The producer must still own the wheat and exercise control of the grain. The grower also must be in the current 7-year farm program. The producer must have certified crop acres. Growers also must pledge not to place the same wheat in the USDA Commodity Credit Corporation loan.
Some producers commonly sell their wheat across the scales at the grain elevator.
For example, Farmer Jones files a CCC-709 with the FSA office on June 1 but harvest his wheat later. Suppose his sales receipt is June 10. The FSA office will look at the Amarillo-Texas Gulf price index to determine eligibility on that date. A second possibility involves producers putting their wheat in farm storage or at the grain elevator and still retaining title to the wheat. But as of Thursday, wheat prices had dipped to within only 6 cents of triggering LDP payments.