USDA Sets 2005 Loan Rates

WASHINGTON - Dec 2/04 - SNS -- The USDA set 2005 loan rates for wheat, barley, oats and other oilseeds -- the earliest date that USDA has announced the marketing assistance loan rates for these commodities.

The 2002 Farm Bill established specific national loan rates for each commodity, with one level set for the 2002 and 2003 crops and somewhat lower levels for the 2004-2007 crops, as shown in the following table. The 2005-crop national loan rates are reflected in the county loan rates announced today.

       Commodity                         Crop Year
                                   2002-2003  2004-2007
       Wheat ($/Bu)                  $2.80      $2.75
       Barley ($/Bu)                 $1.88      $1.85
       Oats ($/Bu)                   $1.35      $1.33
       Each "Other Oilseed" ($/Cwt)  $9.60      $9.30

Loan rate premiums will again be available for all durum wheat that grades as amber durum or hard amber durum. This policy was established in 2003 to further improve the market orientation of the wheat loan program. The 2005 per-bushel premiums applied to the base level of the durum county loan rate will continue at 2004-crop levels:

       Amber durum         $0.20
       Hard amber durum    $0.30

The USDA said 2005-crop loan rates for corn, grain sorghum, soybeans and pulses will be announced early in 2006.