(a) The loan deficiency payment rate for a crop shall be the amount by which the loan rate for the crop exceeds the rate at which CCC has announced that producers may repay their loans under§ 1421.10.
(b) The loan deficiency payment rate will be the rate in effect in the county where the commodity was marketed or stored on the date:
(1) The request for benefits is received in the FSA Service Center, if the producer retains beneficial interest in the quantity on that date.
(2) Beneficial interest was lost, as determined by CCC and as provided in§§ 1421.6 and 1421.13, if on the date the request for benefits was received in the FSA Service Center the producer no longer has beneficial interest in the requested quantity.
(3) The commodity is delivered, if the producer elects to receive the LDP rate based on the date of delivery.
(c) The loan deficiency payment applicable to such crop shall be computed by multiplying the loan deficiency payment rate, as determined under paragraph (b) of this section, by the quantity of the crop the producer is eligible to pledge as collateral for a nonrecourse loan for which the loan deficiency payment is requested.