Marketing Assistance Loan Program (MAL)

Marketing Assistance Loan Program (MAL) is sponsored by USDA Farm Service Agency (FSA). The Marketing Assistance Loan Program provides interim financing to producers, allowing them to store commodities and market them later when prices may be more favorable.

Under President Trump and Secretary Rollins’ leadership, USDA has timely implemented policy changes outlined in the Working Families Tax Cuts Act, also known as the One Big Beautiful Bill Act, as we celebrate the one-year anniversary of signing the act into law. The Act makes a historic investment in American agriculture including expanding marketing assistance and risk management opportunities for producers.

The Marketing Assistance Loans (MAL) program, administered by the Farm Service Agency (FSA), offers loans to producers of eligible commodities to help manage their cash flow needs and provide marketing flexibility. By using their harvested commodities as collateral, producers can obtain interim financing and delay the sale of their crops until market prices improve.

MALs help stabilize agricultural income and ensure that farmers have the financial resources to continue their operations. Eligible commodities include: * Chickpeas (large and small) * Wool (graded and ungraded) Eligible applicants include producers of designated commodities who meet conservation and wetland protection requirements and provide sufficient documentation of their commodities.

Producers must comply with all program requirements to qualify for a loan. ### Working Families Tax Cuts Act Program Updates The Working Families Tax Cuts Act extends Marketing Assistance Loans through crop year 2031 with loan rates increasing for all eligible commodities starting in 2026.

Additionally, FSA is improving Marketing Assistance Loans for cotton and sugary producers by: * **Increased Cotton Storage Credit Cap**: For cotton MALs, the storage credit cap used to calculate payments for cotton storage costs will increase starting with the 2026 crop year.

* **Updated World Market Price for Upland Cotton**: The formula for calculating the prevailing world market price for upland cotton is being updated to include the three lowest-price growth quotes instead of five quotes. This change is retroactive starting July 4, 2025.

* **New World Market Price for Extra-Long Staple (ELS) Cotton**:A new prevailing world market price for ELS cotton will be calculated and announced weekly, similar to upland cotton.

* **Upland Cotton Refund**: The Act authorizes refunds for upland cotton loan redemptions when the Adjusted World Price (AWP) declines within 30 days of the loan repayment date to ensure producers benefit from a refund if the market prices drop shortly after repayment. This change is retroactive to July 4, 2025.

* Producers who request an LDP in lieu of a MAL will receive an additional LDP disbursement if a lower AWP is announced during the 30-day period immediately following the request. **Sugar Program Extended:**The sugar program is extended through 2031 and the raw cane and refined beet sugar loan rates increased. Additionally, sugar marketing allotments will be adjusted for beet sugar processors.

Applications must be submitted by the final loan availability date for the commodity. To apply for Marketing Assistance Loans, producers must complete and submit a loan application to their local FSA office. The application process includes providing documentation of the eligible commodity, production records, and proof of compliance with program requirements.

Detailed enrollment instructions and deadlines are available through the local FSA office. * Loan Terms: MALs provide short-term loans with terms up to nine months. The loans use the harvested commodity as collateral, and the loan amount is based on the established loan rate for the commodity and some commodity quality factors.

* Loan Rates: Loan rates are established by the USDA and vary by commodity and location. These rates are intended to reflect local market conditions and storage costs. * Repayment: Producers can repay at principle plus interest or at the lesser of the loan rate also known as the posted county price (PCP) or alternative repayment rate.

Alternatively, producers can forfeit or settle the commodity and give it to the CCC as full payment for the loan at maturity. #### Additional MAL Benefits * Marketing Flexibility: MALs provide producers with the flexibility to sell their commodities when market conditions are more favorable, potentially increasing their revenue.

* Price Support: By offering interim financing, MALs help stabilize commodity prices and provide a safety net for producers during periods of low market prices. * Eligible Commodities: In addition to common field crops, the program covers wool, mohair, honey, peanuts, and pulse crops such as lentils, small chickpeas, and dry peas.