CCC (Commodity Credit Corporation) loans are offered to farmers through local USDA FSA (Farm Service Agency) offices. CCC Loan utilization declined during the higher crop prices of 2007-2013. Now that crop prices are much lower; farmers are again storing more grain and relying upon CCC loans to provide temporary funds until they sell grain months later. Others with low taxable income due to holding grain will take a CCC loan and report it on Schedule F tax forms as income to bring farm taxable profit slightly positive.
Covered Topics:
- Why farm producers take CCC Loans
- Treatment of CCC loans as loans versus loans as income by producers and IRS
- How farm accounting and reporting should handle CCC transactions
- Effects of loans as loans versus loans as income on balance sheet and income statement calculations and ratios
- FSA/CCC loan forms and interpretation
- Lending policies, understandings, or covenants for customers with CCC loans