PROGRAM CROPS

* NON-RECOURSE, MARKETING LOAN (Cost = $4.05-$8.22 Billion Per Year)

Counter-Cyclical, Commodity Specific, Actual Production, Competitiveness

Up to 3 Year Average Of 100 Percent Full Economic Cost Of Production (USDA/ERS)

2002 Minimum Loan Rates: Wheat-$3.87, Corn-$2.40, Soybeans-$5.30, Cotton-$0.74, Rice-$8.22

Current Law: Wheat-$2.58, Corn-$1.89, Soybeans-$5.26, Cotton-$0.52, Rice-$6.50

Loan Rates Adjust For Both Input Cost And Productivity Changes

* MAINTAIN PLANTING FLEXIBILITY

* CREATE THREE LIMITED RESERVES

Renewable Energy Reserve

1. Supports Demand Growth - Renewable Energy Standard Can Increase Ethanol Use To Over 2 Billion Bushels In 10 Years

2. Government-Owned/Farmer-Stored At Local Commercial Rates

3. Limited To One-Year's Utilization For Renewable Energy Production

4. Released At Cost When Prices Exceed 100 Percent Of Cost Of Production

Humanitarian Food Assistance Reserve

1. Supports Demand Growth - International School Lunch: 300 Million Malnourished School Children

2. Government-Owned/Farmer-Stored At Local Commercial Rates

3. Limited To One-Year's Needs For Humanitarian Assistance Programs

4. Released At Cost When Prices Exceed 100 Percent Of Cost Of Production

Farmer-Owned, Production Loss Reserve - Supplement To Crop Insurance

1. Loan Repayment Discounted If Production Less Than 90 Percent Of APH

2. Replace Lost Production For Yields Of 75-90 Percent Of APH

3. Limited To 20 Percent Of Individual Production, Storage Paid At Commercial Rates

* DISCRETIONARY, VOLUNTARY PRODUCTION MANAGEMENT

Supply Adjustment If Production Growth Exceeds Demand

Offer Participation Options: 5, 10, 15 And 20 Percent Of Total Crop Base

Participant Incentive: Loan Rate Increase - 50 Percent Of Producer Production Management Percentage

Non-Participant Disincentive: Loan Rate Reduction Equal To National Average Incentive Percentage

* TARGETING

Address Budget And Political Reality

Single Attribution For Realistic Scale Of Full-Time Family Farms


DAIRY


Texas Farmers Union, P.O. Box 738, Sweetwater, Tx 79556