American Soybean Association Urges USDA to Announce Loan Rates for 2002

December 21, 2001

The American Soybean Association (ASA) is urging Agriculture Secretary Ann Veneman to act immediately to announce loan rates for 2002 crops this month. ASA President Bart Ruth commented "with no certainty that the next farm bill will be in effect for 2002 crops, farmers and their lenders need to know as soon as possible what next year's farm program will be under the final year of the FAIR Act."

ASA first requested action on 2002 crop loan rates on October 17, 2001. ASA leaders again raised this issue in a meeting at the USDA on October 30. At that time, ASA was advised that the Department would announce its decision on loan rates in early December.

ASA President Ruth noted that "it is possible that farm legislation acceptable to the Administration can be enacted shortly after Congress returns in 2002, in time to be effective for next year's crops. However, it is also possible that legislation will not be completed until later in the year, and that the FAIR Act will remain in place for 2002 crops."

ASA is strongly urging Secretary Veneman to announce 2002 crop loan rates, contingent on the possibility that new farm legislation may not replace the FAIR Act. ASA also is urging Secretary to preserve continuity in Department policy by maintaining the 2002 soybean loan rate at the current 2001 level of $5.26 per bushel.

Ruth pointed out that "it is now two month since we raised this issue, and the promised announcement by the Department is overdue. With soybean prices at historic low levels, and with the massively devalued Brazilian Real continuing to distort soybean production and trade, this is not the time to undercut the only income protection provided to U.S. soybean producers."

Secretary Veneman has indicated that she hopes to make an announcement of loan levels on crops by the end of the year or shortly thereafter.