LDP Processing

1
LDP Processing

• LSA Training
• July 24-26, 2007

2
LDP Workflow

• Obtain from producer
• FSA-211 if applicable
• required information for CCC-633 EZ
• production evidence (7-CN, Part 5)
• beneficial interest information (22-CN, Par. 28)
• Review beneficial interest
• Begin CCC 770 LSA checklist
• Make eligibility determination
• Determine sufficient payment limitation

3
LDP Workflow

• Complete CCC Cotton AA-1
• Submit D transaction to ACRS
• Receive funds
• Issue funds to producer within 3 days
• File and deliver LDP documents
• Submit Name and Address trailer record
• Submit IRS trailer record

4
CCC-633 EZ

• CCC-Cotton AA obsolete
• All LDP applications taken on CCC-633 EZ (dated
  06-07-06)
• Cotton LDPs require Page 1 and Page 3
• Page 1 LDP Agreement
• Terms and conditions
• statement of intentions to apply for LDP
• Page 3 request for cotton LDP

5
CCC-633 EZ-Page 1

• Only statement of intention to obtain LDP on all
  eligible production
• Must be submitted before beneficial interest is
  lost
• Enables producer to request LDP after beneficial
  interest is lost
• Complete following items
• Producer name and address, phone number, last 4
  digits of ID number and signature/date
• Crop year
• LSA signature, title, date, name and address

6
CCC-633 EZ Page 1
7
CCC-633 EZ Page 1
8
CCC-633 EZ Page 3

• Application for any type cotton LDP
• Irrevocable module Lock-In
• Gin-Direct
• Irrevocable Post-Ginning
• Lost Beneficial Interest
• Will not be approved unless Page 1 is filed
  before loss of beneficial interest

9
CCC-633 EZ Page 3
10
Irrevocable Module Lock-In LDPs

• Harvested cotton stored in modules that has not
  been ginned
• Must have beneficial interest
• Must be requested on CCC-633 EZ, Page 3 before
  ginning
• Identified by gin-supplied trailer or module
  numbers
• Modules are to be spot-checked to verify
  existence

11
Irrevocable Module Lock-In LDPs

• Payments processed after producer submits bale
  list from module identified on the original
  request.
• Must submit before final loan availability date.
• Use the AWP rate on the date a completed page 3
  is submitted
• Cannot be revised or cancelled

12
Irrevocable Module Lock-In LDPs
13
Module Spotchecks

• Spotcheck no less than 2.5 of requests (not
  modules) monthly
• Document results on CCC-Cotton AA-2
• Retain results indefinitely

14
CCC Cotton AA-2
15
Gin Direct LDPs

• Must be requested on CCC-633 EZ, Page 3 before
  ginning
• Must have beneficial interest
• Rate in effect on date of ginning
• Production must be identified - all bales
  specific number of bales from a farm specific
  farms
• Can be revised or terminated under certain
  circumstances

16
Gin Direct LDPs
17
Irrevocable Post-Ginning LDPs

• Ginned cotton
• Requested after ginning and before loss of
  beneficial interest
• Rate based on the date a completed application is
  submitted
• Identified by bale list or file sequence number
  of a bale list
• Cannot be revised or cancelled

18
Irrevocable Post-Ginning LDPs
19
Lost Beneficial Interest LDPs

• Requested after ginning and after loss of
  beneficial interest
• Paid at rate in effect on date beneficial
  interest was lost
• Must provide acceptable documentation of date BI
  was lost
• Identified by bale list or file sequence number
• Require a 633 EZ page 1 be submitted prior to
  loss of beneficial interest

20
Lost Beneficial Interest LDPs
21
Producer Signature
22
Additional Producer Signatures
23
LDP Approval
24
CCC-633 EZ Distribution

• Approved CCC-633 EZ
• Maintain original in LSA file
• Provide copy to producer

25
Distribution Calculations
45 Bale LDP Request -