The American Soybean Association (ASA) is urging the United States Senate to complete floor action on the new farm bill as quickly as possible. ASA President Bart Ruth, a soybean producer from Rising City, Neb., today communicated to Senator Majority Leader Tom Daschle (D-SD) and Senate Minority Leader Trent Lott (R-MS) the urgent need for farm bill action as U.S. producers are now making planting decisions for 2002 with no idea of what farm programs will be in place at harvest.

"Early enactment of a new farm bill effective for 2002 crops will end producer's uncertainties about planting, and avoid another year of ad hoc economic loss assistance," Ruth said.

Last October, ASA and other farm organizations endorsed a deliberative approach for addressing the farm bill in the Senate that could enhance prospects for writing balanced and equitable legislation. It was understood that this process would likely extend into early 2002, but assurances were received from the Administration that additional funds provided in the current Budget Resolution would continue to be available for the new bill, and that marketing loan rates for 2002 crops would be announced in early December.

As Congress adjourned in late December, the Administration affirmed its commitment to support full funding of new farm legislation in a letter from the Office of Management and Budget (OMB). Shortly thereafter, Agriculture Secretary Ann Veneman announced that the promised decision on loan rates would be deferred, and called on Congress to complete action on the bill.

Soybean prices are at 30-year historic lows, and the outlook for improvement is not positive. Despite the recent downward revision in 2001 soybean acreage and carryover stocks by USDA, the U.S. continues to face sharp foreign competition due to the high Dollar and to wholesale currency devaluations by South American countries.

"In the absence of income support provided by the marketing loan program in the past three years, U.S. soybean producers would have lost significant income and market share as a result of the 56 percent devaluation of Brazil's Real since 1998," Ruth said. "Soybean farmers now face an imploding Argentine Peso as an added competitive threat to traditional U.S. export markets."

In recognition of these critical factors, ASA has repeatedly urged USDA to maintain the soybean loan rate for the 2002 crop at $5.26 per bushel - its level since 1997. Instead, the Administration decided to delay its decision on the soybean and other loan rates on the expectation that Congress will address 2002 loan rates in the farm bill.

"The only way to end the uncertainty over this year's safety net for producers of soybeans and other commodities is for Congress to complete a bill as expeditiously as possible that is effective for 2002 crops," Ruth said.