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News Release — Byron Dorgan, Senator for North Dakota

DORGAN BILL WOULD EQUALIZE LOAN RATES FOR MINOR OILSEEDS

Legislation Corrects USDA Misinterpretation of New Farm Bill

Tuesday, July 30, 2002

(WASHINGTON, D.C.) --- U.S. Senator Byron Dorgan (D-ND) and Senator Pat Roberts (R-KS) have introduced legislation in the Senate to clarify the intent of Congress to establish an identical loan rate for all oilseeds. The legislation would amend the new Farm Bill to specify each oilseed individually and state the loan rate for each should be set at $.0960 per pound. Dorgan said the U.S. Department of Agriculture misread the intent of the new farm bill when it increased loan rates for some oil seeds and dropped rates for others.

The legislation is supported by the National Sunflower Association, the U.S. Canola Association, as well as ADM and Cargill, both flaxseed processors.

“The Department of Agriculture’s interpretation took nearly everyone by surprise,” Dorgan said. “During Congress’ extensive debate on the farm bill, we never once discussed splitting minor oilseed loan rates.” “Flaxseed now has a loan rate that’s $.06 less than safflower. Price support discrepancies like that fly in the face of what Congress intended,” Dorgan said. “The bill I introduced corrects the USDA’s misinterpretation of the farm bill and would stop it from pulling the rug out from under our producers by cutting rates after crops are in the ground.”

Dorgan said he wants to prevent what could be substantial acreage shifts among these crops in the coming years if the USDA’s rates stick. “North Dakota’s family farmers have established a significant market for flaxseed in the last five years,” said Dorgan. “The USDA’s dramatic decrease in the flaxseed loan rate means U.S. farmers are faced with circumstances that effectively forfeit that increased production back to Canada.”

Dorgan said North Dakota is the number one producer of minor oilseed crops, such as sunflower seeds, flaxseeds and canola. Kansas, South Dakota, Minnesota and Montana are also major producers of minor oilseeds.

The USDA set the loan rates for oilseeds at $.0915 for oil sunflower seed, $.1210 for confectionary sunflower seed, $.0698 for flaxseed and $.0949 for canola.

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