USDA ANNOUNCES LOAN RATES While the Farm Bill set policy in
motion, presidential authorization moved farm bill activity to the
administration of the bill, and the rules that will govern the manner in
which programs function.
Of major importance to producers is the setting of loan rates for the
2002 crop year. The bill requires the Secretary to “minimize discrepancies
in marketing loan benefits across State boundaries and across county
boundaries.” On Thursday, June 6, the Secretary announced those loan
rates. These loan rates involve the most comprehensive adjustment in 15
years. According to the Secretary, “The changes are intended to reduce
cumulative market distortions and loan deficiency payment (LDP)
disparities that have emerged over the years. Some of the existing county
loan rates trace to 1985 and no longer reflect the geographic pattern of
market prices.” Individual County rates can be accessed at
http://www.fsa.usda.gov/dafp/psd/loanrate.htm.
For wheat producers there is a distinction in loan rates among five
classes of wheat including hard amber durum; hard red spring; hard red
winter; soft red winter, and soft white wheat.
NAWG has initiated a number of meetings with USDA officials to bring to
the department the concerns and needs of wheat producers. One of these
concerns is the challenge of wheat producers who are considering updating
bases and yields. According to information received at a meeting at the
Department of Agriculture, a number of options are being considered to
document yields, but no decision has yet been reached. NAWG, along with a
coalition of other farm groups, has encouraged the Department to allow
producers the option of using crop insurance records to provide this
documentation.
A problem remains for producers who took advantage of the flexibility
of the 1996 FAIR Act and planted non-program crops. If producers update
their bases they lose those program acres. Producers must update bases in
order to update yields. While there is flexibility in a variety of other
areas, this requirement to update bases in order to update yields, limits
the options of producers.
