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AFPC Review of County Loan Rates for Sorghum and Corn

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

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?

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Paper provided by Texas A&M University, Agricultural and Food Policy Center in its series Briefing Series with number 42083.

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Date of creation: Apr 2007
Handle: RePEc:ags:tamfbs:42083
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