U.S. GRAIN CERTS SAVE 50-100 MLN DLRS - AMSTUTZ The use of generic commodity certificates, or "certs," for fiscal years 1986-88 will save the government 50 to 100 mln dlrs, Department of Agriculture Undersecretary Daniel Amstutz said. Speaking at a House agriculture subcommittee hearing on the use of the certificates, Amstutz said that the issuance of 8.5 billion dlrs of certificates during fiscal years 1986-88 could result in government outlays of up to 400 mln dlrs. However, the use of certificates preclude the need for 450 to 500 mln dlrs in storage and handling costs, resulting in net savings for the government of 50-100 mln dlrs, he said. Without the use of certificates, Amstutz said nearly the entire 1985 crop which had been put under loan would have been forfeited to the Commodity Credit Corporation, CCC. In addition, 260 mln bushels of grain that have been redeemed from CCC inventory through certificate exchanges would have remained in the goverment inventory, he said. When asked to comment on a recent study by the General Accounting Office that concluded certificates result in a net cost to the government, Amstutz said, "GAO underestimated the benefits and overstated the costs" of the certificate program. Amstutz said while certificates encourage more loan entries, they also encourage heavier loan redemptions rather than forfeitures. GAO underestimated this net loan activity, Amstutz said. "There is no question in the mind of the Department of Agriculture that these certificates have been very useful," Amstutz said. Immediate benefits of certificates include greater market liquidity, improved market price competitiveness, higher farm income, and improved debt situation and decreased carrying costs, he said. Certificates are an integral part of USDA's long-range market-oriented farm policy, he said. Amstutz told subcommittee Chairman Rep. Dan Glickman, D-Kans., that USDA is in the process of preparing an official response to the GAO study on certificates and will submit it to the subcommittee when completed.