09/19/05 WAWG to push for one wheat loan rate

09/19/05 WAWG to push for one wheat loan rate

Farm and Ranch September 19, 2005 The Washington Association of Wheat Growers has come up with a proposal to address low wheat prices and record high fuel and fertilizer costs producers are facing. Association president Jeff Emtman says his organization is proposing USDA go back to just one loan rate for all classes of wheat. Emtman: "And bring the soft white back up to the hard red loan rate. And we are hoping to make that retroactive back to July. We are hoping that will bring the market up a little bit too because a lot of times the cash market follows the loan rate pretty closely." Emtman admits it's a long shot but says these are like desperate times. He estimates growers could gain about 50 cents a bushel on the loan rate for soft white wheat under WAWG's proposal. Hard red winter wheat producers could see a slightly lower loan rate. Despite soft white wheat market prices being above loan levels, Emtman says more wheat is going under loan this year to help growers with their cash flow. Emtman: "When you are 15-20 cents off of loan rate and you think maybe you have a chance of the wheat price going up you through it under loan and you are only risking 15-20 cents and you could gain a lot if something turns around." There are also concerns the current higher loan for hard red winter wheat is an incentive to plant protein wheat where it shouldn't be planted for end use quality reasons and there is anecdotal evidence demand for hard red seed has increased in Washington this fall. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.
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