Handling 2007Crop Peanut Storage and InHandling

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Handling 2007-Crop Peanut Storage and In-Handling

• July 2007

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BACKGROUND

• The Farm Security and Rural Investment Act of
  2002 (2002 Act), required CCC to pay storage,
  handling, and other associated costs for all
  peanuts placed in the MAL program through the
  2006 crop year.
• This mandate was terminated with the 2007 crop
  year.

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BACKGROUND (CONTINUED)

• Based on the termination of this policy, FSA has
  approved procedures and the method for collecting
  storage and in-handling from producers who
  place their peanuts in the MAL program.

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2007 STORAGE AND IN-HANDLING POLICY

• FSA will allow offsets for
• Peanut Storage
• In-handling

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2007 STORAGE AND IN-HANDLING POLICY

• For storage and/or in-handling to be offset the
  producer must
• Present a bill or a statement of unpaid charges
  with the warehouse receipt when requesting a
  marketing assistance loan (MAL).
• Complete a CCC-679.
• (similar to cleaning/drying)

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2007 STORAGE AND IN-HANDLING POLICY

• Storage and/or In-handling will
• be deducted from the MAL proceeds as directed by
  each producer.
• NOT be considered a LIEN.
• Note Storage charges can be offset only if the
  warehouse receipt indicates storage has
  been paid or provided for, as applicable.

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2007 STORAGE POLICY

• Warehouse-Stored MAL Peanuts Options
• If the warehouse receipt is issued by the
  warehouse indicating that the storage charges
  HAVE BEEN paid through or provided for through
  loan maturity then
• FSA will not reduce the loan rate.
• at the time the MAL is repaid, FSA will use the
  normal repayment process.

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2007 STORAGE POLICY

• If the warehouse receipt is issued by the
  warehouse indicating that storage charges have
  NOT BEEN or PARTIALLY paid through or provided
  for through loan maturity then CCC will

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2007 STORAGE POLICY

• reduce the loan rate by the amount of unpaid
  storage charges through loan maturity. To
  establish the amount of unpaid storage FSA will
  use the Date Storage Paid Through to determine
  if it is earlier than the loan maturity date,
  thus calculating the number of month/days of
  unpaid storage from the day after Date Storage
  Paid Through to loan maturity. (Note If Date
  Storage Paid Through is not provided, then the
  number of days of unpaid storage charges will be
  calculated from the Date Documents Received
  through loan maturity.)

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2007 STORAGE POLICY

• before loan repayment, if the MAL was REDUCED,
  FSA will allow the producer/agent to provide
  proof that warehouse storage charges have been
  paid or provided for during the period for which
  the storage was previously deducted.
  Accordingly, the dates and the loan amount will
  be adjusted to reflect the deducted storage
  amount and the MAL will be adjusted to account
  for an additional cash disbursement.

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2007 STORAGE POLICY ATFORFEITURE

• If the MAL is not repaid within the 9 month
  period and the peanuts are subsequently forfeited
  to CCC, storage charges will be handled as
  follows, if charges were
• paid through maturity, then CCC will pay storage
  charges to the warehouse starting the day after
  loan maturity through final disposition.

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2007 STORAGE POLICYATFORFEITURE

• not fully paid and the loan rate is reduced by
  FSA, then CCC will pay storage charges to the
  warehouse from the later of the Date Storage
  Paid Through or the Date Documents Received
  through final disposition, when applicable.
• paid beyond maturity, then CCC will refund to the
  producer all storage charges paid

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2007 STORAGE POLICYATFORFEITURE

• NOTE
• If the peanuts are forfeited to CCC then
• CCC will pay the warehouse from Storage
  Start through final disposition and the
  producer
• will be billed by FSA for the period cover the
  Storage Start to Date Documents Received.
  

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Questions

• Questions concerning this policy contact
• Tonye Gross
• Peanut Program Manager
• Farm Service Agency
• Price Support Division
• [phone]
• [phone]
• Tonye.Gross_at_wdc.usda.gov