Issue 4
December 1995

Advance Deficiency Payment Refunds Likely


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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.


High grain prices in place since last summer will in all likelihood mean that advance deficiency payments on some farm program crops— including wheat and barley— will need to be refunded back to Uncle Sam.

Deficiency payments were earlier projected at 70 cents per bushel for wheat and 40 cents for barley, putting the advance payment at 35 cents for wheat and 20 cents for barley.

However, the market price for wheat and barley has approached the target prices of $4 for wheat and $2.36 for bar ley set by Congress in the farm program.

Deficiency payment refunds will also be requested from producers who were not able to meet program planting requirements due to weather or other conditions.

Producers participating in the 0/85 or 0/92 provisions of the 1995 commodity programs, however, are not affected by prevented planting or refunds, because their payment rate is guaranteed.

Notices of full or partial refunds due for wheat, barley and oats will be sent in December, 1995; and in March, 1996, for corn.

The deadline for repayment would be July, 1996, with no interest until after that date.

Farmers will have the option to offset repayment against any advanced deficiency payments for the 1996-97 crop.

Also, at the discretion of the Farm Service Agency county committee, a farmer can be considered for special hardship treatment, meaning he would be allowed up to three years to repay the 1995 advance.

Contact your local FSA office for more details.

Copyright Prairie
Grains Magazine
December 1995