USDA Sets 2005 Pulse Loan Rates

WASHINGTON - Mar 10/05 - SNS -- Loan rates for 2005 crop small chickpeas, dry peas, and lentils were announced by the USDA as required by the Farm Security and Rural Investment Act of 2002.

For 2005-crop pulse crop loan and loan repayment rates, the Department’s Commodity Credit Corporation continues to establish base quality levels using feed grade dry peas and No 3 grade for lentils and small chickpeas, as required by the Agricultural Assistance Act of 2003.

For the 2004 through 2007 crops, national rates by statute are $7.43 per 100 pounds (cwt) for small chickpeas, $6.22 per cwt for dry peas, and $11.72 per cwt for lentils.

The 2005-crop dry pea regional loan rates more accurately reflect recent price relationships resulting from expanded price discovery efforts.

The 2005-crop West Region loan rate is $6.61 per cwt and $6.03 per cwt in the East. These rates average to the National rate based on recent regional production shares.

The West region includes the Palouse (Idaho, Oregon and Washington) and other States west of the Rocky Mountains (Alaska, Arizona, California, Hawaii, Nevada, New Mexico and Utah). The East region includes Montana and North Dakota, plus all other states not in the West region.

USDA has determined that there is insufficient reliable market price discovery information to establish credible regional loan rates for small chickpeas.

Expanded lentil regional price discovery efforts indicate a narrowing price difference between the West and East regions. Thus, USDA will continue to use a single National loan rate for lentils. As with dry peas, USDA has improved and expanded data collection for lentils and small chickpeas in future consideration of regional loan rates.