USDA Sets Pulse Loan Rates

WASHINGTON - Mar 26/04 - SNS -- The USDA established loan rates for 2004 crop lentils, field peas and small caliber chickpeas as required by the 2002 Farm Bill.

The base quality is unchanged from the current marketing year at No 3 grade for lentils, feed grade for field peas, and No 3 grade for chickpeas that drop below a 20/64th in screen. Prior to the 2003 Act, the Commodity Credit Corporation used ##035;1 grade for the base quality for pulse crop loan rates.

The 2002 and 2003-crop statutory national loan rates were $7.56 per 100 pounds (cwt) for small chickpeas, $6.33 per cwt for dry peas and $11.94 per cwt for lentils. For the 2004 crop, these loan rates are required by statute to be $7.43 per cwt for small chickpeas, $6.22 per cwt for dry peas and $11.72 per cwt for lentils.

The 2004-crop dry pea regional loan rates reflect recent price relationships, with a $0.79 per cwt difference between regions, resulting in a West Region loan rate of $6.63 per cwt and an East Region rate of $5.84 per cwt. The West Region includes the Palouse (Idaho, Oregon and Washington) and other states west of the Rocky Mountains (Arizona, California, Nevada, New Mexico and Utah). The East Region includes Montana, North Dakota, and all other states not in the West Region.

USDA has determined that there is insufficient reliable market price discovery information to enable the establishment of regional loan rates for small chickpeas and lentils. Therefore, the respective statutory national loan rates will apply for all producing counties.

USDA, however, is establishing an internal task force that will further explore the data needs and other considerations necessary to have regional loan rates in the future for these crops. This task force will consult with the various segments of the industry in assessing price data and other relevant information needs in attempting to meet this objective.

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