June 11

The House Agriculture Committee has scheduled a hearing for Wednesday, June 16, on a national daily loan deficiency payment rate with agriculture Secretary Dan Glickman scheduled to testify. It isn't clear whether this means Glickman will announce a national LDP rate prior to the hearing.

Agriculture Secretary Dan Glickman was expected to decide by today (June 11) whether to adopt a national daily rate for loan deficiency payments. After speaking in Kansas City, MO, to a group of USDA employees, Glickman said as much. The change would affect wheat, feed grain and soybean producers nationwide. LDP payments now are made on a county by county basis. One House insider says he understood the decision would not come today but be delayed until after the House committee holds the hearing.

But there's a rather hefty price tag with a national rate: up to $400 million, Glickman told the House Agriculture Committee. The outlays would be under the Commodity Credit Corporation and not subject to the budget. CCC costs are reimbursed by Congress the following fiscal year.

Glickman could call for public comment before making a final decision but that would delay any change effective for the 1999 crop year. However, Glickman is not required to hold a public comment period; he simply can publish a rule making it effective on a certain date.