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MEDIA RELEASE

October 3, 2002
Written By Kent Thiesse, U of M Extension Service (507-389-8141)

USDA Modifies Formula For Oilseed Base Acres

In recent weeks there have been numerous reports regarding the fact that a "farm unit" that was planted to all corn one year and all soybeans the next year from 1998-2001 may lose some oilseed base acre eligibility in the new Farm Program. In an announcement made on October 2, 2002, USDA modified the formula to calculate new oilseed base acres that will eliminate this situation from occurring. This is good news to Southern Minnesota farm operators and landowners, according to Kent Thiesse, University of Minnesota Extension Service.

Thiesse said that since the 1996 Farm Bill, which allowed for planting flexibility on a "farm unit", it has been quite common for a producer to plant all acres on a particular farm to corn one year and to soybeans the following year. The previous oilseed formula would have reduced the eligible oilseed base acres under Options #2, #3, and #5 of the new Farm Program by one-half compared to a "farm unit" that was planted half to corn and half to soybeans each year from 1998-2001. The new oilseed base acre formula includes a four year average of actual planted acres to determine eligible soybean base acres, which will eliminate most crop rotational differences.

Thiesse says this difference will mean that many landowners and farm operators will have more soybean base acres on a "farm unit" that are eligible for the new Farm Program. Each eligible soybean base acre in South Central Minnesota will receive an estimated annual Direct payment of about $10.00-$14.00 per acre for the next six years (2002-2006). In addition, the soybean base acres are eligible for potential Counter-Cyclical payments of slightly less than that amount. The estimated Counter-Cyclical payment for soybeans in 2002 is zero, due to the fact that projected National average market prices are currently above threshold levels.

Thiesse points out that this modification in calculating the oilseed base acres in the new Farm Program came as a result of many producers expressing concern to their U.S. Senators and Congressmen. Some of the Minnesota Congressional delegation helped this change become a reality. Many Minnesota Farm Organizations were also instrumental in working with USDA to point out the discrepancies of the previous oilseed base acre formula and to offer solutions to correct the situation.

Persons with questions on base acreage calculations under the various Options of the new Farm Program should contact their County Farm Service Agency (FSA) Office. The University of Minnesota Extension Service has a Base Acreage and Yield Calculator (BYA) spreadsheet and other information on the new Farm Program available on their Farm Bill web site (www.extension.umn.edu/farmbill).