Rice loan rates set
The Farm Service Agency recently announced the 2009 rice loan rates. According to Doug Davidson, County Executive Director in the Richland Parish FSA Office, the national weighted average loan rate for rough rice is $6.50 per hundredweight.
The national average Rough Rice Loan Rate is used to determine farm-stored loan disbursements in rice-producing states. Loan rates, by class of rice, are determined each year to reflect historical production and milling quality. The discount schedule relative to class, grade, and smut is also reviewed annually.
The 2009 rice farm stored loan rates on a rough basis, per hundredweight (cwt) for Louisiana, are $6.48 for long grain rate and $6.36 for medium and short grain.
Davidson went on to explain 2009 Milled Rice Loan Rates as follows: For rice stored in commercial warehouses, the whole kernel milled rice loan rates are $9.94 per cwt for long grain and $9.72 per cwt for medium and short grain. The broken kernel loan rate for all classes is $6.84 per cwt. Milled rice loan rates are computed using average milling yields and production percentages by class, thus ensuring that the production-weighted national average rough rice loan rate equals the statutory $6.50 per cwt.
The 2009 Rice Loan Rate Discounts are as follows: The loan rate discounts for grades (per cwt of rough rice) lower than Grade #2 are unchanged from the 2008 crop. The discounts are $0.30 for Grade #3, $0.60 for Grade #4, $1.00 for Grade #5, $2.00 for Grade #6, and $5.50 for Sample Grade.
According to Davidson, discounts for smut content (per cwt of rough rice) are also unchanged at 5 cents for 0.1 to 1.0-percent smut; 10 cents for 1.1 to 2.0-percent smut; and 15 cents for 2.1 to 3.0-percent smut. Rice containing more than 3.0-percent smut is termed “smutty”. Smutty rice is considered Sample Grade and is eligible for loan at 20 percent of the grade-discounted loan value.
Anyone seeking further program information about 2009 Rice Loan Rates or CCC commodity loans may contact their local Farm Service Agency Office.