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Thursday, September 15, 2005
01:20 PM

Loan Deficiency Payments (LDP) & Posted County Price (PCP)

The goal of this web site is to provide you with information on how the LDP and PCP prices are calculated each day so you can make informed decisions on when to take the LDP.  

The LDP for a county is determined by comparing the county's loan rate and posted county price (PCP).  If the PCP is below the loan rate, producers are eligible for a LDP.

The PCP is a calculated price to reflect actual market conditions in the county.  It is based on terminal market prices adjusted for the county price differential. The price differentials reflect market and transportation factors that can change daily.

The PCP for a county is set at the highest terminal market price adjusted for the price differential.  In Southeast Missouri, the terminal market prices for corn, grain sorghum, and wheat are Memphis and the Louisiana Gulf.  The terminal market prices for soybeans are Kansas City and the Louisiana Gulf.

I have listed below several web sites that you should find helpful. 

To determine the terminal market price, Farm Service Agency (FSA) will call several elevators at each location.  It is from these cash prices that FSA will use to calculate the PCP and LDP for the following day.
A summary of all the terminal prices for the different crops including the price differentials that are made at the terminal locations can be found at the Daily Market Rate web site.  This web site is update each morning.  It may be necessary to first click on the refresh button of your web browser to include today's price page in the market price list.

The Agriculture Marketing Service (AMS) also calls several elevators at each terminal location to get cash prices.  It is important to note that the cash prices from AMS are not the official prices that are used to calculate the PCP and LDP.  The official cash prices are from FSA and they can only be found at the Daily Market Rate web site. 
The AMS closing daily grain prices at Memphis, Louisiana Gulf and Kansas City are posted by 3:00 p.m. central time each day.  These locations can be useful in getting a close approximation on what prices will be used to calculate the PCP and LDP for the following day but are not the official prices.

On the FSA web site, you can find the daily LDP rate and PCP price for your county.  This information is in the right hand column of the page.

Daily Market Rates (First Click on the Brower's Refresh button and then the Date)
Official Cash Prices used by FSA.

LDP and PCP Data from the FSA Web Site - FSA Daily LDP Rates & County PCP Data

2005-Crop Commodity Loan Program Information for Southeast Missouri ( Updated Daily)
Terminal Market Price, Differential, and PCP

2005-Crop Commodity Loan Program Information for Southeast Missouri (Updated Daily)
Loan Rate, PCP and LDP