Loans may be taken out at any time from harvest to the following March or the following May, depending on the commodity. However, most loan placements occur shortly after harvest when prices tend to be seasonally low. For production put under loan and pledged as collateral, the farmer receives a per-unit amount equal to that year's applicable loan rate. Under the loan program, the producer must preserve the quality of the crop designated as loan collateral in an approved storage facility. Any production of a contract commodity by a producer who has entered into a production flexibility contract is eligible for loans.
All oilseed production is eligible.
Producers must comply with applicable conservation and wetland protection requirements. Loan rates . Loan rates are established annually at the national level for each covered commodity based on formulas, statutory limits, and in some cases, discretionary authority of the Secretary of Agriculture. The formula loan rate for wheat, corn, and soybeans is 85 percent of the average price in the 5 previous marketing years, excluding the highest and lowest prices for those years, subject to statutory limitations. When formula loan rates are below the maximums, Secretarial discretion permits the loan rates for these crops to be set at any level from the maximum to the formula loan rates.