The American Soybean Association (ASA) has appealed to Agricultural Secretary Dan Glickman requesting that USDA initiate a $1 billion purchase and donation foreign assistance program for soybeans, soybean meal, and soybean oil using CCC Charter Act and Section 416(b) authorities. ASA also is asking that the government introduce biodiesel-blended fuels in at least 50 percent of the government’s diesel-powered vehicles by 2002.

"U.S. soybean prices and soybean producer income have fallen sharply in the past two years," said ASA President Mike Yost. "We believe these measures hold the best opportunity to begin to reverse the current downtrend in prices and income, enabling U.S. soybean producers to once again seek and find profitability in the marketplace."

Soybean carry-in stocks for the 1999/2000 marketing year are projected as the largest in more than a decade. Carryout stocks at the end of the marketing year are projected at 565 million bushels—the largest ever.

"USDA is projecting the season average price for 1999 crop soybeans at $4.35 per bushel," Yost said. "This level would represent a decline of 33 percent from the average price for the 1997 crop, and a reduction in the value of U.S. soybean production of $5.3 billion. Very clearly, soybean farmers and the soy industry are facing an economic situation of crisis proportions."

A $1 billion purchase and donation/concessional sales program for soy, similar to that implemented by the Administration last year for wheat using Commodity Credit Corporation CCC and Section 416(b) authorities, would boost exports by allowing U.S. soybean farmers to meet the food needs of developing nations hit hard by the global economic crisis. The implementation of an assistance package using grants and concessional sales for U.S. soybeans and soybean products could help put these nations back on the path to growth and prosperity.

"We believe a donation and long-term concessional sales program would be effective in not only boosting U.S. soy exports in the short term, but also in building long-term demand for U.S. soy products," Yost said.

Introducing biodiesel blends in at least 50 percent of the government’s diesel powered vehicles by 2002 would allow the federal government to comply with the Energy Policy Act while supporting soybean farmers. Biodiesel offers one of the best means of using surplus soybean oil, while also benefiting the environment and displacing imported petroleum.

"ASA believes that the Administration can take action to increase U.S. soy exports and therefore improve farmer incomes and returns from the marketplace," Yost said.