6
—Lancaster Farming, Saturday, August 5. 1972
73 Wheat
Major provisions of the 1973
wheat program were announced
this week by Secretary of
Agriculture Earl L. Butz. They
include the set aside required for
participation, an option to
voluntarily set aside additional
acreage and the payment rate for
the additional set aside.
To participate in the wheat
program, a producer must set
aside an acreage equal to 86
percent of the farm’s domestic
wheat allotment the maximum
provided by law. Producers will
again be allowed to substitute
feed grains or soybeans for wheat
to preserve allotment history.
The Secretary further announced
that barley will again be included
in the 1973 feed grain program.
In addition to the set aside
required for participation, a
producer may earn payment for
setting aside additional acreage
up to 150 percent of his 1973
domestic wheat allotment
twice the amount of additional
acreage allowed in the 1972
program at a payment rate of
88 cents per bushel. This option is
aimed at encouraging retirement
of additional land to prevent
excessive wheac production.
“The announcement of
voluntary set aside is being made
much earlier than last year so the
winter wheat producer can plan
his wheat operation before in
vesting any money in his 1973
crop.” Secretary Butz said in
outlining the 1973 program.
“Provisions of the 1973 wheat
program are aimed at achieving
a reduction of stocks so that
producers can obtain fair rates of
return on their capital and labor
in the marketplace,” Secretary
Butz said. “Goals also include
allowing each farmer greater
freedom of choice to plant the
commodities that best fit his
individual operation and
managerial talents.”
Loan rate for 1973 will be $1.25
per bushel national average
the same as in 1972 and farm
stored and warehouse-stored
loans are available to producers
who participate in the program.
As in past years, producers who
elect to set aside only the acreage
required for participation will be
eligible for certificates on their
allotment acres and for loans on
all wheat produced on the farm.
Farmers who elect to par
ticipate in the voluntary option
may set aside additional acreage
up to 150 percent of their
domestic wheat allotment
Payment rate for this additional
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set aside will be 88 cents per
bushel, times the farm’s
established yield, times the acres
set aside. In 1972 the voluntary
option was limited to 75 percent
of their domestic allotment with a
payment of 94 cents per bushel.
Producers who choose this option
must agree to limit their total
1973 wheat program acreage
planted for harvest. The limit will
be their 1972 spring and winter
wheat program acreages plus the
1972 voluntary set aside minus
the 1973 voluntary set-aside
acreage. Program acreages are
those reported and accepted for
compliance in 1972.
Substitution provisions of the
1973 wheat program are identical
to those in 1972 with corn, grain
sorghum, barley or soybeans
allowed for preservation of
allotment history. The USDA also
announced that the 1973 feed
grain program will have a
mandatory set aside for barley of
not less then 25 percent of the
farm’s barley base, with other
details of the feed grain program
to be announced later.
Loan discounts for undesirable
varieties of wheat have been
discontinued. Undesirable
varieties listed in the past were
those deemed not suitable for
milling purposes. The USDA said
that less than % of 1 percent of
the total acreage planted to
wheat in recent years has been
devoted to varieties and classes
of what previously on the un
desirable variety list.
Producers will again receive
preliminary payments after July
1,1973, equal to 75 percent of the
estimated face value of the wheat
certificate. Any remainder will
be paid after Dec. 1, 1973. Face
value of the wheat certificate will
again be the difference between
100 percent of the July 1, 1973,
parity and the national average
market price received by far
mers during the first five months
of the marketing year. As in the
past two years, a producer will
earn certificate payments based. -
on his domestic allotment times j
the farm’s established yield, and ,
producers are not required to
plant wheat to earn certificate
payments. However, failure to
plant at least 90 percent of the
farm’s 1973 domestic wheat
allotment to either wheat, corn,
grain sorghum, barley or
soybeans can result in reduction
of allotment by as much as £0 I
percent. Under the Agricultural I
Act of 1970, if no wheat or sub- I
stitute crops are planted for three
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consecutive years, the entire
allotment may be lost. All
allotments removed from farms
will be reallocated to other wheat
farms.
Substitution provisions allow
acreage devoted to feed grain or
soybeans to be considered
planted to wheat to prevent loss
of history and to qualify for
payments. Acreage devoted to
wheat or soybeans will be con
sidered planted to feed grains to
prevent loss of that base. This
enables a producer to plant the
combination of wheat, feed grain
or soybeans that best fits his
operation and preserve his
planting history and program
benefits.
The 1973 national wheat
allotment is 18.7 million acres, as
announced on April 17 (see Press
Release USDA 1315-72). The
allotment represents the acreage
required to produce the 535
million bushels for which cer
tificates will be issued to par
ticipating producers. The
national allotment is based on a
national average yield of 31.0
bushels per acre. In 1972 it was
19.7 million acres and the
national average yield was 29.8
bushels per acre which also
resulted in 535 million bushels on
which certificates were issued to
producers. The 86 percent set
aside applied to the new allot
ment will give a producer about
the same set aside this year as
last.
Acreage which is not planted
due to drought, flood or other
natural disasters or a condition
beyond the control of the
producer will be considered
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planted to wheat. Also, any
producer who makes a required
acreage set aside but elects to
receive no payment will not lose
allotment.
Under the current program,
the farmer may plant as much
wheat or any other non-quota
crop as he wishes after he has
met his acreage set-aside and
conserving base requirements.
Or, he can choose not to plant
wheat. Crops subject to quotas in
1973 will be peanuts, rice,
tobacco, extra long staple cotton,
and sugarcane.
Other provisions of the 1973
wheat program, unchanged from
1971 and 1972, include the
requirement that farmers
maintain their conserving base
requirements as well as set-aside
acreage.
Processors of wheat for
domestic food use will continue to
pay 75 cents per bushel toward
the domestic wheat certificates’
value. Again in 1972-73 marketing
year, no export marketing cer
tificates will be issued.
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farms which devote at least 55
percent of their cropland to that
use will not be required to set
aside any additional acreage in
order to qualify for program
benefits.
As in 1972, land offered for set
aside must be equally productive
and similar to that on which the
program crop is to be grown.
Producers may graze set-aside
acres except during the five
principal months of the normal
growing season, but set-aside
acreage must be protected
against erosion, weeds, insect
damage and rodents. In 1973,
sweet sorghum again may be
planted on the set-aside acreage
and grazed, except during the
five months of the growing
season.
Producers who wish to qualify
for program benefits need to sign
up to participate. Sign-up dates
will be announced later for the
1973 program. A producer may
participate in the wheat program
or any or all farms in which he
has an interest, as he wishes.
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