August 19, 2002

As winter wheat producers begin to make planting decisions, a critical piece of information is the 2003 loan rates. This is particularly important because the wheat loan rate is no longer an all class rate but class specific.

The National Associate of Wheat Growers believes that loan rates must be announced before planting decisions are made. Some wheat producers in the Southern Plains states were affected adversely when rules were announced as they were harvesting their 2002 crop. There is concern that a similar situation would be experienced in 2003.

Southern plains producers were unfairly affected when their loan rate declined during harvest. Failing to meet this deadline places winter crop producers at considerable risk relative to spring crop producers.

NAWG has forwarded a request to J.B. Penn, USDA under secretary for farm and foreign agricultural services, requesting that the 2003 loan rates as well as any quality discount schedules that apply to those loan rates be communicated before the end of August.

In the letter to Penn, NAWG's President Gary Broyles expressed the appreciation of wheat growers that the 2002 loan rates were announced soon after the farm bill was signed into law. "We ask that you continue that responsiveness to our industry by announcing the 2003 loan rates before the end of August when planting decisions are made," he said.