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LDP screwup: need help
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lorenk
Posted 6/28/2006 09:39 (#22516 - in reply to #22492)
Subject: Re: LDP screwup: need help


Grand Rapids, MI
Guest--
I just did a brief review of the FSA handbook pertaining to this and the FSA offices appear to be following the rules. If a 633EZ page 1 was used there is a mention of the State office issuing 15 day extensions, but it seems to apply to the County office paying you rather than an extension of the time to make application for the LDP. You do have a couple options I outlined below, though I am not enthusiastic about your chances with either of them.

Option 1:
I don't know how many bushels you are talking about here, but if you are over 50,000 or so you may want to get a legal opinion on this from an expert. I know sometimes the handbook does not match the law etc. I expect there is a slim chance, but perhaps there is some option that is not redily apparent. Be prepared to have this person spend a couple hours at $250-300 per hour though just to review and give you an opinion.

Option 2:
Your other option may be to make application to the county office, have it denied, then start your appeal rights according to 1-APP. If you beg and plead with the county/state office regarding appeal, perhaps they could go to work for you and find a way to approve it despite the handbook language. This would be cheaper out of pocket than the legal review, but will take a lot of your time. Depending on how you value your time, it may be more costly in the end. I would also expect a even less chance of getting your LDP than option 1.

If you want me to refer you to an attorney to do a review, I would be more than happy to. I have somebody that I have used that used to be a farmer then State Exec Director for FSA (ASCS then) then worked in Washington for ASCS/FSA. He went on to become an attorney, and is very good at FSA legal issues.

Also my consulting firm has programs where we monitor the LDP rates, your harvest progress, your options for harvest direct delivery/storage/etc. and come up with a plan to maximize the LDP/Marketing Loan Gain. We also track which bushels are loaned/locked/paid back/LDP'd etc. Can help to be sure an opportunity isn't missed like this. Also if you have on farm storage there are some great strategies we can use with the Loan/lock program where you have 60 days to be wrong about the market.

Sorry about your situation, wish I could give you a better answer. If you want to contact me feel free to call me at 616-458-5212

Loren Koeman
The Koeman Group
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