gov
- Whitehouse.gov

- Accessibility Statement
- Common Questions
- Freedom of Information Act

- No FEAR Report
- Information Quality
- Non-Discrimination Statement

- Policies and Links
- Privacy Policy
- Sitemap

#### Sign up for updates

**

Farm Service Agency

U.S. DEPARTMENT OF AGRICULTURE

Facebook

YouTube

Twitter

Twitter

RSS