LDP Processing

1. LDP Processing LSA Training July 24-26, 2007

2. LDP Workflow • Obtain from producer: • FSA-211 if applicable • required information for CCC-633 EZ • production evidence (7-CN, Part 5) • beneficial interest information (22-CN, Par. 28) • Review beneficial interest • Begin CCC 770 LSA checklist • Make eligibility determination • Determine sufficient payment limitation

3. LDP Workflow • Complete CCC Cotton AA-1 • Submit D transaction to ACRS • Receive funds • Issue funds to producer within 3 days • File and deliver LDP documents • Submit Name and Address trailer record • Submit IRS trailer record

4. CCC-633 EZ • CCC-Cotton AA obsolete • All LDP applications taken on CCC-633 EZ (dated 06-07-06) • Cotton LDP’s require Page 1 and Page 3 • Page 1 – LDP Agreement • Terms and conditions • statement of intentions to apply for LDP • Page 3 – request for cotton LDP

5. CCC-633 EZ-Page 1 • Only statement of intention to obtain LDP on all eligible production • Must be submitted before beneficial interest is lost • Enables producer to request LDP after beneficial interest is lost • Complete following items: • Producer name and address, phone number, last 4 digits of ID number and signature/date • Crop year • LSA signature, title, date, name and address

6. CCC-633 EZ – Page 1

7. CCC-633 EZ – Page 1

8. CCC-633 EZ – Page 3 • Application for any type cotton LDP • Irrevocable module Lock-In • Gin-Direct • Irrevocable Post-Ginning • Lost Beneficial Interest • Will not be approved unless Page 1 is filed before loss of beneficial interest

9. CCC-633 EZ – Page 3

10. Irrevocable Module Lock-In LDP’s • Harvested cotton stored in modules that has not been ginned • Must have beneficial interest • Must be requested on CCC-633 EZ, Page 3 before ginning • Identified by gin-supplied trailer or module numbers • Modules are to be spot-checked to verify existence

11. Irrevocable Module Lock-In LDP’s • Payments processed after producer submits bale list from module identified on the original request. • Must submit before final loan availability date. • Use the AWP rate on the date a completed page 3 is submitted • Cannot be revised or cancelled

12. Irrevocable Module Lock-In LDP’s

13. Module Spotchecks • Spotcheck no less than 2.5% of requests (not modules) monthly • Document results on CCC-Cotton AA-2 • Retain results indefinitely

14. CCC Cotton AA-2

15. Gin Direct LDP’s • Must be requested on CCC-633 EZ, Page 3 before ginning • Must have beneficial interest • Rate in effect on date of ginning • Production must be identified - all bales; specific number of bales from a farm; specific farms • Can be revised or terminated under certain circumstances

16. Gin Direct LDP’s

17. Irrevocable Post-Ginning LDP’s • Ginned cotton • Requested after ginning and before loss of beneficial interest • Rate based on the date a completed application is submitted • Identified by bale list or file sequence number of a bale list • Cannot be revised or cancelled

18. Irrevocable Post-Ginning LDP’s

19. Lost Beneficial Interest LDP’s • Requested after ginning and after loss of beneficial interest • Paid at rate in effect on date beneficial interest was lost • Must provide acceptable documentation of date BI was lost • Identified by bale list or file sequence number • Require a 633 EZ page 1 be submitted prior to loss of beneficial interest

20. Lost Beneficial Interest LDP’s

21. Producer Signature

22. Additional Producer Signatures

23. LDP Approval

24. CCC-633 EZ Distribution Approved CCC-633 EZ: • Maintain original in LSA file • Provide copy to producer

25. Distribution Calculations 45 Bale LDP Request -