Published: June 12, 2008 02:28 pm            

USDA delivers first action for new 2008 farm bill

Schafer announces crop loan, LDP provisions and loan rates

WASHINGTON, D.C. (June 12, 2008) — U.S. Secretary of Agriculture Ed Schafer today announced the U.S. Department of Agriculture has delivered its first actions implementing the new farm bill. Within three weeks of commodity title enactment in the 2008 farm bill, the USDA is implementing marketing assistance loan and loan deficiency payment provisions.

"We know we can rely on America's farmers and ranchers to grow our food, and they can rely on the USDA to have the new farm bill ready," Schafer said. "The Department of Agriculture is putting into action the thousands of pages of new farm bill law for crop production, research, marketing, nutrition, conservation, food aid and rural development. Expect more follow-on farm bill results from the USDA."

The USDA also announced that county loan rates for 2008 crop of wheat, corn, grain sorghum, barley, oats, soybeans and other oilseeds (sunflower seed, flaxseed, canola, rapeseed, safflower, mustard seed, crambe, and sesame seed), state loan rates by class for 2008 crop of rice and regional loan rates for 2008 pulse crops (small chickpeas, dry peas and lentils) were posted today on the Farm Service Agency website, www.fsa.usda.gov/FSA/webapp?area=home&subject=prsu&topic=lor.

With enactment of the Food, Conservation and Energy Act of 2008, (the 2008 farm bill) national loan rates for the 2008 crops of wheat, feed grains, oilseeds, rice and pulses are at the following levels.
• Wheat: $2.75 per bushel
• Corn: $1.95/bu.
• Grain sorghum: $1.95/bu.
• Barley: $1.85/bu.
• Oats: $1.33/bu.
• Soybeans: $5/bu.
• Other oilseeds: $9.30 per hundredweight for each "other" oilseed
• Rice (long grain): $6.50/cwt.
• Rice (medium grain): $6.50/cwt.
• Small chickpeas: $7.43/cwt.
• Dry peas: $6.22/cwt.
• Lentils: $11.72/cwt.

As required by the 2008 farm bill, these national loan rates are established at the same levels as those established for the 2007 crop, with the exception of rice. Starting with the 2008 crop, the 2008 farm bill specifies national loan rates for both long grain rice and medium grain rice.

Milled and rough rice loan rates by class updated
For rice stored in commercial warehouses, the whole kernel milled rice loan rates for the 2008 crop are $10/cwt. for long grain and $9.78 for medium/short grain. The broken kernel loan rate for all classes is $6.67/cwt. National average rough rice loan rates by class are $6.50/cwt. for long grain and $6.50 for medium/short grain. The USDA computes milled and rough rice loan rates by class using average milling yields and production percentages to ensure that the production-weighted national average rough rice loan rate equals the $6.50/cwt. national loan rate.

Regional pulse loans updated
The 2008 crop West Region dry pea loan rate is $6.58/cwt.; the East Region dry pea loan rate is $6.14/cwt.. The West Region lentil loan rate is $14.23/cwt.; the East Region lentil loan rate is $10.74/cwt. These rates average to the national rate based on recent regional production shares.

The West Region includes the Palouse (Idaho, Oregon and Washington) and other states west of the Rocky Mountains (Alaska, Arizona, California, Hawaii, Nevada, New Mexico and Utah). The East Region includes Montana, North Dakota and all other states not in the West Region.

The USDA determined that insufficient reliable market information is available to establish regional loan rates for small chickpeas. Therefore, the national rate of $7.43/cwt. applies for all producing regions. Under provisions of the new 2008 farm bill, producers of large chickpeas will not be eligible for marketing assistance loans until the 2009 crop year.

Marketing assistance loans provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. A producer who is eligible to obtain a loan, but who agrees to forgo the loan, may obtain a loan deficiency payment if such payments are available.

Other provisions and rates
• Cotton and peanut loan and LDP provisions and rates will be announced separately.
• Wool, mohair and honey were announced in January.

Note: The 2008 LDP provisions and rates notice can be viewed via the Federal Register.

This article was submitted by the U.S. Department of Agriculture.

        

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