LOWER U.S. SOYBEAN LOAN IDEA SHARPLY CRITICIZED
U.S. soybean lobbyists and
congressional aides criticized a proposal from a senior
Agriculture Department official that Congress allow the U.S.
soybean loan level to be officially lowered to 4.56 dlrs per
bushel next year.
    "I don't know who in Congress would propose that happening.
Politically it would be totally unacceptable," an aide to a
senior farm-state senator said.
    USDA undersecretary Daniel Amstutz said this week that
Congress should give USDA authority to keep the soybean loan 
at its current effective rate of 4.56 dlrs per bushel rather
than increasing it to its minimum allowed level of 4.77 dlrs.
    "I'm convinced that Congress will not go along with this,"
American Soybean Association President Dave Haggard said.
    Amstutz told reporters following a senate hearing that if
the soybean loan rate were 4.56 dlrs, USDA could then consider
ways to make U.S. soybeans more competitive.
    His comments were seen as possibly indicating what the  the
administration's position is in the debate over what should be
done to make soybeans competitive and at the same time protect
soybean farmers' income.
    Using soybean specific certificates to further buydown the
loan rate or implementation of a marketing loan have been
pointed to as the most effective ways to get soybean prices
competitive. USDA secretary Richard Lyng, however, continues to
maintain his opposition to a marketing loan, saying such a move
would be too costly.
    "There will be alot of other options that will be
considered before Congress looks at that one (the Amstutz
proposal," said Bill O'Conner, aide to Rep. Edward Madigan
(R-Ill), ranking minority leader of the Agriculture Committee.
    "Anybody representing large groups of soybean producers
would not be very excited about supporting a lower soybean
loan," O'Conner said.
    Congress may very likely look at the soybean loan and
decide that they cannot increase it from its current 5.02 dlr
basic rate, but that there has to be something mandated to
increase soybean's competitiveness, David Graves, aide to Sen.
Thad Cochran (R-Miss) said. Cochran, a staunch supporter of a
soybean marketing loan, would support a soybean loan of 5.02 or
4.77 dlrs with a certificate buydown, Graves said.
 Reuter
