Government shutdown nears record: What it means for CCC loans

The partial government shutdown is entering its 20th day as of Jan. 10, and is mere days away from becoming the longest government shutdown in American history.

As a result of the shutdown, Farm Service Agency offices throughout the country have been closed since the beginning of the year.

Kent Thiesse, a farm management analyst and vice president of MinnStar Bank, explained how the shutdown continues to hamper agriculture in his weekly Focus on Ag column.

Thiesse specifically tackled confusion surrounding the status of farmers selling grain that was placed in Commodity Credit Corporation (CCC) loans prior to the shutdown.

“(W)ith the FSA offices closed due to the government shutdown, it appears that it is permissible to sell and deliver the grain that is under the CCC loan, and report that to the FSA office once they are reopened,” Thiesse wrote. “The principal and interest on the CCC loan will also need to be repaid after the grain has been sold.”

Thieese also recommends farmers retain a copy of the warehouse receipt for the sold grain, in the event that they are asked to verify the grain sale.

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