USDA Farmer-Related Decisions Expected Soon

October 21, 1999

A decision on the use of generic certificates by major crop producers is expected to be issued quickly, once President Clinton signs the agricultural appropriations bill. However, USDA reportedly is interpreting language in the bill to mean the Secretary has discretion to allow or disallow the use of the certificates, and USDA "is not fond of the provision," says one Washington insider.

Another decision, on how to prevent farmers from taking advantage of marketing loan gains or loan deficiency payments by repeatedly locking in the gain as prices decline, should come soon -- possibly within days. The option USDA appears to be considering is to allow a farmer to lock in the gain for 60 days at the level of the posted county price on the day the form is signed.

President Clinton still is expected to sign the appropriations bill, perhaps yet this week.