11/07/05 Johanns looking into white wheat loan

Farm and Ranch November 7, 2005 Wheat growers speaking at last week's Farm Bill forum in Cheney, Washington repeatedly told U.S. Agriculture Secretary Mike Johanns that USDA's administration of the commodity loan program in regards to soft white wheat is driving them out of business. The USDA established separate loan rates by wheat class after the 2002 Farm Bill. The department doesn't distinguish by class however in determining whether counter-cyclical payments should be made to help with low prices. Walla Walla farmer Harold Cochran explained the consequences for soft white wheat growers. Cochran: "Not only did we lose out on a possible LDP we won't get a counter-cyclical payment so we are at a 40-cent disadvantage relative to other classes of wheat. We haven't even got our share of the Farm Bill we already passed and until we rectify what is wrong with this bill I don't see how we could have a good bill after this. The other thing is most of us are worried about being here for the next Farm Bill." Accountant Todd King told Johanns he knows the financial situation of producers and they are not inflating their current plight. King: "I sit across the desk from several hundred farmers all year long and the point I'd like to make is they are right. Things are darn tough right now. If we don't see a turn around real quick we are going to lose a whole bunch of them." In an interview following the forum, Secretary Johanns said he'll check into the loan rate issue. Johanns: "It is one of the first things I want to do in terms of dealing with today's forum." I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.