USDA Announces Loan Rates

Marketing assistance loan rates for corn, grain sorghum and soybeans released early compared to previous years. Compiled by staff

Published on: Feb 5, 2004

Marketing assistance loan rates are out early this year. The USDA released the 2004 national and county loan rates for corn, grain sorghum and soybeans as authorized by the 2002 Farm Bill.

"This is the earliest we have announced the marketing assistance loan rates for these commodities," says Secretary Ann Veneman. "This exemplifies our commitment to providing timely information to enable producers to better utilize these programs in their planting and marketing decisions."

The relative levels of the county loan rates for each commodity reflect the most recent information available about price relationships around the country and will enhance the market orientation of the corn, grain sorghum and soybean loan and loan deficiency payment (LDP) programs.

In establishing this year’s rates, USDA continued to focus special attention on minimizing neighboring-county loan rate variances that are not justified by current market forces.

2004 National Loan Rate Changes Mandated by Law

The 2002 Farm Bill established specific national loan rates for each commodity. For corn and grain sorghum, the 2002 and 2003 national rates are $1.98 per bushel. Beginning in 2004, these rates will be $1.95 per bushel and will remain at that level through 2007. These changes are reflected in the county loan rates announced today. The national soybean rate remains unchanged at $5.00 per bushel, as set forth by the 2002 Farm Bill.

Commodity

Crop Year

Change (2004

relative to 2003)

2002-2003

2004-2007

Corn ($/Bu)

$1.98

$1.95

-$0.03

Grain Sorghum ($/Bu)

$1.98

$1.95

-$0.03

Soybeans ($/Bu)

$5.00

$5.00

No change

The 2004-crop county loan rates for corn, grain sorghum and soybeans will be available on the Farm Service Agency Web site by Monday. The Web site is located at http://www.fsa.usda.gov/dafp/psd/LoanRate.htm. County loan rates for wheat, barley, oats and other oilseeds are also available on this site.