April 30, 1999

Beef, pork industries close on mandatory price reporting.  National Pork Producers Council says it will have a legislative proposal ready next week calling for mandatory price reporting by pork plants.  It’s separate from a beef industry bill.  Beef interests have achieved consensus on boxed beef and export mandatory price reporting and are near consensus on live cattle reporting.

Glickman, Gephardt call for spending bill passage.  Agriculture Secretary Dan Glickman and House Minority Leader Richard Gephardt (D-MO) called on Congress to approve the supplemental spending bill that includes $152 million for the guaranteed farm loan program.  Both warned that Farm Service Agency personnel may have to be furloughed if the bill doesn’t pass soon.

USDA buys wheat for overseas donations.  USDA has purchased 700,000 tons of wheat to donate as humanitarian aid in the Balkans, to assist Kosovar refugees, in North Korea and other areas suffering food shortages.  This is in addition to a 1 million ton purchase announced March 26.

Lucrative high-value dairy product market detailed.  A lucrative, expanding market for high-value whey ingredients exists in Japan, Korea and other nations, but U.S. exporters need to take a more proactive approach to reap the rewards, says U.S. Dairy Export Council official.  Consumers want more healthy benefits from their foods despite economic problems.

News from other sources:

Iran hails U.S. policy change as 'surrender.'  In a report from Tehran, REUTERS says Iranian state radio Thursday hailed the U.S. decision to lift sanctions on food and medicine to Iran as a “surrender” by Washington in the face of mounting political and economic costs for U.S. policies.  “This surrender is a response to widespread international pressure as well as growing pressure from U.S. companies fighting for a share of international markets.”   The report also said the U.S. policy change should clear the way for Niki Trading Co. to get a license from the U.S. Treasury Department to sell about 3.55 million tons of farm products to Iran, including 2 million tons of wheat.  Other U.S. firms also are expected to seek licenses.

Bill would lift export ban on Cuba.  Bills have been introduced in the House and Senate to remove restrictions on the sale of grain and other ag products, medicine and medical supplies to Cuba.  Farm groups believe Cuba could become a market for millions of dollars in U.S. grain sales, says a REUTERS report.   The report adds, however, that any policy change toward Cuba would be a “hard sell” in Congress because of opposition from conservatives like Senate foreign Relations Committee Chairman Jesse Helms (R-NC) and lawmakers in key political states such as Florida.

Iowa now requires livestock price reporting.  Iowa Gov. Tom Vilsack Thursday signed a bill to require meatpackers to post or publish prices they pay for livestock.  That makes Iowa the second state to require such price reporting.   REUTERS says the bill requires meatpackers in Iowa to publish prices offered on the previous day’s market for animals delivered to slaughterhouses or by contract for future delivery.  South Dakota has a similar law in effect.

EU says beef ban row not settled.  European Union officials say U.S. statements that a solution has been reached on an EU threat to ban U.S. beef imports isn’t accurate.  REUTERS quotes Gerry Kiely, spokesman for acting EU Farm Commissioner Franz Fischler saying the EU is happy with the way negotiations went with U.S. officials last week, but the issue isn’t yet solved.
 EU officials announced Wednesday they would ban imports of U.S. beef from June 15 unless the United States made sure the meat contained no hormones.  Some imports had been found to contain traces of synthetic growth hormones.  USDA officials said they had reached an agreement in principle to continue sales of hormone-free beef, but EU officials in Brussels Played down the comments,” the report says.

WTO ruling on Canada dairy coming in fall.  The World Trade Organization is expected to hand down a final decision on the legality of Canada’s dairy policies by mid-October, REUTERS quotes a top U.S. trade official saying.  A final rule is expected May 17 on a WTO dispute settlement decision that held Canada’s low cost milk to processors constitutes an export subsidy subject to WTO discipline.  Canada is expected to appeal that decision.   “It’s not an endless course,” said Peter Scher, special ag trade negotiator at the U.S. Dairy Export Council’s meeting in Chicago.  “The final decision (on the appeal) should be completed by the end of September or mid-October.”
 

April 29, 1999

Committee Roundtable Agrees Crop Insurance is preferable to disaster payments.  Senate Ag Committee Chairman Richard Lugar (R-IN) conducted a Committee Roundtable designed to challenge the assumptions on which the crop insurance program is based.  The discussion provided little consensus other than agreement that crop insurance is preferable to a return to disaster bailouts. The new budget resolution provides $6 billion for fiscal years 2001-04 but no additional funds for fiscal 2000.

Sanctions lifted selectively for three countries.  Food and medicine have been exempted by the Clinton Administration from sanctions on Iran, Sudan and Libya.  The action was lauded by most agricultural interests, including Senate Ag Committee Chairman Richard Lugar (R-IN).  Lugar also wants administration support for sanctions reform legislation pending in Congress.

Labeling gives consumers a choice, advocates claim.  Cattlemen say country-of-origin labeling gives consumers the ability to make informed decision when they buy meat and meat products.  Now there is "limited ability" to identify the products' sources, and that doesn't meet consumer demands.

Groups endorse price reporting, not fast track or loan rate hikes.  Farm groups meeting in St. Louis reached consensus on several topics, including mandatory price reporting for livestock, but did not agree to seek adjustments in price support levels among different commodities.

UK action 'imperils' U.S. soybean exports.  Greenpeace says a decision by the United Kingdom's Unilever, world's largest food manufacturer, that it no longer will use genetically modified ingredients in any of its food products, could mean lost markets for U.S. soy products.  More than one third of the soybeans grown in the United States are genetically engineered, Greenpeace notes.

Most ag concerns satisfied in FQPA bill.  The American Farm Bureau Federation says most of agriculture's concerns with the EPA's implementation of the Food Quality Protection Act are addressed in new legislation introduced yesterday.  The House bill forces EPA to use sound science when evaluating pesticides.

Commodity groups 'disappointed' at resignations.  The resignation of environmental, consumer and farm worker advocacy groups from an advisory committee on EPA's implementation of the Food Quality Protection Act is "clearly not in the public's best interest," say three major commodity groups.  "These groups have a role to play in these discussions," the groups said.

News from other sources:

Deal reached on U.S.-EU beef hormone issue.  REUTERS reports that an agreement in principle has been reached between the United States and the European Union to continue sales of hormone-free beef to EU member countries.  Earlier, the European commission had decided to block shipments of hormone free beef as of June 15 if problems with hormone residues in the products were not resolved by then.   However, the article quotes Isi Siddiqui, USDA trade advisory, saying the negotiators worked out the broad features of a plan Tuesday.  The EU has accepted a US. proposal that provides increased oversight and sampling of hormone-free beef but wants more details on how the plan would work, Siddiqui said.

EU compensation to U.S. considered.  PRO FARMER says the United States is willing to consider a temporary package of compensation if the European Union continues to ban imports of U.S. beef from animals treated with growth hormones.  But the EU either must provide the compensation or lift its ban by the May 13 deadline required by the World Trade Organization's dispute settlement panel.  The article quotes Deputy U.S. Trade Representative Rita Hayes saying compensation "is only acceptable as a temporary measure while the EU brings its regime into conformity with the WTO rulings by lifting its ban.  While we recognize that the EU will need some time to complete its internal procedures to comply, we cannot accept a lengthy period and uncertain outcome."

April 28, 1999

Milk compact bills introduced.  With strong support in both Senate and House, bills now are pending to create regional dairy compacts in which states set the price for milk.  The legislation would make the Northeast Dairy Compact permanent and add six states to that region; a Southern Dairy Compact would be established as well by the bills.  But there is opposition.

Cattlemen, food processors support irradiation.  The National Cattlemen's Beef Association and National Food Processors Association strongly support irradiation for meat products.  NCBA also encouraged USDA and the Food and Drug Administration to develop standards for the irradiation of ready-to-eat meat products.

Combest urges unobligated funds for farm credit.  House Ag Committee Chairman Larry Combest (R-TX) wants USDA to release $150 million in unobligated funds to further help bridge the gap for farm loan guarantees.  Congress has yet to pass a supplemental appropriations bill that provides more spending on the loan program.

FARRM accounts pushed by AFBF.  The American Farm Bureau thinks now is an ideal time to put farm and ranch risk management accounts (FARRM) in place.  Legislation to establish the accounts is "exactly the kind of risk management tool that farmers and ranchers are looking for."

For the calendar:

House members today unveil legislation to ensure that farmers and other users have continued access to safe pest control products.  The bill to be introduced also would clarify and improve many regulatory procedures under the 1996 Food Quality Protection Act by ensuring that the Environmental Protection Agency use sound science and reliable data when evaluating pesticide products.

USDA reschedules a public meeting to discuss a potential sheep industry checkoff program.  The original date was May 3, but that has been postponed to May 25.  The meeting will be held at the Crystal Inn, Aurora, CO.

The Senate Ag Committee holds its crop insurance/risk management roundtable this morning with Bruce Gardner, University of Maryland economist, moderating, assisted by Ralph Chite of the Congressional Research Service.

The House Agriculture Committee has scheduled two hearings of note: the Subcommittee on Livestock and Horticulture holds a hearing May 5 to review USDA's final rule on federal milk marketing order reform, and the Subcommittee on General Farm Commodities, Resource Conservation and Credit holds a hearing May 6 to review the structure and policies of the loan deficiency program.  There are reports that USDA may propose a national average for LDPs, a move that would favor the South at the expense of the Midwest and western Corn Belt.

News from other sources:

Groups quit advisory panel on food safety.  Environmental and public interest groups Tuesday quit an advisory panel on food safety, the ASSOCIATED PRESS reports.  The 50-member panel was created to obtain a broad spectrum of views as the Environmental Protection Agency decides how to proceed with pesticide eliminations under the 1996 food safety law.
 In a letter to EPA, the groups said they were quitting because EPA is unwilling to "make hard choices" needed to take the most dangerous pesticides off the market, even though they pose a threat to children.

USDA seeks to stop avocado import violations.  REUTERS reports that USDA may have to strengthen its Mexican avocado import rules after 36 U.S. companies were found to have violated the restrictions.  "We're constantly looking at our regulations to improve them," said USDA spokesman Ed Curlett.  "We'll at least attempt to improve that regulation."
 The current regulations allow the importation of Mexican Hass avocados into 19 northeastern states and the District of Columbia from November to February when colder weather is likely to kill any pests.  Companies alleged to have violated the rules face fines of about $5 million.

North Korea has run out of food.  BLOOMBERG NEWS reports from Beijing that North Korea's supply of food harvested last fall has run out, leaving millions of people to forage for grasses, edible roots, seaweed and "anything else they can eat to survive."  The BLOOMBERG article quotes another article from the ASSOCIATED PRESS.
 About 23 million North Koreans rely on government-issued food rations.  But four years of famine from natural disasters plus mismanagement within the agricultural system have brought on the shortages.

Accord on mandatory meat price reporting near. BLOOMBERG NEWS reports from Chicago that U.S. livestock producers and major meat packers are close to an agreement on mandatory price reports.  Dow Jones Newswires cited unnamed industry official says they're discussing plant for the reporting of weekly exports.  Packers at the talks -- IBP Inc., Excel Corp, ConAgra Inc. and Farmland Industries Inc., represent about 80% of the beef industry.  An accord, if reached, could be unveiled at a House hearing today.

Justices reject strict gifts interpretation in Espy-related case.  The Supreme Court upheld a lower court verdict throwing out the conviction of Sun-Diamond Growers of California for giving gifts to former Secretary of Agriculture Mike Espy.  The justices said simply giving a gift to an official need not violate the law against illegal gratuities if there is no demonstrated connection between the gifts and an action by the official.

Trade policy moving in Asia.  Even as most attention is focused on continuing talks to bring China into the World Trade Organization, Taiwan is preparing to cut 4,500 tariffs if its own bid for membership is accepted, the Journal of Commerce reports.  Meanwhile, Thailand is calling for an end to all farm export subsidies as part of the upcoming WTO negotiations on agriculture

Cloned beef controversial in Japan.  Cloned cattle have been slaughtered and sold in the Japanese market, raising consumer alarms, according to The New York Times.
 

April 27, 1999

Consumers, farmers, agribusiness people worry about the FQPA.  One of the most complicated and often confusing pieces of legislation to make its way into regulation is the Food Quality Protection Act of 1996.  As USDA and the Environmental Protection Agency struggle with the regulations, some consumer groups worry that even more and vastly different risks could be imposed than those from pesticide residues; farm organizations worry that they will be robbed of vital crop protecting products that don't meet what could be a rather arbitrary standard; agribusiness worries along with farmers with the added concern that withdrawing products for which there is no significant risk will prove detrimental to the entire agricultural industry.

Ag exports taking a beating this year.  U.S. agricultural exports in fiscal 1999, through February, total $22 billion.  That's a significant 14% less than the first five months of fiscal 1998.  February exports, says USDA, were 18% below the level achieved a year earlier.

Democrats fault Republicans over supplemental spending.  A group of Democratic senators plans a news conference today to blast Republicans for not bringing the emergency supplemental appropriations bill to the floor for final passage.  The bill includes money for farm loan guarantees and money to help USDA implement disaster relief payments.

Headlines from other sources:

Russia suspends Thorn Apple products.  Reuters reports from Moscow that Russia has suspended meat product imports from Thorn Apple Valley Inc. until U.S. authorities certify the products are fit for human consumption.  "We have asked them (the U.S.) to suspend (exports) until they decide themselves about the quality of these products," Stanislav Zakharov, deputy head of the agriculture ministry's veterinary department.   USDA announced April 13 that 12 million pounds of potentially tainted meat processed at a Thorn Apple plant last year had been exported to Russia and South Korea.  Thorn Apple says its reputation has been badly damaged, because the USDA statement was poorly worded and caused panic among customers who began returning products processed by the company's other plants, according to Reuters.

Possible LDP changes coming.  Pro Farmer reports that decision papers "are expected to make their way to USDA Secretary Dan Glickman this week" on options to change the loan deficiency payment/marketing loan repayments, and on the issue of county loan rates as well.   "USDA officials have been hoping that if any changes are to be made, the actions need to get finalized by May 1 in order for new procedures to be in place in time for the first harvest of winter wheat," says Pro Farmer.

Beef retaliation list on the way.  The U.S. trade representative's office has no firm deadline for deciding which European Union products will be targeted for retaliation in a dispute over beef hormones, Reuters reports.  USTR published a list of more than $900 million worth of EU food products and other goods that could be hit with 100% punitive duties if the EU fails to open its market by May 13 to beef produced from animals treated with growth hormones.   A spokeswoman at USTR told Reuters the list probably will be pared down with the revised list published sometime in May.  The earliest any duties could go into effect probably is June 12, she added.

Biotech products on trade talk table.  Ag Secretary Dan Glickman believes international sales of biotech crops will be discussed in the new round of world trade talks scheduled for November, reports Reuters.  "I don't see how this issue would not be raised," he said.  "I think it's a logical issue to talk about -- biotechnology trade, the approval process, those sorts of issues."   Advocates of genetically modified organisms (GMOs) "failed to appreciate" consumer reluctance, especially in Europe, to the new varieties, Glickman added.  Farmers worldwide will adopt biotech crops, he said, because they make economic sense through higher yields and other profit-making attributes.

Farm groups meet in “summit.”  Opinions vary widely whether anything much will come out of it, but most major farm groups are attending a summit meeting in St. Louis called by the National Farmers Union to discuss solutions to the downturn in farm prices and incomes.

Beijing drawing negotiators.  As a top U.S. negotiators extended his stay in China to continue talks on that nation’s bid to join the World Trade Organization, European officials also converged on Beijing, according to The Wall Street Journal.  Reports in recent days have been mixed about whether a final deal is near and whether China will backtrack on the commitments it made in recent negotiations in Washington.
 

April 26, 1999

Bill extends milk price support.  A bill has been introduced in the House to extend the milk price support program another three years.  It's now scheduled to expire Jan. 1.  National Milk Producers Federation "strongly supports" the bill: it provides "an effective dairy safety net."

New Farm Bureau bank gets charter.  Approval for a "de novo federal savings bank" has been granted the FB BanCorp by the Office of Thrift Supervision, the federal agency that regulates federal savings banks.  The new Farm Bureau Bank, FSB, will provide consumer banking services to Farm Bureau members in 39 states with more than 3 million members.

Tomato processors want 17% more acreage.  Tomato processors plan to contract for 17% more acreage this year.  California expects its production to expand as much as 30%; all other states expect to produce 10% more this year than in 1998.

Montana's ag discrimination cases 'drag on.'  Sen. Conrad Burns (R-MT) says cases alleging discrimination in Montana "continue to drag on unnecessarily."  Burns has received requests for assistance in 11 cases in the state; USDA reports 19 complaints from the state.  That puts it on a "par with much larger states and much higher on a per capita basis," says Burns.

Livestock regulations spark House interest.  Regulations to establish a strategy for animal feeding operations that will minimize pollution potential have attracted the interest of Republican and Democratic members of the House.  A series of letters to USDA and the Environmental Protection Agency express concern over a number of regulatory provisions.

USDA sees long-term weakness for U.S. ag trade.  International factors have combined to weaken the U.S. agricultural outlook for global trade.  The Asian crisis, economic contraction in Russia, lower growth projections for grain imports by China and expanding production potential among trade competitors are among the factors.

Headlines from other sources:

The United States agrees to tighten controls on hormone-free beef exports.  The Reuters report from Brussels says a European Union study said supposedly hormone-free U.S. beef contained hormone residues.   Reuters says U.S. Trade Representative Charlene Barshefsky "initially reacted angrily" to an EU threat to ban imports of hormone-free beef from June 15 if a solution could not be found by then.  But U.S. officials, in talks with their EU counterparts in Washington last week took a more conciliatory approach, according to an EU Commission document obtained by Reuters.

Ag Secretary Dan Glickman wants emergency funding approved quickly.  Many states once again are close to having no money available for farm loans, and Glickman wants Congress to move quickly, says the Associated Press.  States have reported record numbers of farmers coming in for loans, the report says.
 Arkansas officials say they got about $26 million to cover about 226 new loans but another $55 million is needed.  About all the funding available in Nebraska will be gone in another week or two, the AP notes.

China could join the WTO by November.  Reuters reports from Geneva that World Trade Organization Director-General Renato Ruggiero told the International Herald Tribune he had detected "encouraging signs" since a visit to Washington by China's Premier Zhu Rongji.
 "I think that since the visit...there have been many encouraging signs, and I believe we can have China in the WTO by November," Ruggiero said in an interview. The WTO begins its next agricultural trade round in November.

China talks with the European Union on WTO membership.  In a separate report, Reuters says China and the European Union are trying to negotiate an agreement.  There was no obvious progress in talks with the United States last week.  China-EU talks could begin as soon as today, sources told Reuters, and continue for two weeks.
 "After having seen what they have been able to offer to the Americans, of course that facilitates negotiations," one source told Reuters.  Another said, "If it's possible to wrap up so much the better.  but if it's not possible, we'll continue working."

Canadian durum acres lower.  Producers plan to cut acreage 28% this year, The Wall Street Journal reports.  Statistics Canada, the official statistics agency, released the report.
 

April 23, 1999

EPA accused of shoddy FQPA work.  The Environmental Protection Agency is not using sound science and not adequately considering transition periods for new pesticide tolerances as required by the Food Quality Protection Act, says Rep. Bob Goodlatte (R-VA).  The FQPA requires EPA to reassess one-third of the 9,700 existing food tolerances for pesticides by August.

Senate panel to look at trade options, nomination.  The Senate Agriculture Committee May 5 will hold a hearing on agricultural trade options to kick off renewal of the Commodity Futures Trading Commission's authority.  The same day, the panel will consider Tom Erickson's nomination as a CFTC member.

Small farm loan total value increases, loans decline.  Small farms are receiving more loan dollars from banks but the banks are making fewer loans, a new study shows.  The state-by-state study was published by the Office of Advocacy of the U.S. Small Business Administration.

Local water quality projects get boost.  The National Conservation Buffer Council and several private-sector organizations will cooperate in local watershed projects designed to address water quality problems from agricultural production.

Scientists worry about hasty FQPA implementation.  Scientists are concerned about potential consequences that may develop from "hasty implementation" of the FQPA by EPA.  A report from CAST also says they agree in principle with the goal of the law -- to provide a reasonable assurance of no harm from pesticides in diets and the environment.

Rule eases some farm credit concerns.  A new USDA rule eases financial burdens of some farm credit borrowers who must pay under shared appreciate agreements.  SAA obligations can be suspended for one year under the new rule.

Grants, loans total $155 million for rural areas.  USDA will provide $155 million in new grants and loans to 82 rural communities to improve access to safe drinking water and effective wastewater treatment.  Most of the funds will go to low income rural areas.

Peanut referendum scheduled.  Peanut producers have from May 24-June 11 to vote in a referendum on whether to put in place a national promotion, research and consumer information program.  A simple majority is needed for approval.

Meeting slated for sheep checkoff program.  USDA will hold a public meeting May 3 to discuss a promotion program for the sheep industry.  The meeting will be held in Aurora, CO.

News from other sources:

High tariffs could get another look.  Trade ministers at a NAFTA meeting in Ottawa may set up working groups to look at high tariffs that remain on some agricultural products traded between the U.S. and  Canada, according to the JOURNAL OF COMMERCE.  Canada restricts imports of dairy, poultry and eggs from the U.S., while peanuts, sugar and cotton face high barriers entering the U.S. from Canada, the JOURNAL reports.  The North American Free Trade Agreement, approved in 1993, ended or began a phaseout of all agricultural trade barriers between the U.S. and Mexico, but U.S.-Canadian rules were left unchanged from the earlier trade pact between those two countries.  Ministers are also likely to review rules for cross-border between the U.S. and Mexico.  Like agricultural tariffs, the tracking issue is likely to be difficult to resolve.

China backtracking?  The Wall Street Journal reports signs that China may be having second thoughts about some trade concessions it made to the United States to gain approval for its membership in the World Trade Organization.  The article lists only issues unrelated to agriculture, such as financial services and telecommunications.  However, China was widely perceived to have made dramatic concessions in farm trade.  The Journal  quotes some Chinese officials as criticizing Prime Minister Zhu Rongji for having given away too much.  U.S. and Chinese negotiators must hold additional sessions to discuss textiles and other issues, and the deal will not be final for at least several weeks.

A long-term food aid program is planned for Kosovo refugees.  Reuters reports that U.S. officials have outlined an open-ended program to meet about 70% of the food aid needs of the refugee population that could swell to 1.6 million.  The European Union also is expected to contribute to long-term relief benefits.  Hugh Palmer, who heads the Agency for International Development's disaster relief bureau, said, "If our allies fail to step up to the plate and take care of the rest of (the refugee) population, we will ratchet our contribution up higher."   Bloomberg News says the donation will be valued at $18 million and include 60,000 tons of food.  Vegetable oil and rice will be among the commodities to be donated.  Shipments of about 10,000 tons a month will start in July and continue through at least December.

Little progress made in U.S.-EU talks.  Reuters reports little progress on resolving trade disputes over beef and bananas was made Thursday between U.S. and European Union negotiators.  The United States already has imposed punitive 100% duties on $191 million worth of imports from the EU in the banana case and threatened to impose millions of dollars more in duties on EU-goods if the EU fails to lift a ban by May 13 on U.S. beef from animals treated with growth hormones.  "The EU has to make a fundamental decision here," said U.S. trade representative special negotiator Peter Scher.  "Are they going to comply with the (World Trade Organization) decisions?  If they are not going to comply, then there is a price to pay for that."

Food safety experts wants more irradiation permission.  A group of food safety experts wants the federal government to expand its proposal to allow meat irradiation to include ready-to-eat products like hot dogs and luncheon meats, an Associated Press report says.  Now USDA will permit but not require irradiation only for refrigerated or frozen uncooked meat.  Several companies have been forced to recall their luncheon meats and hot dogs in recent months due to possible contamination by listeria bacteria, the report notes.  "Irradiating those products may have helped prevent illnesses associated with some of those products," says Dennis Olson, director of the Utilization Center for Agricultural Products at Iowa State University.  Olson is part of the Food Safety Consortium established by Congress in 1988 to investigate meat and food safety.
 

April 22, 1999

OIG report hit hard at hearing.  USDA's inspector general's report on the crop insurance program came in for some hard hits from the crop insurance industry Wednesday.  Crop insurance company officials called it "flawed and filled with errors."  Senate Ag Committee Chairman Richard Lugar (R-IN) questions the management of the entire program.

FOR restoration sought.  Two senators have introduced a bill to restore the farmer owned reserve.  Helping farmers financially by keeping commodities off the market could increase prices, they say.  It's one way to help farmers "through these hard times."

Harkin wants position at Justice for ag.  Sen. Tom Harkin (D-IA) wants a position created at the Justice Department to focus on economic concentration in agriculture.  Concentration now "goes far beyond increasing efficiency," he says.  He plans to introduce legislation.

Combest and Stenholm encouraged on China talks.  The top Republican and Democrat on the House Ag Committee say they are encouraged about the progress made in negotiating the rules for China's accession to the World Trade Organization.  U.S. and Chinese negotiators have reopened talks to resolve the remaining issues for China's WTO membership.

More GSM allocations for Korea.  USDA will accept registrations for more sales of U.S. livestock products to South Korea under the GSM-102 program.  Exporters now can register another $30 million in beef sales, $12 million more in pork, another $25 million in hides and skins and another $10 million in leather.

Certain diets with peanuts found healthy.  New studies show higher monounsaturated fat diets, that include peanut butter, peanuts and mixed nuts, can reduce the risk of heart disease and help people lose weight.  Harvard researchers found that three times as many people can maintain weight loss through the so-called "Mediterranean style" diet.

April 21, 1999

Ackerman responds to OIG crop insurance report.  Ken Ackerman, USDA Risk Management Agency administrator, says the inspector general's report on crop insurance program performance includes claims each of which "stigmatizes an entire group and raises public alarm."  Yet, he adds, each point "is based on anecdotal incidents that do not appear to pass any test of statistical significance."

Glickman takes swipe at Canadian Wheat Board.  Ag Secretary Dan Glickman says a "key objective" of the United States in the WTO trade negotiations will be to "rein in the trade distorting practices" of state trading enterprises.  That includes the Canadian Wheat Board.  "Change is hard.  We know that.  But it is essential," he says.

EPA drinking water report released.  The Environmental Protection Agency finds that 92% of U.S. community water systems showed no violations of health-based drinking water standards in 1997.  Of the violations that occurred, 85% were violations of monitoring and reporting, not health standards, and almost all occurred in systems that serve 3,300 or fewer people.

ASA proposes $1 billion soybean program.  The American Soybean Association wants a $1 billion concessional sale and donation program for a host of soybean products.  A list of recipient countries, quantities and products was presented by ASA and the National Oilseed Processors Association (NOPA) to ag Secretary Glickman.

News from other sources:

Congress and the Clinton Administration are giving top priority to crop insurance reform this year.  That will be the way both choose to strengthen the so-called safety net for farmers, says Charles Abbott, Reuters, in a report dated Tuesday.  Crop insurance is a financial support for farmers, but "there are complaints it costs too much and its benefits are too skimpy," Abbott writes.
House Ag Committee Chairman Larry Combest (R-TX) wants a "very aggressive role for carriers," but with "huge taxpayer dollars" that could be involved in an expanded program, there would have to be "strong federal activity as well," the article says.   Committee ranking Democrat Charles Stenholm (TX), in a Tuesday address to the Commodity Club in Washington, said he believes "we need to start out with a blank sheet of paper" in crop insurance reform.  He cautioned against combining crop insurance and income support, but that position could set up a conflict with recent statements by Combest.

The largest pork supply in storage in 47 years was reported by USDA Tuesday.  A Reuters report quotes Chuck Levitt, livestock analyst with Alaron Trading Corp., saying there will be pork bargains for consumers "galore -- probably the best specials on pork that we have seen in years."  USDA's report showed pork supplies in U.S. warehouses increased to 558.3 million pounds, the largest March 31 supply since 1952 when 558.3 million pounds were in storage.  Levitt told Reuters that meat processors, fearing a shortage of hogs this summer, appear to have aggressively put pork in storage over the winter to carry them through summer.

Rep. Charles Stenholm (D-TX) wants a summit to fix low grain prices.  The ranking Democrat on the House Ag Committee would involve major farm exporters in the summit; one nation cannot do it alone, Reuters quotes Stenholm as saying.
Reuters also says a congressional staff worker saying a letter has been drafted to propose the summit to Agriculture Secretary Glickman, and efforts are being made to get House Ag Committee Chairman Larry Combest (R-TX) to sign the letter.

Sen. Byron Dorgan (D-ND) wants cereal prices probed.  Reuters reports he believes cereal companies are padding profits while farmers suffer low prices for the commodities used to make cereals.  General Mills is increasing cereal prices by an average of 2.5%; Kellogg raised its prices 2.7% in December.  "There's a short circuit in the economic wiring here," Dorgan says.  "Farmers suffer big losses growing the grain, while cereal manufacturers reap big profits turning the same grain into breakfast cereal."  The Reuters report says Dorgan wants Senate Ag Committee Chairman Richard Lugar (R-IN) to hold hearings on the issue.

An egg a day is a safe bet.  In an article datelined Chicago, the Associated Press reports that researchers have found that healthy people eating up to seven eggs a week do not increase the risk of heart attacks or strokes.  "Our study doesn't mean that people should go back to the typical western diet -- a breakfast with two eggs, bacon, sausage, butter and toast.  This kind of diet is very unhealthy," said Dr. Frank B. Hu whose research used data from two long-running landmark studies, the AP reports.  Click here for the article.

Glickman is "mending fences in Canada."  So suggests The Journal of Commerce in an article in today's edition.  The U.S. ag secretary is "reaching out to Canadian agriculture industry leaders...to form a U.S.-Canada consensus on global farm trade issues," the article says.

April 20, 1999

Collins on the state of U.S. agriculture.  USDA chief economist Keith Collins paints a rather dismal picture for almost all of production agriculture through 2000.  Complicating any relief from Capitol Hill is that money spent on farmers must be offset elsewhere in the spending categories.

Glickman, beef industry at wits' end with EU.  Ag Secretary Dan Glickman says a major trade conflict may be looming with the European Union over the ban on hormone-treated meat imports.  The National Cattlemen's Beef Association wants broad sanctions sufficient to offset the loss of beef sales in the EU.

U.S. export subsidy reductions are contingent.  Glickman also says any reforms of U.S. export subsidy programs depend on what other nations are willing to do on their own ag export subsidy schemes.  U.S. won't act unilaterally, he adds.

Farmer Mac sees 50% more in earnings.  The Federal Agricultural Mortgage Corporation (Farmer Mac) reports net income of $1.6 million for first quarter 1999, a 50% increase over first quarter 1998 net income of $1.1 million.  Some Farmer Mac stock may be listed on the New York Stock Exchange.

Education program for small farmers begun.  USDA is starting a new education campaign to help small farmers reduce costs and increase profits.  Information on sustainable agriculture practices will be provided to help small farmers.

Feingold on 'massive mergers' in agriculture.  Sen. Russell Feingold (D-WI) says the speed of "massive mergers" in recent years "can make your head spin."  He wants Congress and the Clinton Administration to assess "the real life marketplace consequences of these mergers for producers and consumers."

Farm land loss tops policy concerns.  The Henry A. Wallace Institute for Alternative Agriculture lists loss of farms and farm land and the need for increased market opportunities as top ag concerns.  Local farm policy roundtables in 12 communities are underway.

Ag people making news:

Senate Agriculture Committee Chairman Richard Lugar (R-IN) has been recognized for his "passion, eloquence and effectiveness as an advocate for science (and) nutrition research."  The public service award was given Lugar by the American Society for Nutritional Sciences at a recent reception.

News from other sources:

Bloomberg News reports from Ottawa, Canada, that Glickman warns the European Union to remove its ban on hormone-treated beef and said agricultural trade barriers will be a priority at the next round of World Trade Organization negotiations.  "The WTO has ruled three times on this issue and said that this beef is safe and there is no reason to restrict it in international markets," Glickman told reporters at the U.S.-Canada agricultural conference.  He also urged Canada to help fight global tariffs, export subsidies and biotechnology barriers, Bloomberg reports.

A Reuters report notes that the U.S. and Europe may be heading toward "a major conflict" over sales of beef grown with the aid of hormones.  The article says Glickman met with European Union Trade Commissioner Leon Brittan Monday and emphasized the U.S. desire for access to European markets.   Glickman says he and Brittan discussed possible resolutions, among them special labels on U.S. meat or some form of EU compensation for the beef ban.  But the paramount U.S. goal is free trade in beef, the report says.
 

April 19, 1999

Watershed funding considered.  A House ag subcommittee is looking at ways to improve many of the nation's watersheds.  No action, says one congressman, could mean having to remove the structures or endanger life and property as dams continue to age.

Washington state wants egg fee increase.  The program that Washington state uses to ensure fresh, clean and properly labeled eggs needs an inspection fee increase, say officials.  The .018 cents per dozen increase would be the first in 12 years.

Ag interests plan Earth Day events.  USDA and congressional officials are to speak at an Earth Day Agricultural Celebration this week.  Thursday and Friday events will highlight innovative environmental practices and a public rededication to conserving and protecting the 1 billion acres used to produce food, fiber and many other products.

Dairy interests split on pricing bill.  Not surprisingly, dairy producers and processors are split in their support of a bill to change the milk pricing formula from what USDA proposed in the final rule on milk marketing order reform.  The latest groups to weigh in with opinions are Dairy Farmers of America who support the bill and the International Dairy Foods Association members who oppose it.

DEIP policy amendment announced.  USDA is making a change to an earlier amendment to the Dairy Export Incentive Program designed to allow exporters more flexibility in meeting obligations under their DEIP agreements.  Changes in the DEIP bonus, however, could occur.

Headlines from other sources:

Farm, food PACs give $11.5 million.  The Webster Agricultural Letter reports farm and food political action committees set a record for spending in the 1998 congressional races.  Final information from the Federal Election Commission shows nearly $11.5 million was contributed in 1997 and 1998.
 Republicans got $65 for every $35 given to Democrats, "a ratio similar to that of the 1996 campaign," the letter reports.  "As usual, Republicans were most heavily favored by livestock and poultry groups, trade associations, food processors and input suppliers."
 That advantage was "far less pronounced from general farm organizations and most commodity groups, especially those made up of dairy and sugar producers," the report added.

EU consumers don't like GMO foods.  Europeans are "increasingly turning their noses up" at U.S. exports of genetically modified produce, says Reuters in a London news item.  They're "fed up with funny food."   "From London to Lisbon, consumers scarred by a series of food scares are wary of the new grains whose genetic makeup has been altered to increase resistance to vermin and drought," Reuters says.  "Decried as `Frankenstein Foods' and lambasted by Prince Charles, GM foods, critics argue, must undergo thorough, long-term testing to ensure they do not impair health or hurt the environment before widespread use is allowed."

Farmers criticize government.  Farmers upset about increasing market concentration in agriculture criticized government policy during a "rare meeting with federal officials" in St. Paul, MN, reports the Associated Press.  Sens. Paul Wellstone (D-MN) and Tom Harkin (D-IA) organized the "Midwest Farm Price Crisis Forum."   The AP report says farmers were concerned about low commodity prices and a lack of control "in swiftly consolidating agricultural industries such as meat packing, grain processing and farm supply."

Lower cattle prices expected.  Reuters reports lower cattle prices "appear likely this summer" after USDA reported feed lot supplies on April 1 increased to 8.9 million head or 103% from a year earlier in the seven major cattle-feeding states.  Many of these cattle will reach market weight this summer and force cash cattle prices into the upper $50s per cwt. to low $60s, a reduction from the $65 paid last week.
 "This report uncovers a very strong need for the cattle industry to market as aggressively as it can in the coming weeks," the report quotes Chuck Levitt, senior livestock analyst with Alaron Trading Corp.  "If they start dragging their heels on marketings now, it could be a very, very long summer."

EU unlikely to appeal banana ruling.  The European Union probably will not pursue further appeals of a World Trade Organization to change its banana importing rules, The Wall Street Journal reports.  Though the U.S., which brought the case, does not produce bananas, the dispute is considered important because of the precedent it could set for implementing import restrictions equitably.

U.S. plans more Balkan food aid.  Secretary of Agriculture Dan Glickman said the U.S. is preparing to send more humanitarian food aid to help Kosovar refugees, Reuters reports.  Congress is expected to debate soon a request for several billion dollars in supplemental appropriations to pay U.S. costs of the NATO operations in the Balkans.

Wheat Board to get audit.  The often-secretive Canadian Wheat Board will get its first audit by the Auditor General of Canada, according to Reuters.  Release of the audit results will be up to Parliament.  The CWB has been controversial not only among U.S. farmers who see it as a competitor, but among some Canadian growers dissatisfied with its operations.  The CWB and other state trading enterprises are expected to be a prime focus of debate in upcoming World Trade Organization negotiations on farm trade.
 

April 16, 1999

Congress finalizes budget resolution.  Included in the $1.7 trillion budget resolution passed by the House and Senate this week is $6 billion to reform risk management for farmers and to provide farm income assistance.

Market acceptance of Bt corn spelled out.  Some U.S. corn users don’t want biotech corn used at domestic facilities where processed products are produced for export.  That may be difficult to guarantee, however.  Corn Refiners Association says products sold by its members in Europe are processed products, not genetically modified organisms requiring European regulatory approval.

Final approval given black farmers’ settlement.  Black farmers are starting to sign up for payments to be made as part of a discrimination suit settled in federal district court this week.

Bill forces changes in milk order rule. USDA’s final rule to reform milk marketing orders would be significantly changed under a bill introduced in the House. If the bill is approved, USDA will have to use Option 1A to set Class I milk differentials rather than the revised Option 1B USDA offered in the final rule.

USDA revises soybean producer total for referendum.  USDA has revised the estimated number of soybean producers who are eligible to participate in a referendum request on the soybean promotion and research order.  The eligible number is almost double the initial total.

House members push for new loan funds.  Ten House Democrats called for a quick vote on a spending bill that provides new farm lending funds for a USDA program that’s run out of money.

For the calendar:

Rep. Charles Stenholm (D-TX) will be the featured speaker April 20 at the Commodity Club luncheon.  The luncheon will be held at the Hyatt Regency Capitol Hill, 400 New Jersey Ave., NW, in the Capitol Room on the lobby level.  It begins at noon.  Contact Julie J. Bousman, at 202-347-0228, for more information.

Headlines from other sources:

Reuters reports from Rome that initial forecasts show global cereal production declining around 1.5% this year to 1.85 billion tons.  The United Nation’s Food and Agriculture Organization says this would fail to meet expected world consumption for 1999-2000.  FAO also revised its estimate for 1998 global food grain production at 1.877 billion tons.  “If current forecasts materialize, cereal output would not be sufficient to meet expected consumption requirements in 1999-2000, and global cereal stocks accumulated in the last two seasons would have to be drawn down to below safe levels,” FAO said.

South Korea is violating world trade rules by restricting imports and sales of U.S. beef, Bloomberg News quotes U.S Trade Representative Charlene Barshefsky.  Barshefsky asked for a dispute settlement panel from the World Trade Organization to declare Korea’s actions illegal and order a liberalization in beef trade rules.
 The report also says South Korea limits the number of importers who can buy U.S. beef, restricts the number of stores where U.S. beef can be sold and requires huge markups.  The American Meat Institute, National Cattlemen’s Beef Association, U.S. Meat Export Federation and the American Farm Bureau Federation requested the action.

Ten House Democrats have called for a quick vote on a supplemental appropriations bill that authorizes another $1.1 billion in farm loans by USDA, says Reuters.  The bill is in conference now, and House and Senate have not agreed on how to offset the cost of the legislation which includes aid to Jordan and to hurricane victims in Latin America.  President Clinton has threatened to veto the bill.  An expected new supplemental request to pay for U.S. military operations in the Balkans may complicate matters further, Senate leadership sources said this week.

A group of farm and rural objectors to the national pork checkoff  claimed enough signatures to force a nationwide vote on ending the levy, Reuters reports.  The Campaign for Family Farms opposes the 13-year-old checkoff, which assesses each producer about 30 cents per hog marketed.
 

April 15, 1999

Milk producers want reforms to reform package.  The National Milk Producers Federation wants changes in USDA's recently announced final rule on reforms to milk marketing orders.  NMPF plans to work with Congress and USDA to change the classified pricing provisions.

More peanut consumption sought through bill.  Sen. Rick Santorum (R-PA) has introduced legislation designed to make U.S. peanuts more competitive in international markets by  scaling back the current peanut program.  If enacted, says Santorum, it will lead to increased consumption of peanut-containing products.

Fruit, veggie safety bill introduced.  Sen. Tom Harkin has introduced a bill to provide a strong food safety system for fruits and vegetables.  One provision calls for "good manufacturing practices" for processors such as clean water, worker sanitary facilities, rodent control measures and other sanitation practices.

Let the public pay, too, says AFBF.  American Farm Bureau Federation says farmers and ranchers gladly will help preserve endangered species habitat as long as the public pays its fair share.  Often farmers can't use land because "it might someday be habitat for a listed species that is not presently there," says AFBF.

AFBF joins family in suit against EPA on water regs.  American Farm Bureau Federation joins a Yorkville, CA, farm family suing the Environmental Protection Agency, alleging EPA overstepped its authority when it interfered with the family's right to harvest timber from their land.

Combest wants USDA to help on CRP plans.  House Ag Committee Chairman Larry Combest (R-TX) wants USDA to continue providing technical assistance to land owners who need help submitting Conservation Reserve Program plans.  USDA has temporarily suspended technical assistance because money wasn't available, says Combest.

For the calendar:

The Senate Agriculture Committee will hold a hearing next week to review a recent report from USDA's office of inspector general that was highly critical of the federal crop insurance program.  The hearing will be held at 8:30 a.m. Wednesday, April 21, in Senate Russell 328-A.

Headlines from other sources:

Plans to resolve U.S.-EU hormone issue on the table.  Reuters reports that bilateral talks on a labeling plan that would allow U.S. producers to sell hormone-treated beef in the European Union are expected in the next few weeks.  However, even if the negotiations are successful, they may come too late for the EU to avoid another round of punitive duties on EU exports to the United States.  The United States has threatened to impose 100% duties on hundreds of millions of dollars worth of products if the EU does not open its markets to hormone-treated beef by May 13.  Tassos Haniotis, ag counselor at the European commission's delegation in Washington, told reporters that a date for talks on beef labeling could be set after EU Trade Commissioner Sir Leon Brittan visits Washington next week, Reuters reports.  The EU expects a response soon from the United States on its initial proposal.  "That should set the stage for further negotiations," Haniotis said.

Thorn Apple says products safe.  Thorn Apple Valley Inc. says its food products are safe and a government action declaring 30 million pounds of meat unfit to eat caused "confusion and unnecessary alarm," says Reuters in a Southfield, MI, article.  "I want to reiterate that all Thorn Apple Valley products currently on store shelves or in distribution to the stores have been produced under one of the most comprehensive food safety programs in the industry," Joel Dorfman, Thorn Apple president said in a statement.
 Thorn Apple said the government notification was not a new recall.  The company suspended production at its Forrest City, AR, plant four months ago and recalled meat suspected of contamination of listeria, Reuters noted.

Hog farmers hope to force vote.  The Associated Press reports that hog farmers who want a referendum on their checkoff program are "one step closer to forcing a vote."  Opponents of the checkoff fees plan a news conference today in Des Moines, IA.  They claim to have 16,500 signatures on a petition calling for a referendum.  USDA requires 14,986 signatures.  The signatures must represent 15% of all hog producers and importers and be verified by USDA before a referendum can be scheduled.  "To end up with 2,000 more I think says something," AP quoted Rhonda Perry, a Missouri organizer for the Campaign for Family Farms.  "There is a lot of opposition to a program that has absolutely no accountability to the people who are paying for it."  The money goes to the National Pork Board which contracts promotion activities through the National Pork Producers Council.

New aid for farmers being studied.  Reuters quotes Ag Secretary Dan Glickman saying the Clinton Administration is seriously considering "some sort of additional income loss assistance" for farmers.  He did not give details.  Farmer income is expected to decline by 6% this year due to continuing low grain prices and a grain surplus worldwide.  "We are seriously examining some sort of additional income loss assistance program to try to help some folks deal with loss of revenue as a result of low prices," Glickman told reporters.  There is growing interest in Congress to deal with farm problems, but "crop insurance tends to take up the heart of this debate," Glickman added.

Corn processors won't accept some GMO corn.  Pro Farmer news says A.E. Staley and Archer Daniels Midland won't accept genetically modified corn varieties for processing that haven't been approved by the European Union.  Staley says that is "no different" than the position it has taken in the past on GMO corn varieties not approved by the EU.  "We really don't view this as a change in any position," said official Pat Mohan, according to Pro Farmer.  Cargill, Inc., however, says it will buy GMO corn varieties for processing that aren't approved by the EU, Pro Farmer reports, but will work "to move those products into the domestic market and not export them to the EU."
 

April 14, 1999

USDA recalls all products from meat plant.  USDA says all meat and poultry products produced by Thorn Apple Valley, Forrest City, AR,  are unfit for human consumption.  The company had recalled all products produced after July 6, 1998.  Included in the decision are about 12 million pounds exported to Russia and South Korea.

World wheat supply, demand gets tighter.  USDA's just-released wheat outlook shows the world wheat supply and demand balance getting tighter in 1998-99 but not close to the lower than 20% levels in 1995-96 or 1996-97.

USDA recognizes limited liability firms.  USDA will recognize a limited liability company as a legal entity under the Perishable Agricultural Commodities Act (PACA).  Most states already have the designation.

Moldova will get 5,000 tons of U.S. wheat.  About 5,000 tons of wheat will be donated by USDA for monetization in Moldova. Proceeds will fund a credit program for farmers and farmer groups to buy livestock and small machinery.

Bill bans USDA stamp on imported meat.  Legislation has been introduced in the Senate to prohibit imported meat from bearing the USDA grade label.  Only U.S. produced meat and meat products or live cattle that have been in the country for at least 90 days would be USDA stamped.

USDA earmarks $8.3 million for rural development.  USDA will invest more than $8.3 million to help rural communities and business n 11 states fund projects to create or save more than 700 jobs.  The money will leverage an additional $35.4 million from other private and public sources.

Global agriculture theme for St. Louis meeting.  Former Sen. John C. Danforth will chair a meeting May 23-25 of international senior agricultural leaders in St. Louis, MO.  More than 40 speakers and presenters from around the world will participate.

News from other sources:

Reuters focuses on the meats recall by USDA for products made by the Thorn Apple Valley plant in Arkansas.  Reuters called it a "dramatic step."

President Clinton and Chinese Premier Zhu Rongji have agreed to talk further about China's entry into the World Trade Organization in negotiations in Beijing by the end of this month, says Reuters.

In an article filed from Rome, Reuters says the Kosovo conflict has devastated agricultural and food processing industries, quoting the U.N. Food and Agriculture Organization.  The crisis will have "long-term food security implications" for the region.
 

April 13, 1999

Farm banks face rural development challenges.  The American Bankers Association reports farm banks face funding challenges if they are to support rural development -- financing for business start-ups, leadership development and infrastructure such as roads and office buildings.

Glickman says U.S.-China pact a ‘fundamental breakthrough.’  Agriculture Secretary Dan Glickman calls the U.S.-China ag trade agreement a "fundamental breakthrough for American agriculture."  China's agreement to lift sanitary and phytosanitary restrictions "could have significant benefits," he adds.

Farmers get extra week for crop loss assistance.  USDA is giving farmers through April 16 to sign up for assistance on crop losses.  That's an extra week beyond the initial deadline.

For the calendar:

Sen. Tom Harkin (D-IA) holds a news conference 11:15 a.m. Wednesday to announce the introduction of his fruits and vegetables safety bill.  The news conference will be held in room 328A of the Russell Senate Office Building.  The bill "sets sensible standards to ensure that Americans can be more confident in the safety of the produce they are eating all year long," says Harkin.

People in the news:

Sen. Thad Cochran will receive the "green key" award for his work in protecting and improving the environment, public health and quality of life in rural America.  The award is given by the National Rural Water Association.  The ceremony will be held at noon today in the Senate Russell caucus room.

News from other sources:

The European Union will ask the United States for negotiations on a labeling plan that would allow the sale of U.S. hormone-treated beef in the European market, Reuters reports.  Last month, the U.S. published a list of more than $900 million worth of EU products that could be subject to 100% duties if the EU does not open its market to hormone-treated beef.

Bloomberg News reports that talks will be held in November between U.S. and South American officials on lower tariffs and other liberalizing farm trade steps.  Agriculture Secretary Dan Glickman will participate along with officials from six South American nations -- Argentina, Brazil, Paraguay, Uruguay, Bolivia and Chile.

Reuters reports that USDA's Agricultural Marketing Service is expected to publish a proposed rule later this year defining "organic" for all farm products.
 

April 12, 1999

Zhu in Midwest, warns U.S. not to press too hard.  Chinese Prime Minister Zhu Rongji visited an Illinois farm over the weekend, given prime Angus bull.  Before leaving Washington, he warned U.S. trade interests not to push China too hard on opening its markets.  Reuters reports the ag trade portion of a broader package of issues was signed on Saturday.

China will reduce dairy tariffs.  Somewhat overlooked in the focus on wheat, meat and citrus is a provision in the final terms on China's trade liberalization to dramatically reduce tariffs on dairy imports.  U.S. dairy officials say it should mean $100 million more in U.S. dairy exports.

U.S. dairy exports posted gains in 1998.  The U.S. Dairy Export Council reports strong gains in cheese, whey proteins, lactose and ice cream exports last year to key markets such as Mexico, Japan and China.  USDEC notes the increases were achieved without subsidies.

USDA files complaint against Excel.  USDA claims Excel Corporation underpaid more than 1,250 hog farmers by about $1.8 million by failing to notify them the company had changed how it calculated lean percent of hogs.  Excel is a subsidiary of Cargill, Inc.

EPA seeks comment on dietary risks from pesticides.  The Environmental Protection Agency has asked for public comment on a draft "guidance document" on a rationale for using a particular standard to regulate acute dietary risk assessment.  The agency also proposed to revoke residue limits for previously canceled pesticide uses.

Livestock payments being made.  USDA is paying farmers and ranchers for grazing losses in 1998 from drought and other natural disasters.  The payments are being made under the $200 million Livestock Assistance Program.

Dairy farmers may sign up for payments.  Dairy farmers have until May 21 to apply for assistance under the new Dairy Income Loss Assistance Program.  The final payment rate will be decided after the application period ends.

Headlines from other news sources:

Reuters and Pro Farmer report that Cargill will contest USDA's allegation that it underpaid U.S. hog farmers by $1.8 million.  Reuters quotes Mark Klein, Cargill spokesman, as saying, "We're confident that we will be successful in contesting this and proving that we did not violate the (Packers and Stockyard) Act."

Farm Journal's Bob Coffman asks whether Excel short changed pork producers, noting USDA's position that the company underpaid more than 1,250 farmers by about $1.8 million.

Kyodo News Service says Zhu's visit to a farm outside Chicago resulted in "a warm welcome from a group of farmers who need more agricultural export trade and favor China joining the World Trade Organization."

Russia hopes to harvest enough this year to meet the country's food needs, according to a Reuters report from Moscow.  Officials expect grain production to exceed 70 million tons.  The production total last year was 47.9 million tons.

Kyodo News Service reports from Tokyo that Japan will explain its new rice import tariff system in talks with European Union officials later this week.

A Reuters report says that Russia has been authorized by buy $348.8 million in U.S. meats, soybeans, soybean meal and corn as part of the $1 billion food aid package authorized earlier.  Some $180 million in frozen beef and beef offals is authorized, $30million for 50,000 tons of ready-to-cook frozen poultry parts, $51.28 million in soybean meal, $38.45 million in soybeans and $49.08 million in corn.
 

April 9, 1999

Continued low crop prices may push Congress into action.  USDA's supply and demand report changes the outlook for crop prices little, but with expected prices well below last season's for corn, wheat and soybeans, the crack in the door may have widened for Congress to approve yet another bail-out from low farm income.

U.S., China fail to reach agreement on WTO membership, but agree on several ag trade issues.  The whole deal wasn't finalized Thursday, as many U.S. interests had hoped, but the United States and China did work out final details on several ag trade issues.  U.S. ag groups hailed the farm-product package.  Both sides will continue to negotiate on other issues, hoping to wrap up a final agreement by year's end and allow the United States to support China's membership in the World Trade Organization.

Harkin wants GAO study of food safety.  Sen. Tom Harkin (D-IA) want the General Accounting Office to study the safety of meat and poultry bought for federal nutrition programs including school meals.  Specifically, the study is to focus on how food borne illnesses are being prevented and the procurement practices and procedures used in acquiring meat and poultry for the products at the federal, state and local levels.

Milk mustache campaign and Hearst Magazines enter new venture.  The milk processors' "milk mustache" campaign and Hearst Magazines are combining their efforts to make it easier for parents to read to children and help them teach children the importance of both drinking milk and reading.

Headlines from other news sources:

Most of the news articles published today deal with the U.S.-China trade agreement.  Bloomberg News says "most" of the trade issues blocking China's entry into the World Trade Organization are wrapped up.  U.S. Trade Representative Charlene Barshefsky is quoted as saying, "I don't see any gap that's not bridgeable."

Reuters focuses on a joint news conference following a White House meeting between President Clinton and Chinese Premier Zhu Rongji where both said they were committed to completing a pact before the end of the year when a new round of multilateral trade talks begins.

Another Bloomberg article says the agriculture pact paves the way for increased shipments of U.S. wheat, corn, citrus, meat, fertilizer and other products "worth billions of dollars."

An Associated Press article notes that the U.S. and China failed to finalize a trade agreement "but found accord" on opening China's markets to "some U.S. farm products."  The administration decided "it needed more than Chinese negotiators were willing to offer to sell the trade package to a hostile Congress."

Reuters publishes highlights of pledges made by China to the United States to liberalizing its economy.  Measures that will go into effect once China joins the World Trade Organization involve agriculture, telecommunications, banking, insurance, securities, high technology, automobiles, audio-visual issues, travel and tourism, chemicals and wood and paper.

Charles Abbott, ag writer for Reuters, bylines an article on the "slow road to crop insurance reform."  He cites five factors that will slow "or even stymie" crop insurance reform this year.  "Retooling crop insurance may prove as time and energy consuming as writing one of the farm bills that set U.S. agriculture policy every few years," he writes.

Bloomberg reports that legislation to be proposed next week by the Clinton Administration will ask for mandatory price reporting from livestock sales as a way to give farmers and ranchers bargaining strength with food companies.
 

April 8, 1999

Crop insurers take IG report to task.  The chairman of the American Association of Crop Insurers challenges a recent report on the crop insurance program by USDA’s Inspector
General as “inaccurate” at best.  The association’s chairman points out that even the simple errors in the report, such as understanding how the program works or what it really
costs, betray an alarming lack of knowledge about the crop insurance program and jeopardize any serious discussion of reform.

Pork checkoff audit upsets producers.  An audit of the pork checkoff program found no misuse or loss of checkoff funds but did recommend more oversight of the program and the relationship between the National Pork Board and its primary contractor, the National Pork Producers Council.  That's "wasteful and just not good business," says NPPC official.

China update: Zhu and Clinton meet today and tomorrow.  China's Premier Zhu Rongji and President Clinton meet today and tomorrow with China's World Trade Organization membership high on the agenda.  There are no official indications trade issues will be resolved to allow U.S. support for China's entry, but it seems an ideal time to announce such a pact.

News from other sources:

The Associated Press reports that farmers are having to cancel their health insurance policies because of the cost.  Some farmers complain that government-assisted health care is tailored to urban lifestyles and excludes needy farm families.

Bloomberg reports a milk options contract aimed at helping operators of average-sized dairy farms guard against price swings starts trading Monday on the Chicago Mercantile Exchange.  The Commodity Futures Trading Commission approved the contract Monday.  It is based on 100,000 pounds of milk.

In a report filed from Paris, Reuters reports that France's powerful farm union, FNSEA, has urged the European Union to appeal a ruling by the World Trade Organization that sided with the United States against the EU's banana import system.

The Journal of Commerce says European consumers, banana importers and exporters of luxury goods "are waiting expectantly for the EU's next move" on the banana decision.  American trade officials "exulted in victory," says the JOC.
 

April 7, 1999

U.S. wins WTO ruling.  The United States is free to impose $191.4 million in punitive tariffs on European products because the European Union has maintained import policies in violation of international trade rules.  U.S. ag groups applauded the World Trade Organization ruling.

Is there or is there not an agreement with China?  China's Prime Minister Zhu Rongji is in the United States this week believes the United States and China have a trade agreement that settles several agricultural issues.  U.S. officials are more wary, saying ag issues have not been resolved entirely.

Glickman challenges WIC directors on nutrition.  Agriculture Secretary Dan Glickman challenged WIC directors to give children "the tools for better nutrition."  Children are "awash" in junk foods, not getting enough nutrition into their diets.

People in the news:

National Association of Wheat Growers' new president is Jim Stonebrink, a fourth generation farmer from Enterprise, OR.  Outgoing President Bill Flory becomes NAWG's official immediate past president.  Terry Detrick, Ringwood, OK, moves up to vice president, and Tommy Womack, Tulia, TX, becomes secretary-treasurer.
 

April 6, 1999

NMPF finds rule includes 'most' of its wishes.  The National Milk Producers Federation says USDA adopted "most" of the changes NMPF recommended for the final rule on milk marketing order reform.  NMPF's board meets April 13 to further assess the rule's implications.

AHI scores FDA on data used for antibiotics.  The Food and Drug Administration may have chosen to rely on reports with "questionable scientific merit" to change the way antibiotics are used in farm animals, says the Animal Health Institute.  Reports on antibiotic safety seem to have been ignored.

Farm Bureau seeks to educate young farmers.  The American Farm Bureau Federation holds a World Congress for Young Farmers Feb. 20-24 in Orlando, FL.  The purpose is to provide answers to the challenges young farmers face with "noted international experts" on the agenda.

News from other sources:

Reuters reports that China's suggestion that it is close to a deal to join the World Trade Organization "does not reflect" the state of negotiations.  The article quotes Jay Ziegler, spokesman for U.S. Trade Representative Charlene Barshefsky.

Japan's Kyodo News Service reports that ag minister Shoichi Nakagawa "blasted" the Clinton Administration for reviving the "Super 301" trade provisions allowing Washington to impose sanctions on countries it finds engage in unfair trade practices.

The Associated Press reports that authorities are investigating an outbreak of illness from E. coli-contaminated ground beef after at least six guests became ill at a Maine ski resort.

A Reuters article notes that USDA will earmark about $2 million for research into the safety of ready-to-eat foods after an increase in recalls of foods tainted with listeria.
 

April 5, 1999

Georgia's ag department probe shows short milk cartons.  The Georgia Department of Agriculture reports that an investigation has revealed several "related instances" of milk being sold in gallon-sized containers that were not entirely filled.  Processing plants are being blamed for "short-changing" consumers.

USDA issues corn costs, returns report.  USDA says corn yields changed little from 1996 to 1997, but harvest-time prices were about 11% lower, declining from more than $2.80 per bushel in 1996 to about $2.50 in 1997.

Wheat growers told to lobby on wetlands report.  New rules from the U.S. Army Corps of Engineers force a farmer to appeal only a final Corps decision denying a permit to fill wetlands.  A producer cannot appeal an initial jurisdictional determination or whether the wetland is protected by the Clean Water Act.  The National Association of Wheat Growers is urging members to contact their members of Congress to protest "this grab for power" that will limit farmers' "rights in handling wetland issues."

AMI says USDA's policy lacks scientific basis.  American Meat Institute says USDA's expanded policy on E. coli as an adulterant in beef products lacks a scientific basis.  Several meat associations joined AMI in claiming there are no public health risks associated with a USDA rule that expanded the policy.

Dairy farmer group disappointed in order revisions.  Dairy Farmers of America, Kansas City, MO, is disappointed in USDA's final rule on milk marketing order reform.  Farm income will be lowered initially by almost $270 million under the rule, says DFA.

China’s Premier in Washington this week.  Farm interests will watch Zhu Rongji’s visit closely to see if China makes agricultural trade concessions to gain U.S. approval for its bid to join the World Trade Organization.

EPA says Superfund is making progress.  The Environmental Protection Agency claims "significant progress" is being made under the Superfund program in cleaning up hazardous waste sites and protection public health and the environment.

Headlines from other sources:

In a report from Belgrade, Reuters reports Yugoslav President Slobodan Milosevic held separate meetings Sunday to discuss preserving agricultural production and financial stability during NATO air strikes.  Milosevic spoke with the federal and Serbian ag ministers about "the importance of realizing this year's agricultural production."

Another Reuters report says agriculture Secretary Dan Glickman has asked his staff to work on the Clinton Administration's efforts to provide aid to refugees fleeing Kosovo.

A Bloomberg report from Geneva says "wholehearted" support is needed from the United States and the European Union for whoever takes over as the new trade chief at the World Trade Organization to succeed in the job of bringing an agreement out of the current "acrimonious debate" over the position.  The 134 members of the WTO were not able last week to break a deadlock over who should take over the helm from Renato Ruggiero of Italy.
 

April 2, 1999

USDA predicts worsening ag prospects.  USDA's just-released agricultural outlook calls for worsening agricultural prospects this year.  Larger world supplies and less international demand should continue.  Farm financial stress also continues and intensifies, especially in the Corn Belt.

USTR issues trade barrier inventory.  The office of the U.S. trade representative has released its annual report on foreign trade barriers, noting trade difficulties with Canada, China, European Union, Japan and South Korea.  Japan's trade minister calls the report "biased."

USDA's Collins blasts leaked report on electricity.  USDA's chief economist, Keith Collins, says a report on electricity restructuring, leaked in recent days, is "incomplete and potentially misleading."  The internal document was still being developed.  "People should be cautioned against" drawing inferences from the media's reporting on the document, he says.

Crop insurance deadline officially extended.  USDA has officially extended to April 12 the crop insurance deadline by which farmers must change their coverage from the CRCPlus policy if they wish to do so.

Greenpeace hails Greece on GMO decision.  Greenpeace "welcomed" the decision by Greece to call for a Europe-wide moratorium on all commercial releases of genetically modified organisms and of any trade in genetically engineered seeds.

News from other sources:

Reuters reports members of both Senate and House are looking for ways to overturn the milk marketing order reforms USDA announced this week or escape the reforms by creating regional pacts that allow higher milk prices.  Rep. John Sweeney (R-NY) says he will file an override bill when Congress returns from the spring recess April 13.

In another Reuters report, a proposed North Dakota law has come under fire from Canada.  Canada wants consultations with the United States on the law to restrict entry of Canadian agricultural imports.  The law restricts imports "under the guise of technical requirements," the Canadian government said in a statement.

Bloomberg News reports that Chinese Premier Zhu Rongji's visit to the United States next week will include meetings with business and political leaders in six cities to add momentum to negotiations aimed at allowing China to enter the World Trade Organization.
 

April 1, 1999

Final rule on milk marketing orders released.  USDA released the long-awaited final rule on federal milk marketing orders.  International Dairy Foods Association President E. Linwood Tipton says it falls short of "true reform."  National Milk Producers Federation CEO Jerry Kozak refused direct comment on the rule and said NMPF will evaluate whether its own eight criteria for reform have been addressed in the final rule.

USDA urged to fix CRP glitch.  Sen. Pat Roberts (R-KS) and Rep. Jerry Moran (R-KS) want USDA to take another look at a provision in the Conservation Reserve Program enrollment criteria they say runs counter to USDA's "stated goals of controlling wind and water erosion."  They say USDA "narrowed the criteria" under which grass strips can be enrolled.

Pathogen screening company formed.  Dairy Farmers of America has formed OmniTech, L.L.C., a pathogen testing service that extends DFA services outside DFA.  The new company will provide pathogen screening for a variety of raw ingredients and finished products.

Risk management advisory committee formed.  USDA has formed a risk management advisory committee to develop recommendations that will be used to broaden and strengthen risk management programs, such as crop insurance.  USDA now is seeking nominations for appointments to the committee.

People in the news:

Patrick M. Steel has been named associate administrator of USDA's Foreign Agricultural Service.  He will oversee and administer export promotion, trade policy and development functions under the agency's jurisdiction.  Steel has been deputy chief of staff for Agriculture Secretary Dan Glickman since March 1997.  Prior to his work at USDA, Steel was a special assistant to President Clinton and was deputy director of scheduling.

News from other sources:

Reuters reports that USDA's final rule on milk marketing orders will make prices more equal nationwide.  Grocery store prices should not be affected to any great extent.

The Associated Press also reviews the milk marketing order changes and notes that USDA expects the average price of drinking milk to decline about 2 cents a gallon.

Pro Farmer's headline news includes an article that net farm income now is expected to total $43.6 billion this year, $1 billion less than was predicted by USDA in December and $2.4 billion less than the 1998 estimate.  USDA did not publish an official statement on the new projection, says Pro Farmer, but made the forecast "quietly."