Hard red winter wheat prices have dropped low enough to trigger Loan Deficiency Payments or LDPs across Nebraska. State Farm Service Agency Director Dan Steinkruger says it’s been nearly a decade since this safety net provision of the farm program has been available to farmers.
Steinkruger says wheat LDPs are currently running just a few cents per bushel, but could appreciate as the harvest accelerates in Nebraska.
He says the key, especially for farmers that have contracted wheat, is they need to have physical control of their crop to be able to collect an LDP.
Wheat prices for 2015 also fell low enough to trigger a PLC or Price Loss Coverage payment under the farm bill. Farmers will receive 61-cents per bushel, but won’t get those payments until October.
