News from the Minnesota Association of Wheat
Growers for Wednesday, January 19, 2000

CROP INSURANCE PRICE LIMITS NOW SET FOR 2000 HARVEST

Wichita (Kan.) Eagle

USDA has set the maximum price elections for spring-planted crops for the 2000 harvest. The elections represent the top prices that producers can choose for insurance of crops under Multiple Peril Crop Insurance Policies and are the same throughout the country.

Price elections for some crops and for special policies may vary from state to state. Prices are for corn, soybeans, milo and corn silage.

See more on this story at www.agweek.com.

MAKE GMO TEST RESULTS PUBLIC, SAYS INDUSTRY TRADE GROUPS
GMO developers should turn over studies and test results on GMO safety to the FDA, according to two food industry trade groups. The groups also say there is no need for the FDA to require special labels on GMO food items.

Contending that not enough is known about the long-term health or environmental effects of modifying a plant' genes, some consumer are pressing for a moratorium on new bio-engineered foods.  Read more about this on www.agdayta.com.

GMA TELLS FDA THAT PUBLIC WOULD BENEFIT FROM 'READER-FRIENDLY' INFO ON BIOTECH SAFETY
In formal comments to the Food and Drug Administration, GMA urged the agency to publish and publicize a document that "describes in sufficient detail the current safety testing, and the rationale for determining which types of tests need to be conducted."

Washington, DC--Consumers would benefit greatly from having access to more "reader-friendly" information from the FDA clearly describing the safety of food biotechnology, according to the Grocery Manufacturers of America.

"This clearly indicates the need for improved and expanded communication. The public needs to be better informed about the process, and FDA should step up efforts to increase public understanding" wrote Stacey Zawel, Ph.D., GMA Vice President.

Read more on this article at www.grainnet.com.

CARGILL CALMS CONCERNS OVER BIOTECH CROPS
Associated Press - 01/18/2000
Minnetonka, Minn. (AP) - Grain giant Cargill Inc. is calming some concerns over genetically modified crops with word that it will accept those crops at its elevators this year.

"Cargill stepped forward and said, 'Look folks, this isn't a situation that's really out of control,' " said George Dahlman, a food and agribusiness analyst for U.S. Bancorp Piper Jaffray in Minneapolis.

Groups opposed to biotechnology had made it appear that the market for the U.S. crops was collapsing because of this country's lead in adopting seeds with so-called genetically modified organisms, Dahlman said. But Cargill's move last month appeared to ease the fear.

"For the most part, it's business as usual," company spokeswoman Linda Thrane said in the statement issued last month. "Enhanced and nonenhanced grains are flowing together into the marketplace in the huge volumes that make commodity- grain handling such an efficient and low-cost system."

Cargill's announcement "settled down the market," said Sano Shimoda of BioScience Securities, a brokerage and investment banking firm in the San Francisco Bay area. "Farmers are (now) feeling a lot more comfortable planting genetically enhanced seed varieties."

Some analysts who advise farm-commodity traders in Chicago are softening predictions they made last fall that farmers would back away from the new varieties.

"This GMO acreage may not be down as much as we had thought when the hype and concern was intensifying last fall," said Rich Feltes, an analyst for Refco Inc. of Chicago.

Government authorities and many scientists say there is no significant difference between traditional and modified crops in terms of food safety or quality. Opponents of the technology haven't identified serious flaws in the foods, but they say there has been too little testing. Many environmental groups object to the crops whether or not the food is safe.

But Feltes and other analysts stress that the issue is far from decided.

Meanwhile, the Environmental Protection Agency on Friday posted new rules that require farmers to plant at least 20 percent conventional corn in most regions to prevent insects from developing resistance to the toxin in the biotech crop.

Leaders of the largest groups of corn and soybean growers in Minnesota said farmers have been keenly concerned about worldwide consumer attitudes toward their crops. At a time when grain prices are low, they can't afford to lose any market share.

Some Minnesota growers are going so far as to order both conventional and modified seeds with plans to cancel one order or the other between now and planting time, said Mike Yost, who farms near Murdoch and is a director of the American Soybean Association.

Cargill actually plays only a modest role in seed sales. It issued its statement, Thrane said, because "our guys in the field were hearing from our farmer customers that there was a lot of uncertainty."

Many Minnesota corn growers see the uproar over the new crops as essentially a case of crying wolf, said Nathan Johnson, who is president of the Minnesota Corn Growers Association. Those who heeded warnings and went to the trouble last fall to separate modified crops from conventional varieties found that few elevators made any distinction, he said. And farmers who had hoped to collect a premium for non-modified varieties were mostly disappointed.

"There was a lot of confusion, mainly last summer," said Johnson, who farms near Lowry. "That is dying out, and I think planting this year will be awful close to the same as last year."

CROP DISASTER PROGRAM QUESTIONS AND ANSWERS COMPILED BY THE ND FSA OFFICE
The Crop Disaster Program began December 13 and is expected to end February 25, 2000.  The following are questions and answers for the program:

           1. What are the eligible disaster conditions?
               Crop losses must be directly attributed to adverse  weather and related conditions.

            2. When and where will applications be taken from producers?
                Applications will be accepted at local Farm Service Agency offices beginning December 13, 1999.  The sign-up period is expected to end February 25, 2000.

             3. When will payments be issued?
                 An advance payment of 35% will be issued after the application is approved.  Final payments will be issued in April.

             4. What rates will be used to calculate payments?            
                 The 1999 Crop Disaster Program payment rates are:
            a.   65 percent of the maximum established by Risk Management price for insured crops

             b.  65 percent of the NASS 5-year average for non-insurable crops

             c..  60 percent of the maximum established Risk Management price for uninsured crops.

                Note: Crop Revenue Coverage prices cannot be used.

             5. Will payments be factored?
                 If the value of all eligible applications exceeds the available money, the payments will be factored.               

            6. Which crops are eligible for assistance under the 1999 single-year provisions?
                All crops for which Federal Crop Insurance is available, regardless of whether insurance was purchased and all crops eligible for NAP.

            7. Will pasture losses qualify for assistance?
                 Pasture losses may be made under the Livestock Assistance Program and NAP, if eligibility requirements are met.   Therefore, pasture losses will not be covered under the 1999 Crop Disaster Program.

            8.  Will assistance be available for prevented planting?
                 Prevented planting will be covered under the 1999 Crop Disaster Program.  Payment will be calculated separately from planted acreage.

            9.  Is there any loss threshold?
                To qualify for the 1999 Crop Disaster Program, losses must exceed 35 percent of normal production.  Producers will only be compensated for losses greater than the threshold.

            10. Under the 1999 Crop Disaster Program, will FSA use an "historic" yield for determining the 1999 production loss?
                   Yes, historic production will be the higher of a producer's actual production history or the NASS 5-year county average.   If NASS data is unavailable for non-insured crops, State  Committees (STC) will establish yields using the best data available including county expected yields previously established for NAP.

            11.  Under the 1999 Crop Disaster Program, must a producer provide actual yield history or can the producer simply accept the NASS 5-year average yield or the STC-established yield for the crop?
                    FSA will not calculate any approved yields for disaster purposes only.  Therefore, producers that do not have an Actual Production History/approved yield must accept the county average yield.

            12. Are quality losses covered under this program?
                  Yes, but quality adjustments can not be applied on crops that the Risk Management Agency has already adjusted due to quality.          

             13.  Will eligibility be calculated on a farm or unit basis?
                    Units will be used.  If units have not been established for a producer, they will be established using basic units according to NAP and crop insurance rules.

            14.  For the 1999 Crop Disaster Program, will harvested and unharvested payment factors apply?
                   Yes.  There will be prevented planting and unharvested payment factors established for insured, uninsured, and non-insurable crops.

            15.  Are conservation compliance provisions applicable?
                   Yes.  Conservation compliance provisions apply to all producers.

            16.  Is there a payment limitation?
                   An $80,000 per person payment limitation will apply.  Any applicable payment limit will be  applied before the determination of any National payment factor.

            17. How do signed crop insurance waivers affect eligibility?
                   The signing of a crop insurance waiver will not prevent producers from receiving a disaster program payment, if they are otherwise eligible.

            18.  Will producers be required to  purchase crop insurance in future years?
                    Legislation requires producers who did not purchase crop insurance for 1999 to purchase crop insurance for 2000 and 2001 crop years on crops that receive a Crop Disaster Program  payment.

            19.   Are producers eligible for this program if they are also receiving benefits under different programs for the same disaster?
                     Yes. A producer will be eligible to receive benefits under this program and NAP, Multiple Peril Crop Insurance, and FSA Emergency Loans.

            20.  What year's gross income will be used to determine if the $2.5 million annual gross income limitation is exceeded?
                   The producer's income from the 1998 tax return will be used.

            21.  If no appraisal was performed for a crop, what will be required of an applicant to verify acreage not harvested?
                   The producer will be required to certify to disposition of the crop and whether or not any secondary use or salvage value was obtained.  If salvage or secondary use value was received, the producer shall furnish available records, that is, weight tickets, sales receipts, for County Committee use in determining secondary or salvage value obtained.  If no records of any kind are available, the Committee may require the producer to provide input cost, that is, seed receipts, fertilizer bills, etc., to verify a crop was planted.

            22. What kind of production evidence is required? 
                   Production records must be acceptable to the County Committee and must be verifiable.  Producers must provide records of production from any source.  If no records are available, a producer must provide a certification as to disposition of the crop and the amount of production.   The County Committee shall establish and the State Committee shall approve a maximum loss level for the crop based on other  county losses.  Producers without evidence will receive the higher of their certified production or the State Committee-approved maximum loss level for the crop.

            23. Some producer are going out of business because 1999 was such a disastrous year.  If they apply for their 1999 losses but will not be continuing their insurance coverage because they are no longer in business, can they qualify?
                  Those producers no longer farming or having an interest in an insurable crop in 2000 and 2001 will be eligible for 1999 Crop Disaster Program payments.

            24.  If a producer had insurance in 1999, is the producer exempt from taking insurance in 2000 and 2001?
                   If the producer had insurance on all insurable crops in 1999, legislation does not require that producer to obtain insurance in 2000 or 2001.  Premium reductions will apply for 2000 to encourage producers to continue to purchase insurance.

            25.  Will applications be processed for each shareholder on a unit or will the application include all names of all producers in the crop(s) on the unit?
                   Applications will be taken separately for each producer.

             26.  Prevented planting (corn) is followed by planting a second different crop (canola) that fails.  Is the payment earned on both crops?
                    If a subsequent crop is planted on a prevented planted acreage, the prevented planted crop is not eligible unless the second crop is a cover crop.

             27.  If a producer requests payment on a crop on only one unit, does production from all units the producer has an interest in have to be reviewed?
                    The County Committee may require producers to provide records from other units to use in determining acceptable production or to assign production.