LDP Unlikely For 2007-08

VANCOUVER - Oct 25/07 - SNS -- Field pea, lentil and chickpea growers in the United States are unlikely to be able to collect any loan deficiency payments during the 2007-08 marketing year, says the Gary Lucier of the USDA's Economic Research Service.

Writing in the October edition of the Vegetables and Melons Outlook magazine, Lucier said, "Because the national posted price has been averaging well above the loan rates so far this season, no loan deficiency payments (LDPs) have been made on the 2007 dry pea, lentil, or small chickpea crops. Fewer nonrecourse loans have also been reported.

"For dry peas (including wrinkled, dry, Austrian winter, marrowfat peas, and other mixed types) the posted price in mid-October was $8.45 per cwt -- well above loan rates of $6.63 in the West and $6.12 in the East. Through September 20, 0.4 million cwt (100 pound units) of 2007 crop dry peas had been placed under nonrecourse loan, largely in North Dakota and Montana. This compares with 0.75 million cwt of dry peas placed under loan during the entire 2006 crop year.

"Even fewer 2007 crop lentils (85.5 thousand cwt) and no small chickpeas had been placed under loan (with no market loan gains realized) through September 20. The posted price for lentils was $24.00 per cwt in mid-October, more than double the Eastern loan rate of $10.97."

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