Marketing Assistance Loans (MAL)

FSA's Marketing Assistance Loan (MAL) Program helps farmers manage cash flow and reduce the pressure to sell crops at harvest time, when prices may be lower.

By offering interim financing, MALs give producers more flexibility to store their commodities and market them later, when it could be more profitable. Below you’ll find educational resources and tools designed to help you understand how MAL works, whether you’re considering applying, or just want to make the most of the program for your operation.

What if you didn't have to sell at harvest prices?

Every farmer knows the story: spend months nurturing a crop, harvest it at the perfect time, then watch the elevator post prices that barely cover your costs. Meanwhile, you've got land rent due, input bills piling up, and equipment payments waiting.

There's a better way. Marketing Assistance Loans (MAL) let you get cash flow from your crop without selling it. Think of it as borrowing against your grain bin or warehouse receipts, giving you time to sell when markets improve.

How does it work?

The Basics:

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After harvest, you take your crop to FSA instead of the elevator
FSA gives you cash based on a set loan rate (usually better than harvest prices)
You have 9 months to decide: sell your crop and repay the loan, or let FSA keep the crop
You pay only about 5% interest vs. 8-9% at banks

The Smart Part:

If prices go up: Sell your crop, repay the loan, keep the extra profit
If prices go down: You can repay at the lower price and pocket the difference as "marketing loan gain"
If prices crash: Just let FSA keep the crop - you're protected from major losses

Example Scenarios

Scenario 1: "I Think Prices Will Improve"

Your situation: Harvested 25,000 bushels of corn, elevator offering $3.65/bu, but spring usually brings $4.00+

MAL approach:

Take loan at $2.30/bu = $57,500 cash flow immediately
Store grain, sell in spring at $4.10/bu = $102,500
Result: Extra $11,250 revenue vs. harvest sale (minus ~$1,500 interest)
Net benefit: ~$9,750 more than selling at harvest

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Scenario 2: "I Need Cash Flow Now"

Your situation: Need $200,000 for December land rent, bank wants 9% interest

MAL approach:

Use 100,000 bushels corn for MAL at 5% instead of bank loan
Savings: $4,000 less interest over 6 months
Bonus: Still own the grain for potential marketing gains

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Scenario 3: "Prices Dropped - But I Win Anyway"

Your situation: Took MAL on soybeans at $6.15/bu, market drops to $5.80/bu

MAL magic: Repay loan at $5.80/bu instead of $6.15/bu

Marketing loan gain: $0.35/bu × 5,000 bu = $1,750
You profit from the price drop!

Ready to take action?

Use the tools below to find out how much assistance you may be eligible for, whether or not you may be eligible for the MAL program, and to gather the required materials to apply!