Farmers and farm owners in Local Administrative Area (LAA) 1, which encompasses the northern third of Butler County, and LAA 5, which encompasses the southern half of Beaver County and all of Allegheny County, are reminded to return their ballots for the county committee election. Anyone that did not receive a ballot and resides in either area should contact the FSA office and request a replacement ballot.

The FSA county committee system is unique among government agencies because it allows producers to make important decisions concerning the local administration of federal farm programs. All eligible farmers and ranchers, especially minorities and women, are urged to get involved and make a real difference in their communities by voting in this year’s election.

Voters have until Dec. 5 to return their ballots to the county office.

Committee members apply their knowledge and judgment to make decisions on disaster and conservation payments; commodity price support loans and payments; establishment of allotments and yields; producer appeals; and employing FSA county executive directors and other local issues. FSA committees operate within official regulations designed to carry out federal laws.

Voters are reminded to sign the label on the inside flap of the return envelope to be considered a valid ballot. These labels are removed before opening of the ballots to ensure a private vote.

Commodity Loans at 1.125 percent

Because the end of the year is near, producers may want to discuss tax planning with a reputable accountant. Hopefully, tax planning was completed already, but if not, there is still time. Planning revenues and expenses to maximize tax savings could prove beneficial. There are always some new wrinkles to the tax code that may impact farm operations.

One source of revenue some grain producers have found useful is a Commodity Credit Corporation (CCC) grain loan. CCC loans are very flexible for IRS purposes because they can be considered income or they can be considered a loan.

Because it is now close to the end of the year, some producers may want to consider the benefits of a commodity loan. Some other producers utilize CCC loan proceeds to take advantage of early order or preseason discounts for crop inputs. Regardless of the use of the proceeds, CCC loans are a popular choice for operating capital.

Commodity loans are simple to process and are normally completed within 5 working days of the request. Commodity loans cover all grain types, but the most popular seems to be corn and soybean loans.

The interest rate for loans disbursed in November is 1.125 percent. Commodity loans have a nine-month maturity date and, if feeding the grain, a repayment schedule will be established. If the grain is to be marketed, the producer can request a marketing authorization before selling.

Other loan provisions are as follows:

• Eligibility — Crop production on any farm you are listed as operator. Conservation compliance rules do apply.

• Terms — Matures in nine months and proceeds are deposited directly into your account.

• Repayment — Payments can be made at any time during the loan period.

• Collateral — The grain pledged for loan is the collateral. It may not be fed or sold without first repaying a specific quantity or obtaining a marketing authorization.

• Storage — Grain must be stored in an approved structure for on farm storage. Warehouse stored grains are also eligible if stored at an approved government warehouse.

To summarize, commodity loans offer some advantages to assist producers in their marketing plans, which may fall in place with tax preparation.

Luke Fritz is executive director of the Butler County Farm Service Agency.