1987 U.S. SOYBEAN LOAN SHOULD STAY SAME-AMSTUTZ
Congress should give the U.S.
Agriculture Secretary the authority to keep the 1987 soybean
loan rate at the current effective rate of 4.56 dlrs per bushel
in order to help resolve the problem of soybean export
competitiveness, USDA undersecretary Dan Amstutz said.
    Speaking to reporters following a Senate Agriculture
Appropriations hearing, Amstutz suggested that one way out of
the current soybean program "dilemma" would be for Congress to
allow the loan rate to remain at 4.56 dlrs. He indicated if the
loan rate were 4.56 dlrs, USDA could then consider ways to make
U.S. soybeans more competitive such as using certificates to
further buydown the loan rate.
    Under current law, the 1987 soybean loan rate cannot be
less than 4.77 dlrs per bu.
    Amstutz' suggestion would be for Congress to change the
farm bill to allow USDA to leave the soybean loan rate at 4.56
dlrs in crop year 1987 rather than increase it to 4.77 dlrs.
    The 1986 effective loan rate is 4.56 dlrs because of the
4.3 pct Gramm-Rudman budget cut.
    Amstutz stressed that a major factor in any decision on
soybean program changes will be the budget costs.
    He told the hearing that the problem in soybeans is that
the U.S. loan rate provides an "umbrella" to foreign production
and causes competitive problems for U.S. soybeans.
    Asked about the American Soybean Association's request for
some form of income support, Amstutz said "the competitive
problem is the most severe." He said USDA is still studying the
situation and "no resolution" has yet been found.
 Reuter
