The American Soybean Association (ASA) is urging swift action by Congress to help mitigate the economic disaster that is confronting farmers, ranchers and rural communities in 1999. ASA President Mike Yost, a soybean and corn producer from Murdock, Minn., said, "ASA is requesting $1 billion in Commodity Credit Corporation (CCC) funds be earmarked for a purchase and donation program for soybeans, soybean oil and soybean meal as the means to mitigate this disastrous decline in prices and soybean producer income. This program would be conducted using CCC Charter Act and Section 416(b) authorities similar to the purchase and donation initiative implemented for wheat last year."

ASA, along with other farm and commodity organizations, has communicated to House Appropriations Committee Chairman C. W. "Bill" Young (R-FL) and Ranking Member David R. Obey (D-WI) a list of critical funding and program needs that included the $1 billion designated for soybean programs. Soybean producers have seen prices fall by over $1 per bushel in past months, and USDA is projecting soybean values at less than $4 per bushel this fall.

Financial turmoil in Asian and other developing countries has contributed to weakened demand and a corresponding decline in soybean commodity prices. Donation and long-term concessional sales will help to stabilize and restructure these beleaguered economies. The implementation of a humanitarian 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.

"Soybean prices this fall are predicted to reach a 30 year low," Yost said. "Strong action is needed to support soybean farmer income. A soy-specific purchase and donation program is needed because soybean farmers do not directly benefit from the market loss payments made to producers in 1998. Donations allow the U.S. to feed a hungry world while at the same time supporting farm income."

Donation and long-term concessional sales programs are effective ways to not only export U.S. soybean products short term, but these programs also serve to build long-term demand for U.S. farm products.