Agribusiness BlogFarm CPA Today

Hard Red Winter Wheat LDPs Hitting 40 Cents Per Bushel

I was checking the USDA Daily LDP Rate website today and Hard Red Wheat has hit at least 40 cents per bushel in many states (primarily Colorado, Kansas and Oklahoma).  Almost all other major wheat-growing states have some type of LDP for Hard Red Winter Wheat.  All other classes of winter wheat appear to well above the loan rate and thus, no LDP is available.

At 40 cents per bushel, it is certainly worth taking a look at getting this payment from the FSA, but remember, as per our previous post, you must be careful not to reduce your PLC payment to be received next year.  If you are at the maximum amount, you may want to consider doing a commodity certificate exchange to not reduce your PLC payment.  The post explains this in detail.

As HRW prices continue to decrease, the possible LDP payment will increase.  Make sure you take advantage of it without costing you money in 2017.

Paul Neiffer, CPA

CliftonLarsonAllen, LLP

 

  • Principal
  • CliftonLarsonAllen
  • Yakima, Washington
  • 509-823-2920

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

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