Agricultural Economics Department


Date of this Version

October 2005


Published in Cornhusker Economics, 10/26/2005. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


The current grain market situation has brought about a renewed discussion on Loan Deficiency Payments (LDPs) and marketing loans this fall. Understanding the tax situation of each may help in deciding which option is right for you. As you know, producers have the option to take a LDP or receive a marketing loan upon harvesting their crop.