April 30

Farm Bill Summary Details Now Available.  The long-awaited details of the farm bill conference agreement are now available on the House Agriculture Committee web site. Click here for the Farm Bill Conference Summary. 

Dairy Industry Reaches Near Accord on Farm Bill.  After months of sometimes tense discussions between leaders of the House and Senate, negotiators completed work last Friday on the final outline of the 2002 farm bill that may not satisfy everyone in the dairy industry, producers and processors, but comes as close to a meeting of the minds as could be expected. The measure will be reviewed this week by the Congressional Budget Office to ensure that it adheres to long-term federal budget spending limitations. 

Milk Producers Challenge Customs on Imports. In an effort to stem the surge of imported dairy proteins that are circumventing U.S. trade laws, the National Milk Producers Federation has filed a formal challenge to how the U.S. Customs Service classifies dairy products such as milk protein concentrate (MPC). The legal action initiated is designed in part to shed light on the claim that a significant portion of U.S. imports of MPC are not truly concentrated milk proteins but blends of other dairy products such as skim milk powder, whey powder, and casein. 

Economists Call for TPA Action. Twenty-nine university agricultural economists signed a letter in support of trade promotion authority that was sent to Senate and House leaders. The economists point out that without passage of TPA legislation, "the ability of U.S. negotiators to press for agreements on our terms and our agenda will be fatally weakened." 

Organic Accreditors Announced.  USDA has announced the first accredited entities who will certify organic production and handling operations to comply with National Organic Program (NOP) standards. Oct. 21 is the deadline to ensure that all qualified organic production and handling operations are certified to use the USDA organic seal on fresh and processed products. The new organic standards offer a national definition for the term "organic." It details the methods, practices and substances that can be used in producing and handling organic crops and livestock, as well as processed products. All agricultural products labeled organic must originate from farms or handling operations certified by a state or private agency accredited by USDA. Farms and handling operations that sell less than $5,000 worth per year of organic agricultural products are exempt from certification. The accredited entities still must complete a successful site audit, or meet other specified conditions within 120 days. 

Karnal Bunt Rules Amended.  USDA's Animal and Plant Health Inspection Service is amending its Karnal bunt regulations through an interim rule to prohibit grain grown in an area regulated for the fungus to be used as seed outside the regulated area. Also, APHIS no longer will require that wheat seed, durum wheat seed and triticale thatoriginates within a regulated area be treated with a fungicide before it may be planted within a regulated area. The action is necessary, says APHIS, to prevent the artificial spread of Karnal bunt to fields outside the regulated area by prohibiting the use of seed produced in regulated areas in those fields and will remove a treatment requirement that APHIS determined is not necessary. Karnal bunt is caused by the smut fungus Tilletia indica. It is primarily spread by sporesand through the movement of infected or contaminated seed. While the fungus does not threaten human health, flour made from heavily infected wheat has an unpleasant odor and taste, jeopardizing its marketability. For more technical information, contact Robert Spaide, staff officer, surveillance and emergency programs planning and coordination, plant protection and quarantine, APHIS, 4700River Road, Unit 134, Riverdale, Md. 20737-1236; (301) 734-7819.This interim rule was effective April 25 and is scheduled for publication in the April 30Federal Register. APHIS documents published in the Federal Register and related information ,including the names of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. 

Zimbabwe at Point of Disaster.  REUTERS reports that Zimbabwean President Robert Mugabe said a food crisis caused by drought had reached disaster levels, the official Herald newspaper reported. Aid agencies say the seizure of white-owned farms has also contributed to Zimbabwe's food crisis. "As a result of the prevalent drought, a state of disaster exists in all communal lands and resettlement and urban areas in Zimbabwe with effect from April 3, 2002," Mugabe said in a proclamation published in the paper. The Herald said the declaration would enable donors and international relief agencies to step up emergency aid to an estimated 7.8 million people who need food assistance in the southern African country. Last week state media reported that Zimbabwe has imported 28,000 tons of yellow corn for both human and animal consumption, as part of the state Grain Marketing Board's program to import 200,000 tons to cover the food deficit. 

Rich Countries Told Practice What You Preach.  REUTERS reports that International Monetary Fund chief Horst Koehler told the world's richest nations to practice what they preach and open their markets to agricultural products from impoverished African nations. The IMF managing director said that if the United States, Europe and Japan maintain their current trade policies, Africa will remain mired in poverty despite progress on economic reforms. "If this is not going to change, all our efforts against poverty will remain not satisfactory," he added. Koehler's comments came at the start of a five-day African tour in one of the world's poorest nations, which is suffering from depressed commodity prices, a desperately inadequate infrastructure and an HIV/AIDS epidemic that afflicts about 15% of the population. 

Cotton Referendum Request Voting Subject.  USDA will conduct a sign-up June 3 through August 30 to provide cotton producers and importers an opportunity to request a referendum on continuing two key features of their national research and promotion program. The program, developed under the Cotton Research and Promotion Act, is a self-help marketing initiative, funded with assessments collected from cotton producers and importers. It is designed to strengthen cotton's competitive market position and to expand markets and uses for cotton. To move to a referendum, the numerical equivalent of 10% of those voting in the last referendum would have to request a referendum, and no more than 20% of all of the requests could come from one state or from importers. The USDA held the last referendum in 1991. Producers desiring a referendum would register at their local Farm Service Agency offices. The Farm Service Agency will mail importers relevant material. Details of the sign-up will appear as a final rule in the April 30 issue of the Federal Register. For additional information, please contact Whitney Rick, Agricultural Marketing Service, Cotton Program, telephone (202) 720-2259, e-mail whitney.rick@usda.gov. 

Fischler Says 'On Course' for Enlargement.  REUTERS reports Europe's Farm Commissioner Franz Fischler says the European Union is "on course" to negotiate access for candidate countries to the bloc's huge farm budget by the end of the year. Fischler's comments follow suggestions in some national capitals that the European Commission has been too generous in offering the mostly east European accession countries farm aid amounting to 25% of what current member states receive. The article says the concerns are not purely financial but also reflect a dissatisfaction with the present 40-billion-euro-a-year Common Agricultural Policy (CAP) which they want to reform along more environmental lines. But "for the time being, we are still on track," Fischler told journalists during a meeting of European Union farm ministers. 

EU Grain Market Could Face 'Total Breakdown.' REUTERS reports from Murcia, Spain, that European Agriculture Commissioner Franz Fischler, bowing to pressure from farmers, will seek more trade protection the European Union grain market amid a risk of "total breakdown" from cheap imports. Fischler said he would use a coming review of EU farm policy to change the way the bloc sets grain import duties after it was flooded by cheap eastern European grain this year, causing domestic prices to slump. Fischler said the current import system, based on U.S. grain prices, was not working properly as the resulting duties did not take account of values in exporting countries such as Ukraine and its neighbors. "These countries are willing to export at any price," he told reporters during a meeting of EU farm ministers in Spain. 

April 29

Cattlemen Find Reason to Like the Bill.  As the House-Senate farm bill conferees agreed for the most part on the shape of a final bill, the National Cattlemen's Beef Association said several provisions for cattle producers have been included. Key components of the bill for farmers and ranchers are funding for conservation programs, a market driven commodity title and country of original labeling. 

Pork Producers Like EQIP Provisions.  National Pork Producers Council (NPPC) President Dave Roper "commended" farm bill conferees for provisions affecting the Environmental Quality Incentives Program (EQIP), provisions "that will help livestock producers of all sizes and types meet new federal, state and local environmental rules." 

Corn Growers Say Work Paid Off.  The National Corn Growers Association (NCGA) says it "pressed hard for a stronger counter-cyclical program to be the centerpiece of a new farm safety net and its work was rewarded". Seventy-two days following passage of the Senate farm bill, the House and Senate conferees "have finally come to an agreement that will shape the nation's farm policy for the next six years," said NCGA. 

Veneman Takes Positive Attitude Toward Farm Bill.  The final shape of the farm bill, as outlined Friday by conference committee leaders, "appears to include more market-oriented and rebalanced loan rates as well as increased emphasis on conservation programs for working lands," said Agriculture Secretary Ann Veneman. 

Lugar Unhappy Over Farm Bill Final Shape.  Sen. Richard Lugar (R-IN), ranking Republican on the Senate Agriculture Committee sharply criticized House-Senate farm bill conferees for agreeing to a final bill that Lugar says will increase spending 70% over the next six years and allows most of the new spending to go to large farmers. "Even at a time when our country is involved in a far reaching war against terrorism and new federal budget analysis projects a potential deficit of almost $100 billion in the current fiscal year and deficits for years to come," the committee still took the action, he says. 

Australia Threatens U.S. Farm Bill.  REUTERS reports from Sydney that Australia is threatening to challenge the U.S. farm bill in the World Trade Organization (WTO). Asian importers, on the other hand, offered mild support for the bill if it produced cheaper food imports. The Australian government and the country's top farm body both castigated the United States for its six-year farm bill, which will increase grower subsidies by US$4.8 billion a year and was approved for legislation by lawmakers on Friday. "We're extremely disappointed. The U.S. has clearly abrogated its leadership on the issue of world trade in agriculture," Australian Agriculture Minister Warren Truss said through a spokesman on Monday. As Australia fumed, industry sources in Beijing said the U.S. bill could push China further toward assisting farmers who had been hit by WTO entry concessions. 

Korea Resumes Pork Exports.  REUTERS reports that South Korea has resumed pork exports, the first in two years. But exports are being restricted to those produced on the southern island of Cheju, the agriculture ministry said. The country's pork exports, almost all destined for Japan, had been expected to reach $400 million in 2000 but were put on hold in early 2000 when an outbreak of foot-and-mouth disease in cattle prompted import bans on Korean beef and pork. "Three Korean exporters in Cheju Island on Tuesday shipped 40 tons of pork worth $118,000 to Japan," a statement from the agriculture ministry said. "This year's pork exports from Cheju Island is targeted at 3,000 tons," the statement said. Korea originally had planned to resume pork exports from the rest of the country in July after Korea won a clean bill of health on foot-and-mouth disease last year. But an outbreak of swine fever on the peninsula earlier this month delayed this plan although it was unclear for how long. Swine fever is a highly infectious pig disease but is not dangerous to humans. 

Radical Reform Urged for CAP.  REUTERS reports Sir Donald Curry, the man the government asked to map out a future for British farming, has told ministers to work for radical reform and not go simply for easier options. Curry has said British farming, ravaged by mad cow disease and last year's foot-and-mouth epidemic, needed radical overhaul, moving away from intensive operation and heavy subsidies to environmentally sustainable schemes and organic farming. Curry, who chaired the Commission on Food and Farming, said that after last week's annual budget -- which had little to say about farming -- he was prepared to wait for Chancellor of the Exchequer Gordon Brown's summer spending review but no longer. He also warned the government to enact his plan in full, not "cherry pick" the easier parts. In a package costing 500 million pounds over the next three years, Curry has called for sweeping reform of the European Union's Common Agricultural Policy to divert production subsidies to countryside protection and rural development schemes.

April 26

Cuba Financing Provisions Support Voiced.  Twenty-seven agricultural groups signed a letter to House Agriculture Committee member Rep. Cal Dooley (D-CA), supporting the congressman's motion to instruct the House farm bill conferees to accept the Senate language regarding the Cuba financing provisions. The groups also sent letters to Bush administration officials expressing disappointment with the recent action taken by the administration to deny visas to Cuban trade officials. 

Senate Hammers Ethanol Message Home.  The U.S. Senate voted twice Thursday to maintain the renewable fuels standard (RFS) provisions of the energy bill. The Renewable Fuels Association (RFA) declared the Senate action the final RFS victory for the Senate and expressed hope that the entire Senate energy bill would be passed quickly. 

Cattle Producers Lobby Washington.  More than 300 cattle producers are back home after a visit to Washington for the National Cattlemen's Beef Association's (NCBA) annual Spring Conference and one-on-one meetings with numerous members of Congress and government agencies. Their mission was to talk with members of Congress and regulators concerning key legislative and regulatory priorities for the American cattle industry. 

Healthy Americans Target of Alliance.  Health and Human Services Secretary Tommy G. Thompson and Agriculture Secretary Ann M. Veneman have announced an alliance of federal agencies, private industry and health organizations to strengthen efforts to help all Americans meet the ecommendations of the Dietary Guidelines for fruit and vegetable consumption. 

Conference Reaches Tentative Agreement.  THE ASSOCIATED PRESS reports that a House-Senate farm bill conference committee has reached tentative agreement on a final bill to increase agricultural spending by about 70%, "marking a reversal of a 1996 law that was intended to wean farmers from government support." Terms of the new six-year deal were sketchy, and lawmakers said Thursday night it remains subject to change pending some final negotiations and revisions in cost estimates. Subsidy levels (loan rates) will be increased for grain, cotton and soybeans, and the bill revives a target price system, abolished by the 1996 Freedom to Farm Act, to provide additional income. Sources directly involved in the negotiations cautioned that not all details are final, and the deal may not be as solid as the AP and other news services reported. 

Russia Imports U.S. Poultry.  REUTERS reports that Russia has issued permits to import 30,000 tones of U.S. poultry since April 15, the day it partially lifted a month-long ban imposed on health grounds. "We had received 17 requests for new licenses, of which around half were granted for a total of 30,000 tons," Agriculture Minister Alexei Gordeyev told reporters after meeting U.S. ambassador Alexander Vershbow. Russia, which is the largest importer of U.S. chicken and turkey meat and bought about $640 million worth of it last year, imposed the ban on U.S. poultry from March 10. Russia retained the ban for meat from four states over concern that imports could carry avian flu virus and from 14 plants it suspected of shipping meat containing salmonella bacteria. It also demanded that Russian importers renew licenses issued by the veterinary department of the Agriculture Ministry. Gordeyev said Moscow would present to Washington by May 1 a draft of a new protocol on poultry safety controls, reflecting new, tougher Russian safety requirements. The new agreement is expected to be signed before the end of May. 

Senate Extends Chapter 12.  The Senate has approved a temporary extension of the section of the federal bankruptcy code tailored to help farmers reorganize debt and stay in the business of farming. Sen. Chuck Grassley (R-IA) wrote to President Bush urging him to sign the legislation as soon has he receives it. Chapter 12, as it is known, gives farmers room to restructure their debts and still hold on to their land and livelihood." It is the only temporary chapter in the federal bankruptcy code. It expired last October. This week's action keeps the section on the books until June 1. "It's a stopgap measure to continue the program until we enact the bankruptcy reform bill or farm bill, which will make the provision permanent," Grassley said. 

Senate Approves Energy Bill. The Senate has approved S. 517, the comprehensive energy package including a renewable fuel standard (RFS). The bill requires refiners to use 2.3 billion gallons of renewable fuels, like ethanol, in 2004 and increase that to 5 billion gallons by 2012. It also bans MTBE in four years. The corn and ethanol industr4ies and some oil and agricultural associations, including the Renewable Fuels Association (RFA) and the American Petroleum Institute (API), negotiated the RFS with Senate leaders over a period of weeks. In early March, Senate Majority Leader Tom Daschle (D-SD) inserted the RFS into the Senate energy package in place of current language. 

Wine for Ethanol No Big Deal.  REUTERS reports from Chicago that reports that top U.S. ethanol producer Archer Daniels Midland Co. had used European wine alcohol to make ethanol elicited little response on Thursday from a group representing corn farmers. "This is incredibly old news," said John McClelland, director of energy and analysis for the National Corn Growers Association. "This is not something we're concerned about." Ethanol, a corn-based additive that can make gasoline burn cleaner, is used as an alternative to the gasoline additive MTBE, which has been banned by some states due to groundwater contamination. The percentage of total U.S. ethanol made from European wine alcohol rather than corn has been "minuscule," McClelland said, adding he was not worried about wine alcohol replacing corn in the ethanol market or pressuring U.S. corn farmers. 

April 25

Feed Ingredient Reduces E. Coli.  A new feed ingredient that contains probiotics or so-called "good bacteria" can reduce the presence of E. coli O157:H7 in live cattle by as much as 50%, according to research from the AMI (American Meat Institute) Foundation. The research was done by Mindy Brashears, Ph.D., and Michael Galyean, Ph.D., of Texas Tech University in Lubbock, TX. 

FSIS Rules on Distributing Information.  The Food Safety and Inspection Service of USDA has issued a final rule that will allow the agency to share customer distribution lists with state and other Federal agencies responsible for removing recalled products from commerce in a Class I or II recall. However, these entities are precluded from sharing this information with the public without express permission from the company or the agency. 

Gianessi Gives Pro-Herbicide Argument.  Herbicides are essential to the future of U.S. crop production, an agriculture research expert maintained at a conference in Washington earlier this month on the benefits of pesticides and crop technology. 

Bush Calls for Farm Bill Completion. President Bush Wednesday called on the House-Senate farm bill conference committee to complete its deliberations and get a final farm bill to his desk. Agriculture Secretary Ann Veneman expressed some frustration with the conference committee's pace so far. 

Farm Bill Progress Reported.  Nearly all reports on the 2002 farm bill Wednesday indicated that lawmakers were getting closer to resolving their differences, although some House sources said progress was less dramatic than some media accounts suggested. Both President Bush and Senate Majority Leader Tom Daschle (D-SD) were in South Dakota for farm-related events Wednesday, and reporters questioned White House Press Secretary Ari Fleischer and Secretary of Agriculture Ann Veneman closely about farm bill progress. Meanwhile, Republican and Democratic House conferees met behind closed doors in the afternoon, while some Senate Democrats held private sessions during the morning. 

House Supports Country of Origin Labeling.  The House of Representatives has gone on record supporting mandatory country-of-origin labeling for fresh meats, fruits and vegetables. By voice vote, the House directed its farm bill conferees to adopt the Senate's labeling language. 

Farmland's Financial Woes Won't Hurt Beef Packer.  REUTERS reports from Chicago that Farmland National Beef Packing Co. L.P., the nation's fourth largest beef producer, believes its operations will not be affected by the financial problems at Farmland Industries, which owns 70% of the beef company. "The only connection that Farmland Industries has to our business is that it owns stock (an equity interest) in Farmland National Beef and therefore enjoys the financial benefits of success of our beef business," the Kansas City, Missouri-based beef company said in a letter sent on Wednesday to its customers and suppliers. Kansas City-based Farmland Industries, the nation's largest farmer-owned cooperative, said on Monday it had no plans to seek protection under Chapter 11 of federal bankruptcy laws but acknowledged it had listed such action as an option in its quarterly filing with the Securities and Exchange Commission. 

Animal Care Meetings Scheduled. Fourteen agriculture groups are joining the Animal Agriculture Alliance in hosting the "Taking Care" summit May 9 to examine how the animal agriculture community can advance animal care programs. The summit will be held at the Hyatt Regency Crystal City (VA) from 9 a.m. to 5 p.m. in the Potomac Rooms 1 and 2. Various experts will share trends in consumer issues and concerns and practical ideas to help companies' prepare for emerging issues regarding animal welfare. The summit also will highlight animal care programs being developed by industry. Rep. Charlie Stenholm (R-TX) will be the keynote speaker. WGN Radio's Max Armstrong will moderate morning and afternoon panel discussions. The morning discussion will focus on the animal welfare issues from the perspective of producers, processors and retailers. In the afternoon, a panel will discuss animal handling best practices. There will be a pre-summit reception May 8 from 6:00 p.m. to 8:00 p.m. in the Washington Room at the Hyatt Regency Crystal City. For registration information visit http://www.meatami.com/Template.cfm?Section=BrochuresandOtherPublications&NavMenuID=375&template=TaggedContentFile.cfm&NewsID=496. 

Netherlands Protests China's Ban.  REUTERS reports the Netherlands has protested China's ban on imports of Dutch animal products. Dutch authorites said if strictly enforced, the move could affect some 100 million euros ($89.5 million) worth of Dutch exports per year. The Netherlands Ambassador to China Philip de Heer met China's vice minister for trade, Long Yongtu, earlier this week to lodge a formal complaint and urge that the ban be lifted, the Dutch embassy in Beijing said. China imposed the ban last Friday after it said it found traces of chloramphenicol, a broad spectrum antibiotic which can cause anemia in humans, in a shipment of pig casings from the Netherlands. 

UN Food Program May be Reduced.  REUTERS reports from Kansas City, MO, that the United Nations World Food Program may have to cut food aid for three million people a year if proposed reductions in U.S. contributions are finalized. The organization's deputy executive director Jean-Jacques Graisse said, "We are feeding desperate people. Now is not the time to stop." He spoke to a gathering of international food aid export players meeting this week in Kansas City. Graisse said that provisions being debated in the U.S. Congress would slash America's participation significantly. The WFP faces potential declines of $500 million or more in annual contributions from the United States, which has long been the largest contributor to the world food aid program, he said. Budget talks on Capitol Hill that would decrease money for programs that include overseas donations of surplus commodities, along with certain provisions being debated as part of a new U.S. farm bill, have concerned the WFP enough that officials are already lobbying Japan, Canada and other countries to help make up the expected shortfall

April 22

Farm Bureau Urges Farm Bill Completion. American Farm Bureau Federation President Bob Stallman has urged House and Senate farm bill conferees to resolve their differences immediately and complete work on the farm bill in time for the 2002 crop season. 

Oil Companies Liable for MTBE Contamination. A jury in San Francisco has held three oil companies liable for the MTBE contamination of Lake Tahoe in California. Several other companies had settled with the South Tahoe Public Utility District prior to trial. The Tahoe district estimates that clean-up costs could amount to more than $50 million. 

Cattlemen, McDonald's Seek Export Expansion.  Officers of the National Cattlemen's Beef Association (NCBA) and McDonald's officials have announced the formation of a task force designed to find ways of improving the value of U.S. beef products by increasing exports of U.S. fed beef trimmings. The Task Force will look for ways to increase the export of U.S. 50/50 trim to other countries, where that kind of product is less available. 

CFTC Finds Nothing Unusual in Cattle Market.  A Commodity Futures Trading Commission investigation of the cattle futures contract finds "no evidence of unusual trading activity" as a result of a foot and mouth disease scare among cattle in Kansas. 

No Canadian Wheat Tariffs Ruffles Some Feathers. THE ASSOCIATED PRESS reports members of Congress and farmers criticized the Bush administration Friday for not imposing punitive tariffs on Canadian wheat. U.S. wheat interests maintain Canadian wheat gets unfair help from the Canadian government. Sen. Byron Dorgan (D-ND) noted the Bush administration imposed tariffs on softwood lumber from Canada and foreign steel after determining those items were improperly subsidized by other governments. ``It is fundamentally unfair. We have asked time and time again to remedy this,'' said Dorgan, whose state is a major wheat producer. Allen Johnson, chief agriculture negotiator for the U.S. Trade Representative's office, said the administration is trying to build support with trading partners to pressure Canada to enact long-term reforms. U.S. Trade Representative Robert Zoellick ruled in February that Canada provides unfair help to its wheat farmers but decided to continue negotiating the issue rather than to impose punitive tariffs sought by American farmers. 

Mexico Sets HCFS Import Quota. REUTERS reports that Mexico has set an import quota of 148,000 tons on imports of U.S. high fructose corn syrup. Officials also said they would impose a 210% tax on U.S. imports. However, Mexico also said it would remove three-year-old anti-dumping duties on the HFCS imports that have been declared illegal by both the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). "The economy ministry will establish in coming days a 148,000-tonne quota on imports of corn syrup from the United States," Economy Minister Luis Ernesto Derbez told a news conference. Some retaliatory trade restrictions had been expected from Mexico since last Monday, when a panel of NAFTA ruled the anti-dumping tariffs illegal and ordered them removed within 30 days. The new import quota is exactly equal to the U.S. quota on imports of Mexican sugar and represents an unmistakable message from Mexico that the trade controversies over sugar and corn syrup are intrinsically linked. 

Export Conference Scheduled. USDA and the U.S. Agency for International Development (USAID) are cosponsoring the fourth Export Food Aid Conference this week (Tuesday through Thursday) at the Westin Crown Center Hotel in Kansas City, MO. The meetings are expected to attract more than 500 participants from 18 countries and allow government agencies, private voluntary organizations and agricultural industry representatives to discuss integrating ongoing efforts with new initiatives for delivering food aid. United Nations World Food Program Deputy Executive Director Jean-Jacques Graisse, who has been involved in providing food aid to Afghanistan, will speak on food aid reaching the hungry. Other speakers include former Sen. George McGovern, ambassador on hunger; Andrew Natsios, administrator, USAID; and J.B. Penn, USDA under secretary for farm and foreign agricultural services, who will give the opening address Tuesday at 8 a.m. Topics to be discussed during the conference include trade strategy and the farm bill; global partnerships in food delivery; USAID's changing role in food aid; food aid initiatives and the future of USDA's food aid programs; expectations for export food aid programs; and how the new farm bill might affect food aid around the world. For more information on the conference, please contact George Aldaya at 816-926-6301, or atgwaldaya@kcc.usda.gov, or visit the FSA Web site at http://www.fsa.usda.gov/daco/default.htm

Locusts Invade Afghanistan.  THE ASSOCIATED PRESS reports Northern Afghanistan, which has endured poverty, war, drought and hunger, is now facing its worst plague of locusts in nearly 30 years. U.N. Food and Agriculture Organization officials say the insects are threatening the part of the country hit hardest by three years of drought just as it is finally blooming with crops - and with peace. The end of the drought and a mild winter helped locusts breed, said Andrew Harvey, an FAO official in northern Afghanistan's main city, Mazar-e-Sharif, and the general in the agency's war against the pests. Aid groups have declared an emergency situation and are racing against time in the "locust triangle"- a region between the northern cities of Kunduz, Pul-e-Khumri and Samangan where the insects are most concentrated. By late next week, the locusts, now just able to hop, will finish growing wings and take to the skies, becoming much harder to control. 

Quality Problem Led to Russian Ban. THE ASSOCIATED PRESS reports Russian President Vladimir Putin says his government had found an acceptable solution to the conflict over U.S. poultry imports. The quality of poultry and not the imports themselves were the target of Moscow's month-long ban. Responding to a governor's allegation that Russia had lost the "chicken war," depriving domestic producers of state support, Putin said: "There was no war. There was a problem with the quality of meat brought in from the United States," he said. The government resolved the problem "in a pretty acceptable way," Putin told his State Council, a group of regional leaders who serve as an advisory board on major issues facing the nation. He convened the council on Monday to discuss reforms in land sales. 

April 19

A New Face at AgricultureLaw.com At AgricultureLaw.com, we strive to provide a wealth of information to America's farmers and ranchers free of charge and in a timely manner. In that spirit, we are currently updating the site's format to make the site more user-friendly and to ensure that we provide the most accurate, up-to-date information. In addition to the format changes, we will be adding some new material and updating and reformatting important areas such as the "Ag Statutes" section to ensure that we are providing the most accurate and complete information available. 

House Makes Farm Bill Offer; Senate Rejects and Makes Counter Offer. A much-anticipated meeting of lawmakers on the 2002 farm bill saw House members propose a compromise to their Senate counterparts. The Senate Conferees rejected a Cochran motion to accept the offer on a 3-4 party line vote and submitted a counter offer. Click here for the House offer. Click here for the Senate counter offer. 

USDA Says Salmonella Incidents Decline.  USDA says it has data that show the prevalence of salmonella in raw meat and poultry has declined in comparison to studies conducted prior to implementation of the pathogen reduction/hazard analysis and critical control point (PR/HACCP) system of inspection. "This data shows salmonella prevalence levels well below the product baselines set prior to HACCP," said Agriculture Secretary Ann M. Veneman. "This indicates that HACCP has contributed to a reduction in the prevalence of salmonella in the nation's meat and poultry products." 

Environmentalists Scorn the Terminator.  A genetic plant sterilization technology known as the Terminator gene that is heralded by scientists as a possible solution to the ecological problem of gene drift is being scorned by environmentalists. The United Nations Convention on Biological Diversity, which is being held in The Hague this week, is examining the issue of whether plant sterility genes should be banned internationally. So far, India is the only nation to ban the technology, although the technology is not being used in any nation. 

House Votes for Senate Provision. The House has approved a moved to instruct farm bill conferees to adopt payment limitation provisions included in the Senate farm bill. Sen. Charles Grassley (R-IA) called it "great news for family farmers" that "gives Senate negotiators the green light to maintain the Senate position and not back down one inch. It should also serve as a wake-up call for House negotiators not to shortchange the family farmer." Current law limits payments to $460,000. 

Russia to Destroy U.S. Poultry Meat. REUTERS reports that Russia's veterinary service will destroy some U.S. poultry meat imported from Maine, Pennsylvania, Virginia and North Carolina because it may contain the avian flu virus. On Monday Russia partially lifted a month-long ban on U.S. poultry imports, but maintained the ban on poultry from the four states due to recent outbreaks of avian flu, which hamper poultry production but poses no health threat to humans. "It turns out that we have received meat from these states, which is currently stored somewhere," First Deputy Chief Veterinarian Yevgeny Nepoklonov told REUTERS. 

CBO Finds Additional Farm Bill Costs. THE ASSOCIATED PRESS reports that subsidies in the farm bill the House and Senate are negotiating will cost taxpayers almost $10 billion more than was expected earlier, because crop prices aren't increasing as predicted. If the bill isn't passed quickly, it's feared that its rising price tag will force lawmakers to scale back on some new programs they want to create in the legislation. When Congress set spending limits for the bill last year, the farm bill was expected to cost $170 billion over the next 10 years. That total included $97.6 billion for continuing existing programs, plus an additional $73.5 billion to fatten current subsidies and create new ones. New Congressional Budget Office estimates obtained by the AP show that existing programs are expected to cost $107.2 billion over the decade, or $9.6 billion more than projected a year ago. 

Mad Cow-Like Disease Found in Florida. THE ASSOCIATED PRESS reports Florida health officials believe a 22-year-old British woman living in Florida has a human brain illness linked to mad cow disease - the first known case in the United States. But officials believe there is no reason to suspect cattle in the United States have the cow version of the disease, known as bovine spongiform encephalopathy, or BSE. BSE is a brain-destroying illness that first surfaced in British cattle but now has spread to cattle in much of Europe. A human form, referred to as "new variant Creutzfeldt-Jakob disease," apparently spread by eating infected beef, has claimed more than 90 lives in Britain and parts of Europe. The woman in Florida is believed to have caught the disease by eating beef products in Britain at the height of that country's cattle epidemic in the late 1980s or early 1990s, said Dr. Steve Ostroff of the Centers for Disease Control and Prevention. 

EPA Approves Metolachlor after Saying It Would Be Canceled.  The Environmental Protection Agency has decided to approve a generic herbicide registration for the product metolachlor. EPA told Cedar Chemical Co. it had approved the company's registration for the weed killer. EPA had announced in the Federal Register in 1999 it would cancel the metolachlor registration. That cancelled registration was held by Syngenta Crop Protection, Inc., the company that developed an alternative under the EPA's "reduce risk initiative," a program that some argue may be affected by EPA's decision. EPA spokesman David Deegan said EPA "continues to strongly support the development of lower risk alternatives to existing pesticides." However, several groups ranging from environmental organizations to conservative think tanks argue that EPA's decision could become a disincentive to develop of low risk pesticides in the future. 

Korea Postpones Pork Exports to Japan.  KYODO NEWS reports South Korea says pork exports to Japan that were to resume in June will be postponed until at least October due to an outbreak of hog cholera in a northern province. The Agriculture and Forestry Ministry said the outbreak of what is medically known as classical swine fever (CSF) was detected Tuesday at a pig farm in Kangwon Province near the demilitarized zone in the northern part of the country. The ministry said it had confirmed that 99 pigs out of 354 raised at a farm had died of the highly contagious disease. The remainder was slaughtered to prevent a major outbreak. A movement control zone was set up within a 10-kilometer radius of the farm. Most South Korean pork exports go to the Japanese market. Japan had planned to resume imports of South Korean pork after its safety was confirmed last September by the Office International des Epizooties (OIE), a Paris-based multilateral animal health organization. Japan banned imports of South Korean pork as a precautionary measure in March 2000 after South Korean cows were found to be infected with foot-and-mouth disease, a highly contagious illness that affects cloven-hoofed animals. 

April 18

Farm Bill Session at 11:00am is critical.  After several days of private meetings between key members of the House and Senate Conferees on the farm bill, the Conferees will meet in a public session today at 11:00am Eastern time. There have been several press reports about the details of potential compromises that have then failed. This public session will be particularly important because the House Conferees are expected to make the Senate an offer on the critical commodity provisions of the farm bill. The proceedings may be heard on computer by clicking on http://agriculture.house.gov/farmbill.htm. Click here for today's House Farm Bill Conference Proposal. 
 

Roberts Calls for Emergency Aid.  Sen. Pat Roberts (R-KS) wants Congress to go ahead and pass emergency farm assistance, because, he says, it's too late to get a farm bill approved that can be applied to this year's crops. He wants to resurrect a bill he introduced last month. 

Argentina Ready to Harvest Record Bean Crop.  Argentina's 2001-02 soybean production is estimated at a record 29.5 million tons, 750,000 tons or 3% more than USDA predicted last month and 6% more than last season's revised estimate of 27.8 million tons. Yield is forecast above average at 2.61 tons per hectare due to good growing conditions. 

Report Finds Little Price Impact from RFS.  The U.S. Energy Information Administration (EIA), the independent research arm of the Department of Energy, this week released an analysis of the price impacts of the renewable fuels standard (RFS) compromise pending in the Senate. During last week's Senate debate, a handful of Senators incorrectly claimed that EIA had predicted adding a minimum renewables standard for gasoline would increase prices by 4 to 9 cents per gallon. The EIA released the new analysis to clarify that requiring renewables would add at most 0.5 cents per gallon to the price of gasoline nationwide. According to the EIA, banning MTBE will increase gasoline price by 3 to 3.5 cents per gallon nationwide. In reformulated gasoline (RFG) areas the price increase is predicted to be 8 cents per gallon. However, establishing a RFS would only add at most 0.5 cents per gallon nationwide or 1 cent per gallon in RFG areas. The EIA notes its analysis does not include the impact of the RFS credit trading system, which will lower price impacts, and notes the 0.5 to 1 cent price increase represents an upper limit of the costs associated with the RFS. The full EIA report can be found on their website at: www.eia.doe.gov/oiaf/servicerpt/mtbe/pdf/sroiaf(2002)07.pdf. 

Ukraine May Have Record Harvest. REUTERS reports from Kiev that Ukraine's 2002 grain crop may reach a record 40 million tons. That compares with a current estimate of 36.6 million. Ivan Martynyuk, deputy head of the ministry's grain department, said increased use of fertilizer in the ex-Soviet state might boost the upcoming harvest from last year's 39.7 million tons. "The figure of about 40 million tons is possible," Martynyuk told REUTERS. "This spring Ukrainian farms used much more fertilizer than a year ago, and they completed spring grain sowing at the best time." Analysts, however, questioned the forecast, saying the sown area was similar to last year's, growing conditions were no better and the harvest depended on unpredictable weather. "We see no real grounds for such an optimistic forecast," said Mykola Vernytsky, analyst at leading agricultural consultancy ProAgro. 

China Issues Permits for GM Imports.  REUTERS reports that China has begun to issue temporary safety permits on genetically modified food imports, allowing for the resumption of Sino-U.S. soybeans trade worth $1 billion annually after almost a year of uncertainty. The United States lost at least $180 million in business last year after China issued confusing rules on genetically modified organisms (GMO), causing soybean orders to grind to a halt. The news agency added that most trading firms breathed a sigh of relief after receiving the safety permits, issued just before the United States' peak export season ends. But domestic and global oilseed futures markets shrugged off the news as well anticipated. "We are very happy to have trade going again and all those soybean and soy products have got to go somewhere, and so we are very happy to see China coming back into the market," said Phillip Laney, China country director for the American Soybean Association. 

Plant Growth Substance Found.  KYODO NEWS reports from Tokyo that agricultural scientists at Hokkaido University determined the function of a natural substance they had discovered in earlier research that activates an enzyme in plants linked to their hormone production systems which control when the plants flower and bear fruit. A team of scientists from the university's Faculty of Agriculture, led by biology professor Teruhiko Yoshihara, said a substance called theobroxide, which was extracted from a type of fungus, helps regulate plant growth by activating a system that produces hormones, which in turn trigger flowering and various other phenomenon. The discovery is expected to pave the way for improved food production methods as the nontoxic substance could boost flower and potato harvests as well as allow the cultivation of plants in areas they would not usually grow. 

Millers Want TPA This Month.  The North American Millers' Association (NAMA) has called on the Senate to approve trade promotion authority by April 22, the date President Bush said he wants the bill on the Senate floor. "The time to pass TPA and assure our competitiveness with the rest of the world is now," said Bernard J. Rothwell III, NAMA chairman. "The U.S. share of world markets for milled grain products has been seriously eroded since 1996 due to export subsidies of competitor nations. The successful launch of a new round of worldwide trade negotiations in Doha included a commitment to phase-out agricultural export subsidies. However, the potential gains to farmers, processors and all of agriculture raised by Doha will only be realized when Congress passes TPA. The U.S. has assumed a leadership role in the fight against terrorism and the U.S. assumed a leadership role at Doha. The U.S. must be able to assume a leadership role in trade negotiations, and our trading partners will only take us seriously if the President and his representatives have the authority necessary to reach agreements." 

April 17

Farmers Union Opposes TPA.  The National Farmers Union board of directors advised Senate leadership not to consider "fast track" trade negotiating authority, also known as trade promotion authority (TPA), an authority other major farm organizations have supported. 

Egg Products Will Be Purchased.  USDA will buy about $10 million in egg products for use in federal feeding and nutrition programs. "This purchase will provide a nutritious product for participants in domestic feeding programs," said Agriculture Under Ssecretary for Marketing and Regulatory Programs Bill Hawks. "This purchase will also provide some assistance for producers who have faced difficult economic times." The amount of egg products purchased by the USDA will depend on the quantities offered, prices bid and recipient requirements. Interested suppliers should contact the contracting officer, USDA/AMS/Poultry Programs, Commodity Procurement Branch, STOP 0260, Washington, D.C. 20250. An electronic version of this announcement can be obtained at the Commodity Procurement Home Page at: http://www.ams.usda.gov/cp. 

Court Hears Checkoff Challenge.  THE ASSOCIATED PRESS reports a Montana ranching couple and the federal government have squared off in court over a cattle promotion fee that raises about $80 million a year for beef promotion and research. At issue is the $1-per-head checkoff that cattle ranchers across the country must pay on each animal they sell. Ranchers Steve and Jeanne Charter sued USDA in federal court over the fee. They face more than $12,000 in penalties and past charges after refusing to pay the fee on 250 cattle they sold in 1997 and 1998. Their attorneys argued that the checkoff violates their constitutional rights by forcing them to pay for advertising campaigns with which they do not necessarily agree. They say the National Cattlemen's Beef Association uses the money to champion its own agenda - one that favors large meat packers and producers over family ranchers. Government attorneys defended the fee, saying the money raised is crucial to promoting demand for beef products and expanding the industry. USDA attorney Carolyn A. McKee disputed the notion that the money is spent unwisely by the beef association. Erik Jaffe, one of the Charters' attorneys, said the fee amounted to compelled support for speech. "You can't just force people to pay for certain things with which they do not agree," he said after the hearing. U.S. District Judge Richard Cebull did not issue a ruling. 

Bioterrorist Bill Delayed.  THE ASSOCIATED PRESS reports legislation to give the government more power to prevent bioterrorist attacks has been delayed; food manufacturers are trying to loosen new safety measures. Bills passed by the Senate and House in December would require food makers to register with the government and authorize the Food and Drug Administration to detain tainted products and inspect company records. The bills also would require importers to notify FDA inspectors before bringing products into the country. A House-Senate conference committee that is trying to merge the two bills has yet to reach agreement on a final version. "We have never really felt these food provisions were that necessary," said Kelly Johnston of the National Food Processors Association, which represents companies such as Campbell's and Kraft. "There really are vast legal authorities on the books." Trade groups say FDA should be required to go through a formal rule-making process, which would include seeking industry input, before issuing some of the new regulations. 

Farm Bill Conference Set for 10 a.m.  After multiple delays, House and Senate farm bill negotiators late Tuesday said they will meet in public Wednesday morning at 10:00, amid conflicting reports about how near they are to a final agreement. There were conflicting reports about whether an earlier-rumored deal on crop loan rates was holding together. The legislators have been meeting privately in efforts to resolve major differences. 

Poultry to Russia Still on Hold.  THE ASSOCIATED PRESS reports that U.S. poultry exports to Russia were on indefinite hold Tuesday, a day after the Russian government formally lifted its ban on U.S. imports. Regulators canceled permits to import U.S. poultry and said Russian trading companies would have to apply for new ones. Russia's Agriculture Ministry said the new permits were necessary because of changes in veterinary certificates and regulations for imported poultry. A ministry spokeswoman said she could not say how long the process would take or when Russian companies would be allowed to import chicken again. A spokesman for the U.S. Embassy said it was not clear on what basis the Russian government was denying the trading companies the right to import U.S. poultry. Russia formally lifted its month long ban on American chicken Monday, after weeks of negotiations with U.S. officials, but warned that it was still not satisfied with the quality of U.S. poultry meat. Russian veterinary officials have alleged that sanitary conditions in U.S. plants were poor and objected to the use of antibiotics and feed additives in U.S. chicken production. First Deputy Agriculture Minister Sergei Dankvert said Russia temporarily would refuse to accept chicken from Virginia, North Carolina, Maine and Pennsylvania because Russian inspectors allegedly found diseased chicken there. 

April 16

Veneman Promotes Administration Tax Record.  In a news conference with farm broadcasters Monday, Agriculture Secretary Ann Veneman said farmers and ranchers will benefit from tax provisions and economic stimulus initiatives enacted by Congress during the first 15 months of the Bush administration. 

Corn Growers Ask for CAFÉ Extension.  The National Corn Growers Association (NCGA) is asking the National Highway Traffic Safety Administration (NHTSA) to extend the corporate average fuel economy (CAFE) credit incentives for flexible fuel vehicles through the end of model year 2008. 

Farm Bill Conferees Appear to Be Moving Toward Conclusion.  Mandatory country-of-origin labeling and the voiding of arbitration provisions in contracts -- two provisions included in the Senate-passed Farm Bill's "Miscellaneous Title" -- were debated between House and Senate conferees late last week without any action taken. And there were reports of a possible compromise on loan rates - next to payment limits and packer ownership of livestock considered the most contentious issue dividing House and Senate members of the farm bill conference committee. 

Australia Set for Grains Record. REUTERS reports Australia's A$9.3 billion grains industry is poised at record highs for further growth. Agriculture Minister Warren Truss, opening Grains Week, the annual meeting of the Australian grains industry, painted an optimistic picture after the industry boosted its gross value of production by 14% to A$9.3 billion in 2001/02. "The next few years will be full of exciting changes and challenges," Truss said. "...I am confident we can meet these challenges and continue to grow well into the future." Australian grain production for the year was estimated to be a near record of just under 40 million tons, of which wheat was estimated to be 23.8 million tons, barley 7.5 million tons and canola 1.6 million tons, he said. National wheat exporter AWB Ltd estimates wheat production at a higher 24.5 million tons. The average income for Australian grains farms in 2001/02 had risen by A$36,000 to A$123,000 from the previous season. 

Rice Leader Dies.  THE ASSOCIATED PRESS reports that L. Clyde Carter, who helped put Arkansas' Riceland Foods on the map as a national force in food-marketing, died Monday. He was 92. Until he retired in 1977, Carter had been president and chief executive of the 28 cooperatives that comprised the Riceland Foods organization. Carter joined the Arkansas Agricultural Extension Service in 1934 and worked as a county extension agent at Mount Ida in Montgomery County, at Nashville in Howard County and as assistant state 4-H agent in Little Rock. In 1937, he was named director-in-charge of the University of Arkansas' Rice Branch Experiment Station at Stuttgart. He gained experience with the rice industry and experimented with processing ideas that would later become the modern grain drier, thus radically changing rice farming and the grain industry economy. In 1944, Carter became the general manager of The Arkansas Rice Growers Cooperative Association - forerunner of Riceland Foods, Inc. During the next 33 years, his leadership helped change a small, farmer-owned marketing cooperative with less than $2 million in annual sales into a major national and international rice and soybean marketing complex. Carter retired as president and chief executive officer of the cooperatives in 1977. Ten years later, he was inducted into the Arkansas Agriculture Hall of Fame. 

Some in Europe Under-Funded.  The UN Food and Agricultural Organization (FAO) and the European Bank for Reconstruction and Development (EBRD) feel that the agriculture and agribusiness sector remain severely under-funded in Central and Eastern Europe and the Commonwealth of Independent States(CIS). The conclusion was underlined at a recent forum in Budapest of senior managers from major international financing institutions, development agencies and private banks operating in the region. For more than ten years, the FAO and the EBRD have been working hand in hand to help the many millions of people in Central and Eastern Europe and the CIS whose livelihoods depend on farming. Together, these two institutions have mobilized funds and technical expertise for agribusiness investment in the region, through 35 projects as diverse as promoting grain storage in the Russian Federation or building agricultural wholesale markets in Poland. 

USDA Will Buy Catfish.  USDA will purchase up to $6 million of breaded catfish products for distribution through federal nutrition programs. USDA's Agricultural Marketing Service soon will begin purchasing breaded catfish strips and breaded catfish nuggets from approved suppliers. The frozen breaded catfish products must be from U.S. produced catfish and must be processed in the United States. The purchase is conducted under Section 32 of the Act of Aug. 24, 1935, which authorizes USDA to make emergency surplus removal purchases. Funding for Section 32 purchases are derived from duties collected under customs laws. Inquiries should be addressed to Contracting Officer, AMS Livestock and Seed Program, USDA Stop 0253, 1400 Independence Avenue SW, Washington DC 20250-0253; telephone (202) 720-2650; fax (202) 720-9538. Information on the catfish purchase program is also available on the World Wide Web at: http://www.ams.usda.gov/lsg/cp/. 

April 15

Russian Poultry Ban Lifted?  Russia apparently has lifted its import ban on U.S. poultry, but there was some confusion over the weekend whether that was a partial or complete withdrawal of the prohibition. Agriculture Secretary Ann M. Veneman, Commerce Secretary Donald L. Evans and U.S. Trade Representative Robert B. Zoellick issued a statement that said flatly Russia will lift its ban on U.S. poultry and poultry products effective today (Monday). Russian officials lifted the ban after they were satisfied that U.S. food safety systems met the March 31 protocol, they added. 

Brazilian Pork Detained.  USDA's Food Safety and Inspection Service is detaining an undetermined amount of pork products that entered the country improperly from Brazil. FSIS also is working with GINGA Brasil, Inc., a Brookfield, CT, establishment, to recall the product, which the firm imported. 

Ethanol Assault Turned Back in Senate.  The Senate voted 61-36 Friday to block Sen. Dianne Feinstein's (D-CA) amendment to the renewable fuels standard (RFS) provisions in the Senate's energy bill (S.517). It would have required the Environmental Protection Agency (EPA) to respond within 30 days to an emergency request by a state for a waiver from the ethanol requirement. The Senate's energy bill currently includes provisions that would give the EPA 240 days to consider a waiver. 

Farm Bill Progress; Still a Ways to Go.  A number of major issues still have to be resolved by the House-Senate farm bill conference committee, including what to do with the $2 billion direct payment program for dairy that was included in the Senate bill. No similar program was in the House-passed version. But progress has been made on other issues. 

Trade Scored by Farmers Union.  In a letter to President Bush, the National Farmers Union expressed its disappointment in the administration's treatment of agricultural trade issues. 

Russia Grain Production May Decline. REUTERS reports that although Russian officials issued their first forecast for 2002 grain output Monday, predicting a decline to 75 million tons from last year's 85 million, analysts said the early estimate was highly tentative. "The minimum harvest we need this year is 75 million tons by clean weight," Deputy Agriculture Minister Vladimir Alginin told REUTERS. "This is an early forecast, which we may adjust some time in May." Analysts said no accurate forecast could be made without further data. "As a rule, such forecasts are based mainly on previous years' statistics, which do not always work," said Andrei Chernyshov, head analyst at inter-regional Trading System Zerno. "Currently we can only speculate, no one is able to give an exact figure as the spring sowing campaign has just started," said Nikolai Demyanov, a deputy director of the research Institute for Agricultural Market Studies (IKAR). 

Private Farm Bill Meetings Possible Today. REUTERS reports negotiators working on a compromised farm bill held discussions throughout the weekend to follow up on progress made privately by House and Senate Agriculture Committee leaders, a spokesman said on Sunday. Leaders of the two committees may meet in private on Monday, he said. They made "significant progress" in two sessions on Friday, which sparked the weekend discussions and prompted the leaders to postpone a full meeting of negotiators -- two dozen senior members of the committees -- until Tuesday at 1 p.m. EDT. 

Monsanto's Canola May Have GM Material.  THE WALL STREET JOURNAL reports Monsanto Co. believes some of its canola seed might contain genetically modified material that isn't federally approved. The company is asking regulators to forgive any GM presenc. The St. Louis-based biotechnology company has yet to detect it in the seeds it has tested but says trace amounts of the material were found last year in Canadian seed, leading it to believe the same is possible in the U.S. In conceding that for three years U.S. farmers have been planting canola seed that may contain certain genetic material that was never meant to leave the laboratory, Monsanto has become the latest example of the biotechnology industry failing to control plants whose genes it has altered, the article says, adding that Monsanto's admission is certain to fuel consumer skepticism and inflame opponents of gene-altered crops, who object to the idea of tinkering with nature and who worry about cross-pollination with other crops. 

U.S., Chile FTA Talks Continue.  The United States and Chile met last week in Santiago to discuss various aspects of the ongoing U.S.- Chile free trade agreement negotiations. The talks followed a technical meeting on sanitary and phytosanitary (SPS) measures held in Washington, DC, April 3-4. In Santiago, the United States presented an updated offer on agricultural and industrial market access, which the two sides discussed. Chile also presented an updated proposal on agricultural market access. In addition both sides engaged in market access discussions on non-conforming measures related to services and investment. The two countries agreed that various negotiating groups will meet in the coming weeks in order to optimize progress. Lead negotiators will meet again in May in order to review the work done by the negotiating groups and move the negotiations toward a prompt conclusion of the agreement. 

Proposed Rules Could Shift Livestock Production.  THE ASSOCIATED PRESS reports that proposed anti-pollution regulations for big livestock and poultry farms could cut production and force operations to move to areas such as the Midwest and Plains where there is plentiful cropland for using manure as fertilizer. A government study finds that the industry restructuring could raise commodity prices and increase farm income by nearly 30% without significantly affecting consumer prices. The USDA study said some financially shaky farms "will likely be forced out of business" by the cost of complying with the regulations, the Agriculture Department study said. The rules were proposed by the Environmental Protection Agency at the end of the Clinton administration. They would expand the number of cattle feedlots and hog farms that have to get pollution permits, and impose new controls on poultry operations. 

Pork Producers Ask for USDA Help.  Responding to a sudden decline in live hog prices, the National Pork Producers Council has asked senior USDA officials to use all existing programs and authorities to the fullest extent possible to purchase pork and pork products, NPPC President Dave Roper said. Roper and other NPPC board members met with USDA Secretary Ann Veneman and other USDA officials. "We stressed the need for immediate and decisive action to stimulate a price rebound," Roper said. "We asked USDA to make additional purchases of pork for the school breakfast and lunch programs, the Emergency Food Assistance Program and other program, both domestic and international. We also stressed the need for Congress to pass Trade Promotion Authority, which will increase the prospects for tearing down foreign barriers to U.S. pork." 
 

April 12

Treaty Targets Long-Lasting Chemicals.  President Bush is submitting the Stockholm Convention on Persistent Organic Pollutants (POPs) to the Senate for ratification. Additional legislation to amend existing U.S. laws needed to implement POPs and two other related treaties is also being submitted to Congress. President Bush endorsed the treaty in a Rose Garden Ceremony on April 19, 2001. The treaty was signed by Environmental Protection Agency Administrator Christine Whitman on behalf of the United States in Stockholm, Sweden, on May 23, 2001. 

USDA Confirms TSE in Sheep; Testing Continues.  USDA says tests conducted on a flock of sheep confiscated last year from a farm in Vermont confirm that two of the 125 sheep tested positive for an atypical undifferentiated transmissible spongiform encephalopathy (TSE) of foreign origin. The flock of 125 sheep was confiscated in March 2001 after four animals from an associated flock tested positive for TSE in July 2000. USDA will continue to conduct additional tests to determine the type of TSE in these sheep. 

Farm Bureau Calls for Russian Action on Poultry Ban.  Russia's ban on U.S. poultry exports must be lifted and poultry trade must be restored to pre-ban levels before the American Farm Bureau Federation considers support for granting Russia Permanent Normal Trade Relations, the farm group told a House trade panel Thursday. "Every effort must be taken to ensure that this issue is resolved in a manner that rapidly restores our access to that market and ensures that actions of this nature are not allowed to disrupt the important relationship that our country is trying to build with that nation," Michigan Farm Bureau President Wayne Wood told members of the House Ways and Means Trade Subcommittee. Wood said the ban must be lifted immediately and U.S. access to the $640 million poultry market fully restored. Wood criticized Russian authorities for the "arbitrary and unjustifiable ban" that he said "lacked scientific merit and immediately shut the door" on the United States' largest poultry market. 

Japan Demands Pesticide Recalls.  KYODO NEWS reports that Japan's agriculture ministry has told manufactures of agricultural chemicals to recall three products that contain harmful substances. The three chemicals are used to kill weeds in rice paddies, and to sterilize soil, the Ministry of Agriculture, Forestry and Fisheries said. Although sales of products containing these chemicals were discontinued by 1997, the ministry issued the recent instruction because farmers still may be using stocks of the chemicals stored in their warehouses. The ministry was warned by experts in January 1999 of the hazards of the three chemicals, but as the ministry did not issue any warning to farmers, most of the chemicals have continued to be used. A ministry official dismissed the possibility of harmful effects of the chemicals on rice and vegetables, saying dioxins and other harmful substances contained in the chemicals are hardly water-soluble and absorbed by crops through soil. 

China Ready to Resume Oilseed Imports.  REUTERS reports trader comments from Singapore that China, the world's major soybean importer, is set to resume imports of soybeans next week after months of disruptions stemming from its new rules on genetically modified organisms (GMOs). With Beijing starting to allow imports of soybean oil this year, along with rapeseed and palm oil, following its entry into the World Trade Organization (WTO) in December, it may no longer need to crush quite as much, they said. For soybean oil alone, it is issuing import permits for 2.52 million tons, equivalent to some 13 million tons of the oilseed, or China's entire soy imports in calendar 2001. Many traders also are confident that Beijing will provide temporary safety certificates for GM-soybeans next week, paving the way for imports of soybeans as well as soybean oil. 

Genetic Tinkering Improves Produce.  THE ASSOCIATED PRESS reports scientists claim to have found a way to make tomatoes taste fresher and last longer by tinkering with a gene that controls ripening. Researchers reported their findings in today's issue of the journal Science. They believe the procedure also may work with strawberries, bananas, bell peppers, melons and other produce. "For understanding tomato ripening and eventually taste, this could be the Holy Grail," said Jim Giovannoni, an Agriculture Department scientist who led the research. Gardeners know that tomatoes that ripen on the vine are much tastier than the tomatoes sold in supermarkets. That's because farm-grown tomatoes have to be picked before they ripen and develop their flavor. To turn them red and restart their ripening, tomatoes are treated with ethylene gas, a natural ripening agent in fruit. Giovannoni's team of scientists turned off the ripening gene in the tomato plant, which would allow farmers to leave the tomatoes on the vine for several days longer. The tomato would still be firm enough for shipping across the country. 

Cold War Trade Restriction on Russia Needs to End, says Bush.  REUTERS reports the Bush administration is urging Congress to end a Cold War restriction on trade with Russia, because the measure had accomplished its goal of promoting free emigration and greater religious freedom. "Russia has come very far forward since the fall of the Soviet Union," Alan Larson, U.S. undersecretary of state for economic, business and agricultural affairs, told a panel in the U.S. House of Representatives. "Graduating Russia from Jackson-Vanik is now the right thing to do." The so-called Jackson-Vanik amendment was approved by Congress in 1974 as part of broader trade legislation. The provision required "non-market economies" such as the Soviet Union to demonstrate they allow free emigration to be eligible for normal trade relations with the United States. Larson stopped short of urging Congress to lift the measure before President George W. Bush travels to Moscow in late May to meet with Russian President Vladimir Putin. But Rep. Tom Lantos (D-CA) a long-time champion of human rights issues, told the House Ways and Means subcommittee on trade he hoped that could be accomplished so Bush and Putin could have a "festive meeting" celebrating Russia's progress on human rights issues.

Losses Through Summer Expected for Cattle.  REUTERS reports a sudden decline in cattle prices is forcing producer losses of up to $50 to $60 per head on each steer and heifer they sell, industry sources said. Abundant supplies of all kinds of meat are expected to keep the losses coming through the summer. "That lack of profitability looks like it will continue through the spring and summer given our current market conditions," Randy Blach, executive vice president of Cattle-Fax, a private cattle analysis and research firm, told reporters on a conference call. The National Cattlemen's Beef Association, the cattle industry trade group that organized the call, said it would try to boost beef sales by launching a $2 million beef cookout promotion in May. Much of the cattle industry's woes can be traced to ample supplies of all meat. Pork production is expected to rise 3% this year, poultry by 1% to 1.5% and beef by 1%, Blach said. 

Organic Board Schedules Meetings.  USDA's National Organic Standards Board (NOSB) will meet May 6 - 8 at the Clarion Inn and Suites Conference Center, 2200 IH-35 South, in Austin, TX. At this meeting, NOSB will receive committee reports, an update from USDA's National Organic Program and reports from the Board Policy Task Force and Composting Task Force. The NOSB will also review materials to determine if the material should be recommended for inclusion on the National List of Allowed and Prohibited Substances. Meeting sessions will run from 8:00 a.m. to 5:00 p.m. on May 6, from 8:00 a.m. to 5:00 p.m. on May 7, and from 8:00 a.m. to 11:30 a.m. on May 8. All sessions are open to the public. The public will be allowed to comment on May 6 from 8:45 a.m. to 10:45 a.m. and on May 8 from 10:00 a.m. to 11:00 a.m. To provide comments to the NOSB on any organic issue, mail requests to Katherine Benham, USDA-AMS-TMP-NOP, 1400 Independence Ave., SW., Room 4008-S, AG Stop -268, Washington, DC, 20250-0200 or by email to katherine.benham@usda.gov by close of business on April 25. For more information, call (202) 205-7806 or visit the National Organic Program web site at www.ams.usda.gov/nop. 

April 11

Vegetable Oil Found to Fight Pollution.  Trichloroethylene (TCE) is a colorless, toxic liquid widely used as a solvent for dry cleaning and degreasing, but it has been known to seep into groundwater and make it dangerous for consumption. TCE also has been found in groundwater on some military bases. Now Agricultural Research Service scientists may have found an inexpensive but effective product to clean up the mess: vegetable oil. 

Soybean Survey Shows Insurance Support.  Soybean producers generally show widespread support for soybean insurance products reinsured by USDA's Federal Crop Insurance Corporation, according to a recent United Soybean Board (USB) survey. And for Criss Davis, a soybean farmer in Shullsburg, WI, that news came as a welcome surprise. 

Unilever Calls for CAP Overhaul. REUTERS reports from Amsterdam that Anglo-Dutch consumer products group Unilever has joined calls for a radical overhaul of the European Union's agriculture policy, calling it wasteful and harmful to the environment. Antony Burgmans, chief executive of Unilever's Dutch holding company, said in a speech that the EU's Common Agricultural Policy promoted overproduction and over dependence on chemicals. In addition, it frustrated export opportunities of non-EU countries, especially developing nations that urgently need trade to lift themselves out of poverty. Demands have increased for a sweeping reform of the current EU system of farm subsidies, called Agenda 2000, due to be reviewed this summer, about halfway through its period of operation. "In all respects it is counter-productive," a Unilever statement quoted Burgmans as telling a conference in Brussels. 

Zoellick Wants Japan to Reform, Not Export.  KYODO NEWS reports that U.S. Trade Representative Robert Zoellick is urging Japan to revive its economy through structural reforms, not exports, in order to play its role as an economic leader in Asia. "I hope Japan does not once again simply rely on export growth to try to come out of this difficulty because ultimately that will be a mistaken strategy for East Asia, which will have to deal with the currency policies of Japan," Zoellick told a news conference. KYODO says the comments apparently reflect worries that Japan's structural reform drive would be hampered again by growing optimism about the economy, which has recently shown signs of bottoming out thanks in part to improved external conditions. "We frankly hope that Japan does some of the underlying structural changes so that it can get back on the growth path as well, Zoellick said, comparing Japan's economic doldrums with the strong development of China. "I hope Japan will resume growth in a serious long-term way so that it can also play a role throughout Southeast Asia with China," he said. 

Conferees Discuss Tough Issues, Don't Decide.  House and Senate negotiators today wrangled over price support loan rates and payment limitations, two of the more difficult issues in the rival farm bills passed by the two chambers of Congress. But several hours of talking did not produce agreements on either topic, and Chairman Larry Combest (R-TX) set meetings for Thursday and Friday, with the possibility of Saturday and Sunday negotiating sessions as well. In between debating loan rates and payment caps, the conferees also argued over how to restore Food Stamp benefits to legal aliens. But that issue was also left unresolved. 

Wildland Fire Council Established.  USDA and the Interior Department have created an Interagency Wildland Fire Leadership Council to further implement the National Fire Plan. The council is comprised of departmental and land management officials from both departments who are responsible for wildland fire management. The council will work with elected state and local officials, tribal officials and other federal official partners on wildland fire management policies. The council also will work to integrate federal wildland fire activities with state and tribal activities. The council will coordinate with state partners and local communities to help restore landscapes, rebuild communities, invest in projects to reduce fire risk and assess economic needs of areas damaged by fire. The council was formed because in recent years federal fire efforts have been expanded and new strategies like fuels treatment programs are being developed to prevent catastrophic fire. The two federal agencies currently employ 17,633 firefighters, up over 5,000 more than two years ago and hundreds more air tankers, fire engines and other heavy equipment. 

Russia Extends Ban through Friday.  REUTERS reports that Russia extended a ban on the imports of U.S. poultry for two more days beyond Wednesday's deadline, saying it needed more time to study evidence which Washington said proved its turkey and chicken are safe. "Without analyzing how the United States meets our demands, it is impossible to lift the restrictions on U.S. poultry imports," Agriculture Minister Alexei Gordeyev told reporters late on Wednesday. Russia was by far the largest importer of American poultry before it slapped a ban on the trade last month. The dispute has threatened to cloud President George W. Bush's visit in May. 

Lobbying with Cheese.  Cabot Creamery sent enough cheddar to nourish the members of the House-Senate conference committee as they began negotiations Tuesday on the farm bill in an effort to show support for Sen. Patrick Leahy (D-VT) and his push for a dairy program as part of the farm bill. Leahy is trying to get a dairy component of the bill designed to provide a safety net for dairy farmers in the absence of the New England Dairy Compact. Similar in nature to the compact, the subsidy would come into effect when milk prices decline below a farmer's cost of producing the milk. "New England dairy farmers deserve an adequate safety net," said Leahy. "Vermont dairy farmers do more than make for a charming and beautiful state; they provide our state and country with dairy products, like award-winning Cabot cheese. I will continue to fight for the dairy provision and will not be satisfied until it passes." Cabot Creamery Cooperative has been in continuous operation in Vermont since 1919 and makes a full line of cheeses, yogurt, sour cream, cottage cheese and butter. Cabot is owned by the dairy farm families of Agri-Mark, a Northeast dairy cooperative. 

April 10

Farm Groups Seek Further HFCS Relief from Mexico.  Major U.S. farm groups continue to urge the U.S. trade representative to seek a commitment from the government of Mexico to take whatever steps are within its power to prevent this tax from going into effect. 

Grain Groups Commend Bush on TPA.  Agriculture Secretary Ann M. Veneman Monday announced the availability of $203 million in funding to build and improve rural housing facilities through USDA's Rural Development housing programs. 

USDA Offers Lamb Producer Relief.  Signup began Monday for USDA incentive payments to help ewe lamb producers suffering financial losses due to current poor market conditions. The Lamb Meat Adjustment Assistance Program is a four-year program started in 2000 to help stabilize the lamb market. 

Farm Bill Negotiations Bog Down.  THE ASSOCIATED PRESS reports that congressional negotiators may say they want to finish work quickly on an overhaul of agriculture and nutrition programs, but first they must resolve a dispute over how to subsidize grain and cotton farmers. A House-Senate conference committee resumed negotiations Tuesday for the first time in nearly a month, but the talks immediately bogged down. Senate Democrats believe the bulk of farm payments should be tied to swings in crop prices and production. House negotiators and the Bush administration say more money should go toward fixed annual payments. The lawmakers also disagree over a Senate-passed plan to create a $2 billion subsidy program for dairy farmers. Much of the money would go to farmers in the Northeast as compensation for the end of a regional price-setting system. Despite the differences, the lawmakers scheduled further negotiating sessions on today and Thursday. 

Pasture Insurance Being Studied. THE ASSOCIATED PRESS reports from Billings, MT, that federal officials are studying a possible nationwide insurance program that would allow ranchers to insure pasture and rangeland against losses caused by drought and other disasters. Such insurance is offered as a pilot program to ranchers in 12 Montana counties. But agriculture officials say there is growing interest among ranchers to make the insurance available on a larger scale. A broader program would be significant for producers who now have few options when it comes to protecting range and pasture land from damage or losses, agriculture officials said. 

Trips to Cuba Could Resume.  REUTERS reports a dispute over visits to the United States by Cuban food-buying officials may be resolving, with some trips possible this month, according to an official with a U.S. business group. Last month, the U.S. State Department revoked visas for several Cuban food-buying officials, angering U.S. agriculture commodity groups. The move came as U.S. food sales to Cuba were beginning to take hold after a four-decade trade disruption that is the result of the "cold war" between Washington and Havana. John Kavulich of the U.S.-Cuba Trade and Economic Council said he thought there was "a defrosting" within the Bush administration that could allow visas to be issued soon to some Cuban food-buyers. Kavulich said some "technical people" from Cuba could arrive in the United States as early as this month to look at additional purchases of U.S. agricultural commodities. 

Philippine Meat Stance Brings WTO Protest.  THE WALL STREET JOURNAL reports that in protest of a new safety requirement that the Philippines plans to implement on its meat imports, USDA will take the issue to the World Trade Organization. U.S. Agricultural Attache Michael Woolsey said aside from the United States, other exporters of meat products to the Philippines, namely Australia, Canada and Belgium, are likely to make a similar move in the event the Philippines doesn't revoke the new measure. "We will take this up before the WTO's SPS (sanitary and phytosanitary) committee if the Philippines doesn't withdraw the new measure. I can almost guarantee that's going to happen so I hope they don't do it," Woolsey told a news conference. 

Iraq Says U.S. Blocking Contracts.  REUTERS reports from Baghdad that Iraq is claiming that the number of blocked contracts for supplies under the U.N. oil-for-food scheme has climbed to a value of more than $8 billion, the official Iraqi News Agency INA said. "The United States and Britain have blocked 2,998 contracts worth $8.474 billion signed under the oil-for-food program," INA quoted Trade Minister Mohammed Mehdi Saleh as saying. In a separate development, Iraqi President Saddam Hussein announced on Monday he was stopping oil deliveries for a month or until Israel withdrew from Palestinian territory. The U.N. program is supposed to ease the suffering of ordinary Iraqis, under sanctions since Baghdad invaded Kuwait in August 1990. Iraq can sell oil to purchase food, medicine and a host of other supplies as exceptions to the embargo. But Saleh accused Washington and London of of doing what they could to harm Iraq through "control of the U.N. Security Council and pressure exercised on the committee to prevent Iraq from benefiting from its own money." According to Saleh, oil contracts had the lion's share of blockages with 1,168 orders for spare parts and equipment for oil industry put on hold. 

April 8

Groups Want Administration Action Favorable to Cuban Trade.  Twenty-eight agricultural and agribusiness groups are urging the Bush administration to reconsider its opposition to repealing a provision in law and make it easier for U.S. exporters to trade with Cuba. The provision prohibits agricultural exporters wishing to sell products to Cuba from using U.S. banks or financial institutions to execute the sale. 

USDA Scientists Seek Solutions to Peanut Allergies.  On average, Americans consume more than six pounds of peanuts and peanut products each year. Peanuts are a good source of protein, fiber, vitamin E, niacin and folic acid. They contain mostly unsaturated fat, which has been shown to lower "bad" LDL-cholesterol levels in the blood. 

Farm Bill Conference Resumes Tomorrow.  House and Senate conferees get back to work on Tuesday to work out differences between the House and Senate farm bills. House and Senate staff worked throughout the Easter recess to resolve or at least narrow the differences between the two bills and smooth the process for the members who return to Capitol Hill today. There has been no formal release of information concerning staff discussions, but it appears that progress has been made. Several contentious issues reportedly remain, including payment limitations and loan rate levels. 

Happy Cows on Water Beds.  Arie Jongeneel is hoping his herd of Holsteins, resplendent on their water beds, will bring forth a dairy deluge, according to THE ASSOCIATED PRESS. In his quest to increase milk production, Jongeneel, an Oregon dairy farmer for 32 years, is joining farmers in Europe and elsewhere who say such bovine pampering pays off. Jongeneel, who began experimenting with 15 specially made water beds in January, said he is ordering 80 more for his 1,600 cows in Oregon's lush Willamette Valley. "If it's better for the cows it will increase milk production, there's no doubt about that," Jongeneel said. Mike Gamroth, a dairy cattle specialist at Oregon State University, said the beds seem to be a good idea for the cows, who lie down for six to eight hours a day to digest their food. 

Australia to Try GM Cotton. Australia's Office of the Gene Technology Regulator has announced three new licenses to undertake field trials of genetically modified cotton, according to the AUSTRALIAN BROADCASTING CORPORATION. The CSIRO and Agriculture Western Australia have been granted the licenses to trial the cotton varieties which have been modified through the introduction of genes from common soil bacteria. These modifications have increased the cotton plants resistance to insect pests and tolerance to herbicide. 

Russians May Not Make Deadline on Poultry Ban.  REUTERS reports that the Russian government may not lift a ban on U.S. poultry imports by an April 10 deadline, because the United States is unlikely to provide enough data by then, according to Interfax. "The amount of information received from the American side does not give sufficient optimism for taking a decision (to lift the ban)," the news agency quoted First Deputy Agriculture Minister Sergei Dankvert as saying. Agriculture ministry officials were unavailable for comment. Russia and the U.S. agreed on March 31 that Russia would lift the ban it had imposed on U.S. poultry imports by April 10 subject to certain conditions. The U.S. agreed to a temporary ban on exports to Russia from 14 poultry plants pending inspection of sanitary conditions, and pledged to provide guarantees against counterfeit veterinary certificates. A group of Russian veterinarians has been in the United States to inspect U.S. poultry plants, ports and warehouses and to examine data on poultry meat safety as part of the deal. 

Animal, Egg Safety Conference Coming.  Several U.S. food and agriculture agencies are jointly sponsoring the Conference on Animal and Egg Production Safety with the University of Puerto Rico. USDA, FDA and the Office of the Under Secretary for Food Safety are co-sponsoring the meeting, which will be held July 9-11 at the Caribe Hilton San Juan Hotel, San Geronimo Grounds, in San Juan, PR. For more information contact either Mary Harris, FSIS, at 202/690-6497 or Dr. Edna Negron, University of Puerto Rico, at 787/265-5410. To view the Federal Register notification, visit: http://www.fsis.usda.gov/OPPDE/rdad/FRPubs/02-003N.htm. 

Cotton Amendments Proposed.  USDA is proposing to amend the assessment provisions of the Cotton Research and Promotion Program rules and regulations for imported cotton and cotton-containing products. The proposed amendment is an annual update of the value of imported cotton and reflects the 2001 annual average price received by U.S. farmers for upland cotton. The proposed adjustment is required by regulation to ensure that the assessments collected on imported cotton and the cotton-content of imported products remain similar to those paid on domestically produced cotton. This year, the update decreases the value of imported cotton specified by the Cotton Board rules and regulations for calculating assessments on imported cotton and cotton-containing products. Details of the proposed amendment were published in the April 2 Federal Register. Copies are available from Whitney Rick, Cotton Program AMS, USDA, Stop 0224, 1400 Independence Avenue, SW, Wash, D.C. 20250-0224, phone (202) 720-2259 and can be found at www.ams.usda.gov/cotton/rulemaking.htm. 

April 5

ARS Shares in Biodiesel Contract. The flagship research center of USDA's Agricultural Research Service will be one of the beneficiaries of the largest-ever single contract for the biodiesel fuel known as B20--a blend of 20% biodiesel and 80% regular diesel. The U.S. Department of Defense (DOD) has contracted to have more than 1.5 million gallons of B20 delivered to military and civilian locations nationwide through July 2002. 

Study Finds Consumers Favor Biotechnology. According to a recent survey conducted by the Council for Biotechnology Information, a majority of U.S. consumers, who are aware of agricultural biotech and genetically modified foods, are supportive of the technology. 

Syngenta Analyzes the Rice Genome. Syngenta scientists from the company's Torrey Mesa Research Institute (TMRI) have published their first major analysis of the rice genome. The draft sequence analysis -- published in today's edition of "Science" -- provides a foundation for unlocking the secrets that can improve global crop production. 

Farm Bill Meeting Announced.  The chairmen of the House and Senate agriculture committees announced a meeting Tuesday of the conference committee charged with finalizing the 2002 farm bill. The meeting is set for 3 p.m. on Tuesday, April 9, in 1300 Longworth House Office Building. Staff discussions have continued throughout the two-week Easter recess, but reportedly have made little progress in resolving major issues. 

Mad Cow Costs Almost $3 Billion. REUTERS reports that mad cow disease has cost Japan at least 365 billion yen ($2.76 billion) since the crisis struck last year, according to the Agriculture Ministry. Revenues at farms have slumped an estimated 131 billion yen ($990 million) year-on-year since the disease was first discovered in September, while meat sales have fallen 160 billion yen, a ministry official said. Sales at Korean-style barbecue beef restaurants have fallen by between 74 billion yen and 90 billion yen, he said, estimating the total industry-wide damage of the outbreak at 365-381 billion yen. The disease is known formally as bovine spongiform encephalopathy (BSE). It spoiled Japanese appetite for beef, sent shares of food companies tumbling and shattered faith in Japan's food-safety standards. BSE has been linked to variant Creutzfeldt-Jakob disease, which has killed about 100 people in Europe but none in Japan. 

Bayer Willing to Sell Rights to Pacify EU.  THE WALL STREET JOURNAL reports that Bayer AG says it is willing to sell rights to two leading insecticides to get European Union clearance for its $6.4 billion purchase of Aventis CropScience agrochemical unit. A spokesman for the European Commission, the EU's executive body, refused to comment on reports Thursday that the deal would be approved, but said a decision was expected soon. "It may be on the commission's agenda next week, on Tuesday,'' he said. The deadline is April 22. The deal also is being studied by U.S. antitrust authorities. Bayer said it has offered to sell the U.S. and European rights to Fipronil, an Aventis insecticide that it had touted as a major asset, to win EU approval for the deal. 

Anti-GM Corn Article Unjustified. THE WASHINGTON POST reports that the science journal Nature says a controversial article claiming genetically engineered corn was found growing in Mexico should not have been published. The Post said the article was published last year and maintained that corn from the southern state of Oaxaca contained GM material. Mexico has prohibited all engineered corn since 1998. The finding was "especially important," says the Post, because corn originated in the southern valley of Mexico and Central America, and the region remains the international center for corn diversity. However, the journal, Nature, said the article was not sufficiently researched and should not have been published. An "editorial note" in this week's edition was based on criticisms of the article and assessments by outside referees. "Nature has concluded that the evidence available is not sufficient to justify the publication of the original paper," the editors said. 

Kansas Wants Cattle Probe.  THE ASSOCIATED PRESS reports the Kansas state attorney general wants federal regulators to investigate last month's unfounded rumor of a foot-and-mouth disease outbreak in cattle in northeast Kansas. The rumor was blamed for a steep decline in prices of cattle and beef products that was estimated to have cost the industry as much as $50 million. State Attorney General Carla Stovall said Thursday that the Commodity Futures Trading Commission has jurisdiction over cases involving allegations of price manipulation. She said she sent a letter to CFTC Chairman James Newsome in Washington, saying that because of the commission's "exclusive'' jurisdiction, We are unable to conduct our own investigation and prosecution." 

USDA Confident Russia Will Follow Through. REUTERS reports a USDA official has expressed confidence that Russia will follow through with its April 1 promise to end a month-old ban on U.S. poultry imports next week. The official's remarks came amid concerns in corn and poultry markets since Tuesday that Russia might not live up to its agreement to lift the ban on April 10. Those concerns stemmed from reports earlier this week out of Moscow that there were some doubts about the trade ban ending. "I have every expectation it (the ban) will come off on April 10," said the USDA official, who asked not to be identified. He added that steps by the U.S. poultry industry and government to meet Russia's concerns for licensing and certifying the safety of meat shipments "are well in the works and I'd certainly be very shocked if it did not come off on April 10." 
April 4

Missouri River Needs Restoration.  Degradation of the Missouri River ecosystem will continue unless the river's natural water flow is significantly restored, says a new report from the National Academies' National Research Council. Congress should enact legislation to ensure that federal officials manage the river in a way that improves ecological conditions, said the committee writing the report. 

USITC Says No Injury from Canadian Tomatoes.  The United States International Trade Commission (USITC) has determined that a U.S. industry is not injured or threatened with material injury because of imports of greenhouse tomatoes from Canada that the Department of Commerce has determined are sold in the United States at less than fair value. 

Much of Kansas Wheat Crop in Poor Condition. Rainfall during September-October favored planting, emergence, and establishment of the 2002 Kansas winter wheat crop, but low soil moisture levels during spring resulted in poorer winter wheat conditions in Kansas as of April 1 compared to recent years. 

India's Wheat Crop in Good Condition.  Late-season conditions are creating an excellent finish for India's wheat crop, according to USDA. Gradually warming March temperatures and light showers followed the ideal, seasonally cooler February temperatures and significant rains. Analysis of satellite data supports this assessment showing increased vegetation health and vigor during the critical flowering stages. 

Cambodia Still Suffers. REUTERS reports that destitute families scrape a pitiful living by scavenging among rotting refuse at Phnom Penh's rubbish dumps. They say bitterly the Cambodian government has a simple strategy to fight poverty -- banish the poor. One-legged war veteran Un Phally and his wife Lim Srey live with their three young daughters in a makeshift tent by a garbage heap in central Phnom Penh. One night, they say, the authorities threw them onto a truck and dumped them far outside the capital. "They are trying to eliminate the poor, not eradicate poverty," Phally, 36, told REUTRS. "Even though this government gets billions of dollars, I am still poor. No one helps me." Phally and his family made their way back to the capital. Like so many of Cambodia's poor they are unable to resist the magnetic pull of Phnom Penh, a city full of dreams of success and prosperity -- dreams that rarely come true. 

Farm Information Access May be Limited. REUTERS reports the environmental activists who created a national stir listing the names of every U.S. farm subsidy recipient said Wednesday that lawmakers may limit access to farm-by-farm data on conservation programs. The government spends about $2 billion a year on soil and water stewardship on the farm. Spending would climb by 80% under the new farm subsidy law being assembled by Congress, particularly in programs to control manure and farmland run-off. Staff workers for the House and Senate Agriculture committees say the concerns by the Environmental Working Group were misplaced and no substantive change in law was planned. "They are really off-base," said one House staffer. EWG, which advocates larger conservation spending and derides crop subsidies as wasteful, created a nationwide stir last fall by posting on the Internet a database of farm subsidy recipients from 1996 to 2000. Recently updated with 2001 data, the site has handled more than 30 million searches, EWG says. 

More Sales to Cuba Still a Hope. THE ASSOCIATED PRESS reports that U.S. agricultural firms still hope they can increase their sales there despite last week's rejection of U.S. visas for Cuban officials interested in negotiating new deals. The U.S. last week rejected visas for at least three officials representing Cuba's food import agency. It said the Bush administration didn't see any reason for them to visit. The U.S. farm groups said the officials included technicians who wanted to inspect U.S. poultry plants and discuss sanitary issues. A new round of sales, for an additional $25 million, could be postponed and some deals could be canceled because of the refusal, said John Kavulich, president of the U.S.-Cuba Trade and Economic Council. Already, the $73 million in food that U.S. firms have contracted to sell Fidel Castro's government is double what was anticipated. 

U.S., Mexico Form Trade Committee.  The United States and Mexico intend to establish a "Consultative Committee on Agriculture" to strengthen cooperation on agricultural trade issues. The committee includes a "rapid response" team, intended to help the two countries deal with trade issues as they first emerge. It establishes a comprehensive early warning and consultation process to enable addressing problems quickly, before they become trade disruptions. The purview of the Consultative Committee, which is co-chaired by USDA and USTR and the Mexico ministers of agriculture and economic development, encompasses such trade issues as market access, sanitary and phytosanitary measures, and information exchange in areas such as biotechnology and animal and plant health. 

Former USTR Official Joins Sugar Group. Donald M. Phillips Jr., a former assistant U.S. trade representative, has become a consultant on trade to the American Sugar Alliance. Phillips, who retired from government service in January 2001, served before his retirement as assistant U.S. trade representative for China, Taiwan, Hong Kong and Mongolia. In that capacity, he led the U.S. delegation to the working group on China's accession to the WTO. Among a number of other responsibilities during 20 years with USTR, Phillips provided support on agricultural trade issues, including representation of the United States in GATT trade disputes. At USDA, starting in 1967, his duties included, among many others, assistant agricultural attaché with the U.S. Mission to the European Communities, Brussels, Belgium, and an analyst with the Foreign Agricultural Service (FAS), Trade Policy Division, and as an analyst with the Economic Research Service, where he headed the Western Europe unit. In his last post with USDA, he served in the Grain and Feed Division of the Foreign Agricultural Service and was U.S. delegate to the International Wheat Council. 

April 3

New Use for Cottonseed Oil: Fuel.  Add a little cottonseed oil to a lot of the cotton plant "trash" removed during ginning, and you will have a recipe for delivering about 9,000 British thermal units (Btus) of heat per pound of fuel pellets. By comparison, firewood gives off approximately 4,000 to 5,000 Btus per pound, according to USDA's Agricultural Research Service. 

GIPSA Appointment Rings Pork Producers' Approval Bell.  National Pork Producers Council President Dave Roper praised the naming of Illinois farmer and livestock producer Donna Reifschneider as administrator of USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA). 

Veneman, Zoellick ‘Pleased' at Russian Poultry Decision.  Agriculture Secretary Ann M. Veneman and U.S. Trade Representative Robert B. Zoellick said Russia's decision to remove a ban on importing U.S. poultry should help improve communications between the two countries. "We are very pleased that Russia has agreed to remove its import ban on U.S. poultry following the signing of a protocol on March 31. This is an extremely important market for U.S. poultry producers, accounting for one-half of all our poultry exports worldwide. This new protocol should improve communication between our veterinary authorities and help prevent further trade disruptions," they said in a statement. 

Court Rules in Favor of USDA Project. USDA's Food Safety and Inspection Service (FSIS) will be allowed to continue the HACCP-based Inspection Models Project (HIMP), the U.S. Court of Appeals for the District of Columbia Circuit said in a decision affirming a lower court ruling. Although the court stated that the current program does not conflict with the Federal Meat Inspection Act and the Poultry Products Inspection Act, HIMP still may face challenges, according to the American Meat Institute. 

Farmers Face Insurance Deadline. Producers have until April18 to apply for coverage for certain eligible crops under USDA's Noninsured Crop Disaster Assistance Program. This deadline applies to 2001and 2002 crops for which the coverage period would normally have begun prior to March 19 or within 60 days after March 19. Along with submitting an application for coverage, producers must pay applicable service fees and provide a certification of prior crop year production for the crop by April 18. The deadline for submitting an application for payment for 2001 crop losses is the 2002 acreage reporting date for the crop. Producers seeking NAP coverage of eligible crops are encouraged to contact their local USDA Service Center prior to the deadline to identify applicable crops and file an application. Eligible crops are those for which the catastrophic level of federal crop insurance is not available and include those produced for food, livestock feed, fiber, mushrooms, floriculture, honey, maple sap, aquaculture (including ornamental fish), Christmas tree crops, ginseng, ornamental nursery and turf grass sod. 

Japan Will Include Agriculture in Talks. KYODO NEWS reports that a Japanese government economic panel will include the politically sensitive topic of agriculture in free trade negotiations with other countries. ''It makes little sense if (the panel) avoids discussing such an issue. It is necessary to hold discussions beyond obstacles,'' an official, who requested anonymity, told reporters. The government's Council on Economic and Fiscal Policy cites FTAs as a key strategy to help Japan revive its stalled economy. When Japan signed its first FTA with Singapore in January, it virtually excluded from the agreement tariffs on agricultural and fishery products as well as some petrochemical and petroleum goods. The focus of future discussions on FTAs will be whether the government will make no exceptions in the agriculture sector. 

McDonald's McNuggets Sales Resume. REUTERS reports that McDonald's Co. in Japan will resume sales of its "Chicken McNuggets" later this month after suspending sales in late March when certain chicken imports were halted, a company spokesman said on Wednesday. McDonald's Japan stopped selling chicken nuggets after Japan's Agriculture Ministry suspended chicken imports from the United States and China on March 18, he said. McDonald's Japan operates about 3,800 outlets in Japan. 

GMO Guidelines Approved in Manila. REUTERS reports that the Philippine government has approved guidelines to regulate imports of genetically modified plants and plant products by July 1, 2003, the Department of Agriculture said on Wednesday. The department said Agriculture Secretary Leonardo Montemayor signed the administrative order governing the release of genetically modified organisms (GMOs) for field testing, propagation and for direct use as food or feed in the southern Cagayan de Oro City while attending a food congress in that area. Under the administrative order, the government would prepare by June 30 next year a list of approved commodities that will be allowed entry into the country. After that date, any company importing a GMO not included in the list of the Bureau of Plant Industry (BPI) will be required to secure a permit, it said. During the transition period, BPI will ask an independent scientific panel to review the risks of importing GMO products to health and the environment. 

Monsanto, DuPont Settle Legal Wrangling.  THE ASSOCIATED PRESS reports Monsanto Co. and DuPont, the parent of crop seed rival Pioneer Hi-Bred International Inc., are dismissing all lawsuits pending against each other as part of a wide-ranging truce announced Tuesday. The deal also will add Pioneer to the long list of seed companies with a license to use Monsanto's Roundup Ready and other biotechnology traits in its seeds. The Roundup Ready trait allows farmers to spray their fields with the St. Louis-based company's Roundup herbicide without damaging their crops. Under the license agreements, Pioneer will pay Monsanto a royalty for using the biotech traits. "This is a win for farmers and a positive development for how the agricultural industry brings new innovations to market," said Hugh Grant, Monsanto's chief operating officer. "This agreement sets a new constructive tone that allows both companies to focus their energy and talents on what they do best - making and marketing great products for farmers." The news agency says there were 11 lawsuits pending at various levels between the two companies, involving a variety of issues, some dating as far back as 1996. Disputes over patents and intellectual property in seed traits were being litigated along with similar disputes over germplasm, or raw genetic material.

April 2

FAO Calls for Slowing Global Warming.  A new publication from the U.N.'s Food and Agricultural Organization, calls for a "true" green revolution that could slow global warming by "burying" more carbon and vastly benefit the environment and food production. Better farming practices could help agriculture bury about 10% of atmospheric carbon from emissions caused by human activity over the next 25 years while improving soil, crop and environment quality, slowing erosion and desertification, and enhancing biodiversity. The key is to build up plant matter in the soil. 

Meat Exporters Will Match Export Costs.  The U.S. Meat Export Federation (USMEF) is accepting applications from U.S. companies interested in receiving matching funds to promote branded U.S. meat products in international markets. Eligible companies must have 500 or fewer employees or be a producer cooperative or association. Allocations to private companies will be based on the expected effectiveness of the proposed activities and adherence to USDA Foreign Agriculture Service regulations governing the program. 

Monsanto Rice Genome Project Ahead of Schedule.  In the two years since Monsanto Company made its rice genome data available to the global research community, the timetable for completing the rice genome has accelerated by six years. On April 4, 2000, Monsanto Company announced a breakthrough in decoding the genetic make-up of rice, and the company's commitment to sharing its data with the International Rice Genome Sequencing Project (IRGSP), a multi-country consortium of research institutes working to publish the complete rice genome sequence. 

Jen Named to Chair Genomics Group.  Agriculture Under Secretary for Research, Education and Economics Joseph Jen has been selected to chair a newly chartered Interagency Working Group (IWG) on Domestic Animal Genomics. Director of the Office of Science and Technology Policy John H. Marburger, III, appointed Jen as the chair of the IWG to enhance interagency communications and awareness of the importance of agricultural species, to leverage investments across government agencies and to position agriculture as a critical element of the national genomic program. "The research to be carried out by the IWG will further enhance our ability to improve animal health and well-being, insure a safe and secure animal food supply and develop new diagnostic tools for animal disease prevention and biomedical applications," Jen said. The IWG's charter was signed in March by the co-chairs of the Science Committee of the National Science and Technology Council. Participating agencies include the National Science Foundation, National Institutes of Health, the Department of Energy, the White House Office of Science and Technology Policy and the U.S. Department of Agriculture. Other interested federal agencies will be added as the IWG starts to better define its scope of work and seek input from stakeholders. 

Peanut Consumption High, Profits Down. THE ASSOCIATED PRESS reports from Vienna, GA, that although peanut consumption is at a record high, profits for farmers have declined. Some growers will leave the business this year. Peanut farm income slumped to $896 million last year - the lowest in 20 years and the second consecutive year below $1 billion, according to USDA. Consumers are expected to consume 2.3 billion pounds of peanuts in the current marketing year, which began in August. That's up from a decade-low of nearly 2 billion pounds in 1995. Industry studies in the 1990s showed peanut products were considered uninspiring, were poorly promoted and were lacking in variety. Since then, the industry has introduced new products, such as flavored snack nuts, and has funded health studies showing that peanuts can reduce harmful cholesterol levels. Growers, meantime, have been saddled with lower profits, increased foreign competition, higher production costs, four years of drought and uncertainty over the federal government's peanut program. Some farmers have decided they couldn't continue to pour money into a losing enterprise and have stopped growing the crop. 

Farmer Challenges 'Got Milk' Campaign.  THE ASSOCIATED PRESS reports a Pennsylvania dairy farming family is challenging the mandatory promotional campaign that pays for "Got Milk" ads, arguing farmers shouldn't be forced to pay for advertising they don't agree with. Joe and Brenda Cochran of Westfield, PA, are filing suit in U.S. District Court this morning, seeking an end to the mandatory fee of 15 cents per hundred pounds of milk - roughly 2 cents a gallon. The money pays for ads featuring celebrities wearing milk mustaches, as well as commercials touting "Ahh, the power of cheese." The Cochrans, who raise 150 cows on their 200-acre farm in north-central Pennsylvania, say they produce a superior milk without growth hormones and don't want to pay to promote generic milk. 

Panel Waters Down Mad Cow Report.  KYODO NEWS reports that a panel investigating the government's handling of mad cow disease considerably watered down criticism of some Liberal Democratic Party (LDP) politicians it initially found to have improperly influenced farm ministry policies. A draft of the final report was obtained Monday. The panel, set up by the health and farm ministries, is scheduled to adopt the final report Tuesday and submit it to Agriculture, Forestry and Fisheries Minister Tsutomu Takebe and Health, Labor and Welfare Minister Chikara Sakaguchi the same day. The two ministries are expected to announce punishments for some of their officials for negligence in preventing the outbreak of the disease, formally known as bovine spongiform encephalopathy (BSE). In its earlier draft of the report released in late March, the panel said the farm ministry was greatly influenced in its policy-making by LDP lawmakers with vested interests in protecting the industries concerned. 

Chicken Council Pleased at Russian Import Ban Decision.  The National Chicken Council said Monday it was "pleased that the Russian Federation has agreed to lift its import ban on U.S. poultry." The council expects that the conditions set forth in the protocol will be met and that trade will return to normal by April 10. " A positive outcome to this situation is in the best interests of all concerned -- especially the U.S. industry and Russian consumers," the statement said. U.S. and Russian government officials will hold talks on possible revisions to the 1996 protocol governing the trade. "We look forward to lending assistance to the mutually satisfactory resolution of any outstanding issues," the council said.

April 1

Harkin Calls for Cattle Contract Probe.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) has called on Attorney General John Ashcroft to investigate any connection that may exist between sharp declines in the live cattle and live cattle futures markets and a report that foot and mouth disease had been found on a Kansas farm. Although the rumor proved false the next day, Harkin says, and many analysts suggested the fundamental market conditions did not dictate the negative trend, the market continued a downturn for nearly two weeks. 

CWA Permit Not Needed for Some Farming.  The Environmental Protection Agency will not require a Clean Water Act permit for agricultural irrigation systems if herbicides are used according to a federally approved product label. EPA relied on a congressional statement that "the (EPA) administrator shall not require a [Clean Water Act] permit...for discharges composed entirely of return flows from irrigated agriculture." 

Nobel Laureate Calls for Different Commodity Price Measure.  Robert Mundell, a Nobel economics laureate and professor of economics at Columbia University, thinks commodity price fluctuations wouldn't seem so threatening if they were measured in "a basket of the major currencies," a combination of the dollar, the euro and the yen. 

Klamath Basin Water Valve Opened.  Secretary of the Interior Gale Norton, Secretary of Agriculture Ann Veneman and U.S. Sen. Gordon Smith opened the "A" canal head gates Friday as a first step in delivering water to Klamath Basin irrigators for the 2002 growing season. The preliminary water deliveries will begin the process of charging the canal. 

Japan to Announce Punishments in FMD Outbreak. KYODO NEWS reports Japan's vice farm minister, Yoshiaki Watanabe, says the ministry soon will announce punishments for officials found to have been negligent in preventing the outbreak of mad cow disease in Japan. An investigative committee charged with looking into the situation is likely to single out some farm ministry officials for ''insufficient actions in the past,'' when it submits its final report on Tuesday, said Watanabe. "We would like to take serious steps,'' he said at a press conference, adding the punishments could be announced as early as Tuesday. He said the panel's findings are also likely to prompt the ministry to adopt new legislation and systems to ensure higher standards of food safety. ''It is time for the cabinet and the government to take a stand'' on such actions, as well as on penalizing those responsible, Watanabe said. 

Indians Protest Klamath Water Policy.  THE ASSOCIATED PRESS reports from Klamath Falls, OR, that members of two Indian tribes chanted and banged drums to show their concern that the Bush administration is favoring the needs of farmers over their own. Prompted by an increase in snow and rain over the winter, federal officials released water into fields in the Klamath Basin, allowing irrigation in area farms for the first time since last summer. Farmers cheered as the head gates were opened Friday, allowing the water to flow from a canal into the fields. Irrigation had been halted last year amid fears about endangered sucker fish and threatened coho salmon. Due to drought, federal officials decided last year to cut off water to about 1,000 Klamath area farmers. The decision resulted in confrontations pitting farmers against environmentalists and Indian tribes. 

Russia Agrees to Lift Poultry Ban.  THE ASSOCIATED PRESS reports from Moscow that the U.S. ambassador said Russia agreed Sunday to lift a ban on poultry imports from the United States, resolving a dispute that had clouded economic relations. In exchange, the United States agreed to tougher controls on veterinary documents and measures against companies that exported salmonella-tainted chicken, U.S. Ambassador Alexander Vershbow said. There was no immediate comment from the Russian side. Russia imposed the ban earlier this month, citing concerns about sanitary conditions in U.S. plants and the use of antibiotics and feed additives in American chickens. U.S. officials said the ban was not justified scientifically and accused Moscow of protectionism. 

McDonald's Imports Beef.  REUTERS reports that McDonald's Corp. has begun its first test of imported beef in a small amount of its U.S. stores, a company spokesman told the news agency. The test, which is taking place in some McDonald's restaurants in the Southeast, is necessary because of the shortage of lean domestic beef available, said the spokesman, Walt Riker. The beef will come from Australia and New Zealand. "No decisions have been made and nobody should jump to any conclusions," Riker said of the company's permanent plans for beef sourcing. "Everything we serve will be 100% USDA inspected."