Letter to the Editor: An option to help farmers
To the editor:
I want your readers to understand something as corn and soybean prices continue to fall because of Chinese tariffs and a big crop. There is a no cost, one-year proven farm policy option for our farmers to use called the Roebke Plan! Congress can simply attach it to the 2018 farm bill or President Trump can administer it as an executive order to support farm prices.
The Roebke Plan moves all nationwide E-10 gasoline pumps to E-11 immediately, which will consume an additional 500 million bushels of 2018 crop corn and lower gasoline prices by 1 cent/gallon. It also raises the USDA's nine-month commodity inventory loan collateral amounts by 1.55 percent for the 2018 crop, which hasn't been adjusted in over two decades by Congress, giving farmers cash flow this fall and time for sound marketing management without more subsidies.
So USDA corn loans move to $3.03/bushel, wheat to $4.55/bushel and soybeans to $7.75/bushel for all USA farmers. This also allows farmers the right to extend the above loan option for a additional nine months on up to 25 percent of their historical crop production as a crop marketing reserve. It's no cost to taxpayers because these loans are recourse loans and have a 1 percent higher annual interest rate than present USDA loans, which are really only used by sugar and peanuts today. So it's out there taxpayers, as elected officials, universities and farm groups do nothing!