Just a week into his term, Secretary of Agriculture Mike Johanns announced the 2005-crop corn, grain sorghum, and soybean national and county loan rates.
"This is the earliest we have announced marketing assistance county loan rates for these commodities." Johanns says. "This exemplifies our commitment to providing timely information to enable producers to better utilize these programs in their planting and marketing decisions."
After enactment of the 2002 Farm Bill, USDA announced the most comprehensive adjustments in more than 15 years to the county loan rate structure beginning with the 2002 crops. Because adjustments in county loan rates had not been made for grains for several years, numerous disparities between loan rates and market prices had emerged, which affected producer benefits. The restructured rates were intended to more clearly reflect market factors affecting each crop and minimize distortions that work to the detriment of producers and industry.
National loan rates
The 2002 Farm Bill establishes the 2005-crop national average loan rates at the following levels:
- Corn $1.95 per bushel
- Grain Sorghum $1.95 per bushel
- Soybeans $5.00 per bushel
The 2005-crop loan rates for wheat, barley, oats and other oilseeds were previously announced on Dec. 2, 2004. The 2005-crop loan rates for pulse crops will be announced in early 2005.
The 2005-crop county loan rates for corn, grain sorghum and soybeans will be available on the Farm Service Agency Web site within four business days. County loan rates for wheat, barley, oats and other oilseeds are also available on this site.