ST. LOUIS - The passage of a Senate farm bill amendment gives soybean farmers a choice of a $5.02 loan or a $35 per acre payment, says American Soybean Association President George Fluegel. The bill now moves to conference committee and further negotiations. The Illinois soybean farmer said the compromise came after hours of negotiating with Senate leaders who rejected the ASA $5O per acre “FAIR” proposal as “too ex pensive,” even though it allowed for a reduced soybean loan. “We told Senate leaders “no deal” when they asked us to accept lower loan rates without payments of at least $5O per acre,” explains Fluegel. “When they wouldn’t accept that, we worked out an alternate approach that maintains the $5.02 per bushel loan rate for 1985 for those who want it and a $35 per acre payment for those who want an upfront payment in lieu of price protection. Considering the current budget cutting mood in Washington, this is a good alter native.” FORD TRACTOR FORD LAWN S GARDEN EQUIPMENT NO PAYMENTS ’TIL APRIL,I9B6* LANCASTER FORD TRACTOR, INC. \mzvrm\ "'ll Senate Farm Bill gives soybean Fluegel points out that soybean loans were targeted to be reduced in both the Senate and House bills. The 1986 House-approved farm bill grants the Secretary of Agriculture unrestricted authority to drop the 1986 soybean loan to $4.77 (ASA strongly opposed this). And the Senate farm bill would have allowed 1986 soybean loans to fall to $4.52 if prices this year average below $5.27 per bushel. “This soybean compromise in the Senate farm bill gives soybean farmers the income support they need while allowing necessary adjustments in soybean market prices,” says Fluegel. “For the average soybean farmer, this means about $1 per bushel in ad dition to what he gets when he sells his crop. And for the farmer who needs a price assurance, it provides continuation of the $5.02 loan.” The soybean portion of the Senate farm bill gives farmers two choices for 1985 soybeans: the $5.02 loan as currently written, or $35.00 per acre ($3O in cash and $5.00 in beans). nom# Mbias! THE CHOICE FOR YOU IS M - MRP TRACTOR SALES ARE M i out of am 4 moons sold in morn America is a row For example: • If a farmer forfeits the right to put 1985-crop soybeans under loan, the farmer will receive $35 per acre ($3O in cash and $5 in beans); or • If 1985 beans are under loan, farmers have 60 days to decide: a) To repay the loan and take the $35 per acre payment; or b) keep soybeans under loan and receive Tractors lowers Tillers •chases of Ford rden products made I December 31 lent and credit I No finance id no payments are 1986 .♦y' LOAN VS NON-LOAN ANALYSIS The following table illustrates minimum cash price necessary to net price equal to $5.02 support price for a non-loan participant who takes $35 per acre payment. Yield (bu/ac) 25 35 45 In this example, a 35 bu/ac farmer who sells beans for anything over $4.02 will make more than had he put beans under loan and forfeited his crop to the CCC. IS HERE TO STAY h TOYSALE A All Die-Cast Metal Toys Are REDUCED 10% • Pedal Tractors if)/® • Backhoes • Farm Sets •Implements • Radio Controlled Tractors \ IV s " • Cars HERE’S MORE FROM LANCASTER FORD TRACTOR *73/i W FORD FINANCING I /4 /O UP TO 60 MONTHS OR FORD CASH SAVINGS $ $ $ DR FORD WAIVER OF FINANCE ’TIL JUNE 1,1986 Take Advantage Of Veor-End Tax Investment Credit 1655 Rohrerstown Road, Lancaster, PA Flory Mill Exit off Rt. 283 (717) 569-7063 The Home Of The Reliables Lancaster Arming, Saturday, December 14,1985-A29 growers a choice no payment. “The real advantage of this price levels and stimulate U.S. program is that it gives farmers a soybean exports. Competitive choice,” says Fluegel. “It pricing will put pressure on foreign preserves the $5.02 loan rate for soybean producers to reduce the farmer who needs price soybean plantings. Provisions for a assurance. Farmers who do not floating loan level in the future will participate in the loan program restore elasticity to the soybean are assured a $35 per acre market. This will eliminate huge payment. forfeitures of soybeans to the CCC “This program will support which depresses prices.” Loan $5.02 5.02 5.02 farmer selling at more competitive $35/Ac Pmt. $1.40 1.00 .78 Break Even Cash price $3.62 4.02 4.24
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