AgricultureLaw.com -- April 2000 News Archive

April28, 2000

Glickman, Congressmen Warn of China Consequences. Agriculture Secretary Dan Glickman and two of the House members who accompanied him to China this week Thursday issued warnings of dire consequences if Congress fails to approve permanent normal trade relations for China. Glickman said the U.S.-China trade agreement differs from the North American Free Trade Agreement in which the United States had to open markets to Mexico and Canada. This time, he added, the United States isn't giving up anything; China is the one opening up markets.

Cattlemen Approach Concentration Cautiously. The American Farm Bureau insists that Congress get tough on agricultural concentration, but cattlemen are much more cautious when it comes to tightening up the nation's antitrust process. Meat companies flatly oppose two bills pending in the Senate that attempt to make mergers and acquisitions tougher to complete.

Pork Wants Lion's Share of World Market. The U.S. pork industry is working to become the dominant player in the pork export market over the next decade. As population and economic prosperity both expand, U.S. pork can become the meat of choice in more and larger markets, pork industry officials believe.

Greenspan Urges More Trade Openness. Federal Reserve Chairman Alan Greenspan has called for more open world agriculture markets, saying freer trade would help struggling U.S. farmers prosper from their "remarkable productivity." The remarks came in a speech to a Federal Reserve Bank of Kansas City conference on the rural economy.

Ag News Summaries

Bt Corn Offers an Added Advantage to Growers. USDA's Agricultural Research Service finds that biotech corn not only prevents corn borer damage but also holds down the levels of toxins produced by fungi that can hamper exports. European and Asian markets can refuse to import U.S. corn if they find what they believe are unacceptable levels of toxins in the shipments. Environmental conditions and the specific Bt corn hybrid play roles in the actual amount of reduction seen, but corn varieties that expressed the Bt protein throughout the plant rather than in specific areas were the least likely to have significant levels of one such toxin, fumonisin. Researchers found fumonisin levels were 30 to 40-fold lower in Bt corn than in non-Bt varieties in Illinois cornfields.

GMA Wants FDA to Withdraw Disease Claims Rules. The Grocery Manufacturers of America wants the Food and Drug Administration to "immediately withdraw and revise" rules governing disease claims for foods and dietary supplements. A federal appeals court ruled that the FDA policy on food disease prevention claims was a violation of the Constitution. GMA believes the decision "establishes that GMA's members have a constitutionally protected right" to use truthful and non-misleading claims for food products. The GMA petition states that first amendment principles in the case apply to all food, not just dietary supplements. Four disease claims for dietary supplements were involved directly in the appellate court decision. FDA "must apply the principles set forth in the (court ruling) to its regulation of food labeling," said GMA.

China Against U.S. Human Rights Link. China says it is against moves in Washington to establish a watchdog commission to evaluate China's human rights policy, KYODO NEWS SERVICE reports from Beijing. U.S. presidential aide Gene Sperling says the Clinton Administration supports a proposal by congressional Democrats to create such a commission that would recommend sanctions against China. The move is seen as an appeal to Democrats wary of granting China permanent normal trade relations. China claims its stand on human rights should not be "politicized" and that the bilateral U.S.-China trade agreement should pass Congress as is.

China Sees Peaceful End to Taiwan Conflict. China appears committed to a peaceful settlement of its conflict with Taiwan, THE WALL STREET JOURNAL reports. The article quotes Agriculture Secretary Dan Glickman says Wang Daohan, one of China's top Taiwanese negotiators, expressed "optimism" during a meeting that China and Taiwan will be able to peacefully resolve their disagreements. Glickman did not comment further, but Rep. Norman Dicks (D-WA) said the visiting U.S. delegation also told Wang during the meeting that China should soften its rhetoric toward Taiwan. Dicks called the China-Taiwan conflict one of the "most important national security issues in the world."

Fast Food Potatoes Pulled. Monsanto Co.'s genetically modified potato is falling victim to the consumer backlash over crop biotechnology, according to THE WALL STREET JOURNAL. Fast-food chains such as McDonald's are quietly telling their french-fry suppliers to stop using the potato from Monsanto, the only biotechnology concern to commercialize a genetically modified potato. The article says so many concerns are shrinking from the Monsanto potato that J.R.Simplot Co., a major supplier of french fries to McDonald's, is instructing its farmers to stop growing it.

IBP, Cattlemen Spar Over Lawsuit Ruling. IBP Inc. and lawyers for a group of cattlemen disagreed Thursday on the thrust of a federal appeals court ruling issued last week in a four-year-old suit over cattle price, REUTERS reports from Chicago. The suit, filed in Montgomery, AL, in 1996 by 10 cattle producers, charged that IBP used its market power and cattle marketing agreements with producers and feedlots to depress cattle prices. The 11th Circuit Court of Appeals in Atlanta on April 20 reversed a lower court decision to certify a broad class involving cattle producers who sold cattle to IBP from April 1994 through April 1999. The appeals court concluded that the class could not include both cattlemen who sold cattle to IBP on the open cash market and those who had forward contracts and marketing agreements with IBP. Lawyers for the cattlemen say the appellate court's decision instructed the lower court to narrow the class and left intact the class action. IBP says that's incorrect. "There is no such language in the decision," said Gary Mickelson, an IBP spokesman.

April 27, 2000

Farm Product Exports Almost Same as Last Year. The $22 billion October-February agricultural exports virtually are unchanged from last fiscal year, USDA reports. The trade surplus for February increased more than $100 million from January, but the cumulative surplus declined about $720 million, or 11%, as year-to-date imports increased $748 million or 5%.

Farmland's Cleberg Weighs in for China Vote. H.D. (Harry) Cleberg, president and CEO, Farmland Industries, Inc., Kansas City, MO, says without permanent normal trade relations for China, the United States will have done nothing to reduce its trade deficit with Beijing and will have damaged its reputation as a reliable supplier to China and the world.

Environmental Specialists on Hand for Pork Producers. Environmental management and regulatory program specialists will be on hand June 8-10 at the World Pork Expo in Indianapolis, IN, to help producers establish pollution management programs for their operations. One such program focuses on water, air and odor issues to improve the operation while avoiding environmental liabilities.

Ag News Summaries

Japan Seeks Biotech Food Tests. Japan will demand safety tests for genetically altered food produced both domestically and in other countries, THE ASSOCIATED PRESS reports from Tokyo. Under a proposal accepted by the government, agricultural producers will be required as of next year to screen foods that contain genetically modified ingredients before putting them on the market. Japan's screening requirement will go into effect in April 2001. Producers found marketing genetically altered foods without testing them for possible allergy-causing or other health problems will have to recall and destroy their products.

Mrs. Clinton Backs Farm Tax Breaks. Senate candidate Hillary Rodham Clinton says farmers should be given more breaks on estate taxes so businesses can be kept in the family, THE ASSOCIATED PRESS reports from Sheldon, NY. She was visiting a 100-year-old dairy farm in upstate New York when she said the exemption on family farms and family-owned businesses should be increased to $1.75 million from the current $600,000. "You 0ought to be able to leave your land and the bulk of your fortunes to your children and not to the government," she told an audience of about 100 people at the farm. Clinton said she would work to lower utility and labor costs and other taxes that make farming difficult in New York.

China Warns U.S. Over Trade Vote. China told the United States that relations would be "greatly damaged" if Congress failed to support permanent normal trade relations for China, REUTERS reports. Rejection also would harm U.S. companies in China, foreign Ministry spokesman Sun Yuxi told reporters. Sun said U.S. negotiators had "solemnly promised" the trade agreement would be implemented, and consequences of its rejection by Congress would be grave. "We hope the American government will take concrete actions to honor their promises and pass PNTR cleanly without any conditions. Otherwise, China-U.S. relations will be greatly damaged." He repeated China's objection to any attempts to link PNTR with human rights issues.

Glickman: Progress Depends on Engagement. Agriculture Secretary Dan Glickman says the United States must remain commercially "engaged" with China to influence progress in such areas as human rights and labor, REUTERS reports. "The fact of the matter is, there are a lot of misconceptions at home about China, Chinese people, Chinese customers," said Glickman, touring Chinese businesses with several members of Congress and North Dakota Gov. Ed Schafer. Just hours before Glickman's arrival in Beijing Tuesday, Chinese detained more than 100 members of the banned Falun Gong spiritual movement who had been demonstrating in Tiananmen Square on the one-year anniversary of an earlier crackdown. While there are labor and human rights abuses in China, that does not tell the entire story of what's going on the in country, Glickman said.

Concentration Hearing Today. The Senate Agriculture Committee holds a hearing on consolidation in the agricultural industry today. Both Sen. Charles Grassley (R-IA) and Minority Leader Tom Daschle (D-SD) along with former Chairman Pat Leahy (D-VT) have advanced ideas in recent weeks to combat anti-competitive mergers.

Antibiotic Linked to Resistance. THE WASHINGTON POST reports on claims in the New England Journal of Medicine that a Nebraska boy's resistance to an antibiotic used to treat salmonella bacteria was traced to use of antibiotics in cattle on his family's farm. The case is the first in which an American was infected with salmonella that could not be controlled by the antibiotic Rocephin. The Animal Health Institute, which represents the companies who make animal drugs, denounced the report and criticized its conclusions.

Sugar Senators Seek Bailout. In the highest-profile article so far about quiet efforts to get the Agriculture Department to buy surplus sugar, THE WALL STREET JOURNAL reports on a meeting between Senators and Administration officials, details sugar industry political contributions and speculates that sugar's political clout will eventually carry the day.

April 26, 2000

Saving the Environment Has Trade Effects. As policy makers seek to minimize the adverse effects of agricultural operations on the environment, they also might do well to look at the potential effects such laws and regulations have on trade. A USDA report says "varying effects" result from environmental regulations and policies.

A Fair Income for Farmers. A common definition of a fair income for a farm business is a level of income that enables the operation to pay its bills, or cover the costs of production from the revenue realized from sales. But that definition does not include a return to the operator, so a financially sound farm under that definition may generate income sufficient to cover business expenses but not provide adequate income to support a household. A new USDA study seeks to analyze a fair income for farmers.

Car Parts from Chicken Feathers. Chicken feathers will be used to make filters, diapers, clothing, paper, absorbent pads and wipes, insulation and upholstery padding at a plant in Missouri. The technique for making such items from feathers was developed by USDA Agricultural Research Service chemist Walter F. Schmidt.

Ag News Summaries

White House Tentatively Backs China Panel. The White House has agreed tentatively to support legislation that would set up a watchdog commission to monitor human rights in China as part of a plan to shore up congressional support for permanent normal trade relations with Beijing, REUTERS reports. The administration sees the proposal as a way of reaching out to Democrats in the House who want a forum to air their concerns about human rights and labor abuses in China in exchange for supporting the market-open trade agreement on which PNTR approval by Congress depends.

Glickman Arrives in China. Agriculture Secretary Dan Glickman has arrived in China, aiming to convince members of Congress to grant China permanent normal trade relations. BLOOMBERG NEWS reports that as Glickman's delegation arrived, more than 100 members of the outlawed Falungong spiritual gorup were detained after protests in Tiananmen Square to mark the first anniversary of their first mass demonstration against the government. A REUTERS report says Glickman will encourage the Chinese to purchase more U.S. farm products during his visit this week. At a news conference shortly after arriving in Beijing, Glickman noted that China already had bought some U.S. wheat, meat and citrus under a bilateral agreement signed last year. "It would be nice if there were further announcements while we're here," he said. "We would encourage that and we will wait ... and see what happens."

Large Farms Got Most Payments. Ten percent of farmers -- about 144,000 -- collected 61 percent of the $22.9 billion spent on farm subsidies during 1996-98, the Environmental Working Group charged in a report. REUTERS writes that the group, which has frequently been critical of concentrated farm program benefits, advocates a $25,000 annual payment limit.

Total Loan, LDP Activity Up. PRO FARMER reports farmers are making more use of the loan and loan deficiency payment programs for 1999-crop wheat, corn and soybeans than they did for the 1998 crops. Commodities placed under loan are actually lower, but much heavier use of LDPs more than offsets the decline in loan entries.

Trade Rounds Near "Zero." A well-respected trade policy newsletter in Geneva has described the odds of a new round of world trade talks this year as "just about zero," REUTERS reports. The assessment matches that of most other observers, who do not expect new global talks to begin until the next U.S. administration takes office. Negotiations on agriculture and services have commenced this year, but are not expected to make much if any progress.

April 25, 2000

AMI Says Mandatory Pricing 'Excessively Costly.' The American Meat Institute, commenting to USDA on the mandatory price reporting proposed rule says the plan exceeds the scope of the law, includes inconsistent reporting categories and definitions and is excessively costly. One "clear problem" is the reporting deadline with which packers could not comply "if (they) had employees work through the night."

Midwest's Dry Soil Enhances Yield Declines. Given the dry soil conditions throughout much of the Midwest, the probability of below trend line yields is at least double the norm. Some predictions indicate the number could reach 40%, says Terry Francl, American Farm Bureau Federation senior economist.

Heifer Liquidation Supports Beef Production. USDA says beef production will continue record large at least through summer, but historically large numbers of heifers on feed and heifer slaughter likely will decline sharply this fall as more heifers are retained for breeding. Fed cattle prices should be back in the low $70s this fall, while feeder cattle prices likely will remain in the mid-$80s per cwt for much of the year.

Ag News Summaries

Glickman Leads Delegation to China. Agriculture Secretary Dan Glickman, four members of the House and North Dakota Gov. Edward Schafer are due in Beijing today to meet with senior Chinese officials Wednesday before visiting Shanghai and Hong Kong. REUTERS calls it a "smaller-than-expected delegation (who) will judge first-hand the trade, labor, environment and human rights issues at state in the U.S.-China trade agreement on which the House votes in late May. "It's an opportunity to take a look at a lot of these issues that have been raised here, from economic issues to human rights issues to labor and environment issues," Glickman told reporters before departing on Monday.

Labor Intensifies Opposition to Pact. Opponents of the landmark trade agreement with China will intensify their lobbying campaign today with "fair trade" caravans through Texas and Massachusetts and televison ads featuring grim footage of Chinese sweatshop workers, REUTERS reports. The goal is to pressure dozens of undecided Democrats in the House to oppose permanent normal trade relations with China when the issue comes to a vote next month. Organizers say the AFL-CIO labor federation has singled out Democratic Reps. Peter Deutsch and Carrie Meek of Florida and at least 13 other lawmakers in this week's lobbying blitz, hoping to shore up opposition forces before the vote.

April 24, 2000

USDA Launches On-Line Directory. USDA has launched an on-line directory of exporters of food, fish, fiber and forest products to help potential customers search for suppliers of specific U.S. products. USDA's agricultural attaches, trade officers, and Washington-based staff will promote the list to overseas buyers and importers. The system also permits on-line registration and maintenance by suppliers, making it easy to keep their product and company information updated.

CO2 `Enrichment' May Be Overestimated. The air pollutant ozone is adding another wrinkle to models that predict food supply based on projected CO2 levels, according to USDA's Agricultural Research Service. Studies suggest that the models often may overestimate the impact of CO2 enrichment because they don't factor in ozone.

Shrinking Farms, Expanding Demand Characterize Dairy. Fewer and larger farms with a steadily increasing demand for products characterize the dairy industry. Milk production for 1970-99 increased 39%, from 117 billion pounds in 1970 to 163 billion in 1999. Commercial use of milk increased 33%, from 119 billion pounds in 1980 to 160 billion in 1998. Farm prices, however, remain on a down trend.

Ag News Summaries

Enrico Will Lead Grocers' China Push. The Grocery Manufacturers of America has asked PepsiCo, Inc., Chairman and CEO Roger Enrico to play the lead role in promoting industry support of permanent normal trade relations (PNTR) status for China. Enrico will serve as the industry's liaison with Congress and the news media about the benefits of bringing China into the global trading community. IN a letter to House Speaker Dennis Hastert (R-IL) a coalition of 82 food and agricultural groups said that without PNTR "the United States would not benefit from a long list of Chinese concessions that are crucial to ensuring real market access, such as trading rights; retailing, wholesaling and distribution services, and advertising."

Glickman Leads China Delegation. Agriculture Secretary Dan Glickman will step to center stage this week as the Clinton administration begins a final month-long push to persuade hundreds of undecided members of the House of Representatives to support a landmark trade agreement with China, REUTERS reports. With Congress in recess, Glickman will lead a handful of House members on a six-day presidential mission to China, which hopes to join the World Trade Organization this year and normalize its trade relationship with the United States The delegation leaves today (April 24) and will spend two days in Beijing before traveling to Shanghai and Hong Kong, where the trip concludes on April 30. Glickman, a former congressman from Kansas, was invited in February to visit China by Chinese Ambassador Li Zhaoxing. The support of farm state lawmakers could be critical to House approval of "permanent normal trade relations" with China, which the White House says is necessary for the United States to receive the full benefits of an agreement reached last year on the terms of China's entry into the WTO.

Sugar Refiners Want No Sugar Purchases. Lobbyists representing groups from sugar cane refiners to candy makers urged USDA to reject a plan to buy more than $100 million of surplus sugar to boost sagging prices, BLOOMBERG NEWS reports. Agriculture Secretary Dan Glickman is weighing a proposal from U.S. sugar processors and growers to buy 370,000 tons of beet and cane sugar, or 4% of last year's crop, to lift prices that have plunged 13% from a year ago. Representatives of sugar users such as Hershey Foods Corp., Mars Inc., and refiners such as Imperial Holly Corp., the largest U.S. processor of refined sugar, say that buying excess sugar will boost the cost of raw sugar used in everything from baked goods to soft drinks. "It would further squeeze our industry's margins," said Nicholas Kominus, president of the U.S. Cane Refiners' Association, a Washington trade group. About a half dozen lobbyists representing sugar using industries met with Glickman last week. After the meeting, Glickman adviser Jim Schroeder suggested that if USDA buys sugar, it could come in phases. "You don't want to have to buy any more than you need to," Schroeder said. Though he won't make a decision until next month, Glickman told reporters last week he doesn't want to risk "a massive dislocation" among U.S. beet growers in the Northern Plains who are "typical family farmers."

Russians Form Trade Association. REUTERS reports from Moscow that Russia's main farming and food producing groups joined forces on Friday in a new trade association to lobby for state support for their beleaguered industry "We need to work out and create a new agrarian policy, that is, to change the representation of the agro-industrial complex in the political sphere," said Viktor Semyonov, the former agriculture minister who heads the Industry Union Association of the Agro-Industrial Complex or ASSAGROS. "We want to set up a constructive lobby, above all in the State Duma," said Semyonov, who is himself a deputy in the lower house of parliament, at the association's first meeting. Russia's food and farming sectors have suffered for years from under-investment and poor management which have seen output of grain and other key crops such as sugar fall sharply. Several lobby groups represent particular sectors, but this is the first time they have united to seek protection for the whole industry. Semyonov, who represents the pro-communist Agrarian party in the Duma, said it was essential to work out legally-defined relations between the state and the unions. Arkady Zlochevsky, chairman of the Grain Union, threw his weight behind him. "If we agree now to unite our efforts, we will make all our lives easier in the future. Our tasks are to solve mainly economic problems, but the tools for solving them are political as well," he said. Some argue that the way out of the crisis is comprehensive land reform giving farmers clear legal ownership of land so they could raise mortgages to invest in farming. Others see the solution as more state aid.

April 21, 2000

Farmer Mac Earnings Increase, Net Income Up. The Federal Agricultural Mortgage Corporation (Farmer Mac) says diluted earnings per share were a record $0.21 for the first quarter 2000, a 50% increase over first quarter 1999 diluted earnings of $0.14 per share and a 24% increase over fourth quarter 1999 diluted earnings of $0.17 per share. Net income for first quarter 2000 was $2.4 million compared to $1.6 million for the same quarter in the prior year and $1.9 million for fourth quarter 1999.

EPA Changes First Aid Statements for Pesticides. The Environmental Protection Agency has announced a change to the guidance on the format and content of first aid statements on all pesticide product labels. First aid information should be placed in a box using simple statements for each potential exposure.

ARS Patents Vegetable-Based Hydraulic Fluid. A new vegetable-based biodegradable hydraulic fluid for use in heavy equipment is almost ready for market from USDA's Agricultural Research Service. A patent on the technology has been granted. The fluid uses sunflower oil fatty acids.

Corn Growers Worry About Sugar Purchases. The National Corn Growers Association is concerned about USDA's possible plant to purchase sugar and divert it to ethanol production. That will displace corn and have a negative effect on corn prices and carryover stocks, says NCGA.

Court Grants United Foods Stay. The Sixth U.S. Circuit Court of Appeals has granted the Department of Justice's request to stay a mandate in the case of United Foods Inc. vs. United States Department of Agriculture. The stay, which was granted on April 5 in Cincinnati, OH, is in affect until May 15. The stay follows the court's March 23 decision to deny DOJ's petition for rehearing a legal challenge brought by United Foods Inc. On Nov. 23, 1999, the Court had ruled that the portion of the Mushroom Promotion, Research, and Consumer Information Act, which authorizes mandatory industry payments for advertising, violates the First Amendment of the U.S. Constitution.

Ag News Summaries

Daley Is Not Going to China. Commerce Secretary William Daley will not take part in next week's congressional mission to China, a White House official says. REUTERS reports Daley pulled out of the trip because of a personal engagement. Agriculture Secretary Dan Glickman and Daley were to go on a congressional trip April 24 as part of a White House effort to round up Democratic votes for permanent normal trade relations with China. Last week the White House canceled Daley's planned April 14-20 trip to China due to a lack of interest by lawmakers. Congressional aides said some of the lawmakers dropped out because of an intense lobbying campaign by organized labor and other groups opposed to the trade deal. Some labor leaders had threatened to retaliate against lawmakers who took part in the mission.

EU Committee Rejects Grain Payment Cut. The European Parliament says its agriculture committee voted to reject plans to reduce the food grains storage increment as part of the 2000-01 European Union farm price package, REUTERS reports from Brussels. The European Commission has proposed a 15% two-stage reduction to the payment which is aimed at bringing it into line with a similar reduction in food grain intervention prices agreed under the Agenda 2000 reforms starting July 1. The bonus is paid to growers who sell food grains into the EU's public intervention stores.

April 20, 2000

GAO Finds Need for Pesticide Information. The General Accounting Office is recommending that the Environmental Protection Agency identify and "expeditiously" implement ways to mitigate the potential adverse effects of pesticide exposure on children below the age of 12 who work in agriculture or otherwise are in pesticide-treated fields. The standard that now applies affects children 12 years and older as well as adults – not children below the age of 12.

Technology, Management Highlight Pork Expo. Producers interested in the latest technology and management information are being given the chance to attend a "P.O.R.K. academy" on the even of the World Pork Expo to be held June 8-10 in Indianapolis. Sessions on risk management, environment, herd health, production and financial standards, production and marketing contracts and value-added networking are on the agenda.

Corn Aims for 10-50% of Feedstock Market. Research is underway to increase the price per bushel of corn by at least 50 cents per year by making renewable inputs serve as the feedstock for 10% of the chemical building blocks market by 2020 and 50% by 2050. The program is focused on funding projects through the checkoff program that will use plants instead of petroleum for chemical building blocks.

WIC Increases Children's Vitamin Intake. A USDA study shows the special supplemental nutrition program for women, infants and children (WIC) significantly increases children's intakes of iron, vitamin B-6 and folate. Children in the WIC program increased their intake of iron by the equivalent of almost 21% of the nutrient's recommended daily allowance.

Ag News Summaries

USDA Buys Louisiana School Bonds. The Avoyelles Parish Public Charter School is the first charter school in Louisiana to be funded with tax-exempt bonds. USDA bought all of the bonds, BLOOMBERG NEWS reports from Moreauville, LA. The $1.6 million of bonds were issued through the Louisiana Public Facilities Authority and will be repaid over the next 25 years at a fixed rate of 5.125%, said Bob Harris, a rural development specialist for USDA in Louisiana. The rate is about 69 basis points lower than the 5.71% average yield on a top-rated school bond, which means the school can save about $9,000 each year in interest costs. Charter schools can adopt curricula and teaching methods independent of local school boards. Such schools are funded by states on a per pupil basis. No state money is provided to purchase school facilities, however, making it necessary for charter schools either to build or move into existing space. The Avoyelles' charter school is expected to open in the fall with 210 children in kindergarten through fifth grade.

Aussie Egg Producers Accused of Dodging Rules. Animal rights groups claim Australian egg producers are trying to get around proposed battery egg labeling rules, reports the AUSTRALIAN BROADCASTING CORP. They say a leaked document shows producers and major supermarket chains are planning to introduce "micro labels" in order to comply with the ministerial agreement. Agriculture ministers agreed labeling should show whether eggs are barn or battery produced. Animal Liberation spokesman Frankie Seymour said producers who flout the rules should be fined. "I mean the industry has shown that voluntary codes and voluntary compliance simply don't work," he said. "They've shown that continuously for the last 30 years and unless governments actually do step in and say look we're not satisfied with your voluntary codes and your voluntary compliance, then it's just going to continue."

April 19, 2000

Biotech Remains Glickman's Focus. Of three major USDA interests, biotechnology continues to claim much of Agriculture Secretary Dan Glickman's attention. He revisited the subject, along with food safety and nutrition, Tuesday in a speech to the Consumer Federation of America. He has asked the National Academy of Sciences to establish a standing committee to continually review USDA's biotechnology regulatory process.

Soybean Extract Holds Cholesterol Promise. A soybean extract with high levels of plant sterols shows promise for people who already eat a low-fat diet to reduce cholesterol. Preliminary research shows sterols can increase the cholesterol-lowering benefits of a healthy low-fat diet.

Labor Productivity Increases as Agriculture Abandoned. A new study shows that labor productivity is increasing most quickly in the poorest countries, because in many of those economies, a shift from "unproductive agriculture" to manufacturing is taking place. The report comes from The Conference Board, a worldwide research network in New York City.

USDA, Ohio Move to Reduce Pollution Runoff. USDA and the state of Ohio are cooperating on a project designed to improve water quality through reducing pollution runoff from farm lands. The voluntary program provides incentives for farmers to remove environmentally sensitive lands from production and create stream-side buffer zones.

Ag News Summaries

USDA Reclassifies Karnal Bunt Areas. USDA is proposing to reduce the size of karnal bunt-regulated areas in Arizona and relieve some restrictions on the movement of harvesting equipment. USDA would reduce the size of the regulated areas by removing non-infected acreage that is more than three miles from a field or area associated with a bunted wheat kernel. Harvesting equipment would be required to be cleaned and disinfected only if it was used to harvest host crops that test positive for karnal bunt.

Judge Orders Two Promoted at USDA. A judge for the Equal Employment Opportunity Commission has ordered USDA to promote two black managers who were denied advancement because of their race, THE ASSOCIATED PRESS reports. Cliff Herron and Harold Connor, managers at the Farm Service Agency, will receive promotions, four to five years of back pay and $10,000 each for damages, the commission said in a decision. The commission in December dismissed a class-action claim by more than 300 black USDA managers who said they were denied promotions because of their race. Connor and Herron were the only exceptions to the ruling.

Glickman Disappointed in Gephardt's China Stance. Agriculture Secretary Dan Glickman says he is disappointed in reports that House Democratic Leader Richard A. Gephardt (MO) plans to oppose legislation granting China permanent normal trade relations, BLOOMBERG NEWS reports. "I don't think he's going to try to take people with him in terms of this particular issue, but it will make it more of a challenge, I think as we get to the final days before a vote." The vote in the House is scheduled for late May. "I still believe we will wint the vote, but it's going to be a battle for every single vote," said Glickman.

Democrats Have China Human Rights Plan. Key Democrats hope to put the final touches this week on legislation that would allow the United States to continue to monitor Chinese human rights policies, despite resistance from party leaders that could imperil a vote on permanent normal trade relations with China, REUTERS reports. The White House sees Michigan Rep. Sander Levin's legislation as a way of shoring up Democratic support for President Clinton's trade agreement with China by giving lawmakers a forum to air their concerns about human rights and labor abuses. Under Levin's proposal, Congress would create a watchdog commission to review Chinese policies and recommend sanctions against Beijing as long as they were consistent with World Trade Organization rules.

Sugar Decision Still a Ways Off. Secretary of Agriculture Dan Glickman said he will not likely decide until after an upcoming foreign trip whether to purchase sugar to shore up domestic prices, REUTERS reports. Glickman has been under pressure from sugar producers and legislators to purchase sugar, but the idea has become increasingly controversial as the National Corn Growers Association and other groups have opposed plans to use it for ethanol production.

April18, 2000

Trade Developments Detailed in ERS Report. USDA's Economic Research Service has issued a lengthy report detailing trade developments under the North American Free Trade Agreement and the U.S.-Canada Free Trade Agreement. The United States has experienced somewhat mixed results over the years, but Canada should enjoy a surge in beef exports to the United States as herds are rebuilt.

EPA Goes After Ground Water Contamination. The Environmental Protection Agency is proposing to require that states survey all drinking water systems. Ground water systems at risk of contamination would have to be monitored at the source and corrective action taken to deal with any contamination found. A final rule is expected to be announced in November.

Corn Interests Expect Great Things from Gene Breakthroughs. The National Corn Growers Association says breakthroughs in rice and human gene sequencing mean similar developments could be in store for corn. Corn is as complex an organism as the human organism, making genomic developments more difficult than with other crops, says NCGA.

House Approves Satellite Access for Rural Areas. The House has approved a bill that would extend loan guarantees to companies willing to provide rural communities with access to local television through satellite technology. Providers may offer other services as well, including Internet access.

Ag News Summaries

EU Farm Ministers Divided Over Beef Labeling. European Union farm ministers were locked in talks Monday trying to resolve deep differences over a new system to label beef, aimed at restoring consumer confidence in the wake of the mad cow crisis, REUTERS reports from Luxembourg. Ministers remained divided over how strict the labeling scheme should be with some wanting detailed descriptions of an animal's history but other preferring a "made in the EU" label. EU officials expected a political agreement could be reached to allow governments and the European Commission to take a common stance in further negotiations with the European Parliament. Paris has cited unclear labeling for beef as one reason behind its continued ban on British beef which has caused France to be taken to the European Court of Justice.

Aventis, Novartis Settle Litigation. Aventis CropScience and Novartis Seeds have reached a settlement of three lawsuits under which terms the companies will work cooperatively to promote the use of Aventis' Liberty(R) herbicide on Novartis NK(R) brand insect resistant corn seed hybrids. The agreement resolves lawsuits filed by a subsidiary of Aventis to enforce patents that cover the insect protection technology in NK(R) Bt corn hybrids and a lawsuit filed by Novartis Seeds alleging breach of an agreement relating to that technology. The Novartis corn products subject to the lawsuits also contain a gene that makes the corn tolerant to Liberty herbicide. Under the agreement, Aventis and Novartis will work closely to promote Novartis corn product conferring the YieldGard(R) insect resistance and LibertyLink(R) herbicide tolerance traits. The companies also will work to optimize the use of Liberty herbicide on these corn varieties.

UN Report Warns of Environmental Harm. A United Nations-sponsored report says humans eventually will pay the price for the growing demand for resources that threatens the world's environmental health more than ever, THE WALL STREET JOURNAL reports. The broad decline of the world's ecosystems, the interaction of organisms with their physical environment must be reversed or there "could be devastating implications" for human development, the study says. "For too long in both rich and poor nations, development priorities have focused on how much humanity can take from our ecosystems, with little attention to the impact of our actions," the report concludes. The report was released by the World Resources Institute.

Farm Group Critical of Pork Vote. The Campaign for Family Farms, a Des Moines, IA, coalition of seven Midwest farmer groups, says USDA's proposed rules for the pork checkoff referendum are unfair and restrictive, REUTERS reports. Producer Mark McDowell, a spokesman for the group, said the eligibility rules "would shut out thousands of producers who called for the referendum and who were forced out of raising hogs by historically low prices." Only producers or businesses who have sold hogs, pigs or pork products within 12 months prior to the referendum will be eligible to vote. Agriculture Secretary Dan Glickman has said he will consider all comments received before setting a date for the referendum.

Corn Growers Oppose Sugar Buy. Ending several weeks of speculation about their position, the National Corn Growers Association has written Secretary Glickman to oppose schemes to turn surplus sugar into ethanol, PRO FARMER reports. NCGA says that to gain its support, ethanol demand must be enhanced by denying California's request for a waiver from clean air rules. The reference is to the ongoing controversy over how to replace the fuel additive MTBE. Glickman has been urged by sugar growers to buy surplus sugar, and among the options for keeping the sugar out of market channels is to convert it to ethanol. Without additional ethanol demand, such an operation could displace corn, the primary ethanol feedstock now.

April 17, 2000

ITC Probes Economic Impact of Cuba Sanctions. The U.S. International Trade Commission has begun an investigation to assess the economic impact on the United States from U.S. sanctions on Cuba. U.S. agriculture will receive "particular attention" from the probe, requested by the House Ways and Means Committee.

USDA Issues Rule on Pork Referendum. USDA has announced procedures for the conduct of a referendum on whether pork producers want to continue their checkoff program. No date has been set for the referendum as yet, but the National Pork Producers Council expects USDA to conduct the vote in a "judicious yet expedited manner."

`Fat' Publication Explains Beef's Role in Diet. Two new four-page publications have been funded by the beef checkoff program, one designed to provide information about fat's role in the diet, beef's contribution to diet and misconceptions about beef, fat and health. The other discusses vegetarian eating patterns and a variety of potential teen-age health problems associated with a vegetarian diet.

Codex Agrees on Further Talks on `Precautionary Principle.' The Codex Alimentarius Committee on General Principles (CCGP) has agreed to follow a three-step process on the use of precaution as part of risk analysis that should permit further discussions within Codex. The United States supports the continuing discussion conclusion but does not endorse the "precautionary principle."

Cotton Pleased with Trade Bill. The National Cotton Council says a House-Senate conference committee has agreed on a bill on Caribbean and Africa trade preferences that will increase U.S. cotton use. It will "help the U.S. textile industry maintain its competitiveness," says NCC President Robert E. McLendon.

Ag News Summaries

GMO Crops Planted in France. A French newspaper Sunday said 425 plots had been planted secretly with genetically modified crops in France, where opposition to foods from such crops has been strong, THE ASSOCIATED PRESS reports from Paris. The Journal du Dimanche said the crops were planted over the past four years without informing the communities or villages nearby. "Four hundred and twenty-five communities have or have had experimental plots over the last four years," the paper said. It said the Ministry of Agriculture had kept such locations secret illegally. A ministry official said list of such plots were available in local town halls. He said Agriculture Minister Jean Glavany was due to receive a report in the next few days on how to reconcile the need for security with the desire for transparency.

Black Farmers Criticize USDA. A year after they settled a civil rights lawsuit, black farmers say USDA still isn't doing enough to address discrimination against minorities, THE ASSOCIATED PRESS reports. "The only thing you can credit the agriculture department for is ... the fact that they admitted something happened and had the guts to look at this. That's the only progress we've made," said John Boyd Jr., president of the National Black Farmers Association. USDA won court approval a year ago to settle a lawsuit filed on behalf of black farmers who claimed that they had been discriminated against systematically for years when they applied for loans and subsidy programs. Some 18,000 farmers filed claims under the settlement. Some 7,329 cases have been approved and payments of $50,000 each have been made to 3,594 of those, according to a report USDA is releasing later this month on its civil rights record. Another 4,742 claims have been denied.

Ohio Firm Recalls Smoked Sausage, Bratwurst. Queen City Sausage and Provision, Inc., Cincinnati, OH, is recalling voluntarily about 850 pounds of smoked sausage and bratwurst that may be contaminated with listeria, according to USDA's Food Safety and Inspection Service. The products subject to recall are one-pound packages containing a mix of "Queen City Sausage" brand skinless bratwurst and smoked sausage, one-pound packages of "Queen City Sausage" brand skinless smoked sausage, three-pound packages of "Queen City Sausage" brand skinless family pack cooked bratwurst, and five-pound packages of "Queen City Brand" smoked sausage. The products were packaged April l6 and distributed to retail establishments in the Cincinnati area.

Bishops Criticize China Deal. U.S. Catholic bishops have called on Congress to reject the trade agreement with China because of concerns about human rights and religious freedom, REUTERS reports. A letter released Friday from the bishops said, "As long as the Chinese leadership steadfastly refuses to abide by the universal norms of human rights protection, the United States should not grant normal trade relations on a permanent basis. Instead, we should retain the valuable option provided by annual review of China's compliance with fundamental norms." Senate passage of normal trade relations virtually is assured, but in the House, the issue faces stiff opposition from Democrats closely allied with organized labor. The House is expected to vote the week of May 22-26.

U.S. Hogs Go to Canada. The first truckload of 185 U.S. market hogs, owned by a Michigan farm, were sold on April 14 to Maple Leaf Foods, Intl., in Burlington, Ontario. The hogs were owned by Triangle Farms in northeast Michigan. According to the Animal and Plant Health Inspection Service (APHIS), it's been so long since U.S. market hogs were sold to Canada, no previous records of border sales could be found. The Canadian government agreed in October 1999 to regionalize the U.S. for pseudorabies (PRV). The decision allowed pork producers in states classified in Stages IV (free status pending) and Stage V (PRV free) to export live hogs for slaughter to Canada. Michigan was declared a Stage IV state and made eligible for U.S. live pork exports on Nov. 1, 1999. "This sale of U.S. hogs to Canada signals the opening of new live hog markets for U.S. pork producers," said National Pork Producers Council (NPPC) President Craig Jarolimek, a producer from Forest River, ND. "However, U.S. producers want the opportunity to export hogs to any Canadian facility," he said. "That is not yet possible."

April 14, 2000

China Vote, Hearing Scheduled. The House will vote the week of May 22 on whether to grant China permanent normal trade relations, days after the House Agriculture Committee holds a hearing on the subject. A coalition of 82 agricultural groups told House Speaker Dennis Hastert (R-IL) that the China market represents "a huge opportunity" to increase farm product exports but only if Congress approves PNTR.

Final Budget Has $7 Billion for Farmers. That $1.83 trillion budget for fiscal 2001, approved by the House with Senate approval expected shortly, includes $5.5 billion in assistance for farmers yet this fiscal year with another $1.64 billion provided in fiscal 2001 for major crop producers and producers of specialty crops.

USDA Announces Enticements for CRP. Faced with little interest in the Conservation Reserve Program's continuous sign-up, USDA has announced a list of incentives designed to get farmers to enroll land along streams, rivers and other water sources.

House Report Kind to Biotech Foods. A new congressional study finds that agricultural biotechnology yields "seeds of opportunity" and are as safe for human consumption as foods produced from traditional plant varieties. The study received immediate support from agricultural and food industry interests.

Ag News Summaries

Moore Says U.S. Wounds Will be Self-Inflicted if Pact Rejected. World Trade Organization Director General Michael Moore says the United States will be hurting itself if Congress fails to grant China permanent trade status, THE WALL STREET JOURNAL reports. Even if Congress rejects PNTR for China, China still could enter the WTO, giving European and other countries better access to Chinese markets than the United States. "A sobering though when you consider the potential business opportunities in a market of 1.3 billion people," he said in a speech to the National Press Club.

Wheat Group Off to China. A U.S. wheat industry team will travel to China next week in the hope of generating future sales, REUTERS reports. The U.S. Wheat Associates will meet with flour milling industry officials in Shanghai, Beijing, Shenzhen, Guangzhou and Hong Kong. The trip follows two visits by Chinese grain officials to the United States this week. "China is on the cusp of economic and agricultural changes that will benefit both countries, and the U.S. wheat industry must be first in line when the door opens," Paul Dickerson, vice president of USWA said. Agriculture Secretary Dan Glickman will lead a delegation of undecided members of Congress to China later this month in an effort to shore up congressional support for PNTR.

China Trip Canceled. A congressional delegation headed by Commerce Secretary William Daley canceled a visit to China, BLOOMBERG NEWS reports, but will join another group of lawmakers scheduled to arrive in China later this month. The visits are part of the Clinton Administration's effort to win support for permanent normal trade relations with China, an issue on which Congress must vote. The Daley-led delegation was to have arrived in Beijing Saturday and stay for a week, but John Berry, a U.S. Embassy spokesman, said several of them wanted to use the spring congressional recess to "get in touch with their constituents." The combined delegation that will visit later will include both Daley and Agriculture Secretary Dan Glickman.

April 13, 2000

Another Concentration Bill Introduced. A group of Senate Democrats have introduced legislation designed to stop agribusiness mergers that harm farmers, ranchers and rural communities. It's the second bill introduced in the Senate concerning concentration; the other is from Sen. Charles Grassley (R-IA) that seeks to put USDA on an equal footing with Justice and the Federal Trade Commission to challenge a merger. The General Accounting Office also has at least two investigations underway regarding mergers and acquisitions in agriculture.

Inside or Outside the Box: That Is the Question. The feed and grain industry wants Congress to "think outside the box" when developing new farm policy with legislation that increases trade and improves the transportation infrastructure. But farm groups, such as the National Cotton Council, call for Congress not to abandon agriculture to a global environment of trade and production "distortions" caused by other governments' involvement in agriculture.

House Panel Asks for `True Costs' of Water Quality Rules. House Agriculture Committee Chairman Larry Combest (R-TX) and Rep. Charles Stenholm (TX), the ranking committee Democrat, want the General Accounting Office to find out the true costs to agriculture and forestry from water quality regulations proposed by the Environmental Protection Agency.

Labor, Environmentalists Score China Deal. Thousands of union members turned out on the West Front of the Capitol Wednesday to denounce the Clinton Administration's efforts to get permanent normal trade relations for China through Congress. Meanwhile, the Sierra Club voiced its opposition to the China pact, joining the AFL-CIO which is leading the union opposition.

Ag News Summaries

Clinton Uses Security to Push China Deal. President Clinton and top foreign policy advisers are studying ways to convince members of Congress to pass a trade deal with China on the grounds it is vital to U.S. national security, REUTERS reports. In a statement, Clinton said a vote against normal trade relations for China would have "extremely harmful consequences" for national security. "Because the economic cast for NTR is so strong, the Chinese will see a rejection as a strategic decision by the United States to turn from cooperation to confrontation, to deal with China as an adversary." He said opening up to China will increase its interdependence with the rest of the world and help bring the information revolution to millions of people in China in ways its government cannot control.

Ewing Drafts Bill on Derivatives. Rep. Tom Ewing (R-IL) has drafted legislation to permit commodities markets to offer futures on individual stocks and keep the government from regulating the instruments known as over-the-counter derivatives. The plan would remove a two-decade-old ban on single-stock futures while giving the Securities and Exchange Commission some say in how the futures are traded, according to BLOOMBERG NEWS. "I envision a plan that will open our markets to competition," Ewing said last month. "The stars are aligned to try to come to an agreement." Ewing has sent the proposal to interested individuals for comment. Under the draft, the SEC could review proposed single-stock futures and take the Commodity Futures Trading Commission to court if the two disagreed on whether to allow the futures to be traded. The SEC also could apply insider trading laws, margin requirements and other securities rules to single-stock futures and the people who trade them.

Clinton, Democrats Close to China Deal. The White House and key Democrats are near agreement on legislation to increase congressional oversight of China's human rights policies as part of a plan to shore up support for the trade agreement with Beijing, REUTERS reports. Rep. Sander Levin (D-MI) said there had been "substantial progress" on proposals that would "keep the heat on China and ensure us all the benefits of the (trade) agreement." Under Levin's proposal, Congress would create a watchdog commission that would review Chinese policies and could recommend sanctions against Beijing as long as they were consistent with World Trade Organization rules. Before the White House commits to the proposal, however, administration officials want to know how many Democratic votes Levin's proposal will bring. They also want to know whether it will cost them any Republican votes for permanent normal trade relations.

Smithfield to Shut Dubuque Hog Plant. John Morrell and Co., a wholly owned unit of Smithfield Foods Inc., said it would complete the purchase of Farmland Industries Inc.'s Dubuque, IA pork plant by June 9 and end operations there, REUTERS reports. About 1,000 of the 1,100 workers at the Iowa plant would be affected by the shutdown, Morrell said in a statement. Bur Morrell then will expand pork processing operations at Dubuque. "Because of inefficiencies and high costs sustained by Farmland's current Dubuque operations, John Morrell and Co. intends to immediately suspend fresh pork operations presently being conducted at the plant but hopes to continue the remaining processing operations with existing employees," the company said. The Dubuque facility has a daily hog slaughter capacity of 8,000 animals, while Smithfield's daily hog capacity already is more than 80,000 hogs, almost a fourth of total daily U.S. hog slaughter.

Gold Kist Chicken Gets Green Light. Gold Kist Inc., the nation's second largest poultry processor, has been cleared of allegations that it sold diseased and unsafe chicken to schools, REUTERS reports. The USDA office of inspector general interviewed employees of Gold Kist in Atlanta along with federal meat inspectors working at company plants about allegations that some chicken nuggets contained meat from chickens with sores and scabs. Greg Shubert, special agent in charge of the investigation, said the company did not sell unsafe products or violate any USDA rules. Large numbers of birds at the Guntersville, AL, slaughter plant were found with a respiratory disease similar to pneumonia, or another condition known as inflammatory process, Shubert said. Neither poses a health threat to humans. In February the Austin (TX) American Statesman published a story claiming that schoolchildren in Texas and 30 other states were fed chicken nuggets made in part from diseased poultry at Gold Kist plants in Alabama. The newspaper quoted federal meat inspectors working at company plants who blamed the diseased meat on new USDA procedures that rely more on scientific testing and standards than on traditional "poke and sniff" inspection methods.

April 12, 2000

USDA Teams to Probe Pork Merger. USDA is sending "rapid response teams" to Iowa, Illinois and Wisconsin next week to find out if there have been any violations of law from the proposed acquisition of Farmland Foods, Inc., packing plant in Dubuque, IA, by Smithfield Foods, Inc. Hog producers are being urged to turn out and tell the teams how they think the acquisition will affect their operations.

Hogs, Wheat Push for China Deal. U.S. hog producers earn $5 more per head and wheat farmers will reap "tremendous trade benefits" if permanent normal trade relations with China are granted by Congress. Hog exports would not affect U.S. consumer prices, says Iowa State University economist Dermott Hayes, because the Chinese prefer different cuts.

`E-File' Bill Passed by House. The House of Representatives has passed a bill 397-1 to allow farmers and ranchers to file paperwork with USDA electronically. USDA would have to establish an electronic filing and retrieval system to enable the filings to be done electronically.

Committee Seeks Legislative Direction on MTBE. The Senate Agriculture Committee is seeking direction on legislation needed to help MTBE exit the reformulated gasoline scene and whether a bill should include consideration of "all of the environmental and energy security issues involved," according to committee Chairman Richard Lugar (R-IN).

Ag News Summaries

Daley Has `Great Concerns' on China's Commitment. Commerce Secretary William Daley says he has "great concerns" about China's commitment to opening its markets. "For many years this government is going to have to be very aggressive in pushing" China to stick to its promises to open its telecommunications, agriculture and other markets to U.S. companies, BLOOMBERG NEWS quotes Daley saying. "Compliance will be difficult, no question about it." It is the first White House admission that the U.S.-China agreement may be difficult to enforce. That could give organized labor and other opponents of the trade pact more ammunition to convince Congress not to grant permanent normal trade relations to China. The administration has insisted it secured special safeguards in the November agreement that would make it difficult for china to backtrack on its commitments.

USDA to Decide on Sugar Purchase. Agriculture Secretary Dan Glickman says USDA will decide "fairly soon" whether to purchase sugar from farmers faced with loan forfeitures later this year. Glickman told REUTERS, "If we are going to act, we need to take action fairly soon," adding that he still needs to meet with some senators from sugar growing regions and other sugar groups. An increase in sugar production "will certainly increase the pressure on us to do something," he said. Sugar industry officials are urging the government to buy up to 350,000 short tons of sugar to avoid larger loan forfeitures. The issue has become increasingly critical, says REUTERS, as two sugar beet processing facilities in California and one in Washington State are on the brink of collapse because of low prices. USDA believes loan forfeitures are likely when raw cane sugar prices decline below 20 cents per pound in Florida and Louisiana and 21 cents in Hawaii. Senate Agriculture Committee Chairman Richard Lugar (R-IN) Tuesday urged USDA to reject a sugar industry request to buy surplus sugar and donate it overseas or sell it to the ethanol industry. "I strongly oppose doing this sort of thing," Lugar said at a Senate committee hearing on ethanol. USDA chief economist Keith Collins said, "On its surface, it (buying sugar to avoid forfeitures) looks like a horrific taxpayer cost."

April 11, 2000

Ex-Secretaries Support China Vote. An impressive bipartisan list of former secretaries of the Treasury and Agriculture has come out in support pf permanent normal trade relations with China. The United States has nothing to lose by approving PNTR and everything to lose by rejecting it, say the ag secretaries.

Commission Studies Dairy Issues. The Commission on 21st Century Production Agriculture is taking three days this week to study dairy issues. One of those issues involves the anomaly that although the United States leads the world in milk production, it is a relatively minor player in international trade.

AFBF Replies to "60 Minutes." The CBS news magazine "60 Minutes" devoted a major segment of its program Sunday evening to a critical look at the American Farm Bureau Federation, saying the AFBF supports large agribusiness companies while many of its members struggle with low prices and depleted incomes. AFBF President Bob Stallman calls it "malicious propaganda," especially criticism that AFBF is opposed to the Voting Rights Act of 1965.

Ag News Summaries

Corn Growers Have Expanded Web Site. The National Corn Growers Association has introduced the final segment of its insect resistance management (IRM) education plan. Growers now can go on the Internet at www.ncga.com and check the IRM requirements for their farm. NCGA developed an industry-wide plan for preventing corn borer resistance to the Bt technology over the past year. The plan was codified by the Environmental Protection Agency in January. "We developed this industry-wide approach to simplify the message to farmers on their refuge requirements," said Fred Yoder, NCGA board member. "Since refuge requirements differ geographically, this web site will allow farmers to see exactly what they need to do by state and by county to be in compliance."

CRP Invitation Gets 56,000 Offers. USDA says landowners made 56,000 offers to include about 3.5 million acres of land in the Conservation Reserve Program in the latest sign-up period that ended Feb. 11. Landowners should know by early May if their offers are accepted. Land offered for the 20th sign-up must compete for acceptance based on an environmental benefits index designed to promote an equitable consideration for all offers and all types of eligible land. Selected high-priority practices, such as field windbreaks and buffers along streams and rivers can be enrolled at any time through the CRP continuous sign-up rather than go through the competitive process. The average requested rental payment in the latest bidding was $51.01.

Archer Warns Clinton on Side Legislation. House Ways and Means Committee Chairman Bill Archer (R-TX) has warned President Clinton that efforts to strike a deal with Democrats on a trade agreement with China could backfire if Republicans no longer support the pact, REUTERS reports. Archer's comments came as the White House stepped up negotiations with key Democrats over side legislation that would make the trade pact more palatable to Democrats. The side legislation would set up a watchdog commission to review Chinese policies and could recommend sanctions against Beijing as long as they were consistent with World Trade Organization rules. "By appealing to particular interests," said Archer, "some of these efforts may divide our supporters and make passage ... more difficult." Separately, the Sierra Club announced it will fight the China pact, adding its strength to that of organized labor and other opponents.

April 10, 2000

USDA Hearing Set on Milk Amendments. USDA has set aside several days in early May for a hearing on proposals to amend the Class III and IV price formulas for all federal milk marketing orders. The hearings begin May 8, and officials expect several days will be needed to hear all the witnesses who will want to testify.

Cancer-Fighting Cows Graze Peacefully. Cows grazed on pasture or fed vegetable oil produce five times more of a cancer-fighting compound than cows fed conventional diets, says USDA"s Agricultural Research Service. The human body won't produce the compound on its own but depends on whole milk, butter, beef and lamb to get the compound, known as conjugated linoleic acid.

USDA, California Experiment with New Info Sharing. USDA's Farm Service Agency is working with the Kings County agricultural commissioner, the California State Departments of Food and Agriculture, Pesticide Regulation and Water Resources on a method of information sharing designed to ease the reporting burden on farmers. Officials hope the venture will be successful enough to justify using it nationally.

Ag News Summaries

Senate Fuel Hearing on Tap. Amid controversy over how to deal with environmental problems associated with the fuel additive MTBE, the Senate Agriculture Committee plans a hearing Tuesday on the future of ethanol and other biofuels. USDA chief economist Keith Collins and others will testify.

Senate Passes Budget. On a nearly party-line 51-45 vote, the Senate passed its budget resolution for 2001. Senate and House budget leaders now must meet to work out differences in the budgets passed by the two chambers. Both the Senate and House budgets include additional funding for farm aid.

Rail Merger Halt Still On. The Surface Transportation Board declined a request to lift its current moratorium on railway mergers, THE WALL STREET JOURNAL reports. The agency called the halt to merger activity as it considers new regulations to govern railroad combinations.

Fewer Young Farmers Own Land. THE OMAHA WORLD HERALD reports that compared to 1982, fewer farmers under 35 own the land they farm, and less of what they do own is debt-free than land owned by older producers.

Sugar Growers Hope for Purchase. Sugar grower representatives told REUTERS they were "cautiously optimistic" the government will buy up to 350,000 tons of sugar to shore up prices, after sugar-state Senators met with this week with White House Chief of Staff John Podesta. However, a government source involved in the matter told AgricultureLaw.com that Podesta made no commitments to the group.

Utah Firm Recalls Beef, Pastrami. Feller's Precooked Meats, Inc., a North Salt Lake, UT, firm is recalling voluntarily about 9,500 pounds of cooked roast beef and pastrami that may be contaminated with listeria. The products subject to recall are six to eight pound random weight packages of "FELLER'S" brand roast beef and branded pastrami. The products were packaged March 30 and distributed to hotels, restaurants and institutions in Utah, Washington and Oregon.

Competitors Win if U.S. Rebuffs China. Congress will hand U.S. competitors a major advantage in the world's most populous country unless China is granted permanent normal trade relations, says Under Secretary August Schumacher. REUTERS reports Schumacher, who visited Beijing last week to drum up support for PNTR, said the United States' $1.1 billion in annual agricultural sales to China was in danger of being taken over by other countries. "If we don't pass this, our competitors will clean our clocks," he said. The United States could double its agricultural sales to China and Hong Kong over the next five years in grains, cotton, meats, dairy and other products if PNTR are approved and the U.S.-China trade pact okayed as well, he added. "I think we will get there, but it is not going to be an easy vote," Schumacher said.

Sierra Club Poised for Opposition. The Sierra Club is planning to mobilize environmental activists to fight permanent trade relations with China. Collaboration during the Seattle summit of the World Trade Organization between the Sierra Club and the AFL-CIO has led the two to coordinate more closely in the fight to make trade "clean, green and fair," said the Sierra Club. Club officials have scheduled a news conference at the National Press Club in Washington at 1 p.m. today to announce details of the planned opposition.

Dairy Market Loss Payment Rate Told. USDA will pay dairy farmers $0.1323848 per hundredweight in the second dairy market loss assistance program. Payments will total $122.6 million and be limited to the first 26,000 hundredweight of production. Payments will be made both to farmers who participated in the first program and to new producers.

China Buys U.S. Soybeans. China has purchased U.S. and South American soybeans and may make additional large purchases of South American beans if prices decline, REUTERS quotes traders as saying. At least one cargo of U.S. soybeans were bought at about $225 per ton for April and two or three cargoes of South American beans last week at prices probably less than $220. USDA Under Secretary August Schumacher told REUTERS that China has become the single largest market for U.S. soybean exports as the country expands its livestock herds. "The Chinese like American soybeans because of the higher oil content and because shipments are cleaner," he said.

April 7, 2000

Glickman Gives Wish List to Conferees. Agriculture Secretary Dan Glickman has sent his list of preferred changes to a conference committee that is to consider reconciling differences between the Senate and House versions of crop insurance reform. Staff meetings to prepare for the conference have been going on throughout this week.

Rominger Praises Meat Inspection Bill. Deputy Secretary of Agriculture Richard Rominger believes a bill to allow interstate shipment of state-inspected meat "solves the perennial question of how to level the playing field for the small and very small state-inspected meat and poultry processing plants." States would be able to use their own inspection marks, but they must adopt and enforce federal inspection laws and regulations and use the federal inspection mark as well.

Non-point Source Pollution Gets Judge's Nod. Farm groups and the Clinton Administration both took comfort in Federal District Judge William Alsup's ruling that the Environmental Protection Agency and the states have the authority to identify waterways polluted from agriculture, timber harvesting and urban areas – so-called non-point sources – and prescribe the maximum amount of pollutants that may enter the waterways. The American Farm Bureau Federation, one of several groups bringing the suit, says the ruling reaffirms the plaintiffs' position that EPA cannot directly implement non-point regulations or force states to do so.

Clinton Should Address Congress on China. Sen. Charles Grassley (R-IA) wants President Clinton to address a joint session of Congress on trade with China. In that way, Clinton could "provide the kind of leadership that's required:" to secure passage of legislation to grant China permanent normal trade relations with the United States.

Ag News Summaries

Unions Press to Block China Pact. Labor union leaders intensified their lobbying Thursday against a trade agreement with China and China's entry into the World Trade Organization, REUTERS reports. They promised to target lawmakers who take part in White House sponsored missions to Beijing. Teamsters President James Hoffa and United Steelworkers of America President George Becker sent letters to 10 members of the House who have signed up for the missions, demanding that they press Chinese authorities to improve human rights and labor standards. "Unlike their Chinese hosts who remain accountable only to a powerful Communist elite, members of Congress are still accountable to the people they serve," said Becker. "We expect a full report from the delegations when the members return." Commerce Secretary William Daley will lead the first congressional delegation to China beginning April 15, and Agriculture Secretary Dan Glickman will lead a second later in the month. The White House hopes the missions will convince undecided lawmakers to support the legislation.

Votes Delayed by Farmland, Cenex. The boards of directors of Farmland Industries and Cenex Harvest States Cooperatives will delay votes to unite the two organizations. A vote had been scheduled tentatively for late this summer. "Agriculture is experiencing a downturn far more severe than might have been predicted a year ago," Cenex Chairman Steven Burnet and Farmland Chairman Al Shivley said in a joint statement. "For that reason, we believe it is in the best interests of the member-owners of both co-ops to devote our efforts to maintaining stability in our joint ventures and in our individual business operations." They cited continued market and price volatility in key product areas like fertilizer and petroleum, along with ongoing low ag commodity prices, as factors in the decision.

Nutrition Program Fraud Bill Introduced. Sens. Richard Lugar (R-IN), chairman of the Senate Agriculture Committee, and Tom Harkin (IA), the ranking Democrat, have introduced a bill designed to prevent fraud and abuse in the federal nutrition programs. The Child and Adult Care Food Program reimburses the cost of meals at adult day care centers, child care centers and family day care homes. A USDA inspector general's report found extensive abuse of program funds by sponsor organizations. Lugar and Harkin's bill would enable state agencies to deny the application of a sponsor who is seriously deficient in any publicly funded program, require organizations to have tax-exempt status from Internal Revenue Service, limit the amount a sponsor can withhold from child care centers and require the Food and Nutrition Service to study the administrative payment structure. The IG audit found that in one program, 37 of 49 sponsors investigated were seriously deficient in program administration. Forty-four people have been indicted or named in criminal documents for fraud, and 28 of them have pled guilty or been convicted.

House Panel Urges More Funding. The House Agriculture Subcommittee on department Operations, Oversight, Nutrition and Forestry wants more money made available for the Emergency Food Assistance Program (TEFAP). The program provides food assistance to needy families. A bill from the subcommittee chairman, Rep. Bob Goodlatte (R-VA), would allow USDA to spend up to $25 million of unused employment and training money on TEFAP commodity purchases. That would increase TEFAP's mandatory commodity purchase account to $125 million. The money is justified, says Goodlatte, because the employment and training program is not being used.

Sanctioned Countries Could Get Promotions. USDA could issue funds to promote U.S. food and agricultural sales in countries such as Iran and Cuba, which now are subject to U.S. sanctions, REUTERS reports. "There's no real ban on that now," Tim Galvin, Foreign Agricultural Service administrator, says. USDA provides funding for trade groups to promote U.S. farm products in overseas markets. Galvin says groups interested in using funds in countries subject to sanctions have to seek approval through Treasury just as they do to sell commodities. "But there's no absolute prohibition or bar." U.S. food, medicine and medical equipment may be sold to Iran, Libya and Sudan, but other sanctions remain on those countries. Food sales also are allowed to non-governmental groups in Cuba, but that is a small market.

April 6, 2000

NAS Study Urges Agency Coordination on Biotech. The National Academy of Sciences' National Research Council has issued its long-awaited report on biotechnology and its effects on agriculture. The study recommends that regulatory agencies do a better job coordinating their work and expanding public access to the process as the volume and mix of transgenic plants on the market increase.

Democrats Hear Views on Concentration Issues. The Senate Democratic Policy Committee Wednesday heard from farmers and members of the academic community on the complex issue of agricultural concentration and antitrust law. Sen. Tom Harkin (D-IA) called said concentration was like an hourglass: farmers at one end, consumers at the other and in the middle "a choke point with just a few large agribusiness firm."

Yemen Donation Totals 177,000 Tons. USDA will donate up to 177,000 tons of agricultural commodities to Yemen. Agriculture Secretary Dan Glickman signed a Section 416 (b) agreement during a meeting with Ali Abdulla Saleh, president of Yemen.

Bill Seeks to Pre-empt IRS on CRP Rentals. A bill has been introduced in the Senate that would override the Internal Revenue Service's ability to apply Social Security taxes to income derived from Conservation Reserve Program rental payments. A court decision allows the IRS to collect 15.3% of a farmer's income from CRO rental payments back to 1996.

Ag News Summaries

U.S.-Canada Trade Ties Soured. U.S. accusations that the Canadian Wheat Board, which controls exports of western Canadian wheat and barley, is engaging in unfair trade practices has strained trade relations between the countries, the head of the wheat board says. REUTERS reports that board CEO Greg Arason said the board never has violated the North American Free Trade Agreement or the World Trade Organization rules. "Over the last decade we have been involved in eight investigations or studies initiated by the U.S. Each time we have been shown to be in full compliance with NAFTA and/or WTO rules." He accused the United States of using "fishing expeditions" to obtain information on wheat board pricing practices and to further its position that state trading enterprises reduce market transparency and competition.

USDA Makes Unused Allocation Eligible for DEIP. USDA has made additional U.S. dairy products available for export under the Dairy Export Incentive Program. USDA said it would make 8,232 metric tons of whole milk powder available. That amount represents the remaining cumulative unused rollover of DEIP export subsidies for dry whole milk from previous years, says the National Milk Producers Federation. The additional tonnage can be exported by June 30. Sales of the additional whole milk powder should have market value of about $21 million, according to NMPF. NMPF, the U.S.. Dairy Export Council, the DEIP Coalition, the Alliance of Western Milk Producers and the American Dairy Products Institute had asked for the decision.

Judge Rules on Pollution Runoff. Federal District Judge William Alsup, San Francisco, has ruled that the Environmental Protection Agency and the states have the authority to identify which waterways are polluted by runoff from urban sources, agriculture and timber harvesting. Alsup said Congress intended to include nonpoint source pollution in the Clean Water Act's water quality standards program, and he noted that nonpoint source pollution is the dominant water quality problem in the United States. The case involved a challenge to an EPA decision to put the Garcia River on a list of impaired waterways in California and define the amount of sediment that should be allowed to enter the river from land along its banks. The river no longer supports healthy fish. The suit was filed by the American Farm Bureau Federation and other agricultural groups who claimed EPA and the states should calculate a "total maximum daily load" (TMDL) only for pollutants that are discharged from pipes or other point sources.

Missouri Wants RFG Waiver. Missouri Gov. Mel Carnahan has requested a waiver from the Environmental Protection Agency to allow the state to withdraw from the reformulated gasoline program, part of a plan to ban MTBE use in Missouri. Both MTBE and ethanol are used most heavily in the St. Louis area. Renewable Fuels Association President Eric Vaughn said Carnahan's decision "is wrong for the environment, wrong for Missouri agriculture and wrong for Missouri consumers. Every other Midwest governor is working to expand ethanol use. Governor Carnahan should as well." He added the plan "is a step backward for agriculture and the environment." Simply banning MTBE and moving to ethanol "will protect clean air gains while preventing MTBE water contamination," said Vaughn.

Meat Packer Target of Probe. The record keeping practices of a Chicago-based meat packer are the target of a criminal investigation as the result of a government probe into allegations that a banned carcinogen turned up in a beef shipment to Switzerland, THE ASSOCIATED PRESS reports. The alleged irregularities involving the Bruss Co., a subsidiary of IBP Inc., turned up during USDA's attempt to track the beef that Swiss officials say contained the illegal hormone known as DES, USDA official say. "When we began looking into the DES issue some problems became apparent that we are now investigating," said Beth Gaston, a spokesperson for USDA's Food Safety and Inspection Service. The bookkeeping problems have not changed USDA"s conclusion that DES never was present in the beef, she added. Evidence of wrongdoing will be turned over to the Justice Department.

Steak Tests Developed. Two researchers have developed a genetic test to determine which young steers will produce prime rib and which will produce only ground chuck, THE ASSOCIATED PRESS reports from Wooster, OH. The DNA test can identify, with 99% accuracy, whether cattle have the genetic potential to produce tender, tasty beef if fed and raised properly, said Francis Fluharty, an Ohio State University feedlot nutritionist who developed the test along with molecular biologist Daral Jackwood. "I think the potential is huge," said Jim Riemann, executive director of the Certified Angus Beef Program, which plans to license the test for exclusive use in Angus cattle. "It should take a lot of variability out of the market." The test would be done early in a steer's life. Inferior animals could be raised for hamburger or other ground meat in which tenderness isn't as important.

Paris Credit Talks Critical. Scheduled talks next week in Paris could decide whether an agreement on farm export credit guarantees can be reached this year, REUTERS reports. Quoting USDA general sales manager Richard Fritz, REUTERS says if the talks do not make progress, the subject may be shifted to the World Trade Organization. Next week's venue is the Organization for Economic Cooperation and Development, which has been considering export credits since the end of the last major trade talks in 1994, with little if any progress during that time. Other nations have accused the United States of dragging its feet, and Australia and some other countries have called for export credits to be included in WTO negotiations on export subsidies. But export credit guarantees are important to many U.S. commodities, notably cotton and soybeans, and the United States has always asserted they are not subsidies.

Around Capitol Hill: House Speaker Dennis Hastert (R-IL) set the week of May 22 for a vote on granting China normal trade relations, and though the vote is expected to be close, supporters had pressed for a firm date and should be pleased by the announcement ... On another trade front, THE WALL STREET JOURNAL reported some progress toward a House-Senate agreement on a bill to liberalize trade with Africa and Caribbean countries. The chambers have been divided over textile trade provisions in the bill ... Congressional staffs began meeting to prepare for a conference committee that will reconcile different versions of a $6 billion crop insurance bill ... The Senate Agriculture Committee today will consider one of the hardy perennials of food policy debates, whether state-inspected meat should be eligible for shipment across state lines. Under current law, only federally-inspected products can enter interstate commerce.

April 5, 2000

Monsanto Touts New Rice Research as `Breakthrough.' Monsanto Company has announced "a major scientific breakthrough" with decoding the genetic makeup of rice that the company says will lead to more nutritious and higher yielding varieties. Monsanto will share data on the variety with researchers worldwide through the International Rice Genome Sequencing Project.

Senators Call on Army Corps for Commitment. Nineteen senators have called on the Corps of Engineers and the Army to get behind adequate funding for the Corps' projects to improve river-related facilities. Now "is not the time to retreat from this critical mission," they said in a letter to Army Secretary Louis Caldera.

USDA Reorganization Progress 'Mixed.' The General Accounting Office says USDA's five-year-old project to reorganize and modernize its agencies has produced some progress, but little has changed in how three agencies serve their customers. Many projects have encountered delays, GAO adds.

Ag News Summaries

Watershed Conference Scheduled. Farmers, municipal drinking water suppliers and others interested in agricultural water quality will meet in Amana, IA, June 5-7 for the "watershed heroes field training workshop and conference," sponsored by the American Farm Bureau Federation, the Iowa Department of Natural Resources and Trees Forever. The conference is aimed in part toward assisting farmers who want to solve water quality challenges voluntarily and increase farm efficiency. It will provide information on crop protectants and nutrients and their relationship to water quality, soil biology and human health. The conference also will review many potential water quality problems in a scientific perspective and provide practical and profitable ways to address them.

Disaster Payout 70%. The U.S. Department of Agriculture will pay just under 70 cents on the dollar in disaster benefits for 1999-crop losses, the government announced. Because eligible losses exceeded the money Congress provided, payments will be pro-rated at 69.6%. About half a billion dollars in losses will thus be uncompensated, at least for the moment. Farm-state lawmakers are likely to ask for money to pay the full amount of losses if Congress, as expected, again debates emergency farm support measures this year.

Beef Conference This Week. Cattlemen and women will meet in Washington today through Saturday at the Omni Shoreham Hotel for the beef industry's annual spring conference. With Congress probably voting on several issues of interest to the cattle and beef industry, producers will meet with their elected officials to discuss the issues. Greg Frazier, acting special trade negotiator for agriculture, will address the executive committee lunch today; Sen. Bob Kerrey (D-NE) and Tim Galvin, Foreign Agricultural Service administrator, will speak Thursday morning.

New Guide for Pork Producers. The National Pork Producers Council has published a new and updated information guide for pork producers on what to include in a production contract. The 80-page guide is to be used as background material by those involved in the preparation and negotiation of contracts for hog production. A new section covers contracts for wean-to-finish production and also has a checklist on issues and questions to ask when entering a production contract. To order a copy, call NPPC at 515/223-2600.

CRP Tax Ruling Focus of Bill. A bill has been introduced in the Senate to prevent the Internal Revenue Service form collecting self-employment Social Security taxes from Conservation Reserve Program income. The legislation comes in response to a recent court decision that allows the IRS to apply Social Security taxes to income derived from CRP rental payments to farmers. In February, a circuit court overruled a 1998 tax court decision that CRP rental payments were not considered farm income and not subject to self-employment taxes. The circuit court decision allows the IRS to retroactively collect 15.3% of a farmer's income from CRP payments to 1996.

Ukraine Wants U.S. Food Aid. Ukraine has asked the United States for 500,000 tons of food aid. Ukraine harvested a disastrous grain corp last year. Agriculture Minister Ivan Kyrylenko told REUTERS he had asked U.S. Ambassador Steven Pifer for the aid in the form of donations. Ukraine harvested 24.4 million tons of grain last year, including 1.7 million tons of corn, the worst harvest since 1945. U.S. corn is needed for animal feed, Kyrylenko said. Pifer promised to consider the request as soon as possible, he added, but the U.S. embassy said no official requested had been made yet. Separately, another REUTERS report says Ethiopian officials also issued an urgent call for food aid in their country and nearby African countries.

Concentration Hearings Coming Up. The Senate Agriculture Committee will hold another hearing on economic concentration and consolidation in agriculture on April 27, REUTERS reports, assuring further attention to perhaps the hottest topic in agricultural policy debates. Meanwhile, in an increasingly common move, Senate Democrats will convene a "hearing" of their own today on the same subject, under the auspices of the Democratic Policy Committee. Democrats have used the policy committee as a forum for topics that they say are important to farmers but neglected in the official Senate committee. Such events as today's, though not official Senate hearings, offer Democrats a forum. Perhaps in response to the Democrats' charges that he has neglected a review of farm policy, Chairman Richard Lugar's (R-IN) staff released a lengthy list of hearings the committee has held on a variety of topics related to agriculture.

Farmers Say Japan's Outbreak Contained. Japan's first outbreak of foot and mouth disease in 92 years has been contained so far and caused little damage to the country's domestic beef industry, BLOOMBERG NEWS reports. Souichi Kagawa, executive director of Japan Livestock Industry Association said, "We're rather relieved that the disease has spread in a very limited area." Japanese consumers eat more imported beef than domestic. Japan's three largest beef-producing regions supply only 7% of consumption, Kagawa said. He added that consumers "are not panicking, as newspapers have made clear the disease is no threat to humans."

Schumacher Goes to China. Under Secretary of Agriculture August Schumacher is in China to gain assurances China will open its markets, BLOOMBERG NEWS reports, a measure seen as key to getting support in Congress to grant China's permanent access to the U.S. market. He was to meet today with officials from China's Ministry of Agriculture, China National Cereals Oils and Foodstuffs Import and Export Corp., and officials from the country's quarantine department, a U.S. embassy official said. On Thursday Schumacher will meet with textile mill officials before attending the 13th session of the U.S.-China Joint Commission on Commerce and Trade. Congress is expected to vote on permanent normal trade relations in May.

Bill Seeks Meat Nutrition Labels. A group of House members has introduced a bill to require nutrition labels on fresh meat and poultry, REUTERS reports. Meat companies would have to adopt the same kinds of labels now used on most other packaged foods. Processed meats such as hot dogs, burritos and corned beef were required to carry labels in 1993. USDA now has a voluntary nutrition labeling system for raw meat and poultry, but relatively few companies use the information on charts in meat departments. The bill is supported by the Center for Science in the Public Interest which says nutrition labels are long overdue for raw meat and poultry. "Red meat is one of the biggest sources of artery-clogging saturated fat and should bear nutrition facts labels," said CSPI Executive Director Michael Jacobson. Rep. Nita Lowey (D-NY) said, "The signs and brochures (now used) are hard to find in the store, remain difficult to read and are not in a standardized format and simply don't provide consumers with the information they need to make a wise choice."

Livestock Disease Spreads in Korea. South Korea says foot and mouth disease has spread to seven western areas, two weeks after the epidemic first hit north of Seoul, THE ASSOCIATED PRESS reports. Authorities have slaughtered about 400 cattle and pigs, inoculated 110,000 other animals and imposed a ban on the movement of livestock around infected areas. Most livestock markets were closed indefinitely to prevent the further spread of the disease while the government ordered vaccine for 5 million animals from Britain, France and Germany. The disease is highly communicable and can kill carrier animals and ruin herds. It is not passed along to humans.

April 4, 2000

Congressmen Question NAS Food Study. Two congressmen have raised concerns about "serious conflicts of interest" the are "pervading" a National Academy of Sciences study on biotech plants. The study is to be released this week. Any conclusions in the study are "tainted by pervasive conflicts of interest among its authors," they say. The NAS flatly refutes the charges.

U.S. Pork, Beef Go to China. Air freighted shipments of U.S. beef and pork ribs and sausages have left San Francisco for Shanghai – the first shipments of both products to China under the new rules China published recently. National Pork Producers Council President Craig Jarolimek calls it "only a trickle compared to what pork producers can expect once China gains membership" to the World Trade Organization. The House votes on that before May 29.

Justice Sues to Block Dairy Sale. The Justice Department has filed a civil antitrust lawsuit to block Dairy Farmers of America Inc. from acquiring the assets of SODIAAL North America Corp. because the transaction would increase butter prices in the Northeast. The merger would reduce competition in the branded butter in New York and Philadelphia, says Justice.

`Ugly Duckling' Corn Strain May Repel Borers. One of corn's worst enemies – the European corn borer – may be on its way out of the corn field by a misshapen corn strain that may hold compounds that deter female corn borers from laying eggs. Corn borers cost $350 million a year in corn losses. With no preventative treatments, losses could exceed $1 billion, says USDA.

Ag News Summaries

Clinton Touts Political, Private Support for China. President Clinton presented industry officials in the Silicon Valley, heart of the high technology economy, with letters signed by 39 governors and nearly 200 technology industry leaders calling for approval of permanent normal trade relations with China, REUTERS reports from San Jose, CA. The "publicity effort" came as House Republican leaders said they would vote on the issue before May 29 when Congress recesses a week for Memorial Day.

Subsidies Aid Poultry Exports to Mid-East. U.S. export subsidies have helped sell 1,611 tons of frozen poultry meat to the Middle East, REUTERS reports. The article says there have been seven subsidized sales in the past 10 months. The three most recent, including one on Monday, were handled by Tyson Foods Inc., Springdale, AR, and totaled 559 tons. In addition to Tyson, other companies using the subsidy program were U.S. Gulf Coast Trading Co., and American Manufacturing and Marketing Association.

Aussie Wants Farmers to `Demand' Trade Reform. The vice president of the International Federation of Agricultural Producers, Jack Wilkinson, is urging Australian farmers to demand that their government get serious about world trade reform, the AUSTRALIAN BROADCASTING CORPORATION reports. World grain prices are at a 30-year low and urgent action is needed, he said. Wilkinson added that the international commitment to world trade reform appears to have stalled since the Seattle talks last year, and the United States and the European Union appear to have their own agendas. "It would seem to me that Cairns Group countries have, going into this round, much more in common with the developed countries in terms of export subsidies, and the EU and the U.S. (are) cutting a separate deal only that their farmers can play with ... the critical mass of 80 or 90 or 100 countries should in fact have some say in these discussions," he added.

Iran Will Buy U.S. Wheat at Right Price. Iranian Agriculture Minister Issa Kalatari says Iran is open to buying U.S. wheat after Washington eased trade sanctions with Tehran, REUTERS reports. "American wheat does have a number of conditions such as protein, such as price, and if they are competitive there is no doubt that Iran would be one of the purchasers," Kalatari told a news conference in Canberra. "But it should be mentioned that under the same conditions, we do give priority to the countries with which we have a close bilateral relationship." International grain traders point to the purchase of 600,000 tons of U.S. corn by private Iranian buyers since the sanctions were lifted last year, but Kalantari said he could not comment on the extent of wheat trade with the United States. "No doubt (trade with the United States) might create some limitations on Australian wheat, but you should try to compete," Kalantari said after a ministerial meeting with Australia's Trade Minister Mark Vaile. Vaile said, "The commercial sector is working very hard to ensure we at least maintain our market share if not increase that."

Irradiated Beef Slow to Reach Consumers. Food companies and retailers are moving slowly to introduce irradiated ground beef products to stores, fearful of a negative public backlash, REUTERS reports. While public opinion polls show that consumers are eager for safer meat products, there are a host of fears to overcome when it comes to the benefits of irradiation techniques, a group of industry players told REUTERS at the 2000 Meat Marketing Conference held in Kansas City, MO. "There is a highly charged atmosphere around this issue," said Pete Ellis, chief executive of Food Technology Service Inc., a Florida-based irradiation company for the food market. "Everybody will tell you they are interested in doing this, but they don't want to be first, they want to be a fast second." The government granted approval in February for irradiated ground beef products.

April 3, 2000

USTR Soft on China, Hard on EU. The U.S. Trade Representative has released the 2000 inventory of trade barriers and takes a soft approach to China, noting China's elimination of trade barriers, but comes down hard on the European Union, blasting the EU's biotech approval process as "unnecessarily lengthy and arbitrary," stopping hundreds of millions of dollars in U.S. farm product imports.

Senators Want Broader Farm-Storage Program. A group of senators is calling on USDA to include silage and "condo" storage in a low-interest farm storage loan program soon to be announced. Silage comes from corn and corn is considered "grain" and grain is allowed in the program, say the senators.

U.S. `Redoubles' Efforts to Detect DES. In the aftermath of a claim by Switzerland that low levels of diethylstilbestrol (DES) were found in two samples of U.S. beef, two agencies have "redoubled" their efforts to analyze DES levels. DES promotes growth in the animal and is banned for use in food animal production in the United States.

Ag News Summaries

GM Crop Plantings Fewer This Year. BLOOMBERG NEWS, THE ASSOCIATED PRESS and REUTERS report that farmers will plant fewer acres this year of genetically engineered corn, soybeans and cotton. USDA says genetically engineered corn will decline to 25% of the total corn acres planted, from 33%; soybeans to 52% of total acreage, from 57% and cotton to 48% of total acres, from 55%. The projections are preliminary but indicate that farmers are reducing their use of genetically engineered crops because of resistance to them in export markets.

Farm Aid in Late Summer, Says Stenholm. Rep. Charles Stenholm (D-TX), the ranking Democrat on the House Agriculture Committee, says it probably will be late summer before Congress decides the issue of farm assistance. In an interview with REUTERS after speaking to the National Grain and Feed Association in San Diego, Stenholm said, "We need to wait a little while and see what happens. It's always possible the market could turn around a little bit." He said he preferred to spend the $6 billion included in the federal budget resolution on supplemental income payments to farmers, but that is unlikely to gather enough bipartisan support. He expects Congress will double the 1996 farm law transition payments in the same manner farm aid was parceled out in the last two years.

Blueberry Vote Extended. USDA has extended the voting period for the blueberry industry referendum on a promotion and research order an additional 21 days through April 14. The referendum had been scheduled for March 13-24. Producers and importers will vote on whether the proposed program for cultivated blueberries will be implemented. Throughout the initial voting period, USDA was contacted by potentially eligible voters that they did not receive ballots. Producers and importers of 2,000 pounds or more of cultivated blueberries during Jan. 1-Dec. 31, 1999, are eligible to vote.

USDA Files Against Florida Farm Corp. USDA has filed an administrative action against Alex Farm Corp., Miami, FL. The action alleges the firm committed "wilful, repeated and flagrant violations" of the Perishable Agricultural Commodities Act. It is alleged the firm failed to make full and prompt payments of $419,922.50 to 16 sellers for perishable agricultural commodities purchased in interstate and foreign commerce from December 1997 through February 1999. The firm will be able to request a hearing on the allegations. If found guilty, Alex Farm could be barred from the produce industry for two years and the principals of the firm could not be employed by or affiliated with any PACA licensee for one year and then only by posting a USDA-approved surety bond.

Farmers Not in Financial Crisis. Barry Flinchbaugh, Kansas State ag economist and chairman of the federal Commission on 21st Century Production Agriculture, says farming is not in a financial crisis, but Congress probably will pass legislation this year similar to the 1996 farm law, THE ASSOCIATED PRESS reports from Manhattan, KS. "The truth of the matter is that 1999 is roughly tied with 1997 as the second highest net farm income year on record," he said. However, the industry's financial health is not the result of a strong economy in the farming sector, he added. Prices for farm commodities are low, and the value of exports declined from more than $60 billion in 1996 to $49 billion in 1999. The commission he chairs probably will recommend to Congress a version of the 1996 law that addresses weaknesses in that law while keeping its basic provisions. The comments came in a speech Flinchbaugh made last week.

Korea Faced with Livestock Disease. News articles from all major sources report a severe outbreak of foot and mouth disease in South Korea. THE WALL STREET JOURNAL'S Dow Jones Newswires say the deadly livestock ailment could become a national epidemic. "The problem requires an all-out government effort to be controlled. It threatens to become a national epidemic," Agriculture Minister Kim Sun-hoon told a cabinet meeting. Symptoms of the disease began showing up at two farms north of Seoul around March 20, and at least four more farms farther south are believed to have been hit by the illness. Foot and mouth disease is highly communicable and can kill the carrier animals and ruin entire beef and milk cow herds. Japan has reported suspected outbreaks this year, and Japan and South Korea have banned beef and pork imports from each other. Australia, Taiwan, Hong Kong and Singapore also banned imports from both countries.