August 31, 2001

Bulk of Assistance Paid Out. USDA has sent to farmers more than 95% of the $4.6 billion in direct emergency payments authorized by the agricultural economic assistance package. The supplemental payments represent about 80% of the $5.5 billion in direct emergency payments to farmers authorized by the agricultural economic assistance package. Eligible farmers who have not yet received their payment should contact their local USDA Service Center or Farm Service Agency county office. 

Veneman, Zoellick Off to Uruguay. Agriculture Secretary Ann M. Veneman and U.S. Trade Representative Robert B. Zoellick will travel to Punta del Este, Uruguay, next week for the 22nd Cairns Group Ministerial meeting. They will address the Cairns Group ministers on Tuesday to discuss trade policy priorities for the November World Trade Organization (WTO) ministerial conference to be held in Doha, Qatar. 

Bioenergy Signup Opens Next Week.  Signup for the Bioenergy Program will begin on Sept. 4, 2001, and end Sept. 28 for fiscal year 2002 program payments. The program stimulates industrial consumption of agricultural commodities by promoting their use in bioenergy production, a significant element of President Bush's energy development policy. 

Shell Egg Safety Label in Effect Tuesday.  A Food and Drug Administration (FDA) mandatory regulation goes into effect Tuesday, requiring all non- pasteurized shell eggs to carry a safe handling statement. The label will read: "Safe Handling Instructions: To prevent illness from bacteria: keep eggs refrigerated, cook eggs until yolks are firm, and cook foods containing eggs thoroughly." 

Conservancy Helps Fight Weeds. The Nature Conservancy of Minnesota has helped ranchers in South Dakota this summer, who own more than 20,000 acres of native pastureland, battle leafy spurge by collecting spurge-eating flea beetles and releasing them on ranch land. Staff from The Nature Conservancy, together with local ranchers and other land owners, swept through tracts of leafy spurge collecting tiny flea beetles with heavy canvas nets. The beetles were then transported to pastures and grasslands where they will spread the fight against spurge. 

More for Others.  The Bush administration wants Congress to put more resources into programs for livestock and produce farmers, THE ASSOCIATED PRESS reports, rather than concentrate only on producers of major crops. The administration continues to develop "principles" for farm policy that emphasize issues other than farm subsidies, including food safety programs and efforts to prevent the introduction of mad cow and foot-and-mouth diseases, Agriculture Secretary Ann Veneman said in an interview with the AP. Environmental issues and the food-stamp program also will be addressed. "We really need to look at the whole food system and the agriculture system much differently than we have in the past," said Veneman, the daughter of a peach farmer. The 10-year farm bill approved by the House Agriculture Committee in July would guarantee a steady flow of money to the same grain and cotton farmers who have traditionally gotten most federal farm spending. 

Farmers and Environmentalists Should Be Friends.  Farmers and environmentalists may not yet be moving in lockstep, but they are "coming together" on land and wildlife conservation, Agriculture Secretary Ann Veneman says, according to REUTERS. During an interview with the news agency, Veneman noted common concerns of the two groups, such as curbing urban sprawl or safely disposing the tons of manure produced every day by cattle, hog and poultry operations. "We hear a lot about environmental problems and environmental solutions when we go out in the countryside, more than I would have thought," she said. Farmers still oppose infringement of property rights by regulations to control air and water pollution or protect rare plants and animals imposed with little regard to costs. And environmentalists can be quick to portray farmers as happy to accept government subsidies and unwilling to do anything in return, such as practice conservation. "There used to be this sort of thing...the environmentalists were over here and the farmers were over there," Veneman said. "There is a lot more coming together with a lot of constructive ideas that are being looked at." 

Agriculture Hot Agenda Topic.  THE WALL STREET JOURNAL reports that agriculture will be a hot issue when trade ministers from 18 countries and the European Union meet in Mexico City this weekend for "mini-ministerial" World Trade Organization discussions. "From sugar to soybean, from coffee to cashew nut, developing countries say increased access to agricultural markets in the U.S and Europe is key for a new round of WTO talks to succeed later this year," according to the article. "The most developed countries in the world, the U.S., the European Union and Japan, are the most protectionist countries in the world, and those are the countries which have the most agricultural subsidies," Mexico's Economy Minister Luis Derbez told reporters recently. The Mexico City talks seek to prepare the agenda and details for the next ministerial round of stalled WTO talks in Doha, Qatar in November. "The European Union has made it clear that there won't be any progress in agriculture unless there is progress in the general agenda," said a senior government source close to Luis de la Calle, Mexico's top trade negotiator. "But they are going to find that there won't be much progress at the ministerial meeting in Qatar unless the agriculture subject is dealt with," the source told Dow Jones Newswires. 

Europe's Greens Slam Trade Talks.  Europe's "Green" politicians have criticized plans by trade ministers to meet in Mexico, saying rich countries are trying to pressure reluctant developing nations into backing new trade liberalization talks, according to REUTERS. Trade ministers from 18 countries and the 15-nation EU will meet in Mexico City on Friday and Saturday in preparation for a World Trade Organization (WTO) meeting in Qatar in November which may launch a new round of global trade negotiations. The meeting brings together the European Union and the United States, which support a new round, with developing countries such as India which are reluctant to embark on new talks. WTO Director-General Mike Moore will also attend. Greens in the European Parliament said the Mexico meeting was shrouded in secrecy and alleged that access to it by the media and advocacy groups was being obstructed. 

FDA Ordered Unnecessary Cheese Recall.  Sargento Foods Inc. says the Food and Drug Administration has informed the company that the agency made an error in the laboratory finding that led to Sargento issuing a voluntary cheese recall on July 27. "Following FDA's review of our supporting laboratory records for this sample and additional testing, we have determined that our initial finding of Listeria monocytogenes was incorrect," said Gary L. Pierce, regional food and drug director of the FDA in Dallas, in a letter to Sargento dated Aug. 24. "All of the date coded products in question have been totally cleared -- no danger to public health ever existed," said Louis P. Gentine, chairman and CEO of Sargento Foods Inc. "The new information from the FDA confirms what we at Sargento believed all along, since no Listeria was found in any sample tested by two independent testing laboratories, including the Wisconsin Department of Agriculture." Sargento Foods says that in its 48-year history, the company has not experienced any confirmed cases of Listeria in its products in the marketplace. More information is available on the Sargento web site www.sargento.com or consumers may call 1-800-CHEESES between 9 a.m. and 4 p.m. Central Time Monday through Friday. 

Sara Lee Knew, Says Newspaper.  Managers at a Sara Lee Corp. plant in Michigan likely knew that some of its hot dogs and deli meats were tainted, months before a fatal outbreak of food-borne disease in 1998, workers and meat inspectors said in a report cited by the Detroit Free Press on Thursday. REUTERS says the Detroit Free Press said the report by Agriculture Department investigators concluded that managers at the Bil Mar foods plant in Zeeland, Michigan, knew or should have known that the meats were contaminated. The meat was linked to a nationwide outbreak of listeriosis blamed for more than a dozen deaths. In June, Sara Lee pleaded guilty to one misdemeanor count of producing and distributing adulterated meat. A Sara Lee spokeswoman told REUTERS the company was still reviewing the investigators' report, which it obtained from the Free Press late on Wednesday. 

Activists Need to Be Charged.  Activists who have destroyed genetically modified crop testing sites in the French countryside need to be brought to justice, the country's corn growers' group AGPM said on Thursday. REUTERS reports that the AGPM said in a statement, "The escalation of violence being carried out with impunity against experimental fields duly authorised and regulated by the authorities is unacceptable. It is intolerable to let a band of irresponsible activists make the law. AGPM solemnly demands that proceedings be brought against the authors (of the string of crop attacks) for the heavy damages suffered by the industry and the maize growers who have been attacked," it added. The activists have accused the government of underestimating the possibility of cross-pollination between genetically modified and natural crops and have threatened to continue their blitz on experimental fields across the country. 

August 30, 2001

USDA Seeks Crop Insurance ‘Improvements.'  USDA is taking "new measures" to improve oversight of the federal crop insurance program. USDA's Risk Management Agency and Farm Service Agency, and private reinsured crop insurance companies who sell and service crop insurance policies are forces in a nationwide effort to improve the integrity of the program. 

Farm Trade Surplus Blooms. The U.S. agricultural trade surplus for the first nine months of this year swelled to $11.1 billion, $2.2 billion more than the same period last year, according to the latest USDA agricultural trade update. USDA's Economic Research Service reports that for the first nine months of fiscal 2001, exports ($40.7 billion) increased nearly $2 billion due to shipments of high-value products (HVPs), while imports ($29.6 billion) declined by $240 million, largely due to declining coffee prices. 

Indiana Corn Checkoff Opens. The Indiana corn checkoff system goes into effect Saturday, making Indiana the 20th checkoff state in the nation. The National Corn Growers Association (NCGA) and Indiana Corn Growers Association President Michael Aylesworth, urged Indiana growers to join corn growers nationwide and sign up for the checkoff. 

EU Official Meets Organics Supporters.  On Friday and Saturday, the Organic Trade Association (OTA), Greenfield, MA, will host Alberik Scharpe, deputy head of the agricultural unit that oversees the regulation of organic farming and organic food standards in the European Union. Invited to the United States under the auspices of the State Department's International Visitor Program, Scharpe will meet with staff and representatives of OTA Friday morning at OTA's headquarters. 

Texas Cotton Losses Near Half Billion Dollars. REUTERS reports Texas cotton growers are expected to lose $433 million this year due from drought. Farmers have been forced to abandon fields, a Texas A&M University expert said Tuesday. Carl Anderson, a cotton marketing specialist at the university, said estimated losses for Texas cotton growers already total $255 million. As of Aug. 1, Texas cotton farmers had abandoned 1.7 million acres of the 6.2 million acres planted this year, he said in a statement. "Additional acreage likely will be lost, because much of the dryland crop continues to suffer from drought," said Anderson, noting that rains came too late to benefit dryland cotton. Last year, about 2 million cotton acres were abandoned. In 1998, 2.35 million acres were abandoned and another 1.5 million acres were abandoned in 1996. Drought losses in 1996, 1998 and 2000 totaled $1.5 billion for cotton growers and cost the Texas economy $2.87 billion, Anderson said. 

Rain Hampers Argentine Wheat Planting.  REUTERS reports from Buenos Aires that recent rains have kept farmers out of the fields in Argentina, and that could mean a slight decline in the area planted. The Argentine Agriculture Department said Tuesday some 92% of the 7.25 million hectares of wheat forecast to be planted had been planted as of the week ending Aug. 24. "Plantings in southeastern Buenos Aires province have been delayed due to rain during the week. It is feared that the area forecast for planting in that zone will not be planted," the report said. Overall, some 6.68 million wheat hectares have been sown in Argentina, which represents a 7% decline compared with the progress at the same date during last year's campaign. However, the report said the plantings were generally in good condition, adding that the 2000-01 soybean harvest had been completed on 10.32 million hectares of the 10.54 million sown. Officials have forecast output at 26 million tons. The 2000-01 corn harvest was in a similar situation, with 99% completed. According to official data, 2.6 million hectares have been harvested, 1% more than last year's figures by the same stage. 

UK Rural Life No Longer Traditional.  Foot and mouth disease in Britain probably has cost the country its traditional country life and "cast a long shadow over the lives of many inhabitants," REUTERS reports the government's rural adviser said Wednesday. The Countryside Agency said a long-running battle against the highly infectious livestock disease had forced businesses to close, prompted young people to leave rural homes and could change the look of valleys and hills for generations to come. In a comprehensive report on the effects of foot-and-mouth, which struck in late February, the agency said the outbreak could cost the economy 4 billion pounds ($5.81 billion). "Foot-and-mouth disease has had a profound impact on rural areas, created distress and difficulty for many, threatening livelihoods and the very fabric of rural life," Ewen Cameron, chairman of the Countryside Agency, said in a statement. "Government and many others acted quickly to provide some immediate relief but the full effect of the way the disease has impacted will not be known for some time. There will be more bankruptcies, fewer jobs and rural communities will suffer for years to come." Almost 2,000 farms have been confirmed with foot-and-mouth since the disease first struck, and more than 3.7 million livestock have been slaughtered to combat it. The number of cases has declined, but new outbreaks in northern England have prompted scientists and veterinarians to fear the disease could linger for months. 

August 28, 2001

USDA Acts to Help Egg Industry.  USDA will purchase approximately $10 million of fowl meat products for school lunch and other domestic feeding programs, creating what the department said is a "much-needed market" for light spent fowl meat, which is produced from egg-type laying hens. Egg producers have been unable to dispose of the layers in sufficient numbers because fowl processors cannot increase normal markets for fowl meat. 

Co-op Membership Touted at Forum. Economic opportunities from member-owned, value-added cooperatives was the topic of a gathering of the nation's co-op leaders in St. Louis, MO, last week where Missouri Lt. Gov. Joe Maxwell addressed the importance of public support to the success of farmer-owned cooperatives and value-added agricultural marketing and processing ventures. 

Corn Growers Urge Support of Bt Re-registration. The National Corn Growers Association (NCGA) has posted on its web site an action alert urging corn growers and other Bt supporters to contact the Environmental Protection Agency in support of Bt re-registration. Letters are addressed to the EPA's Office of Pesticide Programs, which is accepting comments until Friday, August 31. 

APHIS Increases Rules on Interstate Animal Transport.  USDA's Animal Plant and Health Inspection Service has increased federal regulations for interstate sheep and goat transport in an effort to prevent the spread of scrapie. APHIS's plan was outlined in a final rule published in the Aug. 21 Federal Register. 

Former Secretaries Urge TPA on Congress.  Ten former U.S. agriculture secretaries are urging Congress to approve trade promotion authority for President George W. Bushto negotiate new trade agreements. REUTERS reports they stressed the importance of increasing foreign demand for U.S. farm goods through trade, which is eased with TPA. The former secretaries have served every President since John F. Kennedy. Their support echoes that of current Agriculture Secretary Ann Veneman, who has led an intense effort to gain support for TPA. "There is no question that the President needs trade promotion authority," Dan Glickman, agriculture secretary under the Clinton administration, told reporters in a news conference. Supporters say without the authority, other countries would refuse to negotiate with the United States because Congress could amend any proposed pact. The United States has only participated in two of the 130 free trade agreements that have been negotiated worldwide in recent years, Veneman said. Congress could vote this fall on the issue, but its passage remains far from certain. Veneman and the former agriculture secretaries said that gaining enough congressional support would be difficult, but not impossible. The former secretaries supporting trade promotion authority for the Bush administration were Glickman (1995-2001), Clayton Yeutter (1989-1991), Mike Espy (1993-1994), Richard Lyng (1986-1989), John Block (1981-1986), Bob Bergland (1977-1981), John Knebel (1976-1977), Earl Butz (1971-1976), Clifford Hardin (1969-1971) and Orville Freeman (1961-1969). 

Illinois Seizes Agribusiness.  REUTERS reports that Illinois has seized control of a private agribusiness company and is investigating its finances. The company handled about $50 million worth of grains for farmers last year. Operations have been suspended for Minooka, IL-based Ty-Walk Inc., which employs about 150 workers. The workers own more than one-third of the company, officials said. The article says the action stunned grain traders and farmers because of the timing. It came just weeks before the start of this year's harvest of corn and soybeans, some of which would have been stored at Ty-Walk warehouses. It also aggravated the "harvest of despair" most farmers have seen from four straight years of money-losing grain prices. Ty-Walk's warehouses are located in four Illinois counties and have a combined storage capacity of 17-18 million bushels. The fertilizer and pest-control operations of Ty-Walk also were shut down along with affiliate Tyler Enterprises of Elwood Inc., a turf fertilizer company. 

Brazil Told to Target Sugar to China. Brazil, the world's largest sugar exporter, has been told to target China for the export of 400,000 tons of Brazilian sugar, REUTERS reports. "We suggest an initial, realistic target for Brazil in the medium term would be to again export 400,000 tons of sugar to China," Alceu de Arruda Veiga Filho, analyst at the Sao Paulo state government's agricultural research institute (IEA), said in a report. Brazilian sugar exports to China tumbled to zero the following season although 32,734 tonnes were exported in 1998/99 when Brazil replaced Thailand as the country's third major sugar supplier. 

August 27, 2001

Cattlemen Disappointed at USDA's Action.  USDA ‘s delay of the effective date of an amendment to the export sales reporting requirements regulation has not been met with any applause from cattlemen. The National Cattlemen's Beef Association says it is "disappointed" in the action that again delays a process that began in 1996. 

Budget Constraints Will Drive House Farm Bill. When Congress returns to business Sept. 5, full House debate on the Agriculture Committee's farm bill will happen quickly because of budget constraints, according to the National Corn Growers Association. The NCGA does not support the House bill, because it "was written with a fundamental bias against corn and soybean farmers." House debate could take place the week of Sept. 10, NCGA said. 

New Ethanol Record Set – Again.  The Renewable Fuels Association (RFA) says the ethanol industry set a production record for the month of July. According to data released today, the ethanol industry produced over 112,000 barrels per day in July. This new record exceeds the previous July record of 103,000 barrels set in 2000, an increase of almost 9%. July's record was the 21st monthly production record out of the last 22 months. 

Activists Destroy GM Test Sites. REUTERS reports from Cleon D'Adran, France, that hundreds of activists destroyed test sites for genetically modified corn in southern France Sunday, It was the fifth such incident of genetically engineered crop destruction in France since late June. Members of the left-wing Confederation Paysanne attacked two fields aremed with scythes and shears. The fields were being used by Monsanto Co in the southeastern towns of Cleon D'Adran and Salettes. "These tests are not for medical research but for pesticide testing," said Confederation Paysanne spokesman Bruno Clavel. About 100 activists In Salettes destroyed a patch of corn, and in Cleon D'Adran some 300 protesters destroyed another area of corn. "We are here because we oppose the uncontrolled development of GM crops. If no one does anything, the future could prove dangerous," said activist Jean-Claude Perignac. In a communique released later in the day, Monsanto said the destruction was contrary to the "democratic spirit" and was an obstacle to "calm and scientific debate...for the benefit of consumers and citizens." 

U.S. Pressures EU on Food Restrictions.  THE WASHINGTON POST, in Sunday editions, said senior U.S. officials are pressuring the European Union to abandon new restrictions on foods containing genetically modified organisms (GMO). The regulations could cost U.S. companies $4 billion a year, Post said. Under Secretary of State Alan Larson was quoted as saying the rules the EU unveiled last month on the labeling and traceability of GMO food were "trade disruptive and discriminatory." He said he had raised U.S. concerns with "everyone that comes through this door, every trade minister, agriculture minister, economy minister from Europe," and a similar message had been delivered by Agriculture Secretary Ann Veneman and U.S. Trade Representative Robert Zoellick.

August 24, 2001

BSE ‘Understanding' Plan Unveiled.  Health and Human Services Secretary Tommy G. Thompson has announced a department-wide plan outlining new steps to improve scientific understanding of BSE, commonly known as "mad cow disease," and related diseases known as TSEs. The plan incorporates an approach to further strengthen surveillance, increase research resources, and expand existing inspection efforts to prevent BSE and TSEs from entering or taking hold in the United States. 

'Organic Harvest Month' Days Away.  September will mark the Organic Trade Association's (OTA's) tenth annual "Organic Harvest Month(TM)" celebration focusing on the perceived benefits and practices of organic agriculture. Growers, retailers, organizations, food co-ops, and communities around the country are planning special activities during September to celebrate Organic Harvest Month(TM). The chief aim is to share information with consumers on what organic stands for and what organic products are available. 

Ethanol Focus of Final Congressional Event.  A three-day tour of St. Louis area agriculture hosted by the St. Louis Agri-Business Club for congressional representatives wrapped up earlier this week with a presentation on ethanol and the national pilot plant to be built in Edwardsville. Paul Bertels, National Corn Growers Association (NCGA) director of production and stewardship, chaired the committee that organized and conducted the tour, which included a tour of NCGA Corn Board member Greg Guenther's Belleville, IL, farm and a barge tour of the Mississippi. 

Wisconsin E. Coli Outbreak Matter of Washing Hands.  The Ozaukee County (Wisconsin) Public Health Department said people who became ill from an E. coli O157:H7 outbreak associated with the Ozaukee County Fair failed to wash their hands after coming into contact with animals in barns or at a petting zoo. "Careful analysis of the information collected from individuals who fell ill after the Fair indicates that the cause of infection was individuals visiting the animal barns or petting zoo or touching animals and then not washing their hands before eating," said Ozaukee County Public Health Director Glenda Madlom. 

Groups Want More Waste-Fighting Money.  Two environmental groups want Congress to provide more than $6 billion in annual funding to farmers who help prevent agricultural waste from polluting land, water and wildlife. REUTERS reports that Environmental Defense and American Rivers said the $73.5 billion farm bill on which the House should vote next month provides little in conservation spending. "Most farmers and feedlot operators are willing to do their part to clean up America's most polluted bays, but they are repeatedly rejected when they seek federal help," said Scott Faber, water resource expert for Environmental Defense. The groups said the latest farm bill instead subsidizes massive livestock operations and encourages producers to increase traditional crop production, which uses vast amounts of fertilizer. "While the (Agriculture) committee claims the bill increases conservation spending, the actual bill would undermine critical, long-standing environmental standards," Environmental Defense said. 

New Export Reporting Rules Delayed. The American Meat Institute says USDA has delayed the effective date of an amendment to the Export Sales Reporting Requirements regulation (7 CFR Part 20, 66 Fed. Reg. 38526-38528). The amendment, which added fresh, chilled or frozen muscle cuts of beef to the regulation, now will take effect on Jan.11, 2002. The orginal effective date of August 24 was delayed because USDA did not anticipate the extent of the changes needed to the reporting system on beef export sales. The delay will allow USDA the necessary preparation time to modify and test its reporting system and to develop detailed reporting instructions for the affected reporting entities. 

August 23, 2001

Organic Dairy Adjusting to New Supplies. Horizon Organic Holding Corporation, a producer of organic dairy products, is exploring alternatives for its company-owned farms in Idaho and Maryland. The company says expanded organic milk supplies from other sources make the decision imperative. 

Cattlemen Worry About S.A. Competition. The National Cattlemen's Beef Association, concerned about South America's competition for beef markets in Asia and Europe, wants an expanded Free Trade of the Americas Agreement (FTAA) to parallel multi-lateral World Trade Organization. That would keep South American beef producing countries aligned with US efforts to increase access in Asia and Europe, NCBA says. 

Biotech Seed Approval Welcomed in U.S.  The National Corn Growers Association (NCGA) says it welcomes the report that a subcommittee within Japan's Ministry of Agriculture, Fisheries and Forestry (MAFF) approved a draft proposal setting a one percent tolerance for unapproved biotech hybrids in livestock feed. "Although this is just the first step in a long process and applies to feed, not food., corn growers are encouraged that this action sets the stage for addressing the problems created by the unintentional commingling of StarLink in U.S. corn," said Rick Tolman, executive vice president and CEO of NCGA. 

Cattlemen React to WTO Ruling.  The National Cattlemen's Beef Association has indicated it will work to make sure U.S. policy is in line with World Trade Organization requirements in the wake of a WTO ruling against U.S. legislation on foreign sales corporations. The United States has until Oct. 19 to appeal the ruling, and U.S. Trade Representative Robert Zoellick has said he intends to do so. 

South Dakota Gets a Slice of Loans, Grants. Agriculture Secretary Ann Veneman, appearing at DakotaFest, South Dakota's largest farm show being held in Mitchell, announced the selection of $764,000 in loan and grant requests to meet business opportunity needs in South Dakota. 

U.S. Officials Attend Uruguay Meeting. Bush administration officials will be in Uruguay next month to work on agricultural negotiations in preparation for the World Trade Organization meeting in November, REUTERS reports. Agriculture Secretary Ann Veneman and U.S. Trade Representative Robert Zoellick will attend the September meeting of the Cairns Group in Punta del Este, Uruguay. "We are going to discuss preparations for a new (WTO) round and our objectives for agriculture negotiations," USDA senior trade advisor David Hegwood told the news agency. The Cairns Group is a coalition of 18 agricultural free trade countries that account for one-third of the world's farm exports and includes Australia, Brazil and Argentina. The United States is not a member of the group. Hegwood said Bush administration officials were invited to participate in the upcoming meetings. Veneman and Zoellick will leave for Uruguay on Sunday, Sept. and return that Tuesday. 

Record Low Farms Noted in Japan. KYODO NEWS reports that farming households in Japan declined 1.5% last year to reach a new record low of 3,072,000 as of Jan. 1, 2001. The Agriculture, Forestry and Fisheries Ministry also said the number has continued to decline from a peak 6.17 million registered in 1950. The total number of farming family members totaled 10,169,000, a 2.9% decline. The average age of farmers was 60.4 as of the beginning of 2001 compared with 59.8 a year earlier, reflecting the aging of the agricultural population, according to the ministry. The number of people who changed jobs to move into the farming sector totaled 77,100 during 2000, up from 65,400 in the previous year. 

Judge Refuses to Stop Collections.  THE ASSOCIATED PRESS reports that a federal district judge will not order the federal government to suspend disputed farm loan collections while a lawsuit over the loans is pending. Farmers bringing the suit did not show they were likely to win their case or that they would be irreparably harmed if the order were not issued, according to U.S. District Judge Rodney Webb. More than 100 farmers and ranchers in 16 states are suing USDA over a late-1980s farm assistance program. Under the bailout program, thousands of farmers facing a severe recession in the agricultural economy were allowed to write off or restructure government loans. Those who wrote off debt had to sign a 10-year agreement. The government contends the farmers owe the government half the amount that their land increased in value since the agreements were signed. The farmers argue the government is entitled only to that amount if they sold their land or stopped farming within the 10 years. They also contend that even though their land has increased in value, their ability to pay has not due to continued difficult economic conditions in agriculture. Webb said he sympathized with the farmers' arguments about the "harshness" of having to pay for higher-valued land during poor economic times. 

Demands Made for Fulfillment of Past Promises.  South Asian countries are demanding that promises made in earlier rounds of world trade talks be fulfilled before any new commitments are negotiated, REUTERS reports from New Delhi. The commerce secretaries of the South Asian Association for Regional Cooperation (SAARC), during a two-day meeting in New Delhi, comoposed a draft agreement to be adopted by their trade ministers today. The news agency says details of the pact were not known. SAARC includes Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. It was formed in 1985 to promote regional economic development. The news agency notes further that a decision to launch a new round can be made only through a consensus, something which was missing in the last attempt at Seattle, WA, in 1999. 

Vietnam Proposes Rice Export Reduction. REUTERS reports that Vietnam's food and trade authorities suggest that the government reduce rice exports this year to 3.5 million tons from the 4 million tons targeted earlier. The Tin Tuc (News) afternoon newspaper said officials from the Trade and Agriculture Ministries had made the proposal to the prime minister after a meeting held earlier this month. Tin Tuc said officials also had proposed forgetting about a 1 million ton rice stockpile idea that was launched in March. It was to last one year to help steady prices. Rough rice prices now are higher than a government-set floor. The paper gave no reasons for the proposal and officials were not immediately available for comment. but the country's Agriculture Ministry has estimated that output from the summer-autumn crop would decline by 500,000 to 600,000 tons of rough rice, or 5.8-7.0%, from the same crop last year. 

U.S. Soy Leaders Talk GMOs in China.  Leaders of the U.S. soybean industry will hold talks with government officials in China this week to discuss Beijing's new rules for gene-altered food. The rules were announced June 6 but few details were given on implementation. That has caused a slowdown in exports of U.S. soybeans to China. REUTERS reports that American Soybean Association president Bart Ruth and United Soybean Board chairman Doug Magnus will meet in Shanghai and Beijing with Chinese officials, according to Gil Griffis, ASA division director for Asia. "There is going to be a small meeting in Shanghai and a larger meeting in Beijing," Griffis told the news agency. "We are going to express interest in when they (rules) would be implemented and the specifics of the implementation procedure. We will also express our support for the early implementation of the rules in a way (that) would not impede the export of our soybeans to China," he said. 

August 22, 2001

Cotton Conference Scheduled for Atlanta.  The 2002 Beltwide Cotton Conferences will be held Jan. 8-12 in Atlanta, GA, sporting the theme "Technology - The Common Thread." The National Cotton Council is the conferences' primary coordinator. The conferences' goal is to strengthen U.S. cotton's competitive position in domestic and world markets and to increase industry members' profitability and speed the transfer of new technology to U.S. cotton producers and other industry members via that forum. 

Seed ‘Health System' Begins.  A new national seed health system (NSHS), which provides an accreditation scheme for non-government entities to perform laboratory seed health tests and phytosanitary inspections to meet international import regulations, has been launched. It is expected to allow USDA's Animal and Plant Health Inspection Service's (APHIS) to issue phytosanitary certificates required for seed export in a more timely manner. The NSHS officially went into effect Friday as a result of an APHIS final rule in the July 18 Federal Register. 

South Africa's ‘Street Foods' Get FAO Attention. The UN Food and Agricultural Organization, in collaboration with the government of South Africa, has created a series of educational products to help vendors, food inspectors and consumers make the sale of "street foods" safer and more profitable. A manual was produced for public health officers, giving essential information on safe food preparation and handling. A video showed vendors how producing good, safe food results in a boost in business. FAO also helped to reprint a series of training booklets that food inspectors throughout the country will use to educate street vendors. 

Flax Expands in North Dakota. North Dakota, the state that accounts for most of the country's flax production, will produce the crop on 530,000 planted acres this year, the highest level in 15 years, THE ASSOCIATED PRESS reports. The expansion is being fueled by growing demand from the health-food industry and new flax-based foods under development. Growth has been steady since 1996, when just 80,000 acres were seeded in the state. The AP article explains that the seed of the flax plant is used mostly to produce flaxseed oil, also known as linseed oil, which is used in products such as paint, ink and linoleum. But the oilseed is gaining as a health food ingredient. Research has determined that high-fiber flax may lower the risk of high cholesterol and cancer. Clifford Hall, a food scientist at North Dakota State University, is developing pasta and frozen dessert products using flaxseed, and the North Dakota Oilseed Council has formed a marketing branch known as AmeriFlax to build demand, mostly by targeting food companies. But the group also will promote flax foods with consumers. 

GMO Grace Period Expected from China. REUTERS reports that trade negotiator Long Yongtu says Beijing probably will allow a grace period for imports free of its restrictive rules for genetically modified food while authorities complete work on a more precise policy. The slow implementation of the new rules should not be a hindrance to trade, Long told reporters after a news conference in Beijing. Asked whether there would be a transition period while Beijing maps out details of the rules, Long said: "I would think so. We have to take some time to lay out the detailed implementation rules. Until that, we are going to make sure this law will not become a hurdle to trade," said Long, who is also vice minister of the Ministry of Foreign Trade and Economic Cooperation. Beijing announced rules on genetically modified organisms (GMO) on June 6 but did not issue implementation details. The news agency says that frustrated many traders at home and abroad, especially those involved in soybeans, which China actively imports. 

U.S., EU Toughing It Out on Subsidies Dispute. REUTERS reports that no clear solution has emerged as yet between the Bush administration and the European Union over corporate export subsidies. The World Trade Organization announed Monday that a U.S. system of tax breaks for companies using off-shore subsidiaries to export goods is illegal. The U.S. regime is a new version of the Foreign Sales Corporations law that also had been declared illegal under the WTO. The Bush administration must decide sometime in September whether it wants to appeal this latest WTO ruling. Some major U.S. corporations have requested that the administration appeal the ruling to give the U.S. and EU more time to negotiate a deal. If the United States does not appeal, the EU could begin Oct. 19 the process of imposing sanctions of up to $4 billion against U.S. goods, a provocative outcome neither side wants. Rep. Bill Thomas, chairman of the House Ways and Means Committee, which has oversight of tax legislation, has called for a major overhaul of U.S. international tax law as the solution to the U.S.-EU trade dispute. 

August 21, 2001

USDA Uses Satellite Imagery on Fires. USDA will use satellite image technology at the Forest Service's Remote Sensing Applications Center (RSAC) to give firefighting agencies a detailed picture of multiple wildland fires spread across several states in the belief this will help the agency manage firefighting resources strategically, especially during peak fire season activity. The technology is the result of a partnership among the USDA's Forest Service, NASA, the University of Maryland, and the National Interagency Fire Center. 

Lamb Market News Reports Introduced. USDA has introduced two new lamb market news reports and one revised report to replace or complement existing reports currently issued as part of the Livestock Mandatory Reporting Program. These reports are expected to improve public access to mandatory information by permitting USDA's Agricultural Marketing Service to publish a greater volume of collected data on a more consistent basis to protect the confidentiality of reported transactions. In some of the more thinly traded market sectors, AMS has been unable to publish collected daily data on a routine basis because the publication of such data might have revealed the identity or actions of individual reporting entities. 

Corn Farmers Like Livestock Producers. The National Corn Growers Association wants the livestock industry to know that corn farmers appreciate their livestock counterparts. The livestock industry (beef, pork, poultry and dairy) is the largest user of corn, consuming 4.4 billion bushels per year. Sixty percent of the corn grown in the U.S. is consumed as feed by livestock, while another 20% is used by industry for ruminant rations. 

Japan May Allow Some GMO Feed. KYODO NEWS reports from Tokyo that the sale of animal feed with up to 1% of unapproved genetically modified organisms has been recommended by an advisory panel. The panel also recommended that any genetically modified food variety imported from another country should have the approval of respective foreign authorities using the same safety testing standards as in Japan. About 90% of the animal feed available in Japan is imported. If the panel's recommendation were to be adopted, it would help expand the distribution of imported animal feeds, industry officials said. Approval by the Agricultural Materials Council would lead to revisions by the Agriculture, Forestry and Fisheries Ministry. The recommendation could be put into practice by early next year, ministry officials said. 

Black Farmers Threaten Boycott. The National Black Farmers Association has threatened a boycott of the merged First Union Corp.-Wachovia Corp., REUTERS reports. Bank executives Monday rejected the NBFA's multimillion-dollar plan to increase lending to minority farmers. In 1999, the 66,000 member NBFA reached a multibillion-dollar settlement over racially discriminatory practices in USDA's farm loan program. It has been pressing for a "new Wachovia" that would make certain minority farmers have access to conventional loans. "We're going to have discussions at our board meeting on Friday about boycotting them," National Black Farmers Association President John Boyd said. "African-Americans have a lot of deposits in these institutions and we can ask them to start taking their dollars out." He proposed a five-year, $81 million Community Development Financial Institutions (CDFI) fund for loans to minority and "low wealth" customers in the Southeast that would be coordinated by the Virginia-based group. 

Indonesia Looks Askance at Argentine Corn.  THE WALL STREET JOURNAL reports that Indonesia isn't anxious to import corn from Argentine although the government has lifted an import ban on the product. Yamin Rahman, director of agroindustry, says he is advising private importers to get their corn either from the United States, China or Thailand; Argentine corn could contain the foot-and-mouth disease virus. "There are still foot-and-mouth disease cases in Argentina," he said, adding that while the Indonesian government recently lifted the ban against Argentine feed grains, Argentine meat still isn't allowed in the country. Yamin said that without Argentine corn, the Indonesian livestock sector still had access to Chinese, Thai and U.S. corn. The Indonesian Agriculture Ministry April 20 issued a prohibition against meat, grains and dairy products imported from several European and South American countries because of reports of foot-and-mouth disease outbreaks in those areas. 

China U.S. Corn Competitor. Grain industry officials have been surprised at China's aggressive corn selling last week. REUTERS reports they think China's resolve could affect U.S. corn exports to Asia. However, the flip side of the speculation is that last week's tender could have been China's last big push into the export market beofe its entry into the World Trade Organization, expected early next year. Membership will limit the country's use of export subsidies to increase sales. China is believed to have sold 3.0-3.5 million tons of corn at the tender, more than three times the amount USDA expected China to export in the 2001-02 marketing year that starts Sept. 1. 

Bulgaria Wants Talks with EU This Year. REUTERS reports that Bulgaria wants to open talks on agriculture with the European Union this year on agriculture. Agriculture is considered one of the most difficult areas in Bulgaria's EU membership negotiations, Agriculture Minister Mehmed Dikme said Monday. "Bulgaria is ready to open agriculture negotiations with the EU and we really hope that this will happen by the end of this year," Dikme said in a written reply to REUTERS' questions. "Farming is among the most difficult issues...but I think that Bulgaria has the chances to walk up this difficult road and at the same time protect the interests of its farmers," he said. Bulgaria, one of the poorest EU-aspirants, launched talks with Brussels last year and hopes to join the EU by 2006. The new government led by former King Simeon II, which took office last month, wants to increase the land market, improve access to credit, raise farm production and stimulate organic agriculture as part of its efforts to join the EU, the minister said. 

August 17, 2001

Rural Areas Get Grants. USDA will provide $3.65 million in loan and grant requests to meet business, housing, and electric and waste water infrastructure needs throughout rural Georgia. Agriculture Secretary Ann Veneman made the announcement during a visit to Georgia. 

Herbicide Movement Pegged by ARS Scientists. Agricultural Research Service microbiologist Thomas B. Moorman at the National Soil Tilth Laboratory in Ames, IA, working with researchers at Florida International University-Miami and Iowa State University-Ames, has measured how one important herbicide, atrazine, binds to and lets go of particles in different soil types. Unlike previous research, this project measured atrazine's binding deep into Iowa soil. 

U.S., Australia Agree on Lamb Dispute. Australian officials say they have agreed to a U.S. request to allow more time for negotiations to resolve the lamb dispute, according to Trade Minister Mark Vaile. "Australia and the U.S. will intensify negotiations over the next two weeks on the time frame for elimination of the tariff quota on Australian lamb exports," Vaile said. 

Montana Lawmaker Killed. THE ASSOCIATED PRESS reports that state House Majority Leader Paul Sliter, considered a rising star in Montana Republican politics, was killed in a car crash that also injured a top aide. Lewis and Clark County Coroner Mickey Nelson said Sliter, 32, was killed shortly after 11 p.m. Wednesday when the sport utility vehicle he was in went out of control on a winding dirt road west of Helena. Also in the vehicle was Shane Hedges, policy director for Gov. Judy Martz. Hedges, 27, was treated at a hospital and released. The SUV went off a 25-foot embankment, rolling at least 1 1/2 times and landing in a grove of trees, Nelson said. Sliter was found outside the vehicle and passers-by attempted to resuscitate him without success. Nelson said the SUV belonged to Hedges but he wasn't sure who was driving, because Hedges had not told authorities. He also said he was not sure whether alcohol was a factor in the crash, which happened as the men were returning from dinner at a supper club in the old mining community of Marysville. Tests were pending on both men, as is routine in such crashes, Nelson said. Another man at the supper club gathering, state Agriculture Director Ralph Peck, said Sliter and Hedges each had a couple of beers by the time Peck left around 9 p.m. Sliter, a four-term lawmaker, was known as an aggressive, politically astute and self-confident legislator with a sense of humor. He also worked as credit manager for his family's lumber company and building supply store in Bigfork. 

Non-Native Species Hold Perils. REUTERS reports that researchers have studied parasitic wasps brought into Hawaii for sugar cane farming had become dominant in a native ecosystem, illustrating the ecological perils of introducing non-native species to control pests. In research appearing in the journal Science, ecologists Jane Memmott and M. Laurie Henneman of the University of Bristol in Britain sought to determine the degree to which alien species imported as so-called biological control agents had infiltrated a local ecosystem. They found that parasitic wasps transplanted from Texas and China into Hawaii more than half a century ago to prey on pests that devour sugar cane have emerged as commanding figures in the complex food web of a boggy forest on Kauai island, many miles away from where they were introduced. "It's not just that they're in low numbers in a few habitats near agricultural fields. They're there in high numbers and they're there in places that are really remote from agricultural areas," Memmott said in an interview. The research examines the consequences of using non-native species as "biocontrol" agents. 

Minnesota Corn Shows Lodging. Corn fields surveyed Thursday morning in south-central Minnesota showed severe damage from lodging and were behind in maturity, which will probably cut into yield prospects, REUTERS reports. "It's just amazing that we can travel this many miles and see so much damage," said Martin Zaugg, a farmer from western Iowa on this week's John Deere ProFarmer annual crop tour of leading corn and soybean states. Scouts said recent strong winds in southern Minnesota had blown many of the corn plants down, a condition known as "lodging." Four of the five fields surveyed on Thursday morning were severely lodged, they said. Corn yield estimates ranged widely from 67 to 126 bushels per acre compared with last year's tour average in the same area of 148 bushels. Minnesota, the fourth-largest corn state last year at 957 million bushels, was estimated by USDA as of Aug. 1 to produce 812 million bushels this year, which would slip the state to fifth, behind Iowa, Illinois, Nebraska and Indiana. USDA estimated the state's average corn yield at 131 bushels this year, down from 145 last year. 

August 16, 2001

Detection System Improves E. Coli Discovery.  Agricultural Research Service scientists in a partnership with eMerge Interactive, Inc., Sebastian, FL, have developed and tested commercial designs of a fecal detection system capable of scanning an entire beef carcass to detect bacteria such as E. coli. It is expected that the device will help the meat packing industry supply safe food products to U.S. and foreign consumers. 

Farm Bureau Questions Firefighting Priorities.  Lifesaving efforts apparently were delayed in assisting trapped firefighters, four of whom were killed fighting blazes in the Thirty Mile fire in Washington state last month because personnel feared they might violate provisions of the Endangered Species Act, according to the American Farm Bureau Federation. 

IDFA Honors Two Professors for Dairy Research. The International Dairy Foods Association (IDFA) recognized two professors with special awards last month during the annual meeting of the American Dairy Science Association (ADSA) in Indianapolis. Professor Syed S.H. Rizvi, Ph. D., of the Cornell Institute of Food Science, received the 2001 IDFA Research Award; and Professor David R. Henning, Ph.D., South Dakota State University, received the 2001 Milk Industry Foundation Teaching Award. 

Soybean Growers Focus on Three Hill Issues.  The American Soybean Association (ASA) is calling on members of Congress to focus on three key issues during August in preparation for the heavy legislative schedule that they will face when they return to Washington next month. Between September and the end of the current legislative session in November, Congress is expected to consider the pending farm bill, Trade Promotion Authority (TPA) and biodiesel as part of an energy bill that could include a national standard for use of renewable fuels. 

Tyson-IBP Future Detailed. FARM JOURNAL reports that Tyson Foods' integration of IBP into its operations will include the structure of two marketing groups – a Foodservice and International Group, and and a Fresh Meats and Retail Group. Headquarters for the new Tyson Foods will remain in Springdale, AR. IBP's current headquarters in Dakota Dunes, SD, will be the headquarters for the IBP Fresh Meat Division and will be home to other operations and support services. An integration plan has been put into action with teams of managers from both companies expected to be in place within the next 60 days. In order to allow both companies to remain focused on serving customers, a dedicated team with third party support has been brought on board to assist in creating and implementing the integration process. The company will have approximately 28% of the U.S. beef market, 23% of the chicken market, and 18% of the pork market. 

Vietnam Rice Exports Short of Target. REUTERS reports from Hanoi that Vietnam's rice exports this year will reach 3.63 million tons, less than the official target of 4 million tons, according to five traders polled by the news agency. The traders, from foreign and state-run firms, said lower production from the summer-autumn rice crop, high prices and less than expected demand would be main reasons, even though a government official said on Wednesday that the export target was attainable. The traders estimates for 2001 exports ranged from less than 3.5 million tons to 3.8 million tons. They said current slow loading at Saigon Port due to supply shortages had pushed prices up to year-high levels and turned buyers away to Thailand for high-grade rice or to Myanmar for lower quality grain. "If Vietnam can't lower prices in the next two weeks, it will lose buyers to Thailand," said a state exporter. "Vietnam could rely on possible government deals later this year, but selling prices will be an issue," he said. Government data shows Vietnam exported 2.38 million tons of rice in the first seven months, 21.6% more year-on-year, but the value of the exports rose just 1% to $386 million. 

Soybean Industry Asks China for Transition.  REUTERS reports that the U.S. soybean industry is asking China to set a transition period for new rules on imported foods that have been genetically modified. The move is an effort to minimize disruptions to a major export market. On June 6, China put into effect rules governing genetically modified organisms. But the details on how the regulations are to be implemented still have not been laid out by China. Asian commodity traders are speculating it could be months before China releases those details, possibly jeopardizing U.S. exports of the soybean crop that will soon be marketed. "We would like the application (of the new rules) delayed until the details are announced. And then, we need a sufficient time period to make the necessary applications," said Stephen Censky, chief executive officer of the St. Louis-based American Soybean Association. Censky explained that it will take time for U.S. exporters to apply for shipment of GMO soybeans, have those applications reviewed and adhere to whatever other bureaucratic requirements China imposes. 

Crops in Parts of Iowa Look Okay. Corn and soybean crops in Iowa's southwest corner appear ready to produce average to possibly above-average yields this year in spite of recent hot and dry weather in the Midwest, crop scouts said on Wednesday. "This is a little better than I expected, especially the beans," said Glen Walker, a producer from Letts, Iowa, a member of this year's John Deere ProFarmer Midwest Crop Tour. REUTERS reports that scouts made stops in four corn and four soybean fields in Iowa's Mills and Montgomery counties on Wednesday morning. They estimated corn yields at 120-160 bushels per acre, roughly on par with last year's USDA yield figures for those counties of 136 to 142 bushels. Soybean pod counts varied widely in southwest Iowa, ranging from 845 to 4,188 pods in a 3-by-3-foot square area. Crop scouts said the highest pod count came from one low-lying field in Montgomery County and may not have been representative of the area, since the second-highest count of the morning was 2,242 pods. The tour last year in the same area arrived at an average count of 1,545 pods. 

August 15, 2001

Payments to Farmers Begin. Agriculture Secretary Ann M. Veneman says USDA will begin making more than $5 billion in supplemental payments to about 1.4 million producers this week. Other payments will be stretched into September as the department seeks to meet a Sept. 30 deadline when all payments must be made. 

New Beef Checkoff Programs Tabled.  Checkoff programs designed to increase consumer demand for beef were analyzed and new ones put on the table last week as leading beef industry organizations gathered in Denver for the 2001 Cattle Industry Summer Conference. Recommendations of the industry's joint committees were approved to help continue the trend of beef demand which has increased in 10 of the last 12 quarters. 

Hormone Beef Dispute Deal Unknown.  The National Cattlemen's Beef Association says a BLOOMBERG NEWS article that said European Union Trade Commissioner Pascal Lamy announced that the European Union will comply with a World Trade Organization (WTO) ruling against a long standing ban on U.S. hormone treated beef by early next year is unknown to the association. 

California Anti-Ethanol Suit Brings Responses. California filed a lawsuit Friday against the U.S. Environmental Protection Agency requesting that the agency waive regulations requiring the addition of ethanol to the state's gasoline supply. State officials contend that the requirement will do more harm than good, raising gasoline prices and increasing air pollution. The action brought sharp responses from two pro-ethanol groups. 

Pork Exports May Reach Record. USDA's Foreign Agricultural Service predicts U.S. pork exports for 2001 will reach a record 700,000 tons (carcass weight equivalent), according to a special report published Tuesday. This would be an 18% increase from a year earlier -- the largest year-to-year increase in U.S. pork exports since 1998. 

Nebraska, Indiana, Bright Spots. Corn and soybean crops in Nebraska and Indiana have been the "bright spots" on a crop tour this week of the seven largest producing states in the United States, according to REUTERS. "The corn surveyed in Indiana turned out a lot better than expected. Indiana is everything it is advertised to be, it looks like a stellar crop in Indiana," said Chip Flory, a leader of this year's John Deere ProFarmer Midwest Crop Tour. Crop scouts late Tuesday projected the corn yield per acre in Indiana at 141 bushels per acre, above the tour's estimate last year of 137 bushels. The yield projection is below USDA's forecast in its August crop report of 147 bushels per acre. But the USDA forecast was based on Aug. 1 conditions, and, the article says, there had been some concern this week among crop scouts that production potential for the state could be cut rather severely due to hot weather since the USDA survey was conducted. 

Agriculture Could Stall U.S., Australian Pact.  THE WALL STREET JOURNAL reports that a free trade agreement with the United States could stall over trade in farm products, Australian Prime Minister John Howard said Wednesday. A free trade agreement between the two countries has been discussed over the past year, with the proposal pushed along in late July when U.S. Secretary of State Colin Powell said "the President has it under serious consideration." The United States is Australia's second largest trading partner after Japan. Trade in merchandise between the two countries was A$34.10 billion in 2000. Among Australia's A$10.98 billion in exports to the United States in 2000 were A$1.21 billion of beef, A$240.8 million of lamb, A$59.1 million of dairy products, A$78.1 million of fruit and nuts and A$69.4 million of wool. U.S. exports to Australia are mostly manufactured products, including autos and auto parts, telecommunications equipment and information technology. Howard said it makes sense for Australia to consider a free trade agreement with the U.S., also given it is the largest overseas market for services and the largest destination for Australian investment. But he said it won't be easy to negotiate such an agreement. 

Mad Cow-Like Disease Research Expected. THE ASSOCIATED PRESS reports that researchers soon will start human testing to see if drugs used to treat malaria and schizophrenia also fight a brain-wasting illness similar to mad cow disease. Researchers at the University of California, San Francisco, said Monday they have been given federal approval to enroll about three dozen severely ill patients in a study by the end of the year. Only patients given less than a year to live will be included. Doctors will give them doses of the malaria drug quinacrine and the schizophrenia drug chlorpromazine. Both drugs have shown promise in mouse cells infected with prions, abnormally shaped proteins that cause variants of Creutzfeldt-Jakob disease. The research is being led by Dr. Stanley Prusiner, who won a Nobel Prize in 1997 for discovering prions. The AP report says two women - one British, one American - believed to have forms of the disease have been given the malaria drug by the university under a Food and Drug Administration policy that allows for experimental therapies on terminally ill patients. The family of the British patient said she showed significant improvement. The researchers were more cautious, stressing that the women aren't part of the study and that no conclusions can be made about their reaction to the drug. 

August 14, 2001

Stable Dollar Sought by Agriculture. Agricultural interests are seeking a more stable dollar on the world's exchange markets in order to facilitate more trade in farm and food products. John Skorburg, American Farm Bureau Federation senior economist, says based on exchange rate movements over the past year, the largest "warnings" for problems from the high U.S. dollar are for Turkey (dollar up 121%), Brazil (dollar up 40%) and Chile (dollar up 24%). "Look for US exports to slow to these countries and for US imports to expand – as well as imports to other major countries around the world," Skorburg says. 

NCC Chairman Calls for Industry Unity on Farm Bill. National Cotton Council Chairman James Echols, in an address to the American Cotton Producers (ACP), says he was encouraged with House progress on a new farm bill - one that meets many of the NCC's goals -- but sees problems holding those goals when the Senate finalizes its own bill. 

Cattle Trader Seeks Checkoff Reversal.  FEEDSTUFFS magazine reports that Kansas cattle trader Jerry Goetz has petitioned the U.S. Supreme Court, asking the court to strike down an appeals court decision that ordered Goetz contribute to the beef checkoff. Goetz also asked that the case be remanded to the circuit court for reconsideration of the beef checkoff program's constitutionality in view of the Supreme Court's recent ruling that the mandatory mushroom program checkoff for promotion is unconstitutional. The article notes that Goetz has lost several previous administrative and court hearings in which he has challenged the checkoff's legality. At the same time, Montana cattle producers Jeanne and Steve Charter have petitioned the U.S. district court in Billings, MT, to rule on the beef program's constitutionality. In their filing, the Charters have requested that the court freeze all existing program assets, establish an escrow account for those assets and for future checkoff payments and order a refund of payments if the court finds the program unconstitutional. 

President Signs Farm Aid Package. President Bush has signed into law the farm assistance package that promises $5.5 billion for farmers. The first checks could arrive to farmers by Labor Day. The bill includes $4.6 billion in supplemental market loss payments for program crop farmers (corn, wheat, cotton, rice, etc.), $424 million for soybean and other oilseed producers, $159 million for speciality crop producers (distributed by states that will receive block grants), $129 million for tobacco farmers, $54 million for peanuts, $85 million for cottonseed, $17 million for wool and mohair, and $10 million for emergency food assistance. 

Chile Will Buy U.S. Apples, Pears. Secretary of Agriculture Ann M. Veneman, on a four-state trip to emphasize the importance of foreign trade to America's agricultural producers, has announced that Chile has agreed to import Idaho and Oregon apples and pears. This could potentially result in more than $1 million per year to the two states' fruit industries. Veneman noted that the fastest growing export trade sector over the past 20 years has been consumer-oriented, high-value products such as fruits and vegetables, meat, poultry, and processed grocery products. Exports of these items is expected to reach a record $22.5 billion this year. 

Dairy Plant Rule Changes Coming.  USDA is soliciting comments on its proposal to change the "General Specifications for Dairy Plants Approved for USDA Inspection and Grading Service" that have been in effect since 1995. The proposed changes for all producer herd milk including both cow's and goat's milk would lower the maximum allowable bacterial estimate for producer herd milk from 1,000,000 to 500,000 per milliliter; modify the follow-up procedure when producer herd milk exceeds the maximum allowable bacterial estimate; and lower the maximum permitted bacterial estimate in commingled milk from 3,000,000 to 1,000,000 per milliliter. The proposed change for producer herd milk from cow's milk only would lower the maximum allowable somatic cell count in cow's milk from 1,000,000 to 750,000 per milliliter. The proposed changes were published in Monday's Federal Register. Comments must be submitted on or before Oct. 12. Written comments may be sent to: Duane R. Spomer, Chief, Dairy Standardization Branch, Dairy Programs, Agricultural Marketing Service, U.S. Department of Agriculture, Room 2746-SB, P.O. Box 96456, Washington, DC 20090-6456; faxed to (202) 720-2643; or, e-mailed to Duane.Spomer@usda.gov. All comments received will be made available for public inspection at the above address during regular business hours (8 a.m. - 4:30 p.m.). The current General Specifications for Dairy Plants Approved for USDA Inspection and Grading Service, along with the proposed changes, are available either by contacting the office identified above or by accessing the AMS Home Page at www.ams.usda.gov/dairy/stand.htm. 

China's GM Rules Will Be Delayed. REUTERS reports that China is unlikely to release details of the country's new regulations on genetically modified organisms (GMOs) until after President George W. Bush visits in October. Traders had expected Beijing to publish the details of the regulations sooner than that. The rules require government approval for all production, sales and import of GM foods more imminently. If the later date is correct, "this will leave many reluctant to trade U.S. soybeans into China for at least another two months because of uncertainty over the regulations which were announced and made effective on June 6 without details on how they would be implemented," according to the article, which quoted traders. 

Stressed Crops Found. A crop tour of U.S. corn and soybean crops has found rapidly mounting stress on some of the crops because of dry weather. REUTERS reports that Ohio is particularly at risk. "They need rain now just to hold on to the limited yield potential and they've seen irreversible damage," said Scott Davis, a tour leader of the eastern Midwest leg of the John Deere ProFarmer Midwest Crop Tour. Davis, in a telephone interview with REUTERS late on Monday, said the far northwest corner of Ohio was dry but the counties east of that district were worse. Recent hot, dry weather in several key areas of the Midwest has been stressing the later pollinating and ear filling corn crop and has been hampering the key pod setting stage of the soybean crop. 

Zoellick Sees No Disruption in Negotiations. THE ASSOCIATED PRESS reports from Des Moines that U.S. Trade Representative Robert Zoellick believes protesters seeking to disrupt world trade negotiations won't win the political struggle in developing countries eager for outside help to fight hunger and improve living conditions. Zoellick said his top goal is to reconvene talks aimed at a global easing of trade restrictions, and he won't be deterred by often-violent protests. "The best choice for America's farmers is in global trade negotiations," Zoellick said at a news conference. Protests have dogged each of the recent trade summits, with activists claiming that free markets exploit poor and developing countries. Zoellick said trade advocates are winning the political debate by arguing that trade can help developing countries raise their living standards. 

August 8, 2001

Agriculture Loses a Distinguished Public Servant. The many friends of Carl Rose, former Chief Counsel of both Senate and House Agriculture Committees, were sorry to learn of his death on August 6. Carl was a Phi Beta Kappa graduate of Duke University and a graduate of Duke University School of Law. He also served in the U.S. Air Force. Carl joined the Office of General Counsel of the U.S. Department of Agriculture in 1956. He left that position in 1974 to join the staff of the Senate Agriculture Committee, where he served until 1987. He later served as Chief Counsel of the House Agriculture Committee from 1993 to 1995. 

Farm Bill Short on Conservation.  The nation's 3,000 conservation districts are "sounding the alarm" on the House Agriculture Committee's farm bill proposal for conservation programs. An analysis of the legislation by the National Association of Conservation Districts claims the bill falls far short of addressing the "tremendous" conservation assistance needs that exist across the country and would seriously undermine the delivery of conservation assistance to producers. 

LMA Amends Beef Checkoff Complaint.  Livestock Marketing Association, eight individual cattle producers and the Western Organization of Resource Councils have filed an amended complaint in South Dakota Federal District Court asking the court to declare that the beef checkoff violates cattle producers' First Amendment rights to freedom of speech and association. LMA's amended complaint was filed in response to a request by the court to address the impact of the U.S. Supreme Court's recent decision which held that a nearly identical checkoff program in the mushroom industry violated the First Amendment.

USDA Will Use More Biodiesel, Ethanol. USDA agencies will use biodiesel and ethanol fuels in their fleet vehicles where practicable and reasonable in cost -- a new policy that officials say shows USDA's support for the National Energy Plan as well as improving our environmental air quality, the prosperity of the rural economy, and national energy independence. 

Ethanol 'Myths' Countered.  Two "myths" that have been showing up lately – "ethanol is going to raise gas prices fifty cents a gallon" and "ethanol actually makes pollution worse" – are being countered by the National Corn Growers Association. 

No 'Sacrifice' of Farmers on the Altar of Free Trade.  Rep. Mike Simpson (R-ID) told the International Sweetener Symposium he believes in free markets but not "sacrificing" producers "on the altar of free trade when it doesn't exist, and may never exist." Simpson, a member of the House Agriculture Committee, said other countries value agriculture "more than we do." He said unfortunately the United States has been "willing to sign (trade) agreements that would undermine our ability to support our farmers." 

Black Teens Need More Calcium.   African American teenagers may not be thinking about their bones, but the National Medical Association (NMA) thinks that they should. The NMA, the professional organization of African American physicians, is launching a new calcium education campaign at their annual meeting this week to get adolescents clued into the importance of calcium-rich foods, like milk. 

Brazil Changes Tactics on Japan's Beef Limits. KYODO NEWS reports that Brazilian authorities no longer are willing to avoid criticizing Japan's long-standing restrictions on the import of beef from Brazil. ''It is unacceptable that after all the improvements we have accomplished in the field of sanitation control, Japan is the only country in the world that restricts imports of Brazilian beef,'' Marcus Vinicius Patrini de Moraes said. The minister gave an interview to KYODO at the ecological sanctuary of the Pantanal Wetlands in the state of Mato Grosso do Sul, central Brazil, where a new kind of ''green,'' or organic, beef is about to be produced. The project aims to produce beef free of any chemical substance or artificial additives at the newly sanctioned Pantanal Wetlands Park. ''With the creation of projects like this, we expect Japan will urgently abolish the barriers which are unfairly imposed on the ecologically aware Brazilian beef,'' de Moraes said. The European Union (EU) has been the primary target of increasing efforts by Brazil to boost its beef exports, according to the minister. 

U.S. Beef to Japan May Suffer. Exports of U.S. beef to Japan may suffer as Japanese officials plan drastic spending reductions to reduce debt, said Chuck Lambert, chief economist for the National Cattlemen's Beef Association. "In the short term that is not going to be positive for economic growth in Japan," said Lambert during a telephone interview with REUTERS on Wednesday from the NCBA's summer meeting in Denver. Elections in Japan on July 29 gave Japanese Prime Minister Junichiro Koizumi the support he needed to move forward with economic reforms designed to reduce the public debt. "He has already told the Japanese voting public that this will mean economic pain, which means increased unemployment, slower economic growth, and decreased consumer confidence, which are not good for products like beef," said Lambert. In 2000, Japan bought nearly $1.5 billion worth of United States beef, or about half of all U.S. beef exports, according to USDA. Mexico was second with $531 million. Lambert said U.S. beef exports to Japan already have declined this year and will likely remain on the decline through 2001. 

FSIS Seeks Definitions Comments. USDA's Food Safety and Inspection Service is seeking public comments on an advance notice of proposed rulemaking regarding the definitions and labeling of "United States cattle" and "United States fresh beef products." FSIS also is requesting comments on whether such beef products should bear labeling claims that are different from the claims that are permitted under the Agency's current policy.The ANPR is in response to a congressional direction to clarify which cattle and fresh beef products should be considered products of the United States. The conference report accompanying the Agriculture Appropriations Act of 2000 directed the Secretary of Agriculture to promulgate regulations defining which cattle and fresh beef products are "Products of the U.S.A." and to determine the most appropriate labeling terminology to reflect that such beef products are, in fact, U.S. products. Current FSIS labeling regulations allow voluntary labeling of fresh beef products using terms such as "U.S.A. Beef" or "(state) Beef" to signify that the cattle were born, raised, slaughtered and processed in the United States or in specific geographic locations in the United States. Producers are required to maintain records and provide such documentation to the Agency to substantiate such claims. An ANPR is a preliminary rulemaking document that precedes the notice and comment process for proposed regulations. Written comments may be submitted on or before Oct. 9 to the FSIS Docket Clerk, Docket No. 00-036A, Room 102 Cotton Annex Building, 300 12th St., S.W., Washington, DC 20250-3700. All comments submitted will be available for public inspection in the docket clerk's office between 8:30 a.m. and 4:30 p.m., Monday through Friday. 

FSIS Issues Rule on Sausage Casing Labels.  USDA's Food Safety and Inspection Service has published a final rule that requires the labeling of natural sausage casings if they are derived from a different type of meat or poultry than the sausage. FSIS will also require that labels indicate if sausages are made with regenerated collagen casings. The rule takes effect on Sept. 5. The rule mandates that companies producing, manufacturing, or using natural casings must maintain records identifying the source of the sausage casings. Records documenting the source of regenerated collagen casings are not required. FSIS estimates that the cost of implementing this rule will be low. Manufacturers will be able to use generically approved labels to indicate the source of the natural sausage casings and the development of new labels may be deferred until current supplies are exhausted. 

Codex Agenda Up for Discussion. Issues on the agenda for the 34th session of the Codex Committee on Food Hygiene will be discussed at two public meetings Aug. 30 and Sept. 25. USDA and the U.S. Department of Health and Human Services are co-sponsoring the public meetings. The Codex Committee on Food Hygiene was established to draft basic provisions on food hygiene for all foods. CCFH addresses all conditions and measures necessary to ensure the safety and suitability of food at all stages of the food chain. The 34th session of CCFH will meet Oct. 8-13 in Bangkok, Thailand. The first public meeting will be held from 1 p.m. to 5 p.m., Thursday, Aug. 30, and the second public meeting will be held from 1 p.m. to 5 p.m., Tuesday, Sept. 25. Both meetings will be held in Conference Room 1409, Federal Office Building 8, 200 C Street, SW, Washington, DC 20204. To submit comments or to receive copies of documents on the agenda, contact the FSIS Docket Room, Docket #01-023N, U.S. Department of Agriculture, Food Safety and Inspection Service, Room 102 Cotton Annex, 300 12th Street, SW, Washington, DC 20250-3700. The documents are available electronically at http://www.codexalimentarius.net/ccfh34/fh01_01e.htm. 

Decline Expected in Canada's Grain Production. REUTERS reports that the Canadian Wheat Board expects a major decline in both overall grain production and exports in 2001-02 due mainly to drought conditions on the western Prairies. "The coming year's export program will be impacted by the size of the crop that farmers have begun to harvest," Greg Arason, president and chief executive officer of the Winnipeg-based wheat board told a news conference marking the start of the crop year. "The extent of the reductions will depend on what happens between now and the end of the harvest, but we do foresee that given the current state of the crop it may be in the order of a 10 to 15% decline," said Arason. The CWB expects 2001-02 western Canada wheat production, including durum, to total 20 million tons to 21 million tons, compared with 25.180 million tons produced in 2000-01. The board pegged this year's durum crop at 3.2 million tons, down sharply from 5.647 million tons in 2000-01 and below a recent government estimate of 3.8 million tons. The board also forecast a decline in 2001-02 western Canada barley production to 11.0 million tons, down from 12.577 million tons in 2000-01. 

August 7, 2001

Beef Demand Still Strong.  Preliminary second quarter 2001 data shows consumer demand for U.S. beef remains strong, the beef industry announced from this year's Industry Summer Conference. Representatives of the Cattlemen's Beef Board (CBB) and National Cattlemen's Beef Association (NCBA) said checkoff-funded efforts are addressing the drivers that are keeping demand on the increase. 

'Soy Combines' Coming in 2002. The soybean farmers of America soon may be driving combines made from the crop they harvested. At the John Deere Product Launch in Albuquerque, NM, the farm machinery manufacturing giant announced that model year 2002 combines will feature new soy-based polymer and soy and corn-based resin panels. 

Weeds Subject of Congressional Tour. Congressional representatives are touring western rangeland infested with invasive and noxious weeds, specifically looking at cheatgrass, saltcedar and Dalmatian toadflax. The goal of the tour, sponsored by BASF, is to increase awareness of the problems these weeds cause and to review the most effective tools available to land managers to control the weeds. The tour stops include operational sites managed by the Bureau of Land Management, the United State Forest Service, county week supervisors and BASF and university research sites. 

China's Farmers About to Be Upset.  By harnessing the market-opening forces unleashed by its pending membership of the World Trade Organization, China gradually could shift tens of millions of surplus rural workers to urban areas, leaving a "leaner industry more competitive in livestock and horticulture production, regional economists and international experts say," according to a REUTERS report. The article adds that if Beijing "bungles the transition," huge imports of cheap grain will erode already depressed rural incomes, accelerating an exodus to the cities which could spawn crime and unemployment and even put pressure on the household registration system used by the authorities as a cornerstone of social control. "In short, meeting the challenges that WTO membership presents will necessitate major changes in China's political economy," said Joseph Fewsmith, an associate professor at Boston University. 

Indonesia Authorized for PL 480 Wheat.  An authorization to purchase $7.5 million of U.S. wheat under Public Law 480, Title I, was issued to P.T. Sriboga of Indonesia. The authorization was issued under the private entity Title I credit sales agreement of July 20. Authorization 1B-5002 provides for about 54,600 metric tons of wheat, grade U.S. No. 2 or better (except that durum shall grade U.S. No. 3 or better), in bulk, of any of the classes or subclasses specified in paragraph 810.2202(a) of The Official United States Standards for Grain. Unclassed wheat and mixed wheat are excluded. The contracting period is Aug. 13 through Sept. 30. The delivery period is Aug. 13 through Dec. 31. Delivery will be to importer, free on board vessel (f.o.b.), U.S. port(s) and/or Canadian transshipment points. F.o.b. vessel shall mean delivery at discharge end of loading spout. For information on purchasing, contact P.T. Sriboga Raturaya, c/o American Trade Sales, Inc., 616 Palisades Avenue, Englewood Cliffs, NJ 07632, telephone (201) 871-3610. Further information on the purchase authorization may be obtained from the Operations Division, Foreign Agricultural Service, USDA, Washington, DC 20250-1035, telephone (202) 720-3224. 

Zhu Blasts Rural Leaders.  THE WALL STREET JOURNAL reports that China's Premier Zhu Rongji "lambasted" provincial leaders at a party retreat for failing to sufficiently implement reforms before the country's expected entry into the World Trade Organization. Zhu Rongji used a secret government report to criticize several provincial leaders attending an annual conference at Beidaihe, north of Beijing, diplomatic sources told Dow Jones Newswires. With most areas of China's economy soon to be exposed to heightened levels of foreign competition, many provinces have failed to prepare adequately for the new business environment, sources said."Zhu Rongji read the riot act to the provincial bosses," a western diplomat said. "Preparations are woefully inadequate." Since the era of Mao Zedong, China's communist leadership has escaped the summer heat in Beijing at the beach-side resort of Beidaihe. During the past five decades, the retreat has been used to discuss performances, set ideological agendas and shape government policy. But this year, the opening session became a savage critique of the unreadiness of China's provinces to cope with integration into the global economy after entry into the WTO. 

Conrad Leslie Retires.  After 40 years and countless U.S. grain industry surveys, Chicago crop forecaster Conrad Leslie has retired, leaving a void that some people believe will be hard to fill, according to a REUTERS report. Leslie's work sizing up the nation's corn, soybean and wheat crops went largely unnoticed by the general public. But in the close-knit world of commodity trading and food production, his pioneering reports moved markets and drew the attention of food companies that make everything from bread to salad dressing. Once in the 1970s, he even got a call from the White House. Officials in the Richard Nixon administration wanted his advice before approving a grain sale to the Soviet Union. "They wanted to know what our opinion was of supply and demand and production," Leslie said in an interview. "I was glad we contributed to an important decision that would benefit the Russians and the U.S." Leslie, 78, has seen major changes in the agriculture markets and he sees more transformations ahead, some that he likes and some he does not. Increased meat consumption in China and India will likely prompt those countries to buy more grain to feed livestock, Leslie said. "They want to eat chicken, pork and beef instead of rice," he said of the world's two most populous countries. "It will mean we will have to fight for those (grain) markets with Brazil and Argentina." The development of genetically modified crops designed to resist insects and tolerate popular weed killers have helped agriculture, he said. He disagrees with environmental groups that claim these new crops are harmful. 

Study Calls for More Organic Production. Britain should stop treating people like laboratory animals and start producing more natural organic food products that are safer and healthier, according to a new report. REUTERS says the report by the Soil Association, which campaigns for organic agriculture, rejected claims by some food experts that organic food was no better for the public than most of the products found on supermarket shelves. It said organically produced fruit, vegetables, meat and crops had managed to avoid such British food scares as mad cow disease and was a healthier option that shunned additives and most pesticides. "It is almost as if consumers have become laboratory animals in the huge experiment that is industrialized agriculture, storing up untold health problems for the future," Patrick Holden, director of the association, said in the report. "On average we found that organic crops are not only higher in vitamin C and essential minerals but also higher in phytonutrients -- compounds which protect plants from pests and disease and are often beneficial in the treatment of cancer." The report, based on 400 published papers comparing organic with non-organic food, said more research was needed but the evidence suggested widespread organic crop cultivation could boost the public's health and well-being. 

August 6, 2001

Senate Approves but Democrats Warn.  The Senate Friday took things down to the wire. Failing to get the needed 60 votes to close off debate and move to its Agriculture Committee's $7.4 billion bailout bill for farmers, Senators went ahead and approved the House-approved $5.5 billion version but not without a warning from the Democratic leadership. Majority Leader Tom Daschle (D-SD) said another attempt would be made after Labor Day to funnel the remaining $2 billion or so into farmers' pockets as well. Reaction was almost all favorable. 

USDA Publishes ‘3/70/20' Rule. USDA's Agricultural Marketing Service (AMS) has published a notice announcing a change to the confidentiality guidelines it follows regarding mandatory livestock price reporting. AMS expects that using the new guidelines will increase the numbers of published reports. 

EPA Report Says TMDLs Could Cost Billions. Implementing one of the key tools under the Clean Water Act for cleaning up the nation's waters, known as the total maximum daily load (TMDL) program, could cost between $900 million and $4.3 billion dollars annually, based on a draft cost study released by the Environmental Protection Agency and on which public comment is being requested. 

Costly British Slaughter. Britain's policy to slaughter animals with foot-and-mouth disease has cost US$4.3 billion more than if herds and flocks had been vaccinated to combat the virus, a recent study suggests. REUTERS reports that researchers at the University of Wales, Aberystwyth, say the controversial culls would cost taxpayers around five billion pounds ($7 billion) by the end of the year. Vaccinations would have cost less than two billion pounds ($2.9 billion), the research claims. Professor Peter Midmore, who carried out the study for the BBC, said the estimates included money spent on slaughter, compensation and the impact on tourism. More than 3.6 million animals have been slaughtered since the livestock disease was discovered at an abattoir in northern England in February. Unions, farmers and the government have been locked in a row over whether to vaccinate or kill infected animals. The British government has resisted farmers' calls to vaccinate animals because of the threat to Britain's 310 million a year ($410 million) export markets. The government says culling is the fastest way to regain Britain's status as "foot-and-mouth" free. Without that status, a country cannot gain access to the world's most lucrative meat export markets. 

Fischler Wants German Meat Price Review. European Union Farm Commissioner Franz Fischler wants to knowe why German retail meat prices had gone up at a time of falling wholesale costs. REUTERS reports that Fischler was quoted in the weekly Focus magazine saying the prices of bulls had fallen 18% compared to a year earlier because of scares over mad cow disease, and consumers should be paying lower prices as well. "Producers and retailers are raising their profit margins to get the same profit on lower sales," he said. "I have growing concern that competition is not working in large parts of the agriculture market." The European Commission a week ago allowed six member states including Germany to pay beef farmers aid worth 418 million euros to compensate for losses during the mad cow crisis between November 2000 and June 2001. 

Italy Thinks Twice. THE ASSOCIATED PRESS reports that the riots at last month's Group of Eight summit in Genoa have given Italy second thoughts about playing host to a U.N. food conference in Rome later this year. The U.N. food agency said Sunday it understood Italy's fears of similar protests at the Nov. 5-9 meeting of heads of state of the Food and Agriculture Organization's 180 member nations. But it said moving the meeting would be costly and difficult. Premier Silvio Berlusconi suggested Friday that he didn't want Italy to hold the summit following Genoa, where protesters torched cars and buildings and police responded by clubbing demonstrators and killing one. On Saturday, the Foreign Ministry's secretary-general, Giuseppe Baldocci, met with Jacques Diouf, the director-general of the Food and Agriculture Organization, to discuss Italy's concerns. FAO spokesman Nick Parsons said the meeting was very cordial and that others were expected in the coming days, but that no decisions had been made. 

Farmers Need Easier Ways to Credit. Lenders want regulations that make it easier for farmers to obtain credit. THE ASSOCIATED PRESS reports from Des Moines, IA, that banks that are not members of the Farm Credit Services system say current regulations that tend to favor FCS banks make serving farmers too costly. Changing the regulations could allow farmers to pick the banks or financial institutions that would best serve their needs, lenders from across the country told the Farm Credit Administration. The agency, which oversees the farm-credit associations that comprise the FCS, is seeking suggestions on ways to improve the flow and availability of credit to agriculture and rural communities. "We hope to improve credit opportunities by forming alliances between lenders," said Michael Reyna, board chairman of the Farm Credit Administration "We want to make sure regulations are part of the solution and not part of the problem." 

August 3, 2001

Last Day for Farm Aid? The Senate must make choices today about how to provide another year of multi-billion-dollar assistance for farmers. A vote to cut off debate on the measure is set for this morning. 

California Loses Latest Anti-Ethanol Bid.  The House has rejected a move to allow California to waive the federal oxygenate standard for reformulated gasoline, enhancing the chances that ethanol will become the main additive used in the state's gasoline supply. House members rejected the waiver measure, which was proposed by Reps. Christopher Cox (R-CA) and Henry Waxman (D-CA), by a decisive 300-125 vote.

Farm Bureau Flatly Rejects CAFO Proposal.  The American Farm Bureau Federation has told the Environmental Protection Agency that increased regulation of animal feeding operations is needed neither to fill a regulatory vacuum nor justified by water quality data. The views were expressed this week in detailed public comments responding to the agency's proposed rulemaking for concentrated animal feeding operations (CAFOs 

Corps Will Revise Controversial Water Controls. The Army Corps of Engineers says a revised environmental impact statement for the Missouri River Master Water Control Manual will be released at the end of this month. Sen. Kit Bond (R-MO) has lead a bipartisan campaign to block the flow changes that could result in a "spring rise" in the river could cause floods and that an accompanying summer draw-down in the water level by several feet would threaten water supplies. The Army Corps of Engineers now plans to review alternative plans for water control other than the spring rise mandated by the US Fish and Wildlife Service. 

CSPI May Petition USDA on Bone Issue. The American Meat Institute says the Center for Science in the Public Interest (CSPI) was expected to petition USDA to prohibit back and neck bones in advanced meat recovery (AMR) systems that mechanically remove meat from bones. CSPI was arguing that banning these bones will decrease the risk of BSE to humans. CSPI also reportedly claims in its petition that Agricultural Marketing Service rules permit spinal cord in ground beef destined for the school lunch program - a charge USDA says is untrue. 

Farmers Question Severity of Global Climate Change. In a survey of the nations' corn producers, the American Corn Growers Association (ACGA) found overwhelming support for wind power development and its positive impact on production agriculture. At the same time, the survey shows farmers continue to question the seriousness of the global warming debate and any detrimental effects it would have on farm productivity. 

WTO Means Expanded Online Trading by Taiwan.  Taiwan's feed industry is preparing for expanded online trading to reduce costs as it braces for stiffer competition after the island joins the World Trade Organization, traders said on Friday. REUTERS reports that the formation of the online trading marketplace www.foodchina.com is transforming Taiwan's US$900 million a year feedstuff industry by eliminating middlemen in feed ingredient purchases. "This (online trading) will have a big impact on the industry. Many intermediate trading agents will lose their jobs," one industry source said. The portal, aimed at the Greater China feed community, has already forced local feed producers to scrap a collective tender system for corn buying. Traders said the Internet would someday dominate the market.

Indonesia Rebuffs PL 480 Offer. REUTERS reports that Indonesia's state logistics agency Bulog has rejected an offer from USDA to buy rice with long-term, low interest loans through the PL 480 program because of sufficient domestic supplies. Favorable weather has caused official to predict that Indonesia's rough rice production will increase by up to 2% this year from last year's 51.18 million tons. "...The U.S. government has offered us rice to import under the PL 480 program, but Indonesia cannot accept the offer this year," Bulog chairman Widjanarko Puspojo told reporters. "It is a good offer, but Bulog will stick with its commitment to not import rice this year because the local harvest is good," he added. Puspojo said Bulog was not ruling out the possibility of buying rice under the program next year, but it would depend on the local harvest. 

Britain Slaughters Healthy Lambs.  Britain stuck by its pledge on Thursday to slaughter 1.3 million healthy mountain lambs unable to go to market due to foot-and-mouth disease and said it was time to wean the sheep industry off subsidies, according to REUTERS. Lord Whitty, the government's food and farming minister, told sheep farmers that they would have to give up production subsidies and payments per head in what will be a radical overhaul of the industry after the livestock epidemic dies out. "There will be no straightforward return to any ‘normality.' Sheep farming will have to change," Whitty said in a statement. "In the long term, support from government and from the EU cannot be based on headage payments and production subsidies. The public interest is twofold: ensuring a competitive and healthy sheep sector...and in ensuring environmental environmental objectives for our flocks and landscape," Whitty added. The newly-named Department for Environment, Food and Rural Affairs (DEFRA) has often signaled its determination to move away from production subsidies and towards payments to farmers for protecting the environment for the tourist industry. It hopes to reduce sheep stocks, particularly in the uplands, which have been blamed for hurting the environment by overgrazing and for creating a huge surplus of hill lambs. More than a million mountain lambs, mainly from Wales, Cumbria in northwestern England and Devon in the southwest, would be slaughtered as their traditional markets in Europe remained closed due to foot-and-mouth, Whitty said. 

August 2, 2001

Lugar Keeps House Bill in Pocket.  Sen. Richard Lugar (R-IN) is keeping the House version of farmer assistance warm just in case some of his colleagues change their minds and decide it's a better way to go than the Senate's $7.4 billion version. Lugar believes the Senate should pass the House bill quickly to avoid a conference committee that might not get a final bill to President Bush in time to get payments to farmers before Sept. 30 – when the fiscal year ends and much of the money won't be available. 

Corn Growers Leave No Moss Under Foot.  The National Corn Growers Association (NCGA) is continuing its defense of ethanol by targeting advocacy messages to members of the House of Representatives. Wednesday in Congress Daily, NCGA placed a full-page ad urging House members to vote against the Waxman-Cox amendment that would force a waiver for California from the reformulated gasoline program. 

Cattlemen Comment on CAFO Rules.  The Environmental Protection Agency's concentrated animal feeding operations (CAFO) initiative is impractical for the diverse United States cattle industry, the National Cattlemen's Beef Association (NCBA) says. "The cattle industry supports efforts to protect the environment," said Faith Burns, NCBA associate director, environmental affairs. "However, environmental initiatives work best when they are scientifically based, site specific and economically viable. The EPA CAFO proposal is broad and confusing." 

Corn Growers Stress Innovation in EPA's Proposed CAFOs.  The National Corn Growers Association, in comments filed with the Environmental Protection Agency, cited several concerns corn growers have with a proposed rule that would apply to concentrated animal feeding operations (CAFOs). The proposed rule would affect livestock operations in a manner inconsistent with congressional intent regarding the Clean Water Act, according to the NCGA. 

AMI Warns of Trade Erosion without TPA.  The U.S. share of global agricultural exports will continue to erode in the coming years if the Congress does not act soon on trade promotion authority (TPA), American Meat Institute Vice President for International Trade Leonard W. Condon told a Senate panel. 

Europe Wants U.S. Soft Wheat. Southern Europe is in the market for U.S. soft red winter (SRW) wheat as worries mount over smaller French and British crops this year, traders said on Thursday REUTERS reports that Italy has followed recent Spanish purchases of U.S. SRW wheat, and Italian traders expect more trades soon to fill domestic demand for biscuit flour. "I do believe that as soon as Italian millers fully realize the quality problems in the European Union and the potential of SRW for biscuit flour, they will become regular buyers (at least for the coming season)," a senior Italian trading source said. A lower EU support price since July 1 is making grain from outside the 15-nation bloc more competitive. "There is much talk of a smaller French and UK crop, which would mean less quality wheat available for export, giving U.S. soft red winter wheat an opportunity to find its way to Italian millers as a substitute," a U.S. trading source said. 

Senators Offer Kyoto Alternative. Three conservative Republican senators have proposed legislation they say is the U.S. answer to the Kyoto global warming treaty rejected by the Bush administration. REUTERS reports that the bill proposed by Sens. Chuck Hagel (NE), Frank Murkowski (AL) and Larry Craig (ID) would spend $2 billion over 10 years on new technology to reduce greenhouse gas emissions. The bill is opposed by congressional Democrats. It would earmark $1 billion to sell the technology to developing nations like China and India and create a national registry to track private companies' voluntary actions to reduce emissions. The results would bring "greater gains in the overall impact of global gases than if we had followed Kyoto," Hagel told reporters. 

Thailand Develops New Rice.  REUTERS reports that Thailand, the world's top rice exporter, has developed a new high-grade, disease-resistant strain it hopes will help increase sales to the West and Japan. Pathum Thani 1 is nearly identical to Thailand's popular, top-quality jasmine rice but easier and cheaper to grow, officials said. "Thailand's long-term rice strategy is to develop, grow and export more high-grade rice in order to add value to our exports," director-general of the commerce ministry's foreign trade department, Karoon Kittisataphorn, told REUTERS. Pathum Thani 1 -- which is said to be less fragrant but just as tasty as jasmine rice -- can be grown year-round and can replace low-grade rice, said Shucheep Hansaward, minister of agriculture and cooperatives. 

U.S., Canada Resolve Potato Spat.  United States and Canadian agriculture officials have reached an agreement for the movement of the 2001 potato crop off of Prince Edward Island to the United States. Under terms accepted by USDA and the Canadian Food Inspection Agency, a mutually agreeable, inspection-based plan for potato wart has been developed and accepted. The agreement is based upon scientific principles and multiple tiers of inspection that will ensure safeguards are in place to protect against the spread of this disease. Through the agreement, CFIA will continue to monitor and survey every field on Prince Edward Island for potato wart, based upon a three-year plan, provided conditions are favorable for the disease to emerge. Surveillance activities must be conducted on all active potato fields outside the prohibited movement area. Once a field has been sampled according to the agreed-upon protocol and the results are negative, the field can be recognized as free of potato wart. After three years, all fields on Prince Edward Island should have been inspected satisfactorily. Potato wart was eradicated from the United States in 1992. If the disease were to reappear, it could be devastating to the U.S. potato industry because of potential losses in production and export markets. Potato wart is primarily a soil-borne disease, and spores of the fungus can remain viable in contaminated soil for many years. Diseased potatoes are deformed and unmarketable. Until October 2000, potato wart in Canada occurred only in Newfoundland. 
 

August 1, 2001

Dairy Sours Senate Final Farm Aid Vote. The Senate Tuesday voted down 52-48 the House version of $5.5 billion in farm assistance, then bogged down over dairy compacts before senators could vote on the more liberal $7.4 billion package approved by the Senate Agriculture Committee. Despite a veto threat from the White House, it appeared likely the Senate would approve the larger amount, forcing the issue into a conference committee. 

Pork Producers Want Sound Science and Affordability. The National Pork Producers Council (NPPC), in comments make to the Environmental Protection Agency on rules for livestock operations, called for sound science but also rules that are affordable to producers who must live with the regulations. The proposed National Pollutant Discharge Elimination System (NPDES) Permit Regulations and Effluent Limitation Guidelines and Standards for Concentrated Animal Feeding Operations (CAFO) cover all species of livestock and poultry and are scheduled to become final in December 2002. 

Farm Bureau Says EPA Rule Not Justified.  The American Farm Bureau Federation has told the Environmental Protection Agency that increased regulation of animal feeding operations is neither needed to fill a regulatory vacuum nor justified by water quality data. Farm Bureau's views were expressed this week in detailed public comments responding to the agency's proposed rulemaking for Concentrated Animal Feeding Operations (CAFOs). 

Farm Bureau Joins in Ethanol Effort. The American Farm Bureau Federation is urging the House to reject an effort to waive the oxygenate standard in reformulated gasoline for California. During House consideration of comprehensive energy legislation this week, an amendment is expected to be offered that would require the Environmental Protection Agency to waive the oxygenate content requirement for the state of California. The National Corn Growers Association earlier urged the same action by the House. 

Food Aid Crucial to North Korea. A spring drought that lasted in many places more than three months has aggravated the already precarious food situation in North Korea, the UN Food and Agriculture Organization (FAO) and the World Food Programme (WFP) said in a joint special report. The two Rome-based agencies warned in the report in order to avert further hardship, food aid is "imperative," and they urged the international donor community to immediately provide more food to the country. 

Lodging Hits Wheat Crop.  Weather-related lodging problems have hit the spring wheat and durum crops in the Northern Plains, REUTERS reports. Crop experts, surveying fields in North Dakota, found rains, storms, hail and high winds had taken a toll on the crop. "I have never seen lodging this bad in my life," said Country Hedging futures broker Loren Jacobs. "When it gets that matted down, the kernels don't develop and it is really hard to cut." Many producers and agronomists are worried about the spread of head scab, which can cause wheat kernels to shrivel and could affect the test weight and yield of the wheat crop. The condition of the new spring and durum crops is the chief focus this week for the group of more than 50 wheat experts from across the country who convened in Fargo, ND, on Monday to begin a week-long crop tour of about 600 fields. 

USDA Amends User Fees. USDA is amending the existing user fees for processing animal product, organism, vector, and germ plasm import permit applications. The final rule will also establish new user fees that would pay the cost of processing applications to import live animals. Under this final rule, USDA's Animal and Plant Health Inspection Service will charge applicants $94 for each new import permit application and $47 for each amended application to import live animals. User fees reimburse APHIS for costs of providing veterinary diagnostic services and import and export related services for live animals and birds and animal products. This final rule is intended to shift the costs of processing the applications from the general taxpayer to the users of those services. For more information, contact Inez Hockaday, acting director, management support staff, VS, APHIS, 4700 River Road, Unit 44, Riverdale, Md. 20737, (301) 734-7517. Notice of this action is scheduled to be published in today's Federal Register and becomes effective Aug. 31. APHIS documents published in the Federal Register and related information, including the names of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. 

EPA Grant Goes to Missouri Facility.  The Environmental Protection Agency has awarded a grant to fund development of energy products from food processing facilities. Sen.Kit Bond and Acting EPA Regional Administrator Bill Rice (Region VII) announced the $4.99 million grant to the Gas Technology Institute of Des Plaines, IL. The award will help support the development of a demonstration food processing facility for use by the Butterball Turkey Co. in Carthage, MO. This project may eventually help the food industry to adopt an efficient and profitable process for converting poultry wastes into useful, high-value energy products without discharging air pollutants that pose odor and human respiratory problems. The demonstration facility will use a new process, called thermal depolymerization (TDP), to dispose of all types of poultry waste. TDP is a "green" alternative that converts wastes into useable energy and other useful products, such as industrial chemicals. Traditional disposal methods can produce odors in the local community and generate air pollutant emissions. For example, disposing of waste in landfills has the potential for leaching contaminants into the groundwater and also generating significant quantities of global warming gases. <