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AFPC Review of County Loan Rates for Sorghum and Corn

Author

Listed:
  • Richardson, James W.
  • Outlaw, Joe L.
  • Knapek, George M.
  • Herbst, Brian K.

Abstract

The Agricultural & Food Policy Center (AFPC) updated the comparison of corn and sorghum county loan rates following the general methodology outlined in the October 2002 Food and Agricultural Policy Research Institute (FAPRI) study on corn and sorghum loan rates. The study answers two questions: 1. Are the 2006 county loan rates established by USDA consistent with the Congressional mandate that national average loan rates for both commodities be $1.95 per bushel? 2. What would be the impact if USDA were to adopt a different weighting scheme in setting county loan rates while continuing to maintain the mandated national average loan rate? Specifically, what would be the impact on sorghum loan rates if each county’s loan rate were weighted by the county’s share of national production of sorghum and corn combined, rather than by each county’s share of national sorghum production alone?

Suggested Citation

  • Richardson, James W. & Outlaw, Joe L. & Knapek, George M. & Herbst, Brian K., 2007. "AFPC Review of County Loan Rates for Sorghum and Corn," Briefing Series 42083, Texas A&M University, Agricultural and Food Policy Center.
    • Handle: RePEc:ags:tamfbs:42083
    DOI: 10.22004/ag.econ.42083
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