FINAL 50/50 CORN CERTS SEEN AT 1.6 BILLION DLRS
The Agriculture Department will have
to release an estimated 1.6 billion dlrs worth of in-kind
certificates, or certs, to corn farmers this fall if USDA
decides to maintain an equal split of total 1986 feedgrain
deficiency payments in cash and certs, USDA officials said.
    Final 1986 crop deficiency payments will be available to
feed grain producers in October. Wheat deficiency payments for
the 1986 crop, now complete, were made in a 50/50
cash-certificate split, and USDA officials have indicated they
want to do the same for feedgrains.
    Over 3.2 billion dlrs of an estimated 6.0 billion in corn
deficiency payments have already been announced, with 1.42
billion dlrs (43 pct) set in certificates. The final payment
must be 1.6 billion dlrs in certs (57 pct) for a 50/50 split.
    However, the release this month of almost 600 mln dlrs of
deficiency payments was equally divided in cash and certs,
doing nothing to bring up the percentage of certs.
    Some USDA analysts said the payments reflected hesitation
from the Office of Managament and Budget to allow another huge
release of certs onto the market.
    Bills are pending in Congress to move up the final
feedgrain deficiency payment to "as soon as five months after
harvest as possible," rather than the current year lag time.
    Neither Rep. Edward Madigan (R-Ill.) nor Sen. Bob Dole
(R-Kans.), sponsors of the bills, have brought the legislation
forward. Aides said timing will depend on budget discussions.
 Reuter
