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Swanson testifies at farm bill hearing on behalf NSA
John Swanson, NSA board member from Mentor, Minn., testified April 25 on behalf of the National Sunflower Association at the U.S. Senate Committee on Agriculture, Nutrition and Forestry. The hearing is focused the 2007 Farm Bill. The NSA and other oilseed groups are requesting equity in loan and target rates with other commodities. Swanson will be stressing that sunflower oil is in strong demand due to its high quality of zero trans fats and very low saturated fats. However, government supports for sunflower and other oilseeds are at a disadvantage in loan and target rates compared to all other crops. For example, the present sunflower loan rate of $9.30 per cwt. in only 82 percent of the five year olympic average of 2000-2004 prices. That compares to 86 percent for wheat, 92 percent forcornand 120 percent for dry peas. A similar situation exists for the target price. Swanson says that for oilseeds like sunflower to compete for acres in today's market place government support prices need to be equitable among all crops. "We have very good cash prices for old and new crop sunflower but lenders and their producer customers often calculate the government support price when considering which crops to produce. A loan rate well below other crops is a real disadvantage," says Swanson. Since the last farm bill sunflower and canola acres have declined by over 40 percent, a clear sign that there is a farm program imbalance. Swanson says that hiking the sunflower loan rate to 95 percent of the 2000-2004 olympic average prices would boost the loan level to $10.71 from the present $9.30 per cwt. This loan rate is often the base price for crop insurance price guarantees. "The loan rate plays a very important role in a number of government programs and we only ask for equity with loan rates of other crops. High loan rates can also distort planting decisions which should be a function of the market," according to Swanson.
0 None Date: 5/24/07
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