* 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 7276, Waco, Tx 76714-7276