The new farm bill required that loan rates be raised from 51.92 cents to 52 cents for the base grade and staple length of upland cotton and from 79.65 cents to 79.77 cents for ELS or Pima cotton over the six years of the legislation.
For rice, the farm bill set the base loan rate at $6.50 per hundredweight, but the rates farmers receive when they put rice in the CCC loan will vary extensively according to class and state for farm-stored rice and by class in rice stored in commercial warehouses.
In Arkansas, for example, the 2002 loan rate for long grain rice in farm storage will be $6.63 per hundredweight; for medium grain, $6.12 per hundredweight; and for short grain, $6.12 per hundredweight.
In California, the rates will be $6.46 for long grain, $6.08 for medium grain and $6.12 for short grain; in Louisiana, $6.61, $6.04 and $6.12; in Mississippi, $6.56, $6.09 and $6.12; Missouri, $6.59, $6.09 and $6.12; and in Texas, $6.99, $5.84 and $6.12. The national average rates will be $6.66, $6.09 and $6.12.
For rice stored in commercial warehouses, the whole kernel milled rice loan rates for the 2002 crop are $10.66 per cwt for long grain and $9.66 for medium/short grain. The broken kernel rate for all classes is $5.33 per cwt.
The loan rate discounts for grades (per cwt of rough rice) lower than grade #2 are unchanged from those applicable to the 2001 crop. The discounts are $0.30 for grade #3, $0.60 for grade #4, $1.00 for grade #5, $2.00 for grade #6, and $5.50 for sample grade.
Discounts for smut content (per cwt of rough rice) are also unchanged at 5 cents for 0.1 to 1.0 percent smut; 10 cents for 1.1 to 2 percent smut; and 15 cents for 2.1 to 3 percent smut. Rice containing more than 3 percent smut is termed “smutty” and is eligible for loan only as low quality rice. Smutty rice is considered sample grade. Low quality rice is eligible for loan at 20 percent of the sample grade discounted loan value.
The national average rough rice loan rate is used to determine farm stored loan proceeds in states not listed above.
The above grade and quality factor discounts apply when rice is delivered to the Commodity Credit Corporation upon loan maturity. In addition, rice containing five or more kernels of stained or lightly stained rice in a 500-gram sample will be discounted 75 cents per cwt.
For more information, contact Tom Tice, (202) 720-2891, e-mail address [email protected]
USDA said a schedule of differentials based on quality characteristics of each bale of upland and ELS cotton will be applied to the national rates to determine individual producers’ loan rates.
Tables of upland and ELS cotton differentials and schedule of loan rates for individual qualities for 2002 ELS cotton are available from the Farm Service Agency’s website, www.fsa.usda.gov and from Thomas Fink, USDA-FSA-PSD, Stop 0512, Room 4089A, 1400 Independence Ave. SW, Washington, DC 20250-0512; phone (202) 720-8701; via e-mail at tom [email protected] or fax at (202) 690-3307.
Loan rates for the base grade of upland cotton at each approved warehouse location also will be posted on FSA’s website.