Fact Sheet

Feed Grains

February 2001

Statutory Background

The 1996 farm bill provides for fixed,

but declining transition payments,

nonrecourse marketing assistance

loans with marketing loan provisions, and loan deficiency

payments for the 1996-2002 feed

grain crops.

Eligible Crops

Corn, grain sorghum, barley, and

oats are eligible for production

flexibility payments and the loan

program. Except for the 2000 crop,

the feed grains must have been

produced on a farm enrolled in a

Production Flexibility Contract

(PFC) for a producer to receive loan

program benefits on the feed grains.

For the 2000 crop only, producers

growing feed grains on a farm

without a PFC are eligible for loan

deficiency payments.

Eligible Producers

A producer on a farm that has a

corn, sorghum, barley, or oats base

established for the 1996 crop is

eligible to enter into a PFC.

Production Flexibility Payments

For each of the 1996-2002 crops of

feed grains, the 1996 farm bill

allotted a fixed amount of funds to

be paid in aggregate to feed grain

PFC holders. The net funds available for 1996- and 1997-crop feed

grain payments were subject to

1994-crop and 1995-crop deficiency

payment obligations under the 1994

and 1995 feed grain production

adjustment programs.

For barley and oats, 1996-crop

funds were also subject to adjustment due to overpayment of 1995-

crop advance deficiency payments

that were required to be repaid in

fiscal year 1996.

For corn and sorghum, the overpayments of 1995-crop advance deficiency payments were required to

be repaid in fiscal 1997 and were

allocated to 1997-crop PFCs. (See

table on Page 2.)

Planting Flexibility

Any commodity or crop may be

planted on contract acreage on the

farm except fruits and vegetables

(other than lentils, mung beans, and

dry peas). However, fruits and

vegetables may be grown under the

following situations:

1. in any region with a history of

double-cropping of contract

commodities with fruits and

vegetables;

2. on a farm with a history of

planting fruits or vegetables,

except that the contract payment will be reduced by an acre

for each acre planted to a fruit or

vegetable on the farm; and

3. by a producer with an established history of planting a

specific fruit or vegetable,

except that the area planted

may not exceed the producer’s

average annual plantings in the

1991-1995 crop years (excluding any year with no plantings)

and that a contract payment will

be reduced by an acre for each

acre planted to the fruit or

vegetable.

Payment Limitations

In general, the total amount of PFC

payments to an individual may not

exceed $40,000 for all commodities.

However, the adjustments made to

each commodity’s allocation due to

refunds of unearned (over-payment

of) 1995-crop deficiency payments

were excluded from the $40,000

payment limit. Instead, the portion

of fiscal 1996 PFC payments from

refunds of 1995-crop overpayments

were subject to a separate $50,000

limit.

For corn and sorghum, the refunds

of unearned 1995-crop deficiency

payments were due in fiscal 1997

and were included in fiscal 1997

PFC payments.

For barley and oats, the refunds of

unearned 1995-crop deficiency

payments were due in fiscal 1996

and were included in fiscal 1996

PFC payments.

1

continues

Summary of 1996-2000 Program

and Related Information
Fact Sheet

Feed Grains

2

Marketing Assistance Loan Rates

National average feed grain marketing assistance loan rates are set

annually based on historical prices,

the stocks-to-use ratio for corn, and

a statutory maximum level for corn.

The corn loan rate is set at 85

percent of the simple average price

received by producers during the

marketing years for the immediately

preceding 5 crops, excluding the

highest and lowest prices, but not

more than $1.89 per bushel (the

1995 loan level).

The Secretary of Agriculture may

reduce the corn loan rate by up to

10 percent if the estimated stocksto-use ratio is equal to or greater

than 25 percent. Up to a 5-percent

reduction in the corn loan rate may

be made if the estimated stocks-touse ratio is less than 25 percent but

not less than 12.5 percent. No

adjustment to the corn loan rate

may be made if the estimated

stocks-to-use ratio is less than 12.5

percent.

At the time that the 1996 loan rates

were determined, the estimated

stocks-to-use ratio for corn was 7.3

percent, a level which did not permit

any adjustment to the corn loan rate.

For the 1997 crop of corn, the

stocks-to-use ratio was estimated

at 16.3 percent, a level which

permitted an adjustment of up to 5

percent. However, the Secretary

elected not to lower the corn loan

rate.

PFC Payment and Supplemental PFC Payment Rates

1996 Through 2002 Crops

(Cents per Bushel)

Crop Corn Grain Barley Oats

 Sorghum

PFC Payment Rates

1996 25.1 32.3 33.2 3.3

1997 48.6 54.4 27.7 3.1

1998 37.7 45.2 28.4 3.1

1999 36.3 43.5 27.1 3.0

2000 33.4 40.0 25.1 2.8

20011

26.0 30.0 18.0 2.0

20021

25.0 29.0 17.0 2.0

Supplemental PFC Rates

 1998 18.7 22.5 14.1 1.6

 1999 36.3 43.5 27.1 3.0

 2000 36.3 43.5 27.1 3.0

Total

1996 25.1 32.3 33.2 3.3

1997 48.6 54.4 27.7 3.1

1998 56.4 67.7 42.5 4.7

1999 72.6 87.0 54.2 6.0

2000 69.7 83.5 52.2 5.8

20011

26.0 30.0 18.0 2.0

20021

25.0 29.0 17.0 2.0

1

 Estimate. Rates for 1996-2000 are actual rates.

continues

Summary of 1996-2000 Program

and Related Information
For the 1998 crop of corn, the

stocks-to-use ratio was estimated

at 10.3 percent, a level which did

not permit any adjustment to the

corn loan rate.

For the 1999 crop of corn, the

stocks-to-use ratio was estimated

at 20.8 percent, a level which

permitted an adjustment of up to 5

percent. However, the Secretary

elected not to lower the corn loan

rate.

For the 2000 crop of corn, the

stocks-to-use ratio was estimated

at 20.8, a level which permitted an

adjustment of up to 5 percent.

However, the Secretary elected not

to lower the corn loan rate.

For each of the other feed grains,

the marketing loan assistance rate

is set in relation to corn, taking into

consideration the feed value of each

in relation to corn. Because market

prices are a function of feed values

and other uses, average farm prices

during the preceding 5 years relative to corn are used to determine

rates for sorghum, barley, and oats.

Under marketing loan provisions,

producers may (under certain

conditions) repay a 9-month nonrecourse price support loan at less

than the loan rate plus accrued

interest and other charges whenever CCC estimates that the local

market price is lower. Producers are

also eligible for a loan deficiency

payment (LDP) in lieu of obtaining a

loan.

Loan rates:

(1) vary among counties and

commodities,

(2) are based on the county where

the commodities are stored,

and

(3) may be adjusted by CCC with

premiums and discounts to

reflect the quality factors of a

given quantity placed under

loan.

Fact Sheet

Feed Grains

3

Funds Available for Production Flexibility Payments to Producers of Feed Grains1

 Total PFC Crops Total Feed Grains Corn Grain Sorghum Barley Oats

Share, % 100 53.64 46.22 5.11 2.16 0.15

________________________________($millions)_____________________________________

1996 5,570 2,987.7 2,574.5 284.6 120.3 8.4

1997 5,385 2,888.5 2,488.9 275.2 116.3 8.1

1998 5,800 3,111.1 2,680.8 296.4 125.3 8.7

1999 5,603 3,005.4 2,589.7 286.3 121.0 8.4

2000 5,130 2,751.7 2,371.1 262.1 110.8 7.7

2001 4,130 2,215.3 1,908.9 211.0 89.2 6.2

2002 4,008 2,149.9 1,852.5 204.8 86.6 6.0

1

Does not include funds due to adjustment of prior year deficiency payments. Also, funds not used due to payment

limitations are not made available to holders of contracts where the payment limitation has not been reached or to

holders of contracts in subsequent years. Funds forfeited due to contract violations may be added to the subsequent

year’s allocation. Totals may not add due to rounding.

Other Loan Eligibility Requirements

For crops to be eligible for a marketing assistance loan or an LDP,

producers must:

■ have produced the feed grain on

a farm that is enrolled in a Production Flexibility Contract.

Except for the 2000 crop, feed

grains produced on farms without a PFC are eligible for LDPs.

■ comply with applicable conservation and wetland protection

requirements,

■ report the planted acreage for

the crop,

■ have beneficial interest in the

commodity on the date the loan

or LDP is requested and, in the

case of a loan, be retained while

the loan is outstanding, and

■ ensure that the grain meets the

CCC minimum grade and quality

standards.

continues

Summary of 1996-2000 Program

and Related Information
Fact Sheet

Feed Grains

4

Beneficial Interest

A producer retains beneficial interest in the commodity if all of the

following remain with the producer:

■ control of the commodity. The

producer retains the ability to

make all decisions affecting the

commodity, including movement,

sale, and the request for a loan

or LDP,

■ risk of loss in the commodity.

The producer is responsible for

loss or damage to the commodity. If the commodity is insured,

any indemnity must be payable

to the producer, and

■ title to the commodity. The

producer has not sold or has not

delivered the commodity or

warehouse receipt to the buyer.

Title may be considered to be

transferred before the producer

receives payment for the commodity.

Once beneficial interest in the

commodity is lost, the commodity

loses eligibility for a loan or an LDP

and remains ineligible even if the

producer later regains beneficial

interest.

For further information see the Farm

Program Fact Sheet on “Beneficial

Interest Requirements For Loans

and LDPs, Excluding Sugar and

Tobacco” or contact a local FSA

county office.

Loan Settlements

Loans mature on the last day of the

ninth calendar month following the

month in which the loan is approved.

Producers may settle their outstanding nonrecourse loan:

■ during the 9-month loan period

by repaying the loan, or

■ upon maturity by forfeiting the

commodity to CCC.

Loan Repayment Rates

The loan repayment rate is the

lower of (1) the applicable county

loan rate plus accrued interest and

other charges (per bushel) or (2) the

marketing loan repayment rate for

the respective commodity.

Loan repayment rates are established and available at each county

FSA office based upon the previous

day’s market prices for each feed

grain at appropriate U.S. terminal

markets, as determined by CCC,

adjusted to reflect quality and

location.

Marketing Loan Gains

Producers realize a marketing loan

gain if they repay their loans when

the loan repayment rate is less than

loan principal.

The marketing loan gain rate equals

the amount by which the applicable

loan rate exceeds the marketing

loan repayment rate for the respective loan.

Loan Deficiency Payments

(LDPs)

Producers who are eligible to obtain

a loan, but who agree to forgo the

loan, may obtain an LDP.

The LDP rate equals the amount by

which the applicable county loan

rate where the grain is stored

exceeds the loan repayment rate for

the respective commodity.

 The LDP equals the LDP rate times

the quantity of feed grain for which

the LDP is requested and is otherwise eligible to be placed under

loan.

National Average Feed Grain Marketing Assistance Loan Rates

1996-2000

($/bushel)

Crop Year Corn Sorghum1 Barley Oats

1996 1.89 1.81 (3.23) 1.55 1.03

1997 1.89 1.76 (3.14) 1.57 1.11

1998 1.89 1.74 (3.11) 1.56 1.11

1999 1.89 1.74 (3.11) 1.59 1.13

2000 1.89 1.71 (3.05) 1.62 1.16

1

Numbers in parenthesis are the loan rate expressed in dollars per hundredweight.

continues

Summary of 1996-2000 Program

and Related Information
For further information, see the fact

sheet “Commodity Certificates,” or

contact a local FSA office, or visit

the FSA website at:

www.fsa.usda.gov

Production Evidence

Producers who repay a loan at less

than the loan rate plus accrued

interest and other charges or receive an LDP must provide production evidence acceptable to CCC,

such as evidence of sales, warehouse receipts, or load summary or

assembly sheets.

Payment Limitations

The sum of LDPs and marketing

loan gains for all commodities is

subject to a $75,000 per person

payment limitation. This payment

limitation is separate from the

$40,000 per person limitation for

PFC payments.

Corn Marketing Loan/LDP Examples

Corn Marketing Loan Examples Under Various Price Scenarios

($ per bushel)

 Price Scenario

 1 2 3

1) Loan rate 1.89 1.89 1.89

2) Loan rate plus accrued interest 1.95 1.95 1.95

3) Announced loan repayment rate 3.00 1.92 1.75

4) Loan repayment rate (lower of 2 or 3) 1.95 1.92 1.75

5) Marketing Loan Gain or LDP rate 0.00 0.00 0.14

The U.S. Department of Agriculture (USDA)

prohibits discrimination in its programs and

activities on the basis of race, color, national

origin, gender, religion, age, disability, political

beliefs, sexual orientation, and marital or family

status. (Not all prohibited bases apply to all

programs.) Persons with disabilities who require

alternative means for communication of program

information (braille, large print, audiotape, etc.)

should contact USDA’s TARGET Center at 202-

720-2600 (voice and TDD).

To file a complaint, write USDA, Director, Office

of Civil rights, Room 326-W, Whitten Building,

14th and Independence Avenue, Washington,

D.C., 20250-9140, or call (202) 720-5964 (voice

or TDD). USDA is an equal employment

opportunity employer.

5

Final Loan/LDP Availability Dates

Final loan/LDP availability dates for

the 2000 crop are:

March 31, 2001 — Barley and

Oats

May 31, 2001 — Corn and Grain

Sorghum.

Producers may either obtain a loan

or receive an LDP on all or part of

their eligible production during the

loan availability period.

Commodity Certificates

Commodity certificates are available to producers to use in acquiring

1998- through 2002-crop collateral

pledged to CCC for a commodity

loan. Commodity certificate exchanges will be available for sale at

FSA offices to producers with

outstanding nonrecourse marketing

assistance loans made for feed

grains. The exchange rate will be

the effective posted county prices

(PCPs) on the date the commodity

certificate is purchased. Commodity certificate exchanges will not be

available when the exchange rate

exceeds the applicable loan rate.

Fact Sheet

Feed Grains

continues

Summary of 1996-2000 Program

and Related Information
6

FEED GRAIN PROGRAM SUMMARY

 ACREAGE DIVERTED

 NUMBER BASE ACREAGE OR SET-ASIDE

 OF FARMS ON FARMS ON FARMS PAYMENTS

YEAR PARTICIPATING PARTICIPATINGa PARTICIPATING DIVERSION PRICE-SUPPORT

 ———————— acres ——————— ——————— $ millions ——————-

1961 1,146,000 64,000,000 25,200,000 781.9

1962 1,250,000 68,100,000 28,200,000 843.8

1963 1,195,000 72,600,000 24,500,000 462.9 382.9

1964 1,243,000 73,500,000 32,400,000 889.3 282.0

1965 1,424,000 82,800,000 34,800,000 950.7 431.2

1966 1,404,000 78,900,000 34,700,000 709.4 585.8

1967 1,308,000 66,300,000 20,300,000 324.7 542.4

1968 1,427,000 72,100,000 32,400,000 740.5 628.3

1968 1,588,000 88,500,000 39,100,000 916.6 727.9

1970 1,538,000 87,300,000 37,400,000 770.8 738.9

 Set-Aside Acreage Set-Aside Payments

1971 1,691,000 91,200,000 18,200,000 —- 1,060.0

1972 1,713,000 105,600,000 36,600,000 —- 1,865.3

1973 1,871,000 114,055,000 9,420,000 —- 1,170.8

 Deficiency Diversion Disaster

 Payments Payments Payments

1974 263,795b 16,323,000 —- —- 327.8

1975 99,473b (No Set-Aside 1974 to 1975) —- —- —- 114.5

1976 144,425b —- —- —- 224.9

1977 249,374b —- 229.1 —- 341.4

1978 70,310b 48,700,000 8,300,000 348.0 592.5 82.9

1979 353,000 29,100,000 4,700,000 80.3 133.5 34.2

1980 1,049,476* 91,316,009 —- —- —- 412.3

1981 1,014,272* 91,731,654 —- 281.1 —- 141.6

1982 196,317* 38,510,486 3,300,000 415.0 —- 3.9

1983 665,094* 79,808,300 39,383,300 47.7 1,054.9 —-

1984 362,894* 57,686,900 5,056,400 1,861.9 —- —-

1985 556,231* 77,215,600 7,120,200 2,859.8 —- —-

1986 744,322* 96,541,582 18,168,052d 7,118.2 153.7 —

1987 881,269* 102,954,825 30,980,042d 6,806.7 1,642.0 —-

1988 1,080,404** 98,432,520 27,516,835d 2,473.6 643.7 1,107.0

1989 893,847** 88,863,339 16,662,758d 3,917.7 —- 344.0

1990 858,365** 83,567,079 17,154,168d 3,397.7 —- —-

1991 788,202** 85,160,211 12,628,546d 2,457.4 —- —-

1992 757,084** 84,094,875 10,327,518d 4,120.1 —- —-

1993 818,871** 89,628,156 16,495,671d 1,869.6 —- —-

1994 809,367** 89,122,783 7,206,668d 3,652.2 —- —-

1995 706,706** 84,036,337 8,433,476d 149.6 —- —-

1996 1,525,305** 110,524,378 —- 2,091.6e —- —-

1997 —- 3,843.0e —- —-

1998 —- 4,562.0e —- —-

1999 —- 5,891.0e —- —-

2000c —- 5,661.0e —- —-

a Corn and sorghum were included each year; and barley from 1962 through 1966, 1969,

 1970, and 1972 through 1996 (feed grain programs); and oats from 1982 through 1996.

b Farms qualifying for disaster payment.

* Corn farms (net feed grain farms unavailable).

** Net corn/sorghum farms and net barley/oats farms.

c Preliminary

d Includes 50/92 acreage for 1986 and 1987; 0/92 acreage for 1988 through 1994;

 0/85-92 for 1995.

e Contract acreage or payment.

continues
7

PRODUCTION AND USE OF FOUR FEED GRAINS1

(Corn, Sorghum, Barley, and Oats)

YIELD ENDING

CROP ACREAGE PER DOMESTIC TOTAL CARRYYEAR HARVESTED ACRE PRODUCTION USE EXPORTS USE OVER

 million acres metric tons ——————————— million metric tons ———————————

1975 104.6 1.77 185.0 133.4 49.2 182.6 23.9

1976 106.2 1.83 194.0 131.2 50.1 181.3 37.0

1977 108.6 1.89 205.3 136.7 55.6 192.3 50.3

1978 105.7 2.10 221.5 154.8 59.5 214.3 57.7

1979 102.5 2.32 237.9 161.1 71.0 232.1 63.8

1980 101.5 1.95 197.9 147.2 70.5 217.7 44.2

1981 106.6 2.31 246.2 152.8 59.9 212.7 78.0

1982 106.1 2.36 250.2 166.9 53.0 219.9 108.6

1983 80.3 1.70 136.4 149.5 56.6 206.1 39.6

1984 106.6 2.22 236.8 163.2 56.6 219.8 57.5

1985 111.7 2.46 274.3 169.9 36.6 206.4 126.3

1986 101.6 2.48 251.6 181.0 46.3 227.2 152.1

1987 86.9 2.49 216.5 183.8 52.1 236.0 133.6

1988 80.5 1.86 149.3 157.1 61.1 218.3 65.9

1989 91.0 2.43 221.1 173.0 69.7 242.7 45.5

1990 89.5 2.57 230.5 178.1 51.5 229.6 47.7

1991 91.9 2.38 218.4 184.5 49.7 234.2 34.0

1992 95.9 2.89 277.1 198.1 51.1 249.2 63.0

1993 82.4 2.26 186.2 185.2 40.3 225.5 27.4

1994 92.1 3.08 283.2 205.8 62.4 268.3 45.3

1995 82.7 2.54 209.8 180.1 63.0 243.1 14.4

1996 93.8 2.83 265.5 204.2 51.5 255.7 27.0

1997 90.8 2.87 260.2 206.6 45.3 251.9 38.1

1998 88.9 3.05 271.2 205.0 56.0 261.0 51.3

1999 86.3 3.05 263.1 211.0 54.7 265.7 51.4

2000* 88.9 3.12 277.6 212.1 58.7 270.8 60.8

1 September-August marketing year for corn and sorghum; June-May for barley and oats.

* Forecast as of July 2000.

 For 1960 through 1974, statistics based on October-September marketing year for corn

 and sorghum and June-May for barley and oats, see Feed Grains Fact Sheet dated May 1985.

continues
8

CORN

 SUPPORT

 LEVEL/ DIRECT GOVERNCROP TARGET PAY- LOAN AVERAGE PRICE FARM MENT

YEAR PRODUCTION PRICE MENTS RATE TO FARMERS VALUE PAYMENTS

 million bu. ———————————— $ per bushel ————————- ————— $ million ——————

1960 3,906.9 1.06 1.00 3,928.8

1961 3,597.8 1.20 1.10 3,939.0 645.4 F.G. Prog.

1962 3,606.3 1.20 1.12 4,025.3 684.0 F.G. Prog.

1963 4,019.2 1.25c .18d 1.07e 1.11 (1.19)1 4,454.0 679.8 F.G. Prog.

1964 3,484.3 1.25c .15d 1.10e 1.17 (1.23)1 4,064.2 926.2 F.G. Prog.

1965 4,102.9 1.25c .20d 1.05e 1.16 (1.24)1 4,754.2 1,094.1 F.G. Prog.

1966 4,167.6 1.30c .30d 1.00e 1.24 (1.35)1 5,171.0 1,028.0 F.G. Prog.

1967 4,860.4 1.35c .30d 1.05e 1.03 (1.13)1 5,044.2 730.6 F.G. Prog.

1968 4,449.5 1.35c .30d 1.05e 1.08 (1.20)1 4,825.6 1,165.8 F.G. Prog.

1969 4,687.1 1.35c .30d 1.05e 1.16 (1.28)1 5,416.0 1,365.3 F.G. Prog.

1970 4,152.2 1.35c .30d 1.05e 1.33 (1.47)1 5,514.7 1,228.1 F.G. Prog.

1971 5,646.3 1.35g .32i 1.05e 1.08 (1.24)1 6,101.1 893.1 F.G. Prog.

1972 5,579.8 1.41h .40j 1.05e 1.57 (1.83)1 8,743.0 1,468.9 F.G. Prog.

1973 5,670.7 1.64k .32&.15j 1.05e 2.55 (2.71)1 14,462.7 909.7 F.G. Prog.

1974 4,701.4 1.38 —- 1.10e 3.02 14,231.6 244.2 Disaster

1975 5,840.8 1.38m —- 1.10e 2.54 14,817.8 89.9 Disaster

1976 6,289.2 1.57m —- 1.50e 2.15 13,524.1 180.9 Disaster

1977 6,505.0 2.00m —- 2.00e 2.02 13,107.4 281.1 Disaster

1978 7,267.9 2.10n .03d 2.00e 2.25 16,280.7 88.3 Deficiency

 558.0 Diversion

 36.6 Disaster

19793 7,928.1 2.20n —- 2.10e 2.48 19,877.0 1 10.6 Diversion

 16.0 Disaster

1980 6,639.4 2.35/2.05p —- 2.25/2.40q 3.12 20,554.0 279.6 Disaster

1981 8,118.7 2.40 —- 2.40/2.55q 2.47 20,200.0 92.3 Disaster

1982 8,235.1 2.70 .15d 2.55/2.90q 2.55 21,641.0 290.8 Deficiency

 0.5 Disaster

1983 4,174.3 2.86 —- 2.65/2.65q 3.21 19,254.0s 904.4 Diversion

1984 7,672.1 3.03 -.43d 2.55 2.63 20,144.0 1,653.5 Deficiency

1985 8,875.5 3.03 .48d 2.55 2.23 19,519.0 2,468.0 Deficiency

1986 8,225.8 3.03 1.11d 1.92/1.89r 1.50 12,507.0 6,186.0 Deficiency

 132.6 Diversion

1987 7,131.3 3.03 1.09d 1.82 1.94 14,107.7 5,910.0 Deficiency

 1,468.1 Diversion

1988 4,928.7 2.93 .36d 1.77 2.54 12,661.4 2,166.4 Deficiency

 562.6 Diversion

 997.0 Disaster

1989 7,525.5 2.84 .58d 1.65 2.36 17,896.8 3,504.4 Deficiency

 223.0 Disaster

1990 7,934.0 2.75 .51d 1.57 2.28 18,192.0 3,013.8 Deficiency

1991 7,474.8 2.75 .41d 1.62 2.37 17,864.0 2,079.5 Deficiency

1992 9,476.7 2.75 .73d 1.72 2.07 19,617.0 3,624.1 Deficiency

1993 6,337.7 2.75 .28d 1.72 2.50 15,841.0 1,503.9 Deficiency

1994 10,050.5 2.75 .57d 1.89 2.26 22,832.0 3,180.0 Deficiency

1995 7,400.1 2.75 0.00d 1.89 3.24 24,117.5 81.0 Deficiency

1996 9,232.6 n.a. 0.251d 1.89 2.71 25,149.0 1,745.2 Contract

1997 9,206.8 n.a. 0.486d 1.89 2.43 22,352.0 3,385.2 Contract

1998 9,758.7 n.a. 0.377d 1.89 1.94 18,922.0 3,941.0 Contract

 1,382.0 LDP/MLG**

1999 9,437.3 n.a. 0.363d 1.89 1.80 16,987.0 5,091.0 Contract

 2,098.0 LDP/MLG**

2000* 10,013.0 n.a. 1.89 1.50-1.90 17,022.0 4,888.0 Contract

 1,957.0 LDP/MLG**

 *Forecast as of July 2000

**Loan deficiency payments (LDP) and marketing loan gains (MLG).

 For statistics for 1933 through 1959, see Feed Grains Fact Sheet dated January 1979. a/b/

 (see endnotes p. 14)

continues
9

SORGHUM

 SUPPORT

 LEVEL/ DIRECT AVERAGE GOVERNCROP TARGET PAY- LOAN PRICE FARM MENT

YEAR PRODUCTION PRICE MENTS RATE TO FARMERS VALUE PAYMENTS

 million bu. ————————--——— $ per cwt. ———————--—- ———-----— $ million ——————

1970 683.2 2.14c .53d 1.61f 2.04 (2.38)1 779.6 236.9 F.G. Prog.

1971 868.0 2.21g .52i 1.73f 1.86 (2.18)1 895.8 167.0 F.G. Prog.

1972 801.4 2.39h 68j 1.79f 2.45 (3.09)1 1,096.1 289.3 F.G. Prog.

1973 923.2 2.61k .54&.25j 1.79f 3.82 (4.18)1 1,978.3 183.4 F.G. Prog.

1974 622.7 2.34/ —- 1.88f 4.95 1,721.9 68.2 Disaster

1975 754.4 2.34m —- 1.88f 4.21 1,777.1 19.7 Disaster

1976 710.8 2.66m —- 2.55f 3.63 1,431.2 34.5 Disaster

1977 780.9 4.07m —- 3.39f 3.25 1,411.6 137.8 Deficiency

 30.1 Disaster

1978 731.3 4.07n 59d 3.39f 3.59 1,464.2 180.7 Deficiency

 25.5 Diversion

 37.4 Disaster

19793 807.4 4.18n .23d .57f 4.20 1,877.0 63.3 Deficiency

 22.9 Diversion

 12.6 Disaster

1980 579.3 4.46/4.38p 3.82/4.07q 5.20 1,697.0 101.5 Disaster

1981 875.8 4.55 48d 4.07/4.32q 4.02 2,079.0 233.0 Deficiency

 34.5 Disaster

1982 835.1 4.64 .32d 4.32/4.91q 4.41 1,928.0 64.1 Deficiency

 3.1 Disaster

1983 487.5 4.86 4.50/4.50q 4.89 1,864.0s 113.5 Diversion

1984 866.2 5.14 .82d 4.32 4.14 2,050.0 158.0 Deficiency

1985 1,120.3 5.14 .82d 4.32 3.45 2,243.0 226.0 Deficiency

1986 938.9 5.14 1.89d 3.25/3.11r 2.45 1,323.0 556.7 Deficiency

 13.3 Diversion

1987 730.8 5.14 2.04d 3.11 3.04 1,179.4 575.5 Deficiency

 132.8 Diversion

1988 576.7 4.96 .86d 3.00 4.05 1,337.4 262.4 Deficiency

 21.7 Diversion

 30.0 Disaster

1989 615.4 4.82 1.18d 2.80 3.75 1,287.7 390.0 Deficiency

 53.0 Disaster

1990 573.3 4.66 1.00d 2.66 3.79 1,221.0 317.3 Deficiency

1991 584.9 4.66 .66d 2.75 4.02 1,331.0 174.6 Deficiency

1992 875.0 4.66 1.29d 2.91 3.38 1,684.0 328.2 Deficiency

1993 534.2 4.66 .45d 2.91 4.13 1,234.0 150.0 Deficiency

1994 645.7 4.66 1.05d 3.21 3.80 1,375.0 290.0 Deficiency

1995 458.6 4.66 .00d 3.21 5.70 1,395.4 25.5 Deficiency

1996 795.3 n.a. 0.577d 3.23 4.18 1,986.0 200.9 Contract

1997 633.5 n.a. 0.971d 3.14 3.95 1,409.0 338.3 Contract

1998 519.9 n.a. 0.807d 3.11 2.96 905.0 429.0 Contract

 61.0 LDP/MLG**

1999 595.2 n.a. 0.777d 3.11 2.76 923.0 554.0 Contract

 151.0 LDP/MLG**

2000* 564.0 n.a. 3.05 2.23-2.95 818.0 534.0 Contract

 57.0 LDP/MLG**

 *Forecast as of July 2000.

**Loan deficiency payments (LDP) and marketing loan gains (MLG).

 For statistics for 1940 through 1959, see Feed Grains Fact Sheet dated January 1979. a/b/

 For statistics for 1960 through 1969, see Feed Grains Fact Sheet dated November 1994

 (see endnotes p. 14)

continues
10

BARLEY

 SUPPORT

 LEVEL/ DIRECT AVERAGE GOVERNCROP TARGET PAY- LOAN PRICE FARM MENT

YEAR PRODUCTION PRICE MENTS RATE TO FARMERS VALUE PAYMENTS

 million bu. ————————— $ per bushel ———————— —————— $ million ——————

1960 429.0 .77 .84 355.2

1961 392.4 .93 .979 376.1

1962 427.7 .93 .915 385.9 35.9 F.G. Prog.

1963 392.8 .96c .14d .82f .897(0.946)1 350.0 42.6 F.G. Prog.

1964 386.1 .96c .12d .84f .946(0.979)1 365. 1 60.6 F.G. Prog.

1965 393.1 .96c .16d .80f 1.02(1.06)1 399.6 62.6 F.G. Prog.

1966 392.1 1.00c .20d .80f

 1.06(1.10)1 411.8 47.3 F.G. Prog.

1967 373.7 .90 21.012 374.4 2

1968 426.2 .90 2.9212 390.2 2

1969 427.1 1.03c .20d .83f .885(0.941)1 377.9 46.0 F.G. Prog.

1970 416.1 1.03c .20d .83f .973(1.03)1 400.3 44.7 F.G. Prog.

1971 462.4 —- .81f .9932 457.6 2

1972 421.7 1.15h .32j .86f 1.21(1.45)1 505.2 107.2 F.G. Prog.

1973 417.4 1.27k .26&.12j .86f 2.14(2.29)1 881.6 77.7 F.G. Prog.

1974 298.7 1.13l —- .90f 2.81 821.6 15.4 Disaster

1975 379.2 1.13m —- .90f 2.42 905.9 4.9 Disaster

1976 383.0 1.28m —- 1.22f 2.25 852.3 9.5 Disaster

1977 427.8 2.15m .50d 1.63f 1.78 760.0 91.3 Deficiency

 30.2 Disaster

1978 454.8 2.25n .35d 1.63f 1.92 871.1 79.0 Deficiency

 8.9 Diversion

 9.0 Disaster

19793 383.2 2.40n .11d 1.71f 2.27 872.0 17.0 Deficiency

 5.6 Disaster

1980 361.1 2.55/2.29p —- 1.83/1.95q 2.79 1,017.0 31.2 Disaster

1981 473.5 2.60 .11 d 1.95/2.07q 2.48 1,173.0 48.1 Deficiency

 14.8 Disaster

1982 515.9 2.60 .40d 2.08/2.37q 2.18 1,115.0 60.1 Deficiency

1983 508.9 2.60 .21 d 2.16/2.16q 2.47 1,270.0 42.7 Deficiency

 29.4 Diversion

1984 598.0 2.60 .26d 2.08 2.29 1,357.0 50.4 Deficiency

1985 590.2 2.60 .52d 2.08 1.98 1,130.0 158.0 Deficiency

1986 608.5 2.60 .99d 1.56/1.49r 1.61 989.0 345.2 Deficiency

 6.3 Diversion

1987 521.5 2.60 .79d 1.49 1.81 967.0 302.7 Deficiency

 33.5 Diversion

1988 290.0 2.51 —- 1.44 2.80 775.0 40.3 Deficiency

 21.7 Diversion

 30.0 Disaster

1989 404.2 2.43 —- 1.34 2.42 968.0 23.3 Deficiency

 53.0 Disaster

1990 422.2 2.36 .20d 1.28 2.14 912.0 59.0 Deficiency

1991 464.3 2.36 .62d 1.32 2.10 997.0 173.0 Deficiency

1992 455.1 2.36 .56d 1.40 2.04 954.0 152.4 Deficiency

1993 398.0 2.36 .67d 1.40 1.99 792.0 205.0 Deficiency

1994 374.9 2.36 .57d 1.54 2.03 761.01 170.0 Deficiency

1995 359.4 2.36 .00d 1.54 2.89 1,028.8 40.2 Deficiency

1996 392.4 n.a. .332d 1.55 2.74 1,081.0 136.9 Contract

1997 359.9 n.a. .227d 1.57 2.38 862.0 113.1 Contract

1998 352.1 n.a. .277d 1.56 1.98 687.0 179.0 Contract

 83.0 LDP/MLG**

1999 281.9 n.a. .284d 1.59 2.15 606.0 230.0 Contract

 39.0 LDP/MLG**

2000** 307.3 n.a. .271d 1.62 1.65-2.05 568.0 223.0 Contract

 58.0 LDP/MLG**

 *Forecast as of July 2000. (see endnotes p. 14)

**Loan deficiency payments (LDP) and marketing loan gains (MLG).

 For statistics for 1940 through 1959, see Feed Grains Fact Sheet dated January 1979. a/b/

continues
11

OATS

 SUPPORT

 LEVEL/ DIRECT AVERAGE GOVERNCROP TARGET PAY- LOAN PRICE FARM MENT

YEAR PRODUCTION PRICE MENTS RATE TO FARMERS VALUE PAYMENTS

 million bu. ————————— $ per bushel —————————— —————— $ million —————-

1970 915.2 .63 .623 582.2

1971 878.1 .54 .604 543.7

1972 690.6 .54 .724 507.2

1973 659.1 .54 1.18 774.7

1974 600.7 .54 1.53 912.0

1975 639.0 .54 1.45 923.6

1976 540.4 .72 1.56 835.2

1977 752.8 1.03 1.09 823.4

1978 581.7 1.03 1.20 688.6

19793 526.7 1.08 1.33 714.0

1980 458.8 1.16/1.23q 1.72 813.0

1981 509.5 1.24/1.31q 1.88 954.0

1982 592.6 1.50 1.31/1.49q 1.49 884.0 0.3 Disaster

1983 476.5 1.60 .11d 1.36/1.36q 1.62 794.0 5.0 Deficiency

 7.6 Diversion

1984 473.7 1.60 1.31 1.67 799.0

1985 518.5 1.60 .29d 1.31 1.23 642.0 7.8 Deficiency

1986 385.0 1.60 .39d 0.99/0.95 r 1.21 469.0 30.3 Deficiency

 1.5 Diversion

1987 373.7 1.60 .20d 0.94 1.56 606.0 18.5 Deficiency

 7.6 Diversion

1988 217.6 1.55 0.90 2.61 533.0 4.5 Deficiency

 50.0 Disaster

1989 373.6 1.50 0.85 1.49 549.0 15.0 Disaster

1990 357.7 1.45 .32d 0.81 1.14 418.0 7.6 Deficiency

1991 243.9 1.45 .35d 0.83 1.21 309.0 30.3 Deficiency

1992 294.2 1.45 .17d 0.88 1.32 401.0 15.4 Deficiency

1993 206.8 1.45 .11d 0.88 1.36 281.0 11.6 Deficiency

1994 228.8 1.45 .24d 0.97 1.22 279.0 16.2 Deficiency

1995 161.1 1.45 .00d 0.97 1.67 280.5 2.9 Deficiency

1996 153.2 n.a. .033d 1.03 1.96 314.0 8.6 Contract

1997 167.2 n.a. .031d 1.11 1.60 273.0 8.1 Contract

1998 166.0 n.a. .031d 1.11 1.10 200.0 13.0 Contract

 20.0 LDP/MLG**

1999 146.2 n.a. .030d 1.13 1.10 161.0 16.0 Contract

 28.0 LDP/MLG**

2000** 151.4 n.a. 1.16 0.85-1.25 159.0 16.0 Contract

 35.0 LDP/MLG**

 *Forecast as of July 2000.

**Loan deficiency payments (LDP) and marketing loan gains (MLG).

 For statistics for 1945 through 1954, see Oats Commodity Fact Sheet dated March 1979.a/b/ .

 For statistics for 1955 through 1969, see Feed Grains Fact Sheet dated June 1999.

 (see endnotes p. 14)

continues
12

ALLOCATION OF CORN AND SORGHUM ENDING CARRYOVER

September 1, 1975-1998*

(Million Bushels)

 ————————— CORN ——————————— —————————— SORGHUM ———————

 FARMER- FARMERCROP ENDING CCC OWNED FREE ENDING CCC OWNED FREE

YEAR STOCKS INVENTORY RESERVE STOCKS STOCKS INVENTORY RESERVE STOCKS

1975 633.2 0.2 0 633.0 82.3 0 0 82.3

1976 1,135.6 0.2 0 1,135.4 117.3 0.2 0 117.1

1977 1,435.9 3.5 212.0 1,220.4 216.4 5.0 31.9 179.5

1978 1,709.5 100.5 585.0 1,024.0 207.9 43.7 50.9 113.3

1979 2,034.3 260.1 670.3 1,103.9 177.9 45.6 18.0 114.3

1980 1,392.1 241.8 0 1,150.3 130.3 41.5 0 88.8

1981 2,536.6 280.1 1,276.2 980.3 318.6 41.8 229.2 47.6

1982 3,523.1 1,142.7 1,890.1 490.3 439.1 171.5 313.0 -45.4**

1983 1,006.3 201.5 446.7 358.1 287.4 102.8 179.4 5.2

1984 1,648.2 224.9 388.5 1,034.8 300.2 112.1 130.4 57.7

1985 4,039.5 545.7 711.4 2,782.4 551.0 207.2 74.7 269.1

1986 4,881.7 1,443.2 1,497.7 1,940.8 743.3 408.9 92.9 241.5

1987 4,259.1 835.0 1,126.8 2,297.3 662.7 463.6 69.5 129.6

1988 1,930.4 362.5 724.6 843.3 439.5 340.9 28.0 70.6

1989 1,344.5 233.0 386.7 724.8 219.8 162.5 12.3 45.0

1990 1,521.2 371.1 2.6 1,147.5 142.6 64.7 0 77.9

1991 1,100.3 112.5 0 987.8 53.2 8.2 0 45.0

1992 2,113.0 55.5 13.3 2,044.2 175.0 3.9 1.3 169.8

1993 850.1 44.8 118.5 686.8 47.6 .7 3.6 43.3

1994 1,557.8 42.3 78.5 1,437.0 71.6 .7 2.2 68.7

1995 425.9 30.4 .0 395.5 18.4 .0 .0 18.4

1996 883.2 2.1 .0 881.1 47.5 .0 .0 47.5

1997 1,307.8 4.3 .0 1,303.5 48.9 .2 .0 48.7

1998 1,787.0 11.6 .0 1,775.4 65.2 .3 .0 64.9

19991 1,819.3 15.0 .0 1,804.3 65.3 1.0 .0 64.3

20001 2,182.3 .0 .0 2,182.3 74.3 .0 .0 74.3

 1Preliminary as of July 2000.

 *Reflects September-August corn-sorghum crop year.

**Negative free stocks imply some reserve rotation and use of new crop.

 For 1965 through 1974 statistics based on October-September marketing year, see Feed Grains Fact Sheet dated May 1985.

continues
13

ALLOCATION OF BARLEY AND OATS ENDING CARRYOVER

June 1, 1975-2000*

(Million Bushels)

 ————————— BARLEY ——————————— ——————————— OATS——————————

 FARMER- FARMERCROP ENDING CCC OWNED FREE ENDING CCC OWNED FREE

YEAR STOCKS INVENTORY RESERVE STOCKS STOCKS INVENTORY RESERVE STOCKS

1975 128.4 0.0 0.0 128.4 204.8 24.9 0.0 179.9

1976 126.4 0.0 0.0 126.4 164.3 0.0 0.0 164.3

1977 173.1 0.0 23.6 149.5 313.1 0.0 27.9 285.2

1978 228.0 2.5 40.0 185.5 280.0 2.7 38.7 238.6

1979 192.1 3.2 23.0 165.9 236.4 2.7 33.2 200.5

1980 137.3 3.4 11.5 122.4 177.0 2.3 0.1 174.6

1981 147.8 3.3 22.5 122.0 151.9 0.7 0.0 151.2

1982 216.7 6.0 98.4 112.3 219.8 0.7 5.2 213.9

1983 189.4 11.9 95.3 82.2 180.9 1.5 3.6 175.8

1984 247.4 14.6 96.8 136.0 179.9 1.4 2.7 175.8

1985 327.2 57.4 90.7 179.1 183.7 1.9 2.6 179.2

1986 336.3 75.5 121.3 139.5 132.7 3.5 3.6 125.6

1987 321.1 50.1 109.5 161.5 112.0 3.5 2.2 106.3

1988 196.4 30.4 42.2 123.8 98.3 2.4 0.0 95.5

1989 160.8 19.3 0.9 140.6 156.9 0.7 0.0 156.2

1990 135.4 8.4 0.3 126.7 171.2 .4 0.0 170.8

1991 128.6 6.5 0.0 122.1 127.7 .2 0.0 127.5

1992 151.2 5.4 0.0 145.8 113.2 .1 0.0 113.1

1993 138.9 5.2 6.8 126.9 105.5 .0 0.0 105.5

1994 112.6 5.0 4.7 102.9 100.6 .0 0.0 100.6

1995 99.6 4.2 0.0 95.4 66.3 .0 0.0 66.3

1996 109.5 0.0 0.0 109.5 66.7 .0 0.0 66.7

1997 119.2 0.0 0.0 119.2 74.0 .0 0.0 74.0

1998 141.7 0.3 0.0 141.4 81.4 .0 0.0 81.4

1999 111.7 0.1 0.0 111.6 76.0 .0 0.0 76.0

2000** 107.0 0.0 0.0 107.0 77.4 .0 0.0 77.4

 *Reflects June-May barley/oat crop year.

**Preliminary as of July 2000.

 For 1965 through 1974 statistics, see Feed Grains Fact Sheet dated May 1985.

continues
ENDNOTES

1/ Season average price including the price-support payment average to reflect total production.

2/ Barley not included in feed grain program in 1967, 1968, and 1971.

3/ Beginning with 1979, marketing average prices are being used in lieu of season average prices.

a Support price for farmers who complied with acreage allotments (applicable only to certain years prior to 1960).

b Support price for farmers who did not comply with acreage allotments (applicable only to certain years prior to 1960).

c Total support.

d Price support payment; 1996 and forward, contract rate. The 1998 rate includes Market Loss Assistance Payments.

e Price support loan per bushel for corn grading No. 2.

f Loan rate.

g Participants in the 1971 feed grain program were guaranteed a national average of $1.35 a bushel on the

 production from half the corn base, and $2.21 a hundredweight ($1.24 a bushel) on half the sorghum base.

h Participants in the 1972 feed grain program were guaranteed a national average of $1.41 a bushel on the production from

 half the farm corn base, $2.39 a hundredweight ($1.34 a bushel) on half the farm sorghum base, and $1.15 per bushel on

 half the farm barley base.

i Set-aside payments for diverting the specified percentage of the corn or grain sorghum base were to be equal to the difference between the national average received by farmers during the first 5 months of the marketing year and the guarantee.

Set-aside payments for a farm were calculated on half the feed grain base times the farm yield times the payment per

bushel. Eligible producers received preliminary payments in July 1971 of 32 cents per bushel for corn and 29 cents per

bushel for sorghum, multiplied by the yield established for the farm times half the corn and sorghum base.

j Set-aside payments for the 1972 feed grain program, as specified by law, were calculated in the same manner as for 1971.

Payments to eligible producers in the 1972 program were 40 cents per bushel for corn, 38 cents per bushel for sorghum,

and 32 cents per bushel for barley, times the farm yield on one-half the feed grain base. For 1973, the 10 percent set-aside

provision rate was 32 cents per bushel for corn, 30 cents per bushel for sorghum and 26 cents per bushel for barley times

the yield on one-half the feed grain base. The 0 percent set-aside provision rate was 15 cents per bushel for corn, 14 cents

per bushel for sorghum and 12 cents per bushel for barley, times the farm yield on one-half the feed grain base.

k Participants in the 1973 feed grain program were guaranteed a national average price of $1.64 a bushel on the production

from half the farm corn base, $2.61 a hundredweight ($1.46 a bushel) on half the farm sorghum base, and $1.27 per bushel

on half the farm barley base.

m Established target price, guaranteed on production from allotment acreage.

n Established target price, guaranteed on 80-100 percent of acreage planted for harvest.

p First entry applicable to producers who planted within their NCA, second entry for those who planted in excess of their

NCA.

q Loan rate for regular loans/loan rate for crops in the farmer-owned reserve.

r First entry actual loan rate, second entry Gramm-Rudman-Hollings reduction of 4.3 percent.

s Includes estimated value of PIK compensation.

14