1. Marketing Assistance Loans 1

2. Provides Interim Financing Nonrecourse Loans as Commodity is Pledged as Collateral 9 Month Loan No early or prepayment penalties 2

3. Marketing Assistance Loans Loan Service Fee Smaller of ½ (.005) of 1% of the gross loan amount or the amount shown in the following table. 3

4. Marketing Assistance Loans 4

5. 5 2015 Loan Rate Examples –Logan: Wheat = $2.94/Bu; Corn = $2.03/Bu –Kit Carson: Wheat = $2.95/Bu; Corn = $2.03/Bu –Prowers: Wheat = $2.95/Bu; Corn = $2.14/Bu –Lincoln: Wheat = $3.00/Bu; Corn = $2.08/Bu –Moffat: Wheat = $2.74/Bu; Barley = $1.96/Bu –Delta: Wheat = $2.74/Bu; Barley = $2.05/Bu –Weld: Wheat = $3.00/Bu; Corn = $2.08/Bu Loan rate is based upon where commodity is stored 2016 Rates have not been announced. Other Commodity rates can be obtained from your county FSA Office

6. Marketing Assistance Loans 6 INTEREST RATE Based upon month of disbursement and adjusted January 1 to equal January’s interest rate. February 2016 = 1.625%

7. Marketing Assistance Loans Beneficial interest in commodity Compliance with following rules: –Conservation –Foreign person –Controlled substance –DCIA 7

8. Marketing Assistance Loans FSA-578 showing a share in MAL requested crop Statutory requirement that all cropland on the farm be reported by the applicable final reporting date –If all cropland not reported by the applicable final reporting date, all production from that farm not eligible for MAL 8

9. Marketing Assistance Loans Beneficial interest is both control of the commodity title to the commodity 9

10. Marketing Assistance Loans Control of the commodity – producer retains: Ability to make all decisions affecting commodity All risk of loss with producing & maintaining the quality & quantity of commodity Title to the commodity- Has not sold or delivered the commodity 10

11. Marketing Assistance Loans Compliance with conservation plan & AD-1026 required: from producer & all affiliated producers according to 6-CP for both MAL disbursement & market loan gain repayments 11

12. Marketing Assistance Loans Compliance with: DCIA Foreign person rules Controlled substance rules Fraud provisions 12

13. Marketing Assistance Loans CCC-666 – Commodity Loan Request for all farm & warehouse stored MALs CCC-677-1 & FSA-409 - If measurement service requested CCC-10 – required on file for all MALs UCC-1 – required for all farm stored MALs 13

14. Marketing Assistance Loans CCC-679 – lien waiver – required from all lien holders before county can initiate disbursemen t Lien Search – required for all MALs over $50,000 or when producers aggregate MAL balance is over $50,000 14

15. AGI compliance Actively engaged in farming, cash rent tenant & member contribution determinations made Payment limitation available Note: All members of an entity must meet these requirements & flags updated or entity percentage eligible for market loan gain reduced. 15

16. Average AGI cannot exceed $900,000 Form CCC-941 required from all producers and affiliated persons in entity Form must be sent to IRS for verification Note: If not in compliance with AGI, still eligible for MAL but MAL must be repaid at principal plus interest 16

17. Actively Engaged, Cash Rent Tenant & Member Contribution Requirements Applicable CCC-902 required with COC determination required Denied market gain may occur if determination not made or adverse 17

18. $125,000 annual limit for market loan gains, LDPs, ARC and PLC for a person or legal entity for all commodities except peanuts If exceeded, still eligible for MAL disbursement but: cannot repay with a market gain can forfeit to CCC 18

19. Marketing Assistance Loans May obtain authorization for removal & delivery of farm-stored loan collateral to a buyer for sale with sale proceeds immediately used to repay loan Notifies buyer that CCC has a perfected security interest in specified quantity 19

20. Marketing Assistance Loans Must be requested before MAL collateral is moved Delivery evidence is required with repayment Producer specifies 15 or 30 day authorization period 20

21. For warehouse loans, on day after loan maturity, warehouse receipts still outstanding forfeited to CCC Exception: If a loan matures on a non- workday, producers have until COB on first workday to repay Marketing Assistance Loans 21

22. For outstanding farm stored MALs, on day after maturity: sent CCC-691, Delivery Notice, and 1 st demand letter Exception: If a loan matures on a non- workday, producers have until COB on first workday to repay Marketing Assistance Loans 22