GROWING LOSSES: FARMERS HIT HARD DESPITE BUMPER CROPS

Missouri's soybean crop is forecast at a record high this year.

The projected yield of soybeans, according to the Missouri Agricultural Statistics Service, is about 38 bushels an acre from 5.1 millions acres. That translates to 193.8 million bushels, a 5 percent increase over last year. But the going rate for a bushel of beans now is $4.93, down from $6.46 a year ago.

Corn production in the state may be down slightly -- about 2 percent -- but could still reach 327 million bushels. But corn prices also have fallen, from $2.52 a bushel a year ago to a range of from $1.50 to $1.78 today.

Farmers can't seem to win for losing.

Amid the lowest agricultural commodity prices in years, and a noted decrease in farm exports in 1998, some farmers will be struggling to survive.

Nationally, farmers are having their best corn and soybean crops ever. The U.S. forecast for soybeans is about 2.8 billion bushels, 4 percent more than the previous year. Corn production nationally is expected to surpass 9.6 billion bushels, another U.S. record.

But farmers may show a loss despite the bountiful harvest.

Exports are down because of growing global economic woes. Millions of bushes of grain are already sitting in storage as farmers look to 1998 harvests. Grain prices have dropped, and government subsidies are no longer providing a safety net.

The U.S. Department of Agriculture estimates that farm income could tumble by 15 percent this year. That means farmers will lose money. One farm economist estimated an average farmer who made $40,000 in 1997 not only won't turn a profit in 1998, but he may come up short by as much as $40,000 after paying the bills.

With exports down, there is a glut of grain, hogs and cattle in the U.S. And with the Freedom to Farm Act of 1996 phasing out government subsidies, the safety net that farmer have relied on for years is providing little protection.

Corn has been hovering around $1.50 a bushel at some grain elevators, a level not seen in the past decade. But in past years farmers could rely on getting about $3 a bushel through government subsidies. This year, the most a farmer may realize by using the government safety net is about $2 a bushel, a half-dollar short of the $2.50 a bushel farmers say it costs to grow corn.

Agricultural prices are not only limited to farm grains. They are down on many commodities -- hogs, beef, wheat, milk and poultry.

It all means farmers could face a real crunch next spring when planting time rolls around, said Kyle Vickers, deputy director of the Missouri Department of Agriculture.

"It costs a ton of money to put in a crop," said Vickers. "A lot of farmers borrow against their crops and may find it difficult to get the loans."

With the sharp declines in prices, producers are increasingly looking at storing the 1998 crop, but that poses additional expense. It could cost 35 to 40 cents a bushel to store grain, and farmers still face risks, said Darrel Good, a University of Illinois marketing specialist. "The price level could decline during the storage period," said Good.

Many groups have called upon Congress and the U.S. Department of Agriculture to do something to improve the U.S. farm economy.

The situation facing many Missouri farmers is serious, said Charles Kruse, president of the Missouri Farm Bureau. "The cumulative effect of depressed farm prices in both the crop and livestock sectors, low yields and storage shortages have created concerns among many agricultural producers," he said.

Kruse is a member of the American Farm Bureau Federation, which drew up a list of recommendations to Congress.

The recommendations ask Congress to appropriate funding under the Federal Agricultural Improvement and Reform Act to authorize direct payments to farmers negatively impacted by trade barriers. Funds are also sought for livestock producers who have experienced disaster-related losses to cover a portion of the cost of purchasing feed.

The federation also urged Congress to change the law to give producers more flexibility in obtaining Farmer Service Agency guaranteed farm ownership and operating loans.

Farm Bureau members and staff nationwide were in Washington last week to lobby congressman on some long- and short-term recommendations to help farmers.

Senate Democrats have denounced a $4 billion farm-relief package that was recently introduced by Republicans to ease the farm economy.

Congressional Republicans unveiled a package that would offset crop losses nationwide and provide a cash infusion to farmers hurt by years of crop disease and flooding. The GOP plan is expected to be added to the 1999 agricultural spending bill, which is awaiting congressional approval.

The proposal would provide $1.65 billion for a 29 percent increase in the annual payments farmers get each year to compensate for low prices. Under the proposal, $1.5 billion would be given to farmers hit by crop losses this year. An additional $675 million would help farmers in Minnesota and the Dakotas struggling from years of crop disease and flooding. Livestock farmers who lost their feed this year due to disaster would get $75 million.

Democrats have been pushing a $7 billion package that was rejected by the Senate last week.

Agriculture Secretary Dan Glickman said he was pleased that House Republicans recognized the crisis. But he said: "This package is not enough. Congress has got to address fully the needs our farmers and ranchers are facing."

Republicans say the Democrats' plan, which increases government price supports, would be a throwback to the days before the 1996 farm law. As part of that law, farmers are now being eased off of years of government subsidies.