Glickman Announces $475 Million in Aid to Oilseed Producers

                                            Release No. 0039.00
                                                               
                                  Steve Thompson (202) 720-7961
                                steve_thompson@wdc.fsa.usda.gov



GLICKMAN ANNOUNCES $475 MILLION IN AID TO OILSEED PRODUCERS

     WASHINGTON, Feb. 8, 1999--Agriculture Secretary Dan Glickman today
announced the Oilseed Payment Program that will distribute $475 million to
farmers who produce soybeans, sunflowers, flaxseed, canola, rapeseed,
safflower seed, mustard and crambe. 

      "American farmers have been hit hard by collapsing prices and other
market conditions beyond their control,"  said Glickman.  "This assistance to
oilseed farmers is really needed, at a time when the 1996 Farm Bill has failed
to provide farmers with an adequate safety net."

       To be eligible for the 1999 Oilseeds Program, a farmer must have
planted an eligible oilseed in 1999.  Producers who have not already reported
acreage for 1997, 1998, or 1999 may do so by February 18, 2000.   

     According to USDA records, about 850,000 farms reported oilseed crop
acreage in crop year 1999.  The top oilseed producing states are Iowa,
Illinois, Indiana, Minnesota and South Dakota.   A typical soybean farm of 100
acres, with a 38 bushel per acre yield, can expect to get about $533 from this
program.  This estimate could change depending of the number of farmers that
sign up for the program.

     Sign-up for the program will begin February 28 and is scheduled to end
March 31, 2000.  Producers should apply for the program at their local USDA
Service Center or Farm Service Agency county office.  A fact sheet on this
program is available at www.fsa.usda.gov, or at FSA 
                                
                                
                                
                                
                                
                                
                                
                                
                                
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Questions & Answers
The Oilseed Payment Program


Who is eligible for oilseed payments?

Producers who planted an eligible oilseed in 1999 are eligible to participate
in the Oilseed Payment program.  Eligible oilseeds are soybeans, sunflowers,
flaxseed, canola, rapeseed, safflower seed, mustard, and crambe.

How will the payments be calculated?

A producer's payment is equal to the producer's payment acres times the
producer's payment yield times the national payment rate.  Payments are
calculated differently for new producers and for those who planted in 1997 or
1998 as well as in 1999. 

How are the payment yield and payment acreage determined?

For producers who planted oilseeds in 1999 and also in 1997 or 1998:  The
payment acreage is the higher of the 1997 or 1998 acreage planted to the
oilseed.  The payment yield for these producers is the higher of: 

(1) the county average yield for soybeans (the national average yield for
minor oilseeds) from 1994 through 1998, after dropping the high and low
yields;

(2) the producer's proven yield for 1997; or 

(3) the producer's proven yield for 1998. 

NOTE:  The year selected for the payment acreage may differ from the year
selected for the yield.

For "new" producers of oilseeds who planted the oilseed for the first time in
1999, the payment acreage is the 1999 acreage of the oilseed.  The payment yield
is the higher of: 

(1) the county average yield for soybeans (the national average yield for minor
oilseeds) from 1994 through 1998, after dropping the high and low yields; or 

(2) the producer's 1999 yield.

What about producers who have not reported their oilseed acreage?

Producers wishing to receive payments who have not already reported acreage
for 1997, 1998, or 1999, may do so by February 18, 2000.

What are the payment rates?

Projected payment rates are calculated based on the 5-year average price for
each oilseed, after dropping the high and low yields, adjusted to keep
spending within the authorized level.

Actual payment rates may be more or less than the projected rates and will be
determined after sign up results are available.
                                   
               Crop           Projected Payment Rates

                    Soybeans (bu)       $0.1409
                         Sunflowers (cwt)         $0.2553
                    Flax (bu)           $0.1212
                    Canola (cwt)        $0.2531
                         Rape (cwt)               $0.2680
                         Safflower (cwt)          $0.3369
                         Mustard                  $0.3149
                    Crambe              $0.2531

How do I apply for payments?

A producer must file one application for all of the producer's farms, and
apply in the county office which serves as the producer's control county. 
When possible, CCC will prefill the application with the producer's acres and
county average yields.  If the producer does not wish to prove actual  yields,
the producer only has to certify to the application's accuracy and sign it.

                                
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