LOWER U.S. SOYBEAN LOAN IDEA SHARPLY CRITICIZED

  U.S. soybean lobbyists and
  congressional aides criticized a proposal from a senior
  Agriculture Department official that Congress allow the U.S.
  soybean loan level to be officially lowered to 4.56 dlrs per
  bushel next year.
      "I don't know who in Congress would propose that happening.
  Politically it would be totally unacceptable," an aide to a
  senior farm-state senator said.
      USDA undersecretary Daniel Amstutz said this week that
  Congress should give USDA authority to keep the soybean loan 
  at its current effective rate of 4.56 dlrs per bushel rather
  than increasing it to its minimum allowed level of 4.77 dlrs.
      "I'm convinced that Congress will not go along with this,"
  American Soybean Association President Dave Haggard said.
      Amstutz told reporters following a senate hearing that if
  the soybean loan rate were 4.56 dlrs, USDA could then consider
  ways to make U.S. soybeans more competitive.
      His comments were seen as possibly indicating what the  the
  administration's position is in the debate over what should be
  done to make soybeans competitive and at the same time protect
  soybean farmers' income.
      Using soybean specific certificates to further buydown the
  loan rate or implementation of a marketing loan have been
  pointed to as the most effective ways to get soybean prices
  competitive. USDA secretary Richard Lyng, however, continues to
  maintain his opposition to a marketing loan, saying such a move
  would be too costly.
      "There will be alot of other options that will be
  considered before Congress looks at that one (the Amstutz
  proposal," said Bill O'Conner, aide to Rep. Edward Madigan
  (R-Ill), ranking minority leader of the Agriculture Committee.
      "Anybody representing large groups of soybean producers
  would not be very excited about supporting a lower soybean
  loan," O'Conner said.
      Congress may very likely look at the soybean loan and
  decide that they cannot increase it from its current 5.02 dlr
  basic rate, but that there has to be something mandated to
  increase soybean's competitiveness, David Graves, aide to Sen.
  Thad Cochran (R-Miss) said. Cochran, a staunch supporter of a
  soybean marketing loan, would support a soybean loan of 5.02 or
  4.77 dlrs with a certificate buydown, Graves said.
  

