USDA Update

By Rod Johnson

March 5, 2004

This past weekend saw a spring storm with more wind than moisture. Snow and precipitation was minimal and barely covered the ground in the west end of the county. The east end of the county received somewhat more precipitation. Everyone received the wind which lasted from Sunday through Monday.

The deadline to purchase Noninsured Crop Disaster Assistance Program (NAP) coverage for several 2004 crops is fast approaching. March 15 is the deadline for spring crops such as forage sorghum, dual purpose grain sorghum, oats, spring wheat, all millet (except Prosso which is now insurable through Federal Crop Insurance), soybeans and many other crops which are not insurable through Federal Crop Insurance. Cost of coverage is $100 per crop, maximum of $300 per county and $900 for all counties.

The U.S. Department of Agriculture has announced there will be no second 2003 crop year counter-cyclical payments available for wheat, corn, grain sorghum, barley, oats and other oilseeds. Market prices are above target prices. Market prices have increased considerably since last October and if current market forecasts are realized, some repayment of the first partial counter-cyclical payments for these crops would be required.

The Secretary of Agriculture announced that USDA will provide the U.S. lamb industry with $18 million in payments to sheep and lamb producers to encourage the replacement and retention of ewe lamb breeding stock. Regulations must be published before the sign-up forms will be available. Eligible producers will be paid $18 per head for ewe lambs purchased or retained during August 1, 2003 to July 31, 2004. Producers must retain the qualifying ewe lambs in the herd for at least 1 complete lambing cycle. It is imperative that producers maintain adequate records, such as, but not limited to: sales receipts as proof of purchase and retention, farm management records kept through normal production practices, veterinarian certifications as proof of ewe lamb characteristics and scrapie program forms as proof of compliance with 9 CFR Part 79.

Documents must show date of lamb purchase, date of lamb birth, date of lamb death if applicable, lamb identification and control information, number of ewe lambs purchased, identification with APHIS-approved scrapie program.

The interest rate for commodity loans disbursed in March is 2.250 percent, unchanged from the February rate. March 31 is the last day to request a farm stored or warehouse loan for 2003 crops of wheat, barley and oats. The interest rate for constructing or remodeling farm stored facility loans approved in March is 4.625 percent.