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Payments may cover corn

Producers told to watch price

They're back! Everyone has heard that saying, but this time I'm talking about LDPs.

LDPs are Loan Deficiency Payments that are now applicable for barley and oats, and will almost certainly apply to corn soon. Deficiency payments become available when the posted county price, which changes daily, drops below the established floor price for a specific commodity.

Grain producers will need to monitor the posted county price to take full advantage of the program.

As of Aug. 6, barley is the only crop with an LDP. It stands at 29 cents per bushel. Earlier this month there was a payment rate for oats, but that has since dropped to zero. Corn is only 4 cents away from LDP status and it is only early August. Unless there are some extreme crop failures, LDPs will be available for corn.

LDPs can be claimed any time after harvest or grazing. Beneficial interest rules apply. This means you should not sell or feed LDP commodities until either a 709 or 633 form has been completed and returned to the Farm Service Agency. Contact the office at 724-484-4800 for more information.

USDA has announced an $18 million program to enhance the competitiveness of the domestic lamb and sheep industry, and re-establish producers' purchasing power.The Ewe Lamb Replacement and Retention Program will pay producers $18 per head for ewe lambs purchased or retained between Aug. 1, 2003, and July 31, 2004.Because funding for the program is limited to $18 million, the $18 payment rate is subject to available funding. To qualify for the program, producers must retain qualifying ewe lambs for at least one complete offspring lambing cycle. Adequate record-keeping for items such as sale receipts, proof of purchase and veterinarian certificates is a must.Also, documentation must disclose the dates of lamb purchases, birth and death (if applicable), lamb identification and control information, the number of ewe lambs purchased, and identification with Animal and Plant Health Inspection Service-approved scrapie program.The application for this new program is not yet available and sign-up dates have not been set.

The government has begun using a new system for reporting mad cow disease to the public. It requires a higher level of suspicion before the public is told.The change comes after two cases in which the Agriculture Department announced that tests could not rule out the disease in some animals. But more thorough tests showed the cattle were disease-free.Under the new procedure, if an initial test indicates the possible presence of the disease, the public won't be told. Instead, two more samples will be taken. If either one is inconclusive, the findings will be announced and more tests will be done. Beef producers say the change will protect the industry by eliminating false alarms.Luke Fritz is executive director of the Butler County Farm Service Agency.

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