"After a number of natural disasters and skyrocketing input costs, the last thing our farmers need is instability in loan rates," said Congressman Berry. "USDA has a responsibility to maintain farm income, not drive farmers out of business by proposing severe changes to the rice market."

Significant fluctuations in the rice loan rate would devastate producers all across the United States who have already planted or are weeks away from planting crops. Many of these farmers have already secured production loans based on the historic relationship with lenders and only anticipated fluctuations of a couple cents in the loan rate. Congressman Berry and other rural lawmakers are urging FSA to postpone any adjustments for the 2006 loan rate and work with the rice industry to further study the impacts of any proposed changes.

Rice farmers in Arkansas are still trying to recover losses from the 2005 crop year where increases in the price of energy, fertilizer, and machinery forced many further into debt. Many farmers also suffered crop loss during the severe summer drought and Hurricanes Katrina and Rita. Economic damages for Arkansas rice producers during the 2005 crop year were estimated at $214 million. `

"As the largest rice producing district in the country, eastern Arkansas could lose millions of dollars from even the slightest change in the loan rate," said Congressman Berry. "USDA should give our rice producers fair warning, instead of springing severe changes on them at a time when many have already made planting decisions."

The 2002 Farm Bill established the national average loan rate for rough rice at $6.50/cwt. The FSA establishes milled rice value factors for long, medium, and short grain whole kernel and broken kernel rice every March. FSA historically adjusts the rates by just a few cents depending on crop milling yield changes from year to year.