The 2008 rice farm stored loan rates by Class, Rough Basis, per hundredweight (cwt) for Louisiana is as follows: The long grain rate is $6.51; the medium grain and short grain rate is $6.48. This represents a 38 cent decrease in long grain, a 56 cent increase in medium and a 20 cent increase in short grain from the 2007 rates.
Davidson went on to explain 2008 Milled Rice Loan Rates as follows: For rice stored in commercial warehouses, the whole kernel milled rice loan rates are $10.00 per cwt for long grain and $9.78 per cwt for medium and short grain. The broken kernel loan rate for all classes is $6.67 per cwt. This represents a 12 cent per cwt decrease in the whole kernel long grain loan rate, a 38 cent per cwt increase in whole kernel medium and short grain, and a 14 cent per cwt decrease in the broken kernel loan rate. Milled rice loan rates are computed using average milling yields and production percentages by class, thus ensuring that the production-weighted national average rough rice loan rate equals the statutory $6.50 per cwt.
The 2008 Rice Loan Rate Discounts are as follows: The loan rate discounts for grades (per cwt of rough rice) lower than Grade #2 are unchanged from the 2007 crop. The discounts are $0.30 for Grade #3, $0.60 for Grade #4, $1 for Grade #5, $2.00 for Grade #6, and $5.50 for Sample Grade.
According to Davidson, discounts for smut content (per cwt of rough rice) are also unchanged at 5 cents for 0.1 to 1.0-percent smut; 10 cents for 1.1 to 2.0-percent smut; and 15 cents for 2.1 to 3-percent smut.