August 31, 2000

R-CALF, NCBA in Angry Exchange. The Ranchers-Cattlemen Action Legal Fund (R-CALF) and the National Cattlemen's Beef Association are embroiled in a heated argument over quotes attributed to NCBA President-Elect Lynn Cornwell made to the Canadian Cattlemen's Association and reported in a Canadian livestock magazine. R-CALF President Leo McDonnell, Jr., says Cornwell owes U.S. cattle producers an apology. 

USDA Forecasts $51.5 Billion in Agricultural Exports. Continued strong world economic growth and resulting increases in global imports will push the projected value of U.S. agricultural exports up $1 billion to $51.5 billion in fiscal 2001. Increases are forecast for cotton and horticultural products. Prices, particularly for bulk commodities, are expected to remain relatively low, limiting gains in export value. 

Corn Growers Rally for Responsible River Management. Corn growers battled 100 degree heat earlier this week on the Missouri River in Kansas City, MO, along with state and local politicians, conservation and transportation officials over responsible management of the Missouri River. 

NGFA Wants River Study Done and Modernizing Begun. The National Grain and Feed Association has urged the U.S. Army Corps of Engineers to complete its study of the Upper Mississippi/Illinois River System and begin modernizing the locks and dams for the benefit of U.S. agriculture and the economic health of the region.

News Summaries

Payments to Farmers Ready to Begin. Agriculture Secretary Dan Glickman announced Wednesday that starting Friday (Sept. 1) USDA will begin making $5.5 billion in supplemental payments to about 1.4 million producers The payments are part of a $7.1 billion relief package approved by Congress. USDA's Commodity Credit Corporation will issue payments to those farmers who received a final fiscal year 2000 production flexibility contract (PFC) payment; sometimes called Agricultural Market Transition Act payments or AMTA payments. The payments will be paid automatically to eligible farmers, who will not have to file any forms or visit any offices. 

USDA Ends Efforts for Pistachio Order. USDA has terminated a proceeding to consider a new federal marketing order for pistachios grown in California, Arizona, Nevada, New Mexico, and Utah because of a lack of industry support for the proposal under consideration. A public hearing was held on the proposal in August 1996 at the request of the California Pistachio Commission and the Western Pistachio Association. USDA subsequently announced its plan to reopen the hearing to receive additional evidence relating to economic and marketing conditions that justified a pistachio marketing order. The two industry groups that submitted the proposal recently requested that the proceeding be terminated. The proposal would have authorized mandatory quality requirements for pistachios, including mandatory inspection and grade, pack, container, and labeling requirements. 

Pork Producers Announce Fall `Tailgate' Promotion. "Pork. The Other White Meat®" will be the featured attraction at the a special football season tailgate party - a checkoff-funded promotional campaign that includes 20 of the nation's leading retail chains, the top two food service distribution companies and many leading restaurant chains. Steve Schmeichel, chair of the National Pork Producers Council's (NPPC) Demand Enhancement Committee, said the checkoff-funded "Other Tailgate Party™" campaign will include sponsorship of 40 college football broadcasts on the CBS Radio Network, as well as extensive newspaper advertising and in-store promotions in 24 target markets including New York City, Los Angeles and Chicago. Promotional materials will feature former Chicago Bears and New Orleans Saints football coach Mike Ditka, whose Chicago restaurant serves a variety of pork entrees and has earned Pork Restaurant of the Year honors. 

U.S. Continues Ban on Argentine Beef. USDA says it will continue a temporary ban on Argentina beef imports due to a foot-and-mouth disease scare until at least the end of September, REUTERS reports. "We are not going to end (the ban) until our APHIS employees finish their assessment in Argentina," Ed Curlette, spokesman for the USDA's Animal and Plant Health Inspection Service, told REUTERS. "They will be leaving for Argentina some time around the third week of September." Earlier this month, 3,500 cows in Argentina were put to death after a handful of cattle were found to carry antibodies for the virus. The disease does not affect humans, but is highly contagious and difficult to eradicate from herds. The article says Argentina had filled about half of its annual U.S. beef import quota of 20,000 tons prior to the U.S. ban. The article adds that the U.S. beef industry said the continuing hold on Argentine beef imports would have little, if any impact on U.S. supplies. 

Cuba Could Buy $500 Million from U.S. Farmers. USDA says Cuba potentially could purchase $300 to $500 million worth of U.S. farm goods if U.S. economic sanctions are eased and the island nation has access to funds to pay for imports, REUTERS reports. "We could see the Cuba market climb to maybe $300 million to $500 million over a year or two, and maybe even more over the long term," Gerald Bange, chairman of the USDA's World Agricultural Outlook Board, told reporters. However, that market projection depends upon the U.S. relaxing its 40-year-old embargo against communist-ruled Cuba, and whether the nation can obtain access to export credits or other financing to purchase U.S. farm goods, Bange said. The remarks came during a news conference in which the USDA announced it expected total U.S. farm exports to rise to $51.5 billion in fiscal 2001, which begins on Oct. 1. 

USDA Wants to Change Inspection System. THE ASSOCIATED PRESS reports that USDA says its meat inspectors spend too much time on jobs that processors could do themselves, such as checking scales and monitoring the water content of meat products, and wants to focus more on stopping harmful bacteria. USDA has 7,500 inspectors responsible for regulating a number of consumer protection rules that officials say have little or nothing to do with food safety. The article says the department is considering allowing inspectors to spend less time doing tests to enforce those rules. "We're trying to make sure that our resources are devoted to food safety. That's our first priority," said Phil Derfler, associate deputy administrator of USDA's Food Safety and Inspection Service. 

Lizards, Ants, Plague Japan's Food. REUTERS reports that Japan is being plagued this summer by food recalls of record proportions, including a lizard in a bag of garlic-butter potato chips, ants running wild in instant noodles and about 15,000 people falling ill from tainted milk. Health officials said the tainted milk scare was Japan's most widespread food poisoning case ever. "I never thought that milk could make my children so ill,'' the Mainichi Shimbun newspaper recently quoted a 43-year-old Osaka mother as saying after her two daughters fell victim to tainted milk. The article says hardly a day goes by without some strange creature or toxin finding its way into a food product and grabbing the attention of the national media. Dead flies have been found in cans of tomato juice, insect wings in chocolates, worms in "kimchi'' spicy cabbage and harmful bacteria in dairy products, the article says. 

Metal Detectors for Seafood Inspection. South Korean quarantine authorities are brandishing a new tool for inspecting imports of crabs and exotic blowfish -- metal detectors, REUTERS reports from Seoul. Imports from China in recent weeks have contained lead pellets inserted, making them heavier and more expensive. "We suspect the lead is being put into blue crab and blowfish to increase weight,'' a Maritime Affairs and Fisheries Ministry official said on Wednesday. "As a result, we have intensified quarantine services and are using metal detectors."

August 30, 2000

WTO Rules Against U.S. on Revenue Act. The appellate body of the World Trade Organization has upheld a dispute settlement panel finding that the U.S. Revenue Act of 1916 is inconsistent with WTO antidumping rules. The Appellate Body upheld the panel's findings that WTO antidumping rules are applicable to the 1916 Act and that the 1916 Act is inconsistent with these rules because the civil and criminal penalties provided for in the 1916 Act go beyond the responses which those rules authorize. 

PETA 'Tasteless, Insensitive' with Latest Ad. The National Dairy Council and National Fluid Milk Promotion Board say the "exploitation" of New York Mayor Rudolph Giuliani's battle with prostate cancer by the People for the Ethical Treatment of Animals (PETA) "is completely tasteless and insensitive." PETA is using "outrageous tactics to further its animal rights agenda, regardless of the nutritional consequences to the American public." Giuliani has issued a verbal statement to the press criticizing PETA's tactics. 

New Leasing Option Announced. Ag Services of America, Inc., and its subsidiary Powerfarm, Inc. recently added a leasing option to their offering of crop inputs and flexible financing programs. Leasing is now available to producers online through Powerfarm.com or through field representatives of Ag Services of America, Inc., with administrative and back end support being provided by Leasexpress(R), a service of Farm Credit Leasing. 

NASS to Issue Monthly Hog Reports. USDA's National Agricultural Statistics Service (NASS) will conduct a monthly hog survey starting in October. The survey will collect sow and gilt inventories, sows and gilts farrowed, sows and gilts bred, and pig crop for the United States on a monthly basis. he first published data from this survey will be released Dec. 28 with subsequent reports released the last Friday of each month.

News Summaries

Glickman Tours Devastated Texas. After touring a drought stricken farm in Texas, Agriculture Secretary Dan Glickman Tuesday designated four additional counties in the state as agricultural disaster areas, making farmers in these and adjacent counties eligible for emergency low interest loans. In recent months, Glickman declared 153 Texas counties agricultural disaster areas. The Dallas area has now gone a record 61 continuous days without precipitation and the drought situation is getting worse. "With nearly the entire state of Texas affected by severe heat and drought, I am quickly approving requests for disaster assistance," Glickman said. "Texas livestock producers are especially hard hit as 90 percent of the state's ranges and pastures are in fair to very poor condition." Hot temperatures and high winds continue to deplete the soil moisture and take their toll on Texas crops such as wheat, hay, sorghum, cotton, oats, peanuts, soybeans, corn, and alfalfa. USDA data indicate that Texas cotton yields are only 66% of normal. Sorghum is at 61%, corn at 82% and peanuts are at 68 percent. 

Soybeans Not a Record. A "consensus is emerging" that soybean production this year will be less than the record amount forecast by the USDA in August, reports REUTERS, due to hot, dry weather in some growing areas. In its August crop production report, USDA projected 2000 soybean production at 2.99 billion bushels, 13% greater than 1999 and 9% more than the previous record crop of 2.74 billion set in 1998. The article says expectations of a smaller-than-forecast crop this year took soybean futures at the Chicago Board of Trade sharply higher on Monday, and the rally continued on Tuesday. "I think the reason we are breaking out is we are locking in ideas the government has overstated the crop," said Dan Cekander, head of grains research at FIMAT Futures. He said there were expectations for yields to average between 39 and 40 bushels per acre. Soybean production will be around 2.866 billion bushels if yields average 39 bushels per acre, and at 2.940 billion based on yields of 40 bushels, Cekander said. 

Hog Prices Down on Promotion Estimates. BLOOMBERG NEWS reports hog prices declined almost 4% to a nine-month low. Grocers promoting abundant and cheap supplies of beef and chicken rather than pork were the cause, the article says. Wholesale pork prices surged to a record in June. Pork declined 17% since then, but it still isn't cheap enough to lure buyers away from beef and chicken, and grocers aren't promoting pork as much as last month, analysts said. "We turned the consumer and the retailer off by raising prices so much," said Joe Kropf, an analyst with Kropf & Love Consulting Inc. in Overland Park, KS. "Since then we've had to find a price attractive enough" to get them to buy again. The article says chicken prices appear to be a bargain to Jerry Willits, vice president of meat, seafood and deli at Eagle Food Centers Inc., a chain of about 65 supermarkets in Iowa and Illinois. "Chicken is the most attractively priced item compared to where the market has been," Willits said. 

Cloned Dairy Cow Birthed in Tennessee. University of Tennessee researchers say a cloned dairy calf has been born at the facility using a quicker and less complicated method than that used to clone Dolly the sheep, according to THE ASSOCIATED PRESS. The researchers said Monday that a brown and white calf named Millie, short for Millennium, was born full-term on Aug. 23, weighing 62 pounds. She is the third bovine cloned from adult cells born in the United States but the first Jersey and the first using standard cell-culturing techniques. "Cloning procedures are more simple than we first thought," said Dr. Lannett Edwards, who studied as a visiting USDA scientist with researchers in Scotland who cloned Dolly in 1996. She led the Tennessee effort with her husband and colleague Dr. Neal Schrick. The article also notes that the two other cloned cows born in the United States have been produced by researchers at Texas A&M and the University of Connecticut within the past year. 

FAO Wants More Agricultural Investment. KYODO NEWS reports that the Food and Agriculture Organization believes a significant increase in new investment in agriculture is imperative to eradicate poverty and to ease chronic food insecurity. T.C. Ti, a senior economist at the FAO Regional Office for the Asia-Pacific, said, ''The 'business-as-usual' attitude will not do.'' In an address to the five-day 25th FAO Regional Conference for Asia and the Pacific, which entered its second day Tuesday in Yokohama, southwest of Tokyo, Ti said countries in the region must make certain that the flow of capital investment into sustainable agriculture and rural development increases significantly. Without "substantial public and private investment in infrastructure, services and technology in the field," the food and agriculture sector "will not move." 

Monsanto's Rice Decision Good Business. THE WALL STREET JOURNAL, in a column written by James B. Stewart, says Monsanto's decision to give away rights to its patent for vitamin A-enhanced "golden rice" is "a shrewd business decision and good public relations." Stewart writes, "Good for Monsanto. Now a unit of Pharmacia (PHA), the much-derided biotechnology pioneer announced this month that it's giving away rights to its patent for vitamin A-enhanced `golden rice.' The company estimates that the rice could help millions, including hundreds of thousands of children who suffer death or blindness every year because of vitamin A deficiencies." He adds, "If the results benefit humanity to the degree its advocates predict, Monsanto/Pharmacia - and other producers of bioengineered agricultural products - may emerge from the hysteria that has depressed their stocks to irrational levels." 

EPA Rushes Rules as Administration Ends. Manufacturers and farm groups claim the Environmental Protection Agency is hurrying to complete scores of new clean air and water regulations in the event the Republicans gain the White House this fall, REUTERS reports. "EPA officials said the agency is simply following the law and trying to meet regulatory deadlines already established for a range of issues including truck diesel fuel emissions and pesticide risk assessments," the article says. The issue of EPA's regulatory zeal formed last week after a report in the WASHINGTON POST that said the administration had listed 67 regulatory decisions for action before President Bill Clinton's second term expires in January. The newspaper said the chances that Republican George W. Bush might occupy the White House had led "environmentalists and other liberal leaning groups" inside the administration to push ahead a number of rules, ranging from curbs on truck pollution to food labeling and pesticides, according to REUTERS.
 

August 29, 2000

Enzi Wants Foreign Beef Production Explained. Sen. Mike Enzi (R-WY), chairman of the Senate Subcommittee on International Trade and Finance, and three other western senators have asked the Department of Commerce to explain how foreign beef is produced in order to educate domestic cattle producers and government officials involved in negotiating trade agreements. 

Dairy Farmers Lauded for Labor Day. As the nation honors its work force on Labor Day, dairy producer organizations are promoting dairy farmers as hard working Americans who bring fresh, wholesome dairy products to consumers daily. Dairy Management Inc. and the National Milk Producers Federation say dairy farming is a labor-intensive occupation, and producing such a wholesome product does not come without manpower. 

Consumers Overlook Instant-Read Thermometers. A nationwide survey has shown that a majority of Americans continue to overlook one of the best lines of defense against the risk of foodborne bacteria - using instant-read thermometers, according to the National Cattlemen's Beef Association. "Use of an instant-read thermometer to determine doneness of meat and poultry is one of the best lines of defense against foodborne bacteria," says J.O. Reagan, executive director of research for the NCBA.

News Summaries

Texas Set to Break Drought Record. REUTERS reports that "a bone-dry summer" in north central Texas was set to break a Depression-era drought record on Monday as the Dallas area marked 59 days without rain and no relief was in sight, weather officials said. By the end of the day, the number of 100 degree (38 C) daily highs would break a record of 58 days set in the midst of the Dust Bowl in 1934 and tied in 1950, the U.S. National Weather Service said. "Nothing appears to be moving in that would bring us any significant rain for at least the next 10 days or so," said Roland Nunez, a meteorologist with the weather service in Fort Worth. The article says that despite breaking a Dust Bowl record, Nunez said there was no comparison between the current drought in most of Texas and the disastrous drought and dust storms of the Great Depression that blighted the Great Plains and turned millions of farm families into migrants. In 1934 the record dry spell was part of a longer 121-day period when only about a quarter-inch of rain fell from May 4 to Sept. 2. This year, by comparison, the Dallas-Fort Worth area has received 10.8 inches of rain over the last 121 days, according to the article.

Soybean Heat Damage Raises Prices. BLOOMBERG NEWS reports soybeans increased to a two-month high on concern that scorching heat in the Mississippi Delta could damage plants and lead to a smaller harvest in October than the government predicted earlier this month. Temperatures in Memphis could break an August record of 105 degrees Fahrenheit Monday, as plants develop beans in pods. The article says heat- damaged crops could prevent a record U.S. harvest this year. "This is the critical yield-determining period for soybeans," said Anne Frick, an oilseeds analyst with Prudential Securities Inc. in New York. BLOOMBERG says the condition of the soybean crop has deteriorated in the past month, "based on the most recent (USDA) weekly assessment. Traders are concerned that conditions may worsen as the hot weather lingers in the Delta region, which comprises Tennessee, Arkansas, Louisiana and Mississippi, according to the article. 

New Mad Cow Threat May Face Britain. Britain may face another battle against "Mad Cow" disease, REUTERS reports. Top researchers say a whole range of farm animals could be silent carriers. So far, the article notes, scientists have focused on cattle in battling a disease that slowly wastes the brains of its victims. Now a government adviser has raised the possibility that apparently healthy people and animals -- from cows to pigs -- also could be carriers even though they show no signs of infection, according to the article. "Although they may not show any signs of disease, no matter how long they live, they could still harbor high levels of the infectious agent and therefore pose a risk," said Professor John Collinge, who led the team that made the discovery. 

USDA Buying Cranberries for Schools. USDA is buying 5.5 million pounds of cranberry sauce for $2 million to give to the nation's school food programs. THE ASSOCIATED PRESS says this is the first ever purchase of cranberry sauce. USDA has bought meat, fruit and vegetables for schools, however. "What we're hoping to do is to work with schools to introduce students to the idea of cranberry sauce, as not merely a seasonal treat around the holidays but as a year-around source of nutrients," said George Chartier, a spokesman for USDA's Agricultural Marketing Service. The sauce that schools don't want will be given to food banks and other programs that feed the poor, USDA officials said. Cranberry prices have declined sharply in recent years because of overproduction. Last month, the Agriculture Department ordered growers to cut production or dump about 15% of their crop this fall to stabilize prices and reduce the cranberry surplus. Prices paid to growers declined from a high of $65.90 per barrel in 1996 to $38.80 per barrel for the 1998 crop, and they are expected to decline below $30 for the 1999 crop, USDA says. The department is buying the cranberry sauce from Ocean Spray Cranberries Inc., a Massachusetts-based growers' cooperative, according to the AP.

August 28, 2000

Clinton Talks Agriculture in Nigeria. President Clinton and Nigerian President Obasanjo last week spent "a fair amount of time" on agricultural issues, according to administration officials. Obasanjo reportedly wants to "rehabilitate" agriculture as quickly as possible, both to meet local food needs and to diversify an economy that now is highly dependent on oil. 

Willie Nelson Asks for Farmer Consideration. Country singer and Farm Aid President Willie Nelson wants everyone, but especially voters and candidates, to remember family farmers in this election year. Farm Aid's 15th anniversary is this year, and Nelson says now is the perfect time for voters and candidates to make a difference for farm families. 

Bacteria May Fight Sugar Beet Fungus. A new kind of soil bacteria found living around sugar beet roots may offer a natural defense against fungi that menace the crop. Grown on 1.5 million acres, sugar beets supply roughly 50% of the nation's sucrose. 

Nitrogen Fertilizer, No-Till Yield Benefits. With proper nitrogen fertilization and a no-till production system, Great Plains dryland farmers can grow crops continuously, reduce erosion and improve the soil's ability to store carbon, ARS soil scientist Ardell Halvorson reported today at the American Chemical Society's national meeting in Washington, DC.

News Summaries

New Salmonella Rules May Be Coming. USDA may issue new and less strict standards for preventing salmonella contamination in ground beef served for school lunches, the New York Times reported, according to BLOOMBERG NEWS. Reconsideration of the standards, issued in June, "follows complaints from meat processors that the rules were unnecessary because proper cooking kills the bacteria," which was responsible for about 600 deaths in the U.S. last year, the paper reported, according to BLOOMBERG. Many processors at first declined to bid on school lunch contracts as a result of the rules, the article says. Consumer groups accused the agency of buckling under industry pressure by discussing loosening the standard, the Times reported. USDA buys about 70% of the ground beef used in schools, the Times said. Before June there were no standards for pathogens. The newspaper quoted USDA official Kathleen Merrigan as characterizing the reconsideration as "fine tuning." 

Government Stingy, say Black Farmers. THE ASSOCIATED PRESS reports from Richmond, VA, that some black farmers say the government has been "stingy and slow" about issuing payments from last year's settlement of a lawsuit alleging decades of racial discrimination in federal lending practices. USDA won court approval in April 1999 for the settlement of the suit filed on behalf of black farmers who claimed they had been systematically discriminated against for years when they applied for loans and subsidy programs, according to this article. Of the 21,073 farmers who have filed claims, 18,239, or 87%, had received decisions as of Monday. So far, 11,025 claims, or 60%, have been approved, while the remaining 7,214 claims have been denied. "I think a lot of these denials have not been fair," said John Boyd, president of National Black Farmers Association, which held a panel discussion Friday on the issue. About 300 farmers and supporters attended the three-hour session, part of the association's annual meeting, along with a USDA official and the court-appointed monitor of the case, says the article. "We have documented proof that we were discriminated against, but they are still denying us what we are due," said George Hildebrandt, 59, of Leavenworth, KS, whose claim was denied. The article also says Rosalind Gray, director of the USDA's Office of Civil Rights, said independent parties are deciding the claims. "While she admitted there have been some problems and delays, Gray said the department is committed to settling the case," according to the article. 

Glickman Won't Return Belgian Sheep. Agriculture Secretary Dan Glickman on Friday rejected a request by the Belgium agriculture minister to return the remaining Vermont sheep suspected of carrying a neurological ailment similar to mad cow disease, REUTERS reports. Glickman said in a letter to Belgium's Agriculture Minister Jaak Gabriels that returning the 350 imported East Fresian sheep "could undermine confidence in the integrity of our animal health system." The article notes that earlier this month, Gabriels asked the USDA to return the sheep alive after four of the animals tested positive for a -- still unidentified -- form of transmissible spongiform encephalopathy or TSE. One form of TSE is scrapie, a disease fatal to sheep but no threat to people. Another form, however, is bovine spongiform encephalopathy or mad cow disease, which has been linked to a fatal human disorder. 

China a Voice for Free Trade? BLOOMBERG NEWS reports from Beijing that China could become a voice for free global farm trade after joining the World Trade Organization, assuming it confronts members of the trade body that retain policies China had to give up to join. The article notes that China abolished export subsidies for corn, cotton and rice, while 25 WTO members, including the United States and the European Union, retain the right to subsidize agricultural exports, said Dale McNiel, an independent attorney on agricultural trade. "The only rational policy for China is to try to abolish agricultural export subsidies and domestic farm supports around the world," said McNiel, formerly senior legal counsel to the U.S. Agriculture Department. He spent seven years involved in multilateral negotiations that established the WTO. 

Canada Probes U.S. Dumping Fears. Canada is investigating allegations by some of its corn growers that exporters in Minnesota and North Dakota are dumping grain corn in western Canada, reports THE WALL STREET JOURNAL. The article says the Manitoba Corn Growers Association claims the production cost for grain corn in the United States is around $2.60 a bushel. However, U.S. exporters are selling it for less than $2, undercutting Canadian farmers. The group also claims the U.S. government is subsidizing corn growers unfairly through loan deficiency payments when prices decline below a level determined by USDA, the article says. The Canada Customs and Revenue Agency has concluded evidence of dumping and subsidization exists, but the agency is withholding final judgment until it completes its investigation Nov. 7. A separate investigation by the Canadian International Trade Tribunal into whether Canadian growers are being harmed is to be completed by Oct. 10, according to the JOURNAL. 

Blair Blasts U.S. Sanctions. British Prime Minister Tony Blair has written an angry letter to President Bill Clinton criticizing "unjustifiable'' sanctions on UK products in a trade dispute with the EU, the Financial Times reported on Saturday, according to REUTERS. The paper said the letter was the second Blair had written to Clinton on the issue in three months, and that the language used was "strikingly direct.'' However, the Department of Trade and Industry (DTI) was unaware of any new contacts with the United States about the trade sanctions -- which could hit Scotland's cashmere sweater industry particularly hard, the article says. "We have on numerous occasions made clear to the U.S. at the most senior levels in Washington and London that further retaliation against UK firms would be unjustified," a spokeswoman said.
 

August 25, 2000

Agricultural Exports More than Last Year. The $38.8 billion cumulative U.S. agricultural exports in fiscal 2000 are $1.3 billion more than in the first nine months of 1999, USDA reports. However, the trade surplus to date is barely above 1999's $8.8 billion, because imports so far are about $1.3 billion ahead of 1999. The export gain in June is only 1% over the value reported for May. 

Hog Producers Plan Modest Expansion. Hog producers indicated intentions to begin rebuilding breeding herds, according to USDA's June hogs and pigs report. But before expansion takes hold, pork production will decline 2% in the second-half of 2000 from a year earlier. With lower pork production in the near term and prospects for only modest expansion next year, hog prices are expected up from last year's $34 per cwt to average in the mid-$40's in 2000 and 2001. 

Manure Has an Upside and a Downside. Livestock and poultry manure applied to farmland provides a valuable source of organic nutrients, but nitrogen and phosphorus from manure in excess of the farm's crop requirements can compromise water quality, according to USDA. 

More Farmers Take Advantage of the Internet. As online possibilities for agricultural commerce expand, more and more farmers and ranchers are doing business over the Internet, according to USDA. The share of farms with Internet access more than doubled to 29% between 1997 and 1999, according to USDA's National Agricultural Statistics Service. More than 600,000 U.S. farms and ranches accessed the Internet in 1999, with 15% conducting e-commerce transactions, based on USDA's Agricultural Resource Management Study. This means that roughly 1 of every 25 farms and ranches in the country bought or sold agricultural products on the Internet.

News Summaries

Cattlemen's President Rides Tractor to White House. National Cattlemen's Beef Association President-elect Lynn Cornwell rode a tractor to help deliver the official version of the so-called death tax bill to the White House for the president's consideration. Cornwell was present at an official ceremony on Capitol Hill that preceded delivery of the bill to the president. He was chosen to ride with the official clerk to dramatize how important this legislation is to ranchers, farmers and other family businesses. "This bill is not only important to cattle producers, but it's important for all family farms and small businesses in all sectors of the U.S. economy," Cornwell said. "Such taxes take away incentives to grow your business, and it affects your ability to pass your family ranch to the next generation. By passing this bill, Congress has sent a message that it understands the impact. We'd like to see the president sign this bill." Cattle producers have rallied behind legislation to eliminate the estate tax which often costs families more than 50% of their net worth. NCBA on Aug. 15 sent a letter to President Clinton urging him to sign the legislation. The bill was passed in both houses of Congress with strong bipartisan support, but the ability of Congress mustering enough support for a veto override was in question. 

U.S. Beef Imports from Brazil in Question. REUTERS reports that a recent foot-and-mouth disease outbreak in Brazilian cattle could severely affect that country's beef export industry as the United States decides whether to open up its lucrative market to Brazil. USDA has said the outbreak of the highly contagious disease would be taken into consideration when deciding whether to allow imports of Brazilian beef products. "This new information would obviously be taken into consideration in that evaluation," said Hallie Pickhardt, spokeswoman for U.S. Animal and Plant Health Inspection Service. "As long as there is an outbreak, we would not allow the importation of fresh beef." Brazilian officials discovered 28 cattle harboring foot-and-mouth disease in Rio Grande do Sul. The disease does not affect humans but is highly contagious and difficult to eradicate. 

Humane Society Likes McDonald's New Rules. The Humane Society of the United States (HSUS) has commended McDonald's Corporation for implementing new regulations for its egg suppliers to improve the treatment of hens, taking the first step as a major U.S. food supplier, to improve conditions for egg-laying chickens in this country, according to HSUS. "One of the more positive aspects of this move is that it brings the issue of humane treatment of farm animals into the public forum," said David Kuemmerle, HSUS program manager for Farm Animals and Sustainable Agriculture. One of the improvements in hen treatment that will have a significant impact on both animal welfare and human health will be the elimination of the practice of "forced molting," in which food and water may be withheld from hens for up to 14 days, says HSUS. 

Latest PETA Ad Angers Giuliani. Anti-dairy activists have posted billboard advertisements in Wisconsin that parody the dairy industry's popular ``Got Milk?'' ads and have outraged New York Mayor Rudolph Giuliani, THE ASSOCIATED PRESS reports. Two billboards by the People for the Ethical Treatment of Animals depict Giuliani wearing a milk mustache and asking: ``Got prostate cancer?'' The ad claims a connection between drinking milk and prostate cancer, for which the mayor is being treated. "It's tasteless and inappropriate to exploit my illness and also takes advantage of my position as the mayor for advertising purposes," Giuliani said Thursday. "The message they're trying to deliver just makes sense in their own zealous, out-of-control thinking." The AP says Giuliani said he was considering suing PETA because the organization was using his image in an advertisement without his permission. The AP article also says a study by the Harvard School of Public Health in April raised the possibility that consuming "lots of milk and other dairy products" could modestly increase the risk of prostate cancer. The study stressed the case was far from settled and recommended further study of calcium's effects on health. 

Dutch Increase Dead Cow Testing. THE WALL STREET JOURNAL reports that the Dutch will increase the testing of dead cows for mad cow disease from mid-September. The decision follows a ruling from the European Union Commission, the Agricultural Ministry said Friday. The Dutch plan to test 3,000 cows and bulls every year for bovine spongiform encephalopathy (BSE). Up to now, the animals were only inspected if they showed symptoms of the disease, according to the JOURNAL. The new tests involve animals that have died or been slaughtered on the farm or those that are ill and have been taken to emergency slaughterhouses. The article says the change is to "increase the chance of finding cases of BSE," a disease that could cause the lethal Creutzfeldt-Jakob illness in humans. The last official case of BSE in the Netherlands was reported in January, according to the article.
 

August 24, 2000

USDA Details Sugar PIK. USDA expects nearly 600,000 tons of sugar to be forfeited from the 1999 crop, with 300,000-400,000 tons of refined sugar to be paid out to participants under the sugar payment-in-kind (PIK) program. Savings from the PIK program will come from the elimination of monthly storage payments and the potential for reduced 2000-crop forfeitures of loan collateral, USDA said Wednesday in a Federal Register notice. 

California Court Affirms Water Rights. The California Supreme Court has upheld the state's long-established system of water rights. Ruling unanimously in a case involving rights to water in the Mojave Valley of San Bernardino County, the court said a judge cannot ignore existing legal water rights in apportioning water among users. Specifically, the Supreme Court upheld the "priority system" of water rights, under which water users with an older right generally receive priority over those with newer rights.

NPPC Accuses Anti-Checkoff Forces of Misleading Actions. The National Pork Producers Council says opponents of the pork research and promotion program, also known as the checkoff program, used "blatant efforts to mislead ... and misrepresent information" about two checkoff programs. The information was in a Wednesday news release distributed by the Campaign for Family Farms along with the Iowa Citizens for Community Improvement, Missouri Rural Crisis Center and the Land Stewardship Project, NPPC said. 

Cattlemen Blast PCRM on 'Thermy' Campaign. Advice to consumers from the Physicians Committee for Responsible Medicine (PCRM) to avoid meat no matter how well it's cooked has raised the hackles of the National Cattlemen's Beef Association. PCRM complained to USDA that a new campaign promoting the use of thermometers in meat preparation means the meat is safe to eat when actually meat consumption risks human health. The campaign features "Thermy," a cartoon thermometer, who claims, "It's safe to bite when the temperature is right." 

EPA Urged to Deny California Waiver from RFG Oxygen Standard. Two pro-ethanol organizations have urged the Environmental Protection Agency to deny California's request for a waiver from the federal reformulated gasoline (RFG) oxygen standard in light of the growing technical data demonstrating the air quality benefits of oxygenates such as ethanol. "While I understand California's desire to remove MTBE from its gasoline supply as quickly as possible, the science demonstrates that oxygenates like ethanol do provide real air quality benefits that result in cleaner air for our citizens," said Eric Vaughn, president of the Renewable Fuels Association.

News Summaries

Soybean Hormone May Ease Menopause. REUTERS reports that a hormone found in soybeans could reduce menopausal symptoms without the negative side-effects caused by standard estrogen treatments, and lower cholesterol levels at the same time, according to Brazilian scientists. Gynecologists from the Federal University of Sao Paulo (Unifesp) working with the Agriculture Ministry's research arm Embrapa conducted tests over six months on 80 menopausal women to assess the possible benefits of isoflavin, a hormone present in soybeans, according to the article. "Of the women taking isoflavin, 85% reported a marked improvement in their (menopausal) symptoms because isoflavin is a phyto-estrogen, which is an estrogen of vegetable origin," said Gynecologist Kyung Koo Han of Unifesp. "Isoflavin does everything estrogen does. It is only slightly less effective than conventional estrogen to which about 90 to 95% of women respond positively,'' said Koo Han. 

Britain Allows GMO Trials. The British government, defying environmental groups, Wednesday gave official permission for 21 trials of genetically modified (GM) rapeseed to start in England in September, REUTERS reports. That allows Aventis CropScience UK, a unit of Franco-German chemicals group Aventis, to sow the herbicide-tolerant crop as part of the Farm Scale Evaluations Program. Environmentalists oppose the trials, which they say could contaminate other non-GM crops by cross-pollination. Three weeks ago, a panel of MPs called for stricter testing for GM contamination after another company, Advanta Seeds UK, said in April it had inadvertently sold rapeseed contaminated with GM material to British farmers. Advanta is part of a 50-50 joint venture by Anglo-Swedish group AstraZeneca Plc and Dutch cooperative Cosun. In its announcement on Wednesday, the government said all farmers next to the trial sites had been notified. "Separation distances" of 50 to 400 metres (yards) between their fields and the experimental locations "will ensure that any cross-pollination could only occur at a vanishingly small level," it said, according to REUTERS. 

Affordable School Beef Eludes USDA. USDA is having difficulty finding affordable ground beef for the school lunch program after imposing testing requirements on meat processors this summer, THE ASSOCIATED PRESS reports. USDA has bought less than 40% of beef for the program it bought by this time last year and is paying as much as 50 cents more a pound to get it, the article says. New testing requirements for disease-causing microbes were issued in June just before USDA started taking bids on its meat purchases for the 2000-2001 school year. The requirements are significantly tougher than those for meat sold in grocery stores, and processors say the rules are unworkable. Some schools "are doing menu changes; some are going to the commercial market to buy product," said Barry Sackin, director of government affairs for the American School Food Service Association. "We do not object to the food safety efforts that the department is making. ... The precipitous nature of this is where the problem lies, not the intent," said Sackin. USDA spokesman Andy Solomon says the department is confident enough beef for school needs will be purchased. The department buys about 125 million pounds of beef a year. 

FAO Seeks to Redistribute Seed, Gene Royalties. KYODO NEWS reports from Tokyo that the United Nations Food and Agricultural Organization (FAO) wants to establish a legally binding system to redistribute royalties on patented seeds and genes to the countries where the plants come from, according to Japanese government sources. The FAO wants a multilateral organization to manage plant genetic resources and redistribute some of the royalties on patented products to the countries of origin, mainly developing countries, the sources said. The effort is part of a draft revision to the International Undertaking on Plant Genetic Resources, adopted in 1983. Plant genetic resources, defined as the ''propagating material'' of plants, include genetically engineered seeds and new varieties of plants bred for purposes such as producing disease-resistant crops and news medicines. While the patents are mostly held by industrialized countries such as the United States, many of the plants themselves come from developing nations, according to the article. 

Texas Farmers Lose Millions. REUTERS reports that another long, hot summer has cost Texas farmers and ranchers $595 million in lost production this year. Agricultural officials say this is the fourth of the past five years in which soaring temperatures and a lack of rain have taken a toll on the state's agriculture. In both 1996 and 1998, losses topped $2 billion in the state. "It's just simply burning up," Carl Anderson, a cotton marketing economist at the Texas Agricultural Extension Service, said in a statement. Temperatures have been above normal for most of the summer and many areas of the state have had little rainfall, he said. The Extension Service, which is an agriculture agency linked to Texas A&M University, said 5 million acres of Texas cotton fields had been lost or damaged this summer. It said the top losses have been in cotton - $285 million, wheat -- $125 million, and ranching -- $62 million. If the hot, dry weather continues, losses will increase, Anderson said. "We've been in continuous drought...any (government aid) program that might be added for disaster reasons would be welcomed," he said. 

Russia's Harvest More than Last Season. THE WALL STREET JOURNAL reports that Russia's grain harvest totaled 38 million tons as of Aug. 21, 6.1 million tons more than last period at that time. The article is based on an Interfax report quoting the Agriculture Ministry. Grain and legumes have been harvested on 19.1 million hectares, up from 18.9 million hectares a year ago. One hectare equals 2.47 acres. The average yield was 1.99 tons a hectare, up by 0.3 tons a hectare, the report said. The wheat harvest as of Aug. 21 was 18.8 million tons, an increase from 16.4 million tons last year, with the yield rising 0.24 tons to 2.27 tons a hectare. The Agriculture Ministry previously forecast that the full harvest will reach 65 million tons, up from 54.7 million tons in 1999 and a forty-year low of 47.8 million tons in 1998. The article says Russia's annual grain demand is about 75 million tons.
 

August 23, 2000

Cattlemen Fear Trade Violations. Mexico's rumored plans to export live cattle from Uruguay and Australia to the United States could be a violation of the North American Free Trade Agreement (NAFTA) and risk the health of U.S. cattle, says the National Cattlemen's Beef Association (NCBA). NCBA President George Hall, a cattle producer from Mustang, OK., sent a letter to all members of Congress and USDA officials outlining these concerns and urging them to conduct a comprehensive risk assessment.

NCC Urges GSM Modifications. The National Cotton Countil is concerned that USDA is ready to adjust the repayment limit on an export credit guarantee program. In letter to USDA officials, NCC expressed concern over the course of multilateral negotiations concerning limitations on the export credit guarantee program. NCC says reports indicate the United States is willing to phase down length of GSM loan repayments from three years to 18 months over two years. 

Cook It Right and It's Still Dangerous. The vegetarian-prone Physicians Committee for Responsible Medicine (PCRM) is on the warpath again – this time against meat at any temperature. The group has complained to USDA that a new campaign promoting the use of thermometers in meat preparation means the meat is safe to eat. The campaign features "Thermy," a cartoon thermometer, who claims, "It's safe to bite when the temperature is right."

News Summaries

Hog Futures Decline; Worry Is Beef, Chicken. BLOOMBERG NEWS reports that hog futures declined more than 2%, the largest decline in a week, on speculation that pork demand will weaken as grocers promote cheap beef and chicken. Plentiful beef and chicken supplies have made those products attractive to consumers this month, when outdoor grilling is popular. While pork prices have declined the past two weeks, the decline wasn't enough to spur more buying, analysts said. Pork "has an awful lot of competition," which raises doubts about whether demand will pick up, said Don Roose, an analyst with U.S. Commodities Inc. in West Des Moines, IA. Hogs for October delivery declined 1.1 cents, or 2.1%, to 52.45 cents a pound on the Chicago Mercantile Exchange, the biggest one-day decline since Aug. 15. Prices reached a nine-month low last week on concern that a seasonal increase in pork output would add to ample supplies.

Greenpeace Uses Chains to Protest GMOs. REUTERS reports from Greece that Greenpeace activists chained themselves to the gates of a major soy processing plant on the Greek island of Evia Tuesday to protest imports of genetically engineered crops. Nine campaigners blocked the entrances of the Soya Hellas company plant in central Evia. Trucks were prevented from entering or exiting the facility. Evia is a large island north of Athens with a large industrial sector. "We are prepared to stay as long as we have to and intensify our action to get the company to pledge that it will ensure GM-free food," Greenpeace Greece campaign director Nikos Charalambides said. The article says that earlier, a group of 17 Greek and foreign activists in orange overalls scaled the plant's fence, climbed a 23 yard high soy silo and hung a giant sign reading "Genetic Hazard." 

USDA Deadline Extends Peanut Board Proposal. USDA has extended the deadline for receiving comments on its proposed rule to add a public member to the National Peanut Board. The comment period has been reopened until Sept. 20. A notice was published in Monday's Federal Register, requesting comments on these proposed changes to the Peanut Promotion, Research, and Information Order. The proposed rule was published June 2 with a 60-day comment period ending Aug. 1. Comments should be mailed in triplicate to the Research and Promotion Branch, AMS Fruit and Vegetable Programs, USDA STOP 0244, 1400 Independence Ave. S.W., Washington, D.C. 20250-0244; tel. (888) 720-9917; fax (202) 205-2800; or e-mailed to malinda.farmer@usda.gov 

Vermiculite Risk Negligible. The Environmental Protection Agency says a study of gardening uses of vermiculite shows that some products contain low levels of asbestos, but the risk to consumers is very low. Vermiculite is a naturally occurring granular substance mined for uses in horticultural products and insulation materials. For lawn and garden uses, it is often sold straight to be mixed with soil by the consumer or in pre-mixed potting soils. "EPA is making this information available as part of our effort to expand the public's right to know and protect public health and the environment," said Susan Wayland, acting assistant administrator for the Office of Prevention, Pesticides, and Toxic Substances. "We tested a number of bags of straight vermiculite and pre-mixed potting soil that contained vermiculite. Low levels of asbestos were found in a handful of these bags, primarily those bags of straight vermiculite. These levels were very low and do not pose significant health risks. However, we feel it is important for consumers to be armed with this information when making their decisions." 

McDonalds Sets New Egg Standards. In a major animal welfare development, McDonald's Corp. will require farmers who supply eggs to the fast-food chain to provide more spacious cages for laying hens and take other steps to boost the birds' well-being.  THE WASHINGTON POST reports that McDonald's move was prompted not only by pressure from animal rights activists, but also by health-related concerns.  Some research has suggested a greater risk of Salmonella enteritidis -- the most problematic pathogen in eggs -- when hens are molted, a practice that normally involves removing all or part of the birds' feed temporarily.  USDA researchers have stated, however, that the link between molting and SE is not proven because field research remains to be done."
 

August 22, 2000

Farm Groups 'Deeply Troubled' Over Carousel Neglect. Two major farm organizations have told the White House they're "deeply troubled" that provisions mandating a new round of retaliation against the European Union have not been implemented even though the mandate was included in legislation signed into law two months ago. 

High Court Asked to Hear Mushroom Case. The Supreme Court has been asked to consider whether or not a mushroom research and promotion programs that USDA oversees is constitutional. The U.S. Department of Justice petitioned the high court to hear the case on behalf of USDA. 

Deere Forms Joint Venture in China. Deere & Company has formed John Deere Tiantuo Company, Ltd., a joint venture tractor manufacturing operation between Moline, IL-based Deere & Company and the Tianjin Tractor Manufacturing Company based in Tianjin, China. John Deere Tiantuo (JDT) will manufacture and sell tractors for the China market in four basic models at 55, 60, 75 and 80 hp. Production is expected to be about 9,000 tractors annually. JDT is headquartered in Tianjin, China, a city of 9 million residents located about 100 miles southeast of Beijing. 

Willie Nelson Invites Candidates to Farm Aid. Willie Nelson, country-western singer and president of Farm Aid, says a "crash in commodity prices caused by failed farm policy and increasing corporate concentration in agriculture" prompted him to ask presidential candidates Al Gore, George W. Bush, Ralph Nader and Pat Buchanan to meet at Farm Aid 2000, Sept. 17. 

Corn Growers Prepare for 2002 Farm Bill Debate. Nearly 50 corn growers from key corn-growing states are attending a "Farm Bill School" this week sponsored by the National Corn Growers Association (NCGA) in Washington. "The purpose of this school is to provide a broad depth of farm policy and an idea of where things are going," NCGA Vice President of Public Policy Bruce Knight told school attendees. "Each of you will be able to bring these tools to the table in your state's resolution development process." He added that NCGA plans to "hit the ground running" as discussions on the 2002 farm bill begin. 

Iowa Monarch Study Criticized. The National Corn Growers Association (NCGA) disagrees with the conclusions made by two Iowa State University entomologists in an abstract from a soon-to-be-published study on the effects of Bacillus thuringiensis (Bt) corn pollen on Monarch butterflies (see News Summaries). Dr. Val Giddings, vice president for food and agriculture of the Biotechnology Industry Organization (BIO) said the research "stands in the shadow" of more than 20 independent studies that found Bt corn does not pose a significant risk to the butterfly.

News Summaries

Australia Develops Computerized Milk Meter. Australia's first computerized milk meter has been developed by Victorian researchers. The device can monitor the production and health of cows at the touch of a button. The AUSTRALIAN BROADCASTING CORPORATION reports that the Milk Monitor, developed by a team led by Victorian Agriculture Department scientist Tim Clark costs about A$600, about one-third the cost of imported models. He said it had the advantage of being able to be updated as new functions become available. The monitor is attached to the line between the cow and the milk vat allowing the progress of individual cows to be monitored by computer. That could improve farm efficiency and allow comparisons to be made over time. Clark said dairy farmers were increasingly competitive and receptive to any "edge" they could get. "They have to milk more and more cows to maintain their income so they've got less time to give attention to individual animals." 

More Monarch Evidence Claimed. Iowa State University researchers claim to have found more evidence that pollen from bioengineered corn could be deadly for Monarch butterflies, prompting environmentalists to renew demands for tighter restrictions on the crop, REUTERS reports. The article notes the Iowa study published in the journal "Oecologia" comes as the Environmental Protection Agency has begun its own review of the safety of corn and cotton plants modified to contain a pest-fighting gene. The Clinton administration has faced growing pressure during the past year from consumer and environmental groups, as well as some U.S. trading partners, who say not enough is yet known about the long-term safety of biotech crops, the article notes. The seed industry and agribusiness contend that gene-spliced crops have undergone thousands of tests and pose no more safety risks than conventional crops. Iowa State researchers John Obrycki and Laura Hansen said their studies showed Monarch butterfly caterpillars were seven times more likely to die when they ate milkweed plants carrying pollen from Bt corn, compared to conventional corn. The Iowa study analyzed the impact on larvae from two types of Bt corn developed by Novartis AG and sold under the brand names NatureGard and Attribute. The article says the research built upon work by Cornell scientists who created a stir one year ago when they reported Monarch larvae died when fed relatively large amounts of Bt corn pollen in the laboratory. Novartis defended the safety of its Bt corn, saying the new study did not duplicate real-world conditions. "The weight of evidence of published and preliminary research indicates that milkweed within one meter of Bt corn fields are highly unlikely to be dusted with toxic levels of Bt pollen," said Novartis spokesman Rich Lotstein. 

No GMOs Means More Money. Some of the largest buyers of U.S. grains – Japan, South Korea and some European countries – are paying more for corn and soybeans that do not include genetically modified organisms, REUTERS reports. Grain traders say non-GMO corn and soybeans are commanding premiums of 30 to 40 cents per bushel in the United States. A cargo of 25,000 tons of non-GMO soybeans was sold to South Korea food processors in June for $26 a ton more than traditionally bred varieties, they noted. "That works out to an extra 75 cents per bushel to be shared by the farmer, grain handler and the person who put together the export deal,'' said Jerry Slocum of the United Soybean Board, a producer group. 

Japan's Snow Brand Hit Again. Shares in Japan's Snow Brand Milk Products Co Ltd declined Monday on news that toxic-producing bacteria had been found in a milk product made by its plant in northern Japan, REUTERS reports. The article says Snow Brand said the tainted skimmed milk had been shipped to its Osaka plant in western Japan on June 20, shortly before an outbreak of food-poisoning there that left more than 14,000 people ill after drinking its milk. Jiji news agency said the skimmed milk from the Taiki plant in northern Hokkaido island had been used in milk products believed to have caused the poisoning, according to REUTERS. That sent the company's shares down 4.63% to 433 yen in morning trade.
 

August 21, 2000

NPPC Highlighting Checkoff Program Results. Faced with an upcoming referendum on whether producers should continue to fund a pork promotion and research program, supporters are turning up the heat to tout what they say are the positive results the program has brought pork producers. The National Pork Producers Council says "aggressive checkoff-funded promotions" have turned the United States from the largest importer to the second-largest net exporter of pork, and the United States soon should grow to be the largest pork exporter in the world. 

NGFA Tells CFTC to Revise New Regulatory Framework. The National Grain and Feed Association has urged the Commodity Futures Trading Commission to amend its proposed new regulatory framework for futures contracts to provide regulatory relief to agricultural futures and options contracts. In a statement filed with the CFTC on its proposed new regulatory framework, on which comments are due today (Aug. 21), the NGFA cautioned that the agency's historic practice of heavily regulating agricultural futures markets runs the risk of potentially restricting access to useful risk-management tools by farmers and commercial users. 

Farm Bureau Faults EPA Diesel Proposal. The American Farm Bureau Federation has told the Environmental Protection Agency that farmers and the rural economy would be hurt by a proposal that could disrupt supplies and raise prices for diesel fuel. The EPA proposal calls for diesel fuel sulfur levels to be cut from 500 parts per million to between 50 and 15 parts per million. Such a move, Farm Bureau said, could raise the threat of fuel supply disruptions in rural areas, excessively spike the price for diesel fuel and hurt the bottom lines of farmer-owned refineries and cooperatives.

News Summaries

New Food Safety Rules Coming. The Clinton administration is getting ready to ban the sale of meat from animals in which excessive drug residue has been found, THE ASSOCIATED PRESS reports. Under current rules, says the AP. packers can throw out the part of an animal that is tested for drug residue - typically the liver or kidney - and sell the rest. The new policy, which could be made final as early as next month, would require that the entire carcass be destroyed. "The violation rates are very, very low," said Karen Hulebak, chief scientist for the Agriculture Department's Food Safety and Inspection Service. "We're talking about a small number of animals in the scheme of all the animals slaughtered in this country." The article says USDA officials will apply the policy to all livestock, but it would primarily affect slaughtered dairy cows, the source of about 40 percent of the nation's hamburger meat. The AP also quotes Mike Hanson, a food safety specialist with Consumers Union, saying the new policy on drug residues would be a "step forward in increasing the safety of the food supply." 

Mexico May Take 'Reprisals' Over Sugar Dispute. REUTERS reports that Mexico says it might resort to "reprisals" if a NAFTA trade panel rules in its favor in a fight over sugar exports. "Applying reprisals can be a very effective measure to enforce panel decisions," Trade Minister Herminio Blanco said on public radio a day after Mexico cut off sugar quota negotiations with the United States. "There is the possibility of taking measures of reprisals against other products." Mexico ended weeks of intense negotiations with the United States on Thursday over how much sugar it can export across its northern border and said it would take the issue before an arbitration panel of the North American Free Trade Agreement. The American Sugar Alliance said it is "shocked and disappointed that the Mexican government and Mexican sugar industry are challenging the validity of the sugar provision of the NAFTA. ASA said it is "committed" to support efforts "to maintain the sanctity of international agreements" approved by Congress. 

Battery Hen Retention Criticized in Australia. Animals Australia has criticized a decision by agriculture ministers not to phase out battery hens, calling it a cop out, THE AUSTRALIAN BROADCASTING CORP. reports. The proposal was discussed in Brisbane at a ministerial council meeting which called for improved standards and increased cage space. But Glenys Oogjes, director of Animals Australia, says the changes will not fix the inherent problems with battery hens, according to the report. "For every individual hen they have no place to perch, no area to move around without moving a cage mate"" she said. "They have no nest box, they have no litter, they have none of those behavioral needs. Certainly the alternative systems, barn and free-range, would give them those things. They're not going to be given them today and apparently not for another 20 years." Many scientists, however, say some aspects of hen welfare are actually enhanced in cage systems, since cannibalism and other aggressive behavior is reduced. 

Funding for Ethanol Expected in Australia. Funding to bring Australia's hard-hit sugar industry closer to establishing an ethanol sector is expected to be included in a federal decision on concessional loans, REUTERS reports from Sydney. Still, even with high crude oil prices, an Australian ethanol industry is doubtful, the article says. A spokesman for Agriculture Minister Warren Truss would not comment when contacted by REUTERS, pleading Cabinet secrecy provisions. The government's package of concessional loans for the sugar industry, now expected to amount to up to A$100 million, could include a grant for preliminary work on establishing ethanol production, the industry sources said. But high world oil prices have not made ethanol production profitable in Australia, they said. 

Philippine Crops at Risk. THE WALL STREET JOURNAL reports that December dryness will harm rice and corn production areas in the Philippines. The Philippine Department of Agriculture says, in a report issued to the Philippine press, major rice producing areas like the Central Luzon and Western Visayas regions and big corn producers like the Cagayan Valley region and Mindanao island will suffer from the expected drought. The department said in a press statement that the Philippines government has to spend PHP1 billion (US$1=PHP44.98) to repair and rehabilitate irrigation facilities that will mitigate the effects of the drought, according to the article. Philippine Agriculture Assistant Secretary Segfredo Serrano said the department can't predict the exact area of rice and corn which will be affected by the drought as it doesn't have "firm data" on the exact impact of the dry spell to the country's grain areas. But Philippine Bureau of Soils and Water Management Director Rogelio Concepcion said the last quarter of the year is "critical" for the country's corn producing provinces. 

Profits Are Found in Hog Market. THE WALL STREET JOURNAL reports that "there is money to be made in the depressed hog market." After declining more than 10 cents, to a six-month low of 52 cents a pound, "October futures are at a full seasonal discount," says meat expert Chuck Levitt at Alaron Trading. "Sometimes, the market gets out of synchronization," he explains. Demand doesn't always pick up exactly when supplies do. And, the article says, "right now, in the curious calculus of the commodities markets, demand has been choked off by rising demand." The article continues, part of the problem has been summer itself; nearly all the fast-food restaurants such as McDonald's and Wendy's introduced sandwiches this spring featuring bacon. They've been such a hit that McDonald's, which introduced the Big Extra as its new bacon-burger sandwich, decided to let people add bacon to all of their sandwiches from now on, says Lisa Slocam in the company's investor-relations department. The unexpected demand sent prices surging for pork bellies. However, strong restaurant sales didn't leave a lot of bacon left over for the supermarkets, hurting grocery sales. Although fast-food chains use 55% of supplies, the rest are sold through supermarkets. "And with bacon commanding, on average, $3.13 a pound at retail, up from $2.50 a year ago, supermarkets didn't feature it as they usually do during the summer. Thus, they bought less," according to the article.
 

August 18, 2000

Signup for Sugar PIK Announced. USDA has announced a two-week signup period for the sugar payment-in-kind (PIK) program. Signup will begin Monday and continue through Friday, Sept. 1. Individual producers will work directly with processors to complete program forms. The processors in turn will provide the information directly to USDA. 

Daschle Says Consolidation Hurting Rural Areas. Senate Democratic Leader Tom Daschle (D-SD) believes unfair practices are resulting from agricultural consolidation and are taking place "in large measure because we have not created the tools within government to assure that this new industrialization in agriculture can be addressed through sound public policy." 

US and Competitor Promotion Spending Compared. U.S. exports of high-value and consumer-oriented agricultural products have increased steadily in recent years but face stiff competition in major importing markets, according to a new report from USDA. Many exporting countries have ambitious export goals and orient their programs to attract more small- and0medium-size firms to exporting. Competitors use direct export subsidies, export promotion programs, export credit and credit guarantee programs, and statutory marketing boards, the report says. 

USDA Makes Several Overseas Donations. Lebanon, Morocco and Armenia are in line to receive donated commodities from USDA. For Lebanon, Mercy Corps International, a private voluntary organization will work with the department on some 73,000 tons of commodities, mostly wheat but also refined soybean oil. 

New Sugar Beets Resist Worms. Notorious worms called root-knot nematodes fail in their attacks on a new breeding line of nematode-resistant sugar beets from USDA Agricultural Research Service plant breeders. What's more, the gene or genes that help these new sugar beets thwart the microscopic, soil-dwelling worms may possibly be moved into other kinds of plants—including peaches, nectarines, potatoes or tomatoes—that are otherwise vulnerable to nematode forays, according to ARS. 

NGFA Likes Feed Nutrition Regulations The National Grain and Feed Association has commended the Association of American Feed Control Officials (AAFCO) for adopting a significant improvement to its model regulations that pertain to the nutritional suitability of commercial feeds. AAFCO, which took the action this month during its annual meeting in Charleston, WV, is the professional organization of state and federal feed control officials whose model bill and regulations are adopted by many states to govern commercial feed.

News Summaries

Mexico to Challenge Sugar Flap Under the NAFTA. BLOOMBERG NEWS reports that Mexico has rejected a U.S. proposal to settle a disagreement over the level of sugar Mexican producers can export to the United States. Mexico will challenge the dispute under the North American Free Trade Agreement instead, the article says. U.S. and Mexican officials met earlier this week in Washington hoping to settle the dispute. A U.S. proposal was presented to Mexican sugar industry officials, who urged their government to reject it and send the issue to a NAFTA panel, a Mexican trade official said. BLOOMBERG reports that Mexico has been trying to sell about 600,000 metric tons of sugar during the fiscal year beginning Oct. 1, saying that amount represents its surplus production. The United States contends that Mexico's surplus is much smaller at about 120,000 metric tons and wants lower imports to protect domestic sugar producers. The U.S. also wants greater access to sell its high-fructose syrup products in Mexico. 

United Kingdom Acts to Stem Pork Worries. REUTERS reports from London that Agriculture Minister Nick Brown on Friday met with pig industry leaders to discuss how to restore worldwide confidence in British pork that has been harmed due to the outbreak of swine fever. Brown held an emergency meeting after the United States, the European Union and other countries that have imposed restrictions on English pig exports. The article notes that the highly contagious virus was found in farms in east England and that British authorities have made major efforts to contain the virus. Brown is holding talks with the National Pig Association, the British Veterinary Association, the National Farmers Union, retailers and the British Livestock Commission. REUTERS says swine fever hit the pig industry just as it recovered from its worst recession in decades. The outbreak represents the most serious threat to the agricultural industry since the fatal "mad cow disease" affecting the brain was found in humans, the article says. 

Mexico May Target U.S. Corn. THE WALL STREET JOURNAL reports that Mexico could target duty-free imports of U.S. corn if the United States fails to increase its sugar quota on Oct. 1, Deputy Commerce Minister Luis de la Calle said Thursday. As reported, on Thursday Mexico requested a panel under the North American Free Trade Agreement to resolve the dispute over the size of Mexico's access to the U.S. duty-free sugar import quota. "There are some important differences between Mexico and the U.S. over the sugar issue and what we want is that they respect the NAFTA agreement -- the surplus sugar production," de la Calle said at a press conference. The Mexican sugar industry, which urged the government to request the NAFTA panel, also has called on the Commerce Ministry to restrict duty-free U.S. corn imports, part of which are used by local producers of competing high fructose corn syrup. The article says de la Calle said negotiations can continue, although he wasn't optimistic.
 

August 17, 2000

U.S. Produce Producers Face Tough Future. With world supply and demand reaching record levels, these should be prosperous days for U.S. growers of fruits and vegetables. Unfortunately, many face an uncertain future filled with economic turmoil and potential disaster, according to the American Farm Bureau Federation. 

Dairy Product Purchase Prices Adjusted. USDA has adjusted the purchase prices for butter, cheese, and nonfat dry milk bought under the Dairy Price Support Program. The agriculture appropriations bill extended the price support program through calendar year 2000 at the 1999 support price of $9.90 per hundredweight (cwt) of milk with an annual average milk fat content of 3.67%. 

Cattlemen Support Argentine Beef Import Ban. The National Cattlemen's Beef Association supports the USDA decision to stop U.S. imports of beef from Argentina "until a foot and mouth disease incident is more widely understood. The quick response by USDA to halt Argentinean beef imports, and the notification that Argentina provided to the United States, shows the system is working." 

FSIS Materials on Meat Inspection Available. USDA's Food Safety and Inspection Service is making available materials from its June 9 public meeting on in-distribution inspection activities and initiatives connected with its meat and poultry program. FSIS is requesting public comment on its current thinking about how to ensure that meat and poultry products do not become adulterated, and continue to qualify for USDA's mark of inspection, during distribution. 

Non-Irrigated Forage Can Be Insured. USDA's Risk Management Agency (RMA) has made multi-peril crop insurance coverage available for non-irrigated forage production in all South Dakota counties for 2001. In 2000, availability was limited to just four counties. 

Grazing an Effective Fire Management Solution. Livestock grazing is a valuable tool in helping effectively manage overgrown rangelands, some of which have fueled the catastrophic wildfires currently raging throughout the West, according to the National Cattlemen's Beef Association (NCBA). NCBA made the comments in a letter to top Forest Service and Bureau of Land Management officials.

News Summaries

Corn Belt West Inspections Meet Expectations. Field inspections of corn and soybeans in the eastern and western Corn Belt Wednesday met expectations, REUTERS reports. Projected yields in the east were above average and a heat wave tempered estimates in the west, participants in an annual U.S. crop tour said. Members of the ProFarmer tour who surveyed 10 fields on Wednesday morning in four counties in this section of west-central Iowa -- Monona, Pottawattamie, Harrison, and Woodbury counties -- found crops showing signs of dry weather stress. "It appears the three counties in the south had adequate moisture but Woodbury county is showing some dry weather stress," said tour member Al Grigg, a farm broadcaster with KICD Radio in Spencer, IA., the report said. Soybeans look good as far as plant growth and height but it was very difficult to predict yields at this point because soybean yields will be determined this month, Grigg added. 

Pig Imports from England Halted. The U.S. government has stopped all pig imports from England due to an outbreak of swine fever there, REUTERS reports. The highly contagious disease, not thought to be harmful to humans, is a blow to Britain's livestock industry devastated several years ago by an outbreak of mad cow disease, according to REUTERS. USDA has "placed a hold on all swine imports from Britain, and that includes meat, live animals, semen and products made from swine," Hallie Pickhardt, spokeswoman for the USDA's Animal and Plant Health Inspection Service, told REUTERS. 

Biotech Wheat Coming. Research is moving to bring the first genetically modified (GMO) wheat to market as early as 2003, REUTERS reports. "The goals are noble -- to make wheat production more efficient and robust for farmers and to make wheat better for bakers and more nutritious for consumers," says the article, "but success may also open a new front in the global debate over the safety of genetically modified foods as biotech wheat makes its way into staples like bread, crackers and pasta." "There is this fear of unleashing genes into the food supply and into the environment," said Jim Peterson, a wheat breeder at Oregon State University, which recently signed a deal with Monsanto Co. to develop a gene-altered wheat. "Until we can have a gene that has true consumer benefits, we are going to have some trouble with acceptance." Wheat is the second-largest food grain grown in the world -- corn is the first -- and is the top grain traded internationally, making it subject to intense global scrutiny. 

Illinois Corn Yields Huge. Illinois corn yields are expected to average 147 bushels per acre, the highest for the state in the 15-year history of the Midwest crop tour, says ProFarmer group leader Scott Davis. REUTERS reports soybean pod counts also were higher this year at 1,429.5 pods in three square feet compared to 1,359.5 in 1999 but were lower than the tour's 1998 estimate of 1,437.4. Soybean yields were not calculated because of the plant's development stage in August. Members of the Midwest eastern crop tour inspected 145 corn fields and 139 soybean fields in Illinois on Wednesday. Tour members included agronomists, farmers and other grain industry analysts. 

Pork Checkoff Has Great Potential. REUTERS reports from Chicago that the National Pork Producers Council believes the mandatory checkoff program has the potential to make the United States the world's largest pork exporter. Hog producers vote Sept. 19-21 on whether to continue the program. "Checkoff-funded promotions to market pork under the U.S. Pork seal have helped create awareness that U.S. Pork offers consistent high quality and wholesomeness," said Moe Mohesky a North Carolina pork producer and chair of the NPPC Trade Committee. A study by the University of Missouri estimates the economic impact of foreign market development and world trade efforts boosted the overall income of the U.S. pork producers by more than $3.22 billion from 1987 through 1999, Mohesky said in a statement. Statistics compiled by the U.S. Department of Agriculture's Foreign Agricultural Service show that U.S. pork and pork variety meat exports, on a product weight basis, have increased almost 275% in the last decade. 

Sweetener Talks Will Continue Later. Special U.S. negotiator for agriculture Greg Frazier says sweetener trade talks between the United States and Mexico will continue at a later date, REUTERS reports. The article says Frazier voiced guarded optimism about the talks, which are being closely watched by sugar growers on both sides of the border. "We're still talking, so I consider that progress," Frazier told REUTERS before heading into a meeting on another issue at USDA. Frazier met with Mexican Trade Undersecretary Luis de la Calle for two and one-half hours on Monday to discuss sweetener trade issues. The two countries sharply disagree over the North American Free Trade Agreement terms, which will govern Mexico's access to the U.S. sugar market beginning Oct. 1. The United States also objects to high duties imposed by Mexico on imports of high-fructose corn syrup (HFCS) and has won a World Trade Organization ruling on that issue. 

Aphid from China May Damage U.S. Soybeans. A tiny aphid from China "is sending shudders through U.S. agriculture," according to THE WALL STREET JOURNAL. The article says that for the first time in a decade, a major foreign pest has invaded the Midwest farm belt, and it is one that has the potential to cause a lot of damage to soybeans, the nation's second-biggest crop. The Journal article says it was conclusively identified just a week ago by David Voegtlin, an entomologist for the state of Illinois, and is notorious for swarming soybean fields in east Asia. The bug, which sucks sap, carries diseases between plants. Scientists are worried that the aphid will increase production costs for Midwest farmers. Native insects cause relatively little damage to Midwest soybean fields, preferring instead to munch on corn and wheat, says the article. If the Chinese native becomes an established insect in the Midwest, which seems likely, the typical commercial soybean farmer may have to spend thousands of dollars a year on pesticides, or even switch to other crops.
 

August 16, 2000

CO2 May Have Doubled Pollen from Ragweed. USDA research indicates higher carbon dioxide (CO2) levels associated with global warming may have doubled the amount of pollen that ragweed produces--mostly over the past four or five decades. Another doubling could occur by the end of this century. In scientific studies, pollen production rose almost 400% with a 200% increase in the amount of CO2. Findings show that high CO2 levels have increased the potential production of ragweed pollen and may produce pollen earlier. The ragweed pollen season is now underway. 

Feed Grain Supply Largest Since 1987-88. Feed grain production in 2000 is forecast at 287 million metric tons, about a 9 million ton increase from a month ago and 24 million from 1999. Feed grain supply in 2000-01 is forecast at 340 million tons, 7% more than 1999-2000. With increased corn supplies in 2000-01 and higher ending stocks, prices were reduced in USDA's latest report. The forecast farm price for 2000-01 is $1.45-$1.85 per bushel, down from last month's $1.50-$1.90. In 1999-2000, the season average price received by farmers is expected to be $1.80. 

Wheat Production Forecast for 2000 Increased Again. Total wheat production is forecast at 2,263 million bushels, a 20 million bushel increase from last month. The increase reflects higher yield forecasts for winter wheat and other spring wheat this month. The larger spring wheat output more that offset a modest decline in the production forecast for durum.

News Summaries

Trade Spat Linked to Swine Fever. THE ASSOCIATED PRESS reports from London that an outbreak of swine fever in Britain could cause a regional trade dispute. Supermarket chain ASDA Group PLC says it will stop selling Belgian pate if the European Union bans imports of British pork. The article says the move echoes the three-year ban on exports of British beef when the EU slapped a temporary, protective ban on shipments of live pigs and pig semen from England due to fears that swine fever might infect animals in other countries. ASDA, owned by U.S. retailer Wal-Mart Stores Inc., said it would be forced to respond if the EU made the ban permanent and extended it to include all British pork products, the article says. If that happened, the company said it would replace nine types of Belgian pate with products sourced from pork producers in the United Kingdom, according to the AP. 

Saskatchewan Crops Have Problems. Unsettled weather continued to cause lodging and disease problems for Saskatchewan crops, Saskatchewan Agriculture and Food's weekly crop report said on Tuesday, according to REUTERS. Wind, hail, and flooding caused crop damage across the province. Hail damage hit localized areas that set back some crops and wrecked 100% damage to others. The heavy rains and winds caused crop lodging across the province, the article says. Weather conditions favored crop diseases. Fungal diseases hit areas around the province. 

Doubtful That GMOs Can Be Totally Separated. The grain industry hopes to separate out genetically modified (GMO) grains from non-GMO as it handles a record harvest this year, but few in the business are promising total success, REUTERS reports from Chicago. "Less than 10% of the industry is engaged in segregation and we don't anticipate a strong need for it this fall," Thomas O'Connor, National Grain and Feed Association director of technical services, said. "The market demand for non-GMO crops is just not that strong," O'Connor said. The United States is the world's largest grain exporter and GMO crops have already made huge inroads into farming and the food system. The federal government has certified the crops, which mostly contain genes added to resist pests or herbicides, as safe for consumption and the environment, the REUTERS article says. But in the last year, protests aimed at the use of GMOs by European consumer groups caused many countries to propose that modified crops be certified, labeled and separated. 

No Diseased Cattle in Argentina. Argentine Agriculture Secretary Antonio Berhongaray says the country's cattle aren't infected with foot-and-mouth disease and that beef exports to most countries continue uninterrupted, THE WALL STREET JOURNAL reports. The article says he made the comments to reporters at the government house after the last of 3,500 cattle were slaughtered in the northern province of Formosa. The cattle were slaughtered because, the government said, it was feared they came into contact with cows that entered the country illegally from neighboring Paraguay. The illegal livestock tested positive for antibodies of foot-and-mouth disease. The Argentine government quickly sealed the borders and halted beef exports to the United States and Canada, Berhongaray said. USDA also has placed a temporary ban on Argentine beef. 

'Stewardship' Concept Proposed. THE ASSOCIATED PRESS reports that farmland stewardship is the focus of proposed legislation Congress will be asked to consider. The Farmland Stewardship Initiative would include $25 million for demonstration projects across the country, including $5 million for pilot areas in North Dakota and Minnesota. Other proposed tryout locations are South Dakota, Vermont and California. The proposal has support from Sens. Kent Conrad (D-ND) and Byron Dorgan (D-ND), among others. "Through the development of these pilot programs, we hope to build support for a broader shift in agriculture policy toward Farmland Stewardship in the next farm bill," Dorgan and six colleagues wrote in requesting consideration of the bill. The "single compensation" concept would pay farmers for a range of management practices under existing programs, the AP article says.

August 15, 2000

Ocean Market Report Launched. USDA will begin publishing Agricultural Ocean Transportation Trends, a semiannual, on-line report that provides information on the ocean container market's cost and service trends. Information in the report was developed using data reported monthly in the Agricultural Marketing Service Ocean Rate Bulletin which tracks agricultural container rates to most Asian and some European countries and covers high-valued agricultural commodities. 

Snacking Kids Double in 20 Years Twice as many children today are eating snack foods like crackers, popcorn, pretzels and corn chips than did kids 20 years ago, according to the latest USDA data on the food intakes of nearly 10,000 children nationwide. Agricultural Research Service nutritionists combined data from a special 1998 nationwide survey of 5,559 children from birth to nine years old with those from the 1994-96 national survey (CSFII) of all age groups, including 4,253 children to age nine. 

Difference of Hours Vitally Important to Weeds A few hours' difference in herbicide application time on a hot afternoon can mean the difference between success and failure for cotton farmers trying to rid their fields of major weeds like pigweed, according to USDA. James R. Mahan, an Agricultural Research Service plant physiologist, and Peter Dotray, a weed scientist at both Texas Tech and Texas A&M universities in Lubbock, have found that when the herbicide Staple was sprayed on pigweed on an afternoon when the temperature climbed above 93 degrees Fahrenheit, pigweed was barely affected. But just six feet away, pigweed that was sprayed in the cooler morning was almost totally killed. 

Even Lower Corn Prices Coming The crop report released Friday by the USDA, based on Aug. 1 conditions, forecasts a 10.369 billion bushel corn crop, the largest on record. That may look good in terms of production but it will mean even lower corn prices, according to Paul Bertels, director of marketing and production at the National Corn Growers Association. 

Wetlands Protection Plan Proposed The Clinton-Gore Administration has proposed new protection for tens of thousands of acres of environmentally valuable wetlands across the United States. Under the action, the Environmental Protection Agency and the Army Corps of Engineers are proposing to address a major regulatory loophole in the Clean Water Act by clarifying the types of activities that can harm wetlands and thus, require regulation.

News Summaries

Soybean Farmers Want Federal Crop Buy. Soybean farmers want USDA to spend $1 billion to buy part of the 2000 crop and give it away as food aid, according to a REUTERS report. The American Soybean Association (ASA) claims donations of 3.7 million ton of soybeans and soybean products would reduce soybean surpluses by about 130 million bushels and improve domestic prices. The proposal came during a telephone news conference. "We're going to ask the president and vice president to get personally involved in this," said Steve Censky, ASA chief executive. He added that ASA also was studying the possibility of adding soy meal and soy oil into the mix, the article said. An Illinois official said less than $1 billion would be spent on purchases because the outlay would include freight costs to overseas destinations. ASA President Tony Anderson, a farmer from Mount Sterling, Ohio, said the government would get "an enormous return" through lower farm support costs. On Friday, USDA forecast a record soybean crop of 2.989 billion bushels, pushing the surplus to 465 million bushels, an increase of 185 million bushels. Farm-gate prices would dip to $4.35 a bushel, lowest in 29 years. 

China to Study U.S. Support System. BLOOMBERG NEWS reports that the head of China's State Grain Bureau will visit the United States in September to study government agricultural supports. The action comes prior to China's accession to the World Trade Organization, a bureau official said. Nie Zhengbang, director of the State Grain Bureau, will lead the seven-member delegation to from Sept. 2 to Sept. 9, said Zhou Changyi, the bureau's director of foreign affairs. To feed its 1.2 billion people, China adopted preferential policies for its farmers, which will have to be altered or abandoned when it joins the WTO. "China is planning to join the WTO so we would like to gain some experience from the U.S., which has already been a member for many years, in how to protect farmers' interests in line with WTO regulations," Zhou said. 

Corn Yields Found Higher. Participants on the eastern portion of ProFarmer's crop tour Monday found corn fields in western Ohio ready to yield better than last year, according to REUTERS. The article also notes soybean fields showed more variability than corn fields, but pod count in three square feet was still higher than in 1999. The tour group estimated 2000 corn yield in four of the five largest producing Ohio counties at 144.1 bushels per acre, nearly 10 bushels higher than last year's tour estimate. Soybean pod count in three square feet for the same counties was projected at 1,329, up 30.5 pods from a year ago. REUTERS says these figures were based on 80 corn fields and 76 soybean fields in western Ohio inspected by members of a five-day crop tour including agronomists, growers, and other grain industry analysts. "I didn't think it looked as good as the numbers showed tonight, but the crops have a lot of potential," said USDA agricultural economist Jerry Morton. 

FDA Decided the Good Outweighed the Harm. U.S. health regulators decided soy's positive effects justified touting its benefits to consumers, a Food and Drug Administration official said on Monday, even though there were concerns that soy products might be harmful, according to REUTERS. The agency comment came in response to published remarks from two FDA scientists that eating soy might cause health problems, particularly if given daily to infants in soy milk formulas. The article says Drs. Daniel Doerge and Daniel Sheehan, the FDA scientists, have spoken to media organizations to warn that infants given soy formula might grow up to develop fertility problems. They also are concerned that eating soy regularly might increase the risk of breast cancer in women and brain damage in men. Their most recent comments were published in Britain's Observer newspaper on Sunday. 

Milk Prices Record High. THE WALL STREET JOURNAL reports that Jewel and Dominick's, the two supermarket chains that dominate Chicago, are charging $3.69 for a gallon of whole milk -- a record for the city -- and consumers are taking action. Linda Vallaro, whose suburban Chicago family drinks two gallons of milk daily, says, "I will go without milk rather than pay" that price. The article says she is taking her business to discount food stores that charge less than the chains -- sometimes more than $1 less. Some economists say what is happening to milk is an early sign of how mergers in the supermarket industry might change the way food prices fluctuate. The top five U.S. chains now handle 40% of grocery sales, a share controlled by 10 companies five years ago. The article also says that one major factor is that the price of raw milk nationwide has declined sharply since 1998. High prices at that time encouraged farmers to expand their herds, resulting in a glut of milk on the market today. Many Midwestern farmers are being paid the smallest amount for their milk in two decades. Some are quitting the business. So while retail milk prices have been rising in Chicago, the average price of a gallon of milk in supermarkets across the nation has slipped 6%, or 18 cents a gallon, since January 1999, according to government surveys.

August 14, 2000

News Summaries

Argentina Suspends Beef to U.S. Argentina has suspended temporarily beef exports to the United States because of possible foot and mouth disease contamination, THE ASSOCIATED PRESS reports. Argentina imposed the suspension itself. The country is the world's fourth largest beef exporter, according to the article. Cattle bred near the Paraguayan border were believed to be infected with the disease. Argentine Agriculture Secretary Antonio Berhongaray said the decision to halt exports of fresh, chilled, and frozen beef would not affect Argentina's status as a country free of the disease, a designation bestowed more than a year ago. Speaking with local news agency Diarios y Noticias, Berhongaray said "no country had modified its sanitary status" for Argentine beef and emphasized the move was only precautionary, the article says. He did not say when beef exports might resume. 

France Asked to Ban UK Pigs. THE WALL STREET JOURNAL reports that pig breeders are asking the French government to prohibit live pig imports from the United Kingdom after an outbreak of swine fever. In an interview with daily newspaper La Croix published Monday, Guillaume Roue - vice president of France's Pig Breeders' Association - said Paris should take a tougher stance on the issue. Agriculture Minister Jean Glavany "ought to have taken a firmer attitude, rather than have to come back to this at a later date," Roue was quoted as saying. "We are asking him to ensure that controls are enforced with vigilance and to accept the consequences," he said. "We are not necessarily protected against a return of this disease." 

Record Crops Will Pressure Congress, White House. Record corn, sugar and soybean crops likely will pressure U.S. markets this fall and intensify election-year efforts on Congress and the White House to reduce supplies and feed yet more federal money to farmers, THE WALL STREET JOURNAL reports. Large harvests being forecast by USDA would bring the fourth straight year of depressed grain prices and keep sugar prices at a 22-year low, according to the article. Corn and soybeans are expected to fetch the lowest prices in three decades. Wheat prices would sink the lowest since the mid-1980s. The article also says the prospect of huge harvests could give additional leverage to farm groups and lawmakers who want to rewrite federal farm policies now instead of waiting until the 1996 Freedom to Farm law expires in 2002. It also will likely strengthen the hand of trade protectionists, complicating Administration efforts to open up more foreign markets to U.S. farmers. The Journal says that under these circumstances, neither Democrats nor Republicans can take the farm vote for granted, even though farmers make up a tiny part of the electorate.

August 11, 2000

Record Crops Likely. Agriculture Department reports due out this morning are expected to show record U.S. corn and soybean crops. A survey of analysts by Dow Jones Newswires showed an average guess of 10.196 billion bushels of corn and 2.948 billion bushels of soybeans. 

Armenia Seeks Food. Armenia is asking the world community for urgent food aid after a severe drought this summer, THE ASSOCIATED PRESS reports. Half the food-grain harvest in the small former Soviet republic has been destroyed, according to Armenian officials. 

Citrus Compounds May Fight Cancer. Orange juice and other citrus juices contain compounds that may help the human body fight off cancer-causing substances, say scientists at the Agricultural Research Service. 

Russian Grain Crop Larger Than Earlier Estimates, Minister Says. The Russian agriculture minister said that nation's grain harvest will be larger than earlier predictions of 65 million tons, ITAR-TASS reported.

News Summaries

E. Coli Vaccine Tested. Scientists in Canada are testing a vaccine for E. Coli 0157, the deadly strain that has caused several deaths in recent years. The vaccine may hold promise for mostly eradicating the problem at its source, Agweb.com reports.
 

August 10, 2000

Stenholm Tells Farmers 'Don't Apologize.' Rep. Charles Stenholm (D-TX) believes farmers "should never apologize for asking the government to stand shoulder to shoulder with them to get a level playing field in the international marketplace." Speaking to sugar growers, he also argued for a position that has applied to all agricultural commodity groups: present a united front on agricultural policy when the debate begins on the next farm bill.

Corn Growers Upset Over HFCS to Mexico. The National Corn Growers Association (NCGA) has told U.S. Trade Representative Charlene Barshefsky that corn growers have "serious concerns" about trade with Mexico, especially trade in high fructose corn syrup (HFCS). "Our organization helped secure passage of the North American Free Trade Agreement (NAFTA) because corn farmers saw an opportunity to sell highly competitive U.S. corn and corn products throughout Mexico," said Lynn Jensen, NCGA president.

Erosion Dynamics Subject of New Technology. New technology is helping scientists "demystify" erosion dynamics along stream channels in agricultural watersheds, according to USDA's Agricultural Research Service. Agricultural Research Service hydraulic engineer Roger Kuhnle and hydraulic technician John Cox at the National Sedimentation Laboratory in Oxford, MS, tested an acoustic device called the SedBed Monitor and used it to measure the rate of sediment movement by measuring the size and speed of dunes that migrate along the bottom of streams.

Comments Sought on Organic Certifying. USDA has issued a Federal Register notice requesting public comment on the Organic Foods Production Act of 1990 requirement that private certifying agents furnish reasonable financial security to protect the rights of participants in the National Organic Program (NOP). On March 13, USDA published a revised NOP proposed rule. The proposed rule stated the amount and terms of reasonable financial security would be the subject of additional rulemaking.

California Milk Processors Debut Hispanic Advertising. The California Milk Processor Board (CMPB), associated with the GOT MILK? campaign, will debut a new Hispanic advertising campaign featuring Latino families and the tag line, "Familia, Amor y Leche" (Family, Love and Milk) beginning Aug. 14. The campaign, which includes two television spots and outdoor boards, will break throughout California at that time.

The Barbecue Is a Popular Place. Eight of every ten adults grilled last year according to a new study by marketing information provider The NPD Group, Inc. People are grilling more all year round, making barbecue grills one of the most popular heating appliances in the American home and creating new opportunities for marketers, reveals NPD's latest Grilling In America report, a survey of 12,800 nationally representative households.

Environmental Groups Blast AFBF Report. A coalition of environmental groups say a "misinformation campaign orchestrated by the American Farm Bureau drastically understates Illinois' role" in the so-called "dead zone" problem in the Gulf of Mexico and waters in the Midwest. The Mississippi Riverwise Partnership cited several government studies linking Midwest agricultural pollution in the Mississippi River Basin to the area of the Gulf of Mexico, where, the group says, low levels of oxygen have been found.

News Summaries

Battle Brewing Between Health, Producer Groups. REUTERS reports a "lengthy battle is brewing which will pit public health and nutrition groups against sugar, beverage and chocolate producers and will mimic the war on tobacco." The article quotes U.S. food industry officials. Susan Smith, senior vice-president of public and legislative affairs for the National Confectioners Association and Chocolate Manufacturers Association, told the 17th annual Sweetener Symposium that sugar and sweeteners like corn syrup are increasingly being blamed for the fact that over half of all Americans are overweight or obese, according to the article. "Unfortunately, and it's a really easy answer, (opponents say) let's blame sugar. This is the easiest target for them,"Smith said. "This is really just the beginning. They are looking at the tobacco model." Opponents are targeting sugar as they targeted tobacco, she said, working to involve USDA, the Food and Drug Administration, the surgeon general and the Centers for Disease Control. The REUTERS report also notes that Richard Keelor, president and chief executive of The Sugar Association representing sugar processors, said at the same conference there is a politics of nutrition that is targeting the sweetener business. 

Brazil Suspends Livestock Imports from Paraguay. Brazil has suspended indefinitely imports of live cattle, pigs, sheep and goats from Paraguay, REUTERS reports. The action was taken over fears of contamination from foot-and-mouth disease, the Agriculture Ministry said on Wednesday. Brazil is an important trading partner of Paraguay but nevertheless banned the entry of all meat produced from cows, goats and sheep, the ministry said in a statement. "We have taken this measure temporarily because there are strong indications and intense rumors of contamination from this disease in Paraguay," said Hamilton Farias, director of the ministry's Animal Defense Department. "We have suspended the (animal) traffic indefinitely and canceled authorizations which were already granted for these animals (to enter) Brazil, with the aim of protecting Brazilian livestock," he said. 

Corn Stocks to Multiply. REUTERS reports that prospects for a 10 billion bushel plus corn crop this year in the United States and a nearly 3.0 billion bushel soybean crop will mean larger corn stocks that will keep soy stocks at a large level as well. Analysts quoted in the article said export demand, especially for corn, may improve during 2000-01, "but the overwhelmingly large production prospects will add volumes to grain coffers in the United States and limit price gains." USDA will release its August crop production and supply/demand reports Friday morning. 

Moore Sees New WTO Talks. World Trade Organization director general Mike Moore said he believes a new round of global trade talks will be launched before his term ends, REUTERS reports. Since Moore holds office until 2003, however, that may be scant assurance for agricultural groups who believe a broad-based set of talks will gain more for them than current negotiations, focused only on agriculture and services. 2003 is also the year when the so-called "peace clause" expires, an event that many observers think may encourage serious bargaining. Under the peace clause, subsidies that comply with the Uruguay Round agriculture agreement are not supposed to be challenged in the WTO, even though they may violate other provisions of international trade law. 

Corn Sales to Iran Grow. In the year since President Clinton eased sanctions on Iran, the United States has supplied more than half of that nation's corn import needs, a U.S. Grains Council analyst told REUTERS. And in the 2000/2001 year ahead, U.S. corn sales to Iran could hit 700,000 tons, the wire service reports. Coming at a time when U.S. corn sales to the European Union have been severely hampered because of biotechnology disputes, the Iranian sales figures illustrate the concrete benefits that many in U.S. agriculture expect if Congress further reforms economic sanctions. 

Michigan, New York Counties Declared Disaster Areas. Agriculture Secretary Dan Glickman today declared 41 Michigan counties and 35 counties in New York agricultural disaster areas due to several weather related disasters such as heavy rains, high winds, and hail, making farmers in these counties eligible for emergency low interest loans.

August 9, 2000

CSPI Finds Fish, Eggs Cause Most Illnesses. The consumer advocacy group Center for Science in the Public Interest finds seafood and eggs caused the most food borne illness outbreaks between January 1990 and this past July. The 52-page report shows seafood, including shellfish, caused 237 outbreaks, while eggs were linked to 170 outbreaks.

USDA Tells of Rules to Relieve Some Indebted Farmers. USDA has announced rules changes that could bring relief to some farmers who are facing repayment of a part of their debt that was forgiven by the government a decade ago. As a condition of the debt write-down made available since the late 1980s, federal farm borrowers have been required to sign a share appreciation agreement under which the government could recapture part of the debt forgiven if the farm appreciated in value during the 10 years of the agreement. 

Soy Food Sales 'Booming.' Sales of soy foods and supplements derived from soybeans are "booming," according to the Johns Hopkins Medical Letter "Health After 50," largely owing to "research suggesting that soy may have multiple health benefits." The benefits can be attributed to the protein, fiber and isoflavone components of soybeans, the newsletter says in the upcoming September issue. 

Sugar for Ethanol Seen Helping Mexico Jack Roney, director of economics and policy analysis for the American Sugar Alliance (ASA), believes ethanol made from sugar could be a long-term solution for surplus sugar problems in Mexico and possibly contribute toward a resolution of U.S. and Mexican surplus sugar concerns.

News Summaries

Cargill Triples Operating Earnings. REUTERS reports that Cargill Inc., the largest privately held company in the United States, reported its operating earnings in fiscal 2000 tripled over the previous year's depressed results. The increase is credited to strength in the company's financial and beef processing businesses. Operating earnings for fiscal 2000, ended May 31, before charges were $659 million, up 200% from $220 million reported in the previous year. The charges in 2000 included a write-down of assets in a number of businesses and a small loss from discontinued operations, according to REUTERS. The article also says the company said it had a $6 million net loss in the fourth quarter due to asset write-downs taken in that period. Other sectors within the company with significant performances were energy, poultry, animal nutrition, cattle feeding, cocoa and sugar. 

Poland Increases Duty-Free Imports. Poland again has increased duty- free grain imports to increase supply and reduce prices after domestic crops were seriously damaged by drought and frost, BLOOMBERG NEWS reports. The government said it is lifting the duty on imports of 800,000 million tons of wheat, 100,000 rye and 200,000 tons of other grains, effective immediately. It earlier planned to limit duty-free imports at 300,000 tons, according to the article. BLOOMBERG also says the decision to no longer restrict imports comes after farmers nationwide saw crops damaged by prolonged drought and ground frost in the late spring and heavy rains in the summer months. The latest report by the Central Statistical Office said the decline could be as much as 18% from the previous year. "Imports a