LOAN RATES FOR 1997 CROPS
                                                               
                                            Release No. 0057.97
                                                               
                                    Tom Amontree (202) 720-4623
                                    Dann Stuart  (202) 690-0474
                                       dstuart@wdc.fsa.usda.gov

USDA ANNOUNCES MARKETING ASSISTANCE LOAN RATES FOR 1997 CROPS OF WHEAT, FEED 
  GRAINS AND OILSEEDS

     WASHINGTON, Feb. 21, 1997--Agriculture Secretary Dan Glickman
announced today he is setting marketing assistance loan rates for 1997-crop
wheat, feed grains and oilseeds at their maximum levels.  "Marketing
assistance loans provide producers a source of low-cost funds to help meet
short-term financial obligations, while maintaining marketing flexibility
following the harvest of their crops," Glickman said. "I have elected to set
the marketing assistance loan rates at their maximum level to provide
producers the greatest safety net that this program allows."

   The Agricultural Market Transition Act (AMTA) of 1996 requires marketing
assistance loan rates for wheat, corn, soybeans, and minor oilseeds
(sunflower seed, canola, rapeseed, safflower, mustard seed and flaxseed,
individually) to be set at no less than 85 percent of the simple average of
prices received by producers during the immediately-preceding five years,
excluding the high and low prices.  Sunflower seed prices are used in the
minor oilseed loan formula.  However, loan rates may not exceed $2.58 per
bushel for wheat, $1.89 per bushel for corn, $5.26 per bushel for soybeans,
and $9.30 per hundredweight for minor oilseeds.  Marketing assistance loan
rates for other feed grains (grain sorghum, barley, and oats) are to be set
relative to the corn loan rate, taking into consideration the feeding value
of each relative to corn.

   For wheat and corn, AMTA provides the Secretary discretionary authority
to reduce the announced loan rate by up to 10 percent based upon stocks-to-use criteria.  The estimated stocks-to-use ratios for corn and wheat would
have allowed the Secretary to lower the 1997-crop marketing assistance loan
rate for each crop up to 5 percent from the above formula rate.

   Production flexibility contract holders of wheat and feed grains and
producers of soybeans and minor oilseeds are eligible for marketing
assistance loans on the production of the commodities on the farm. 
Producers planted larger acres of wheat, feed grains, and soybeans in 1996
and enrolled a larger proportion of the eligible acres in PFC's.  As a
result, placements of wheat, feed grains, and soybeans under loan has
increased this year.  Producers have placed 182 million bushels of wheat,
952 million bushels of feed grains, and 188 million bushels of soybeans
under loan through January 28, 1997, compared with 114 million bushels of
wheat, 676 million bushels of corn, and 182 million bushels of soybeans for
the entire 1995 crop.


Marketing assistance loan rates for 1997 crops are as follows:

   Wheat:         $2.58      per bushel               
   Corn:          $1.89      per bushel
   Soybeans:      $5.26      per bushel     
   Grain Sorghum: $1.76      per bushel ($3.14 per hundredweight)
   Minor Oilseeds:           $9.30  per hundredweight
   Barley:        $1.57      per bushel
   Oats:          $1.11      per bushel


   Further program information is available from Tom Tice at (202) 720-2891,
E-mail address: ttice@usda.gov

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