12/22/05 USDA ups soft white loan rate

Farm and Ranch December 22, 2005 The USDA announced loan rates for 2006 crop year wheat this week and Jim Fitzgerald Washington State Farm Service Agency Executive Director, says there was good news for the Pacific Northwest. The loan rate for soft white wheat, the predominate class produced in the region, is going up and the spread with hard red winter narrowed. Fitzgerald: "Soft white wheat was increased by 21 cents. There was about a fifty cents difference. So pretty near half way. By the time you look at Posted County Prices in the various counties throughout the state we are somewhere in that 23-25-cent range increase in soft white wheat. That will help as far as a safety net for producers of that particularly variety. When you look at other varieties that are grown here in the northwest, the hard red winter wheat which is already seeded for the 06 harvest, already in the ground, it decreased by one cent. So, that wasn't a huge factor." Fitzgerald says the loan rate for hard red spring wheat decreased by 20 cents a bushel, but then that hasn't been planted yet. Fitzgerald: "So producers are getting the news here in December. Haven't ordered their seed yet more than likely. Haven't made their exact planting plans. So they have the benefit of the very best information as far as loan rates early. So, that's good news." In Washington in particular, the low loan rate for soft white wheat compared to hard reds this past year has been a major complaint of wheat growers, which they voiced to the Agriculture Secretary during a visit to the state this fall. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.