U.S. CORN, SORGHUM PAYMENTS 50-50 CASH/CERTS

  Eligible producers of 1986 crop U.S.
  corn and sorghum will receive an estimated 600 mln dlrs in
  deficiency payments -- 50 pct in generic commodity certificates
  and 50 pct in cash, the U.S. Agriculture Department said.
      It said corn producers will receive about 515 mln dlrs and
  sorghum producers about 85 mln dlrs.
      Only the cash portion of the payments will be subject to
  the 4.3 pct reduction in compliance with the Gramm-Rudman
  budget deficit control act of 1985, it said.
      Corn and sorghum producers who requested advance deficiency
  payments have already received about 2.8 billion dlrs and 225
  mln dlrs, respectively, USDA said.
      The Department said deficiency payment rates of 51.5 cents
  per bushel for corn and 49 cents per bushel for sorghum were
  received by producers requesting advance payments.
      Deficiency payments are calculated as the difference
  between an established target price and the higher of the basic
  loan rate, or the national average price received by farmers
  during the first five months of the marketing year --
  September-January.
      National weighted average market prices for the first five
  months of the season were 1.46 dlrs per bushel for corn and
  1.33 dlrs per bushel for sorghum. Eligible corn producers will
  be paid 63 cts per bushel, based on the difference between the
  3.03 target price and the 2.40 dlr per bushel basic loan rate.
      Sorghum producers' deficiency payment rate will be 60 cents
  per bushel, based on the difference between the 2.88 dlrs per
  bushel target price and the 2.28 dlrs per bushel basic loan
  rate.
      The deficiency payment rates for both commodities are the
  maximum permitted by law, the department said.
      Eligible corn and sorghum producers will receive another
  1986 crop deficiency payment in October if the national average
  market prices received by farmers during the entire marketing
  year for both commodities are below the basic loan rates, the
  department said.
      The payments will be issued through local Agricultural
  Stabilization and Conservation Service offices, it said.
  

