Sen. Conrad Burns (R-MT) wants USDA to review a hard white wheat loan deficiency payment change to determine its impact on producers.  The policy change allows the Farm Service Agency to base hard white wheat LDPs on hard red spring wheat prices.

LDP payments are made to producers in lieu of taking loans out against crops.  The LDP is the difference between the loan rate and the grain price on the day the LDP is agreed to.

Traditionally, LDPs were based on lower-priced soft white or winter wheat that provided higher LDPs to producers.

"The timing on this decision couldn't have come at a worse time for our producers," said Burns.  "In making this decision, FSA (Farm Service Agency) has pulled the financial rug out from under Montana's already beleaguered wheat producers.  There are a lot of farmers who are going to suffer major financial setbacks as a result of this decision."

Burns says hard white wheat is a relatively new wheat class that has great export potential, especially in Asia and the Pacific Rim.  China recently entered into an agreement to buy hard white wheat -- a primary source in noodle flour.