August 31, 1999

Fiscal 2000 Ag Exports to Bounce Back to $50 Billion. USDA says fiscal 2000 agricultural exports should increase to $50 billion, 2% more than the fiscal 1999 forecast of $49 billion. Worldwide economic growth, especially in Asia, should drive the 2000 total.

Glickman Says Consumers Must Understand Biotech Benefits. Agriculture Secretary Dan Glickman says agricultural products of biotechnology will be accepted when consumers understand the benefits such products have to offer. Biotech food safety regulations must meet the highest standards possible, he told the Cairns Group meeting in Buenos Aires.

Farm Groups Press for Keeping the Lid on CAFÉ Standards. Farm groups are lobbying Congress in an effort to maintain gasoline consumption standards on light trucks. The mileage standards are known as corporate average fuel economy (CAFÉ) standards and now are frozen at 20.7 mpg.

DOE Awards Corn Growers $889,632 for New Uses. The Department of Energy has awarded the National Corn Growers Association $889,632 to develop new uses for corn. The three-year program will focus on developing and commercializing "Polyols," catalysts derived from corn that can be converted to value-added chemicals.

Ag News Summaries

USDA Milk Order Rule Okayed. Dairy farmers overwhelmingly approved the final rule USDA issued to reform federal milk marketing order, THE ASSOCIATED PRESS REPORTS. The current system expires Oct. 1, but dairy producer groups hope Congress will change an especially onerous part of the final rule that prices milk. The provision as approved prices milk at a lower level than another option producers want Congress to approve, thereby overriding the regulatory process. Many producers voted for the reformed order because to disapprove it would have meant the end of any government programs in that region.

PETA Plans Campaign Against McDonalds. The People for the Ethical Treatment of Animals plans to go after fast-food giant McDonald's over animal welfare issues. REUTERS reports the group is launching a billboard, bumper sticker, print ad and T-shirt campaign that features such images at a slaughtered cow's head and the slogan, "Do you want fries with that?"

McDonald's Drops Suit to Calm the French. McDonald's says it will drop efforts to punish those responsible for ransacking the site of a new McDonalds fast-food outlet in Paris, France, REUTERS reports. McDonald's is trying to calm farmers' anger over U.S. tariffs on French food products. Angry French farmers seriously damaged a restaurant under construction in Millau, in southern France's Aveyron region.

August 30, 1999

Georgia Supermarket Removes Tainted Beef. Publix Supermarkets has removed ground beef that could be tainted with the E. coli bacteria from all its stores. It was a voluntary recall and involved ground beef received on Aug. 23 when the contamination was discovered.

Second Public Meeting on Lamb Checkoff Scheduled. USDA will host a second public meeting Sept. 8 on a potential mandatory sheep and lamb industry checkoff program. A task force has recommended components of the program that will be discussed at the meeting in Aurora, CO.

Dorgan Calls for Food Sales to Iran. Sen. Byron Dorgan (D-ND) has joined a growing chorus on Capitol Hill calling for revised rules that will allow food and medical sales to Iran. Dorgan's request came after Iran bought 1 million tons of wheat from Canada instead of the United States.

Flood Compensation Payments Begin. USDA will begin distributing $42 million to farmers and ranchers whose crop land was damaged by flooding. Farmers in the upper Missouri River Basin and prairie pothole region will be among those compensated by the program.

Oklahoma Has Plan to Help Wheat, Cattle Producers. By contracting wheat pasture for Nov. 1 to March 1 grazing, Oklahoma wheat producers can make an extra $42 per acre with only a slight decline in grain production. Stocker cattle producers are looking for wheat pasture, so wheat producers save by not having to buy cattle themselves.

Ag News Summaries

More Fraud Prompts Calls For No More Russian Aid. U.S. and Russian investigators probing illegal diversion of as much as $15 billion from Russia say that "tens of millions" of dollars may be involved in money from sales of U.S. food aid, PRO FARMER reports. Proceeds from U.S. food donation sales were to be deposited in specific accounts for Russian government use. Investigators are attempting to trace missing funds, suspecting that current or former members of Boris Yeltsin's government may be involved. PRO FARMER says that has prompted critics to call for halting U.S. food aid even though Russia is counting on further grain donations to compensate for a short crop this season.

Ag Subsidies On Hit List For World Trade Talks. Canadian and Australian officials say the United States will join them in an international farm lobby to dismantle some agricultural subsidies at world trade talks later this year, BLOOMBERG NEWS reports from Buenos Aires where the Cairns Group is meeting this week. Canadian Agriculture Minister Lyle Vanclief says the United States will be "on the same side" with the 15 nations of the Cairns Group in the fight against subsidies at the Seattle, WA, World Trade Organization talks in November.

"The U.S. has offered to cooperate with the Cairns Group in its pursuit of far-reaching reform of global trade rules for agriculture," says Vanclief. U.S. Agriculture Secretary Dan Glickman stopped short in a statement Saturday of pledging that he would lobby with the Cairns Group, saying more discussion is needed before a full agreement is reached.

Brazil Expects to Export Beef to the United States By May. Brazil's Agriculture Minister Marcus Vinicius Pratini de Moraes says Brazil expects to export beef to the United States by May. "It is hoped that in April or May of the coming year we have a quota in the U.S. market," he said, according to REUTERS. Beef now is banned from the U.S. market because of Brazil's failure to comply with sanitary standards. USDA officials will check cattle in two southern Brazilian states foot and mouth disease. Pratini de Moraes met Saturday with U.S. Agriculture Secretary Dan Glickman and told Glickman he wants to accelerate the cattle clearance procedure. They met in Buenos Aires where the Cairns Group of nations is meeting.

British Farm Crisis Worst in Years. British agriculture is facing its worst crisis in many years, says Environment Minister Michael Meacher. REUTERS reports Meacher made the remarks on BBC radio. He suggests that one solution could be to expand schemes that reward farmers for environmental programs. Farmers in Britain have been hit by the "mad cow" crisis, plummeting livestock prices and a high pound sterling. "I would like to see, on the environmental side, an increase in agri-environment measures," Meacher said. "That will give a great deal of help to some of the farmers who are worst affected."

Australia Slams Lamb Limits. Australian Trade Minister Mark Vaile on Saturday attacked fresh U.S. quotas and tariffs on lamb exports from New Zealand and Australia, saying the restrictions will be fought "at every opportunity," REUTERS reported.

August 27, 1999

NPPC Calls Hog Cholera Plan "Seriously Flawed." USDA's proposed plan to contain potential imports from the European Union that could result in an outbreak of hog cholera is "seriously flawed" and could increase chances the disease could reappear in the United States, says National Pork Producers Council President John McNutt.

NAFTA Spurs Trade Both Ways, Says Report. A new USDA report says the North American Free Trade Agreement (NAFTA) has helped expand trade with Canada and Mexico. Entering its sixth year, the agreement's influence on U.S. Agriculture "is more apparent than ever."

Worldwatch Says Eastern Drought May Mean Larger Threat. Worldwatch senior fellow Sandra Postel says this summer's drought in the Mid-Atlantic region foreshadows a larger water threat. A much larger, long-term water threat "is going virtually unnoticed even as it builds to staggering proportions."

ARS Releases New Soybean Disease Defenses. A new soybean variety and a germ plasm line that fight some major crop diseases have been released by USDA's Agricultural Research Service. The new variety has high seed yield and good plant height in early season plantings.

Iowa Conference Focuses on Ag Concentration, Consolidation. Sens. Charles Grassley (R-IA) and Tom Harkin (D-IA) will host a conference Sept. 7 in Cedar Rapids, IA, on economic concentration and consolidation in agriculture. USDA and Justice Department officials will attend.

USDA News Briefs

More Counties, States, Declared Disaster Areas. North Carolina, 14 counties in Maine and an additional 13 counties in Virginia have been declared agricultural disaster areas. The declaration makes farmers in those areas eligible for low-interest loans because of losses due to excessive heat and drought. Farmers have eight months to apply for the assistance.

Olive Oil Promotion Order Comments Sought. USDA is seeking comments on a proposed national research and promotion program for olive oil. The program would enable olive oil handlers and importers to develop, finance and manage a coordinated generic promotion program to maintain and expand the markets for olive oil. A proposed rule was published in Thursday's Federal Register. Click here for the AMS News Release

Rapid Response Teams Go To Missouri. Rapid response teams from USDA will be in Missouri to respond to livestock producers' concerns that packers may violate the Packers and Stockyards Act when Missouri's new mandatory livestock reporting law is enacted tomorrow (Aug. 28). The teams are from USDA's Grain Inspection, Packers and Stockyards Administration. They are designed to deal with high priority investigations that require fast action to prevent or minimize major competitive or financial harm caused by violations of the act. Producers who have complaints are encouraged to meet privately with the officials and bring documentation and any pertinent information with them to support their allegations.

Ag News Summaries

UK minister may offer farmers early retirement. The United Kingdom's Agriculture Minister Nick Brown says he is considering whether to pay farmers to retire early, an attempt to deal with a crisis from farmers dumping animals because of low prices. REUTERS reports Brown will have to tie the plan to industry restructuring to get the necessary funding. Farmers in North Wales dumped 400 sheep Thursday at a Royal Society for Prevention of Cruelty to Animals center, saying the collapse in prices meant the animals were worthless.

Kellogg battles for raisin bran. Kellogg Co. is fighting with USDA to get raisin bran into a food aid program for poor mothers and children. USDA says the cereal has too much sugar to be considered healthy. REUTERS reports Kellogg argues that the sugar comes naturally from the raisins, not from added sweeteners. If the ban is not lifted, Kellogg has threatened to sue.

Canada urges Mercosur to cut wheat tariffs. Canadian Agriculture Minister Lyle Vanclief says he wants the Latin American trade bloc Mercosur to lower tariffs on wheat, especially the durum variety used in pasta. REUTERS reports Vanclief made the appeal in a meeting Wednesday with Brazilian Agriculture Minister Marcus Vinicius Pratini de Moraes enroute to the Cairns meeting in Buenos Aires. Vanclief says Mercosur's large wheat producers, Argentina and Brazil, do not have the climate to produce much durum wheat.

Ag team to travel to Russia in September. U.S. officials will travel to Russia in Early September to estimate that country's crops, analyze grain in storage and assess food aid needs. REUTERS reports that officials from USDA, State and the Agency for International Development (AID) will make the grip. There has been speculation that Russia will seek more food this year after a locust invasion and drought reduced grain yields.

August 26, 1999

Drought May Reduce Farm Income By $1 Billion. Farm income in the eastern part of the country could be reduced $975 million this year from drought. The areas hit hardest are parts of the eastern Corn Belt, Mid-Atlantic and New England regions. Fourteen states have at least two counties with extreme rainfall deficits, says USDA.

U.S. Supplier of Last Resort, Says Kleckner. American Farm Bureau Federation President Dean Kleckner says the United States has become "the world's grain bin – we are the supplier of last resort instead of being first in line." Affecting low crop prices the most, he says, are the lack of market access, trade barriers and sanctions and the lack of fair trade rules throughout the world.

Pork Checkoff Revenues Reduce the Program. Reduced revenues from weak hog prices have caused the National Pork Board to make some significant reductions in previously planned industry promotion, research and consumer information program expenditures for the rest of this year. About $7 million was cut from 1999 planned programs.

Corn Growers Group Suggests GMO Alternative Crops. The American Corn Growers Association suggests that farmers should look at planting non-genetically engineered crops unless they can be assured there will be a market for GMO (genetically modified) grain and know if USDA will encourage the sale of GMO rain or grain not grown with GMOs.

Ag News Summaries

Glickman Goes to Argentina For Cairns Meetings. Agriculture Secretary Dan Glickman goes to Buenos Aires, Argentina, this weekend for the 19th meeting of the agricultural ministers of the Cairns Group. He will address the plenary session on agricultural priorities for the new round of World Trade Organization talks and hold bilateral meetings with representatives of several Cairns Group member nations. Australian Trade Minister Mark Vaile told KYODO NEWS that the meeting in Argentina will send a clear message to key markets, including Japan, that trade barriers on agricultural products must be lifted. "We want to see more reform. There are areas of tariff in Japan that Australia has expressed concern about," said Vaile who will chair and meetings.

CFTC Proposes Changing Options Rule. Federal regulators plan to revise a failed experiment in using options to help farmers, food processors and merchants manage commodity price swings. BLOOMBERG NEWS reports the Commodity Futures Trading Commission wants to make it easier to use its pilot program that allows agricultural trade options by allowing the options to be settled with cash and easing the rules. No one has applied to use the program since it was begun in April 1998.

Separately, the CFTC yesterday published for comment a request by three U.S. futures exchanges for relaxed regulation in cases where offshore competing exchanges are able to do business in the U.S. The American exchanges assert that less regulation abroad gives the foreign exchanges a competitive edge.

Roberts Calls for Credits to Iran. Sen. Pat Roberts (R-KS) criticized the Clinton Administration for not extending export credit guarantees to Iran to purchase wheat and other commodities. REUTERS quotes Roberts as telling the President he has "wasted an important opportunity" to expand exports and raise farm prices. Trade rumors have widely reported large Canadian wheat sales to Iran in recent days.

August 25, 1999

Feds Spend More, Not Less, on Farmers. When the freedom to farm legislation was developed, a major goal was to reduce the federal government's presence in farmers' lives and lower federal costs for agriculture. The 1996 farm law includes declining payments to help accomplish that. However, if Congress passes a farmer rescue bill similar to the Senate's version, fiscal 2000 outlays would be the third-highest federal agricultural spending level ever.

Consumers Concerned About Farmers, Study Shows. Consumers are concerned about the current farm financial problems and about the changing structure of the food and agricultural industries. They also believe their needs are best served by "a family farm system" of agriculture, a new study shows.

Consumer Reports Finds Genetically Engineered Foods on Shelves. Consumer Reports finds genetically engineered foods "already on the shelves" of supermarkets in products ranging from baby formulas and tortilla chips to drink mixes, taco shells and muffin mixes. And the product labels do not include the GMO information.

School Lunch Better Than Brown-Bagging From Home. School food has become more popular and more nutritious than the brown bag lunches of another day. A typical school lunch may have half the calories of the typical brown-bag lunch.

USDA News Briefs

The President's Council on Food Safety Strategic Planning Task Force holds a public meeting Thursday, Aug. 26, to discuss developing an action plan on egg safety. The plan will examine the occurrence of salmonella in shell eggs and egg products, and farm-to-table steps that can be taken to reduce it. The task force has proposed a draft interim goal of a 50% reduction in egg-associated salmonella illnesses by 2005. The meeting will be held 9 a.m.-5 p.m. at the Washington Plaza Hotel, 10 Thomas Circle, NW, Massachusetts Avenue and 14th Street, Washington, DC. To register contact Sheila Johnson at (202) 501-7305 or by fax at (202) 501-7642.

USDA has started the process for nominating peanut producers to serve on the National Peanut Board. The board will function to increase consumption and expand markets for peanuts and peanut products. All organizations wanting to submit nominations to USDA must be certified. Organization eligibility is outlined in the order, and certification packages were mailed Aug. 13 to all known organizations. The order can be accessed on the Internet at www.ams.usda.gov/fv/rpb.html.

Ag News Summaries

Commodity Prices May Hurt Banks. THE ASSOCIATED PRESS and REUTERS report that low commodity prices could wind up causing lending institutions to suffer losses. Federal bank regulators are watching businesses that are affected by low prices for farm and industrial products. Federal Deposit Insurance Corp. Chair Donna Tanoue said the agency "is carefully monitoring the effects that low prices are having on local economies that depend heavily on commodity industries. We know from experience that local economic adversity has the potential to result in problems" for banks.

U.S. Plans to Ship Hormone-free Beef to EU. USDA has devised a plan that will allow the U.S. meat industry to resume shipping hormone-free beef to the European Union. The plan requires U.S. livestock producers to develop written programs, based on guidelines set by USDA's Food Safety and Inspection Service documenting that the beef does not come from cattle treated by growth hormones. REUTERS also reports EU officials welcomed the announcement. "We always said they should do more tests. If they are in line with our requirements, then there should be no problem," one official told REUTERS.

California Could Need 1.1 Billion Gallons of Ethanol. A report commissioned by Gov. Gray Davis shows California would need "all of what the country now produces" in ethanol if it banned the controversial gasoline additive MTBE, REUTERS reports. California would have to import its needs from other states, the reports says, and might also need to provide incentives to make ethanol from wood chips, straw and other materials rather than just corn.

APEC Draws Fire for Inaction. Business leaders say the 21-member economies of APEC are not doing enough to deliver on their promises of free trade and investment and will miss their self-imposed deadlines, according to REUTERS.

August 24, 1999

Glickman Disputes Combest's Criticisms of USDA. Agriculture Secretary Dan Glickman disputes House Agriculture Committee Chairman Larry Combest's claim that the department has not made effective use of the non-insured crop disaster assistance program (NAP). "That simply is not the case," Glickman says in a letter to the Texas Republican.

FDA Petitioned to Allow Irradiation on Ready-to-Eat Foods. The Food Irradiation Coalition, made up of food industry trade associations, health organizations, academic and consumer groups, has asked the Food and Drug Administration to extend the use of irradiation for ready-to-eat foods. Meat and poultry products and fruit and vegetable products are on the list.

Ag News Summaries

California Plant Will Make Ethanol from Rice Straw. A refinery planned for construction in Oroville, CA, will use rice straw and other agricultural waste to make ethanol. California rice farmers are not allowed by state air regulations to burn rice stubble in their fields. "We see it as an efficient waste-based ethanol plant that takes advantage of low-cost and no-cost materials," says Stephen J. Gatto, head of Boston-based BC International Corp., which plans to start construction next year.

Giuliani Takes His Turn in Dairy's Favor. New York city Mayor Rudolph Giuliani now supports the Northeast Dairy Compact; he previously opposed it. But speaking to a GOP gathering in upstate New York last week, Giuliani also criticized the Clinton Administration's nationwide milk marketing order reform proposal. He previously opposed the compact because he feared it would increase milk prices in New York City. Now his concerns are eased with a proposal for additional federal funding for school lunch programs.

Procedures Announced for Soybean Referendum Request. USDA has announced procedures for a soybean request for referendum to determine if producers want a referendum on the soybean promotion and research order. USDA will conduct a referendum if at least 10% of the 600,813 soybean producers nationwide support a referendum. Not more than one-fifth of producers who support a referendum may be from any one state. USA plans to conduct a referendum this fall at county Farm Service Agency offices. The dates will be published later.

Europe Must Not Be a Food "Island." Europe must not be an island standing aloof from world trading rules on agriculture, German agriculture minister Karl-Heinz Funke says. REUTERS reports he also cautioned that consumer concerns be given adequate consideration in food safety debates. Funke spoke to reporters in Chicago at the start of a week-long visit to the United States. He said he expects disputes between the European Union and the United States over genetically modified foods and growth hormones in beef to be resolved through negotiations.

Japan Labeling Signals Pause. Japan's decision to require labels on genetically modified (GM) food may slow expansion of GM crop output in the U.S., its biggest supplier. Japanese food makers have begun seeking non-GM crops to avoid labelling, traders told REUTERS.

Beef Exports Could Begin Again. U.S. Agriculture Department officials told REUTERS on Monday they have devised a plan that will allow the meat industry to resume shipping "hormone-free" beef to the European Union.

Magazine to List GMO Foods. The next issue of Consumer Reports, on newsstands this week, will list which popular foods contain genetically modified ingredients, the St. Louis Post-Dispatch reports.

August 23, 1999

Washington Post Poses New Ag Policy. The current $7.4 billion emergency farm aid in the Senate agricultural appropriations bill, "is nothing more than a vast amount of sloppily given counter-cyclical aid by another name," says the Washington Post. What should happen, the editorial continues, is for Congress to forge a "moderate counter-cyclical policy" that combines the best of both worlds – helping farmers who really need aid but not punishing consumers with sharply higher prices.

Lugar Revisited -- By USDA Economist's Farm Income Outlook. USDA economist Mitchell Morehart looks at the $7.4 billion farm aid package passed by the Senate and finds it will increase 1999 total net farm income well above last year's level and the average level of the 1990s. That was part of the argument posed by Senate Agriculture Committee Chairman Richard Lugar (R-IN) during the Senate debate on the package.

California Hearing Will Probe Milk Order Changes. The California Department of Food and Agriculture will hold a public hearing on the state's milk pricing system and federal milk marketing order reforms. California's milk price adjustments don't kick in except every two months; for other areas of the country, changes are implemented every month. Proposals are being sought to bring the state's prices into closer alignment with the federal order system.

Pilot Aquatic Crop Insurance Product Announced. USDA has announced the first pilot aquatic crop insurance product – for cultivated clams. Under Secretary August Schumacher, Jr., unveiled the details at a meeting in Wellfleet, MA. Counties in four states are affected.

Timing of Ag Appropriations Conference Committee Uncertain. There appears to be some uncertainty on Capitol Hill over just when the agricultural appropriations conferees will meet to iron our differences in the Senate and House bills. At stake is the $7.4 billion Senate aid package and an expected $7 billion aid package to be tabled by House members. If things get too complicated or drag on too long, the bill could get folded into an omnibus appropriations bill that makes final passage even more murky.

Ag News Summaries

Some Producers Benefit From Hot, Dry Weather. Wine producers are basking in the dry, sunny weather and reaping one of the best harvests in decades, REUTERS reports. U.S. wine producers have had productive grape harvests for the past few years with a record of more than 7 million tons in 1997. This year's grape harvest could reach 6.5 million tons. Dry, sunny weather mixed with relatively low rainfall provides ideal conditions for grape vines that can burrow up to 40 feet into the ground to find water. Dry weather also helps kill fungus and weeds that are detrimental to the crop's yield. The result is a sweeter wine with fuller body.

Larger Corn, Soybean Harvests Seen. Corn production could total between 9.27 billion and 9.39 billion bushels, reports BLOOMBERG NEWS, based on more than 1,800 field surveys form Ohio to Nebraska. Soybean production could total 2.72-2.81 billion bushels, close to last year's record 2.76 billion. Drought conditions that wiped out fields in the East did little damage to the national corn and soybean crops. About four-fifths of those crops are raised in six midwestern states where ample rains nourished plants sown with increasingly hardy seeds.

French Farmers Dump Manure at McDonald's. French farmers Saturday dumped six tons of manure on a McDonald's restaurant in Arles, France, REUTERS reports from Paris. The action was a protest against U.S. sanctions on European Union products in retaliation for the EU's refusal to allow imports of beef from animals treated with growth hormones. The 20 farmers who dumped the manure also called for suspension of legal action against five sheep farmers who ransacked a McDonald's construction site in Millau, Aveyron, last week.

Farmers Protest in Des Moines. More than 200 people gathered on the steps of the Iowa Capitol Sunday afternoon to protest against conditions they say are pushing family farmers to the brink of financial disaster, REUTERS reports. Many speakers criticized the "Freedom to Farm'' law that deregulated farming in 1996 in exchange for decoupling farm subsidies and scaling them back. Meanwhile, the National Governors Association holds an agricultural summit in Ames, Iowa, on Thursday.

August 20, 1999

No LDP Reforms for this Year. Reforms to the loan deficiency program will not be ready for the 1999 crop and marketing season, a USDA official said. It will be 2000 before any reforms become effective, starting with the winter wheat crop to be harvested next year.

Beef Producer Upset With Pork Industry's Aid Plan. Something of a tug-of-war is developing between beef and pork producers. Cattlemen are upset with pork producers for asking Congress to pay each pork producer $50,000 because of low prices. The National Cattlemen's Beef Association empathizes with the "tough economic times" hog producers are going through, but direct payments "do nothing to alleviate the supply-demand situation that typically is the root cause of low prices," says NCBA Trade Media Manager Todd Inglee.

Cattlemen Cautious About Habitat's Role in Species Conservation. The National Cattlemen's Beef Association wants the federal government to be careful when streamlining the critical habitat designation process so scientific requirements are not compromised or land owners compelled to shoulder more burdens than they do now. The U.S. Fish and Wildlife Service is clarifying the role of habitats to help in species recoveries.

ARS Develops Quick Antibiotic Discovery Method for Meat Animals. USDA's Agricultural Research Service has developed and patented a new antibody to quickly pinpoint a major antibiotic given dairy cows and meat animals. Researchers also can use the antibody to detect Ceftiofur, an antibiotic used to treat mastitis in dairy cows and respiratory diseases in cattle, hogs and poultry.

More States Declared Disaster Areas. Delaware, Kentucky, Massachusetts and South Carolina have been declared agricultural disaster areas. Farmers in these states and contiguous counties are eligible for emergency, low-interest loans because of losses from excessive heat and drought. Farmers have eight months to apply for the loans to cover part of their actual losses.

For the Calendar

Glickman to speak at ABA conference. Agriculture Secretary Dan Glickman will give the keynote address at the American Bankers Association National Agricultural Bankers Conference to be held Oct. 31-Nov. 3 at The Broadmoor, Colorado Springs, CO. Topics on the conference agenda include viewpoints on the future of agricultural lending, new approaches to strategic planning and creating new business opportunities.

Ag News Summaries

Farm Trade Surplus Falls. Strong foreign competition and weak world demand have taken a big chunk out of the U.S. farm trade surplus, usually a bright spot in the overall trade picture, REUTERS reports from Commerce Department data released Thursday.

During the first six months of 1999, the monthly gap between farm exports and imports averaged just $542 million, half the 1998 pace and a third of 1997.

At current trends, the farm trade surplus may be less than $8 billion this year -- down dramatically from nearly $15 billion in 1998 and more than $20 billion in 1997, REUTERS notes.

California Consumers May Be Drinking `Foreign' Milk. A California appeals court has ruled that unfortified milk can be sold in California as long as it is properly labeled. That opens the door for out of state milk producers to share in the state's $3.7 billion dairy industry, according to the California Farm Bureau Federation. The ruling strikes down California's 37-year-old regulations requiring that milk be fortified with nutrients (often called "added non-fat solids") in order to improve children's bone development and prevent osteoporosis. California is the only state that has standards higher than those of the federal government. The added expense of enriching milk effectively has barred most out of state milk, says CFBF.

Glickman Goes to Buenos Aires. Agriculture Secretary Dan Glickman intends to visit Buenos Aires later this month to meet with trade and ag ministers from the Cairns Group of agricultural exporting countries, according to CongressDaily, a NATIONAL JOURNAL publication. They are expected to set policy for the upcoming Seattle round of international trade talks. But the Cairns Group may have difficulty developing unified positions and moving forward in this trade round. Brazil has no plans to remove phytosanitary barriers that now prevent some imports of U.S. wheat. Glickman told reporters he was "very disappointed" at that news and would discuss it at the Buenos Aires meeting.

Canada Won't Discuss CWB Changes. Canada's agriculture and agrifood Minister Lyle Vanclief says Canada will refuse to consider any significant changes in either the Canadian Wheat Board or other marketing organizations when international trade talks begin this fall in Seattle, the FARM JOURNAL reports. He told reporters the CWB marketing monopoly is an internal domestic marketing choice and not subject to World Trade Organization oversight. However, CongressDaily reports Vanclief says Canada wants negotiators to eliminate all agricultural export subsidies, reduce domestic subsidies and increase market access, especially for processed foods.

Judge Approves Tobacco Grower Funds. A judge in the superior court of Wake County, N.C., has entered an order approving the National Tobacco Grower Settlement Trust, a fund set up to assist U.S. tobacco growers hurt by the multi-state agreement reached last November, four leading tobacco companies told REUTERS Thursday.

August 19, 1999

Some Pros and Cons on Trading With Cuba. It well may be that by the end of this year, limited trade between the United States and Cuba will be a reality. And although Cuba needs many of the foods produced in the United States, the island nation of Fidel Castro also has its own list of foods that Cuban exporters are anxious to sell into the U.S. market.

Epstein Lauds Codex Action That Didn't Happen. Samuel S. Epstein, a professor of environmental medicine at the University of Illinois School of Public Health, claims the Codex Alimentarius Commission "ruled unanimously in favor of the 1993 European moratorium" on Monsanto's bovine somatotropin (BST) product. He calls it a "powerful blow against U.S. global trade policies" that are influenced by Monsanto. The only problem, says a Monsanto official, is that no vote on the issue ever took place at the recent Codex meeting.

`Disappointed' Clinton Signs Water Bill Anyway. President Clinton has signed a water resources development bill into law. The bill authorizes water projects and programs of the U.S. Army Corps of Engineers. He noted several areas of the legislation with which he was pleased, but he also enumerated several issues he believes are unresolved by the bill.

USDA News Briefs

APHIS Releases Evaluation Report. USDA's Animal and Plant Health Inspection Service has released an evaluation report on safeguarding U.S. plant resources. The report is an evaluation of the pest exclusion, pest information, pest permit and detection and response systems carried out by APHIS's plant protection and quarantine program. Copies of the report will be available on the APHIS web site at http://www.aphis.usda.gov.

Partial Refund of Honey Recourse Loan Fee Announced. USDA has announced a partial refund of the 1998-crop honey loan fee. The loan fee was $0.009 per pound of honey pledged as collateral for a loan. The amount of the fee that will be refunded is $0.0068 per pound. Producers who already have repaid their honey loans or who have honey pledged as collateral for a loan will be provided a fee refund by check. Further information is available from local Farm Service Agency offices. The refund results from a provision in the supplemental appropriations bill.

Changes to Maturity Requirements For Avocados Proposed. USDA has proposed changes to the maturity requirements for Florida and imported avocados. The changes are to facilitate shipments of mature avocados and help ensure that only mature fruit is shipped to fresh market channels. The proposal would relax maturity shipping dates for six varieties (Arue, Beta, Donnie, Leona, Loretta and Tower II) and add three new varieties to the maturity schedule (Semil 34, Semil 43, and Melendez).

Ag People Making News

Maria Matthews has been named deputy administrator of USDA's Office of Community Development. The agency oversees aid being delivered to the nation's eight rural empowerment zones and 50 rural enterprise communities – persistent poverty areas that receive special financial and technical assistance from USDA. Matthews most recently served as economic and community development director for Imperial County, CA, where she has lived since 1986.

Ag News Summaries

IBP Wins Case Against USDA. The 8th U.S. Circuit court of Appeals struck down a 1998 administrative ruling the USDA that ordered IBP Inc., the world's largest beef packer, to revise its bidding procedures to avoid antitrust violations. BLOOMBERG NEWS reports from St. Louis that the appeals court held that IBP's marketing agreement with nine feed lot operators "has not had the actual effect of suppressing or reducing competition."

UK Scientists Warn of Antibiotic Resistance. A report by the British government published Wednesday says there is conclusive evidence of a link between the use of antibiotics in farming and the emergence of antibiotic-resistant micro-organisms. REUTERS reports from London that changes in farming methods and improved animal hygiene could do much to reduce the problem. "At least four of these (diseases) (strains of salmonella, E.coli, campylobacter and enterococci) arise directly as a result of the overuse of antibiotics in agriculture, and there is evidence to suggest that further research would reveal agricultural links in other cases too," says Richard Young of the Soil Association, an organic farming campaign group.

China Wary of Buying Soybeans, Meal. China is unlikely to buy large amounts of soybeans and soybean meal in the near term unless world prices decline, REUTERS reports from Beijing, quoting industry sources and traders. Although some Chinese buyers were making inquiries for soybean and soybean meal in the world market, that does not mean they would increase imports soon, one source said. "The world soybean price is still high," this source said. "If it is lower than $190 C&F China, domestic traders will increase imports sharply."

August 18, 1999

Cheese, milk prices skyrocket. Cheese prices have been setting new records with the basic formula price for milk following right along. One analyst sees the trends continuing perhaps beyond Labor Day, but then prices will moderate.

A bright spot in the farm economy. Catfish farmers are making a profit these days as their grain and oilseed producing colleagues worry about low prices. Catfish is produced for about 60-65 cents per pound and has been selling between 75-80 cents per pound.

EU considers forming food safety agency. European Union farm Commissioner Franz Fischler says the EU may need a new independent agency to regulate food safety policy. The recent dioxin crisis and recent reports that human sewage has been added to animal feed in France have shaken public confidence and focused attention on the need for a food safety agency.

No quick recovery for Russia's livestock sector. Russia's troubled livestock sector is not expected to recover soon, according to a U.S. attache report from Moscow. Despite higher demand for domestic products, overall meat production still declined last year.

Ag News Summary

More disaster declarations made. Rhode Island and five counties in Virginia have been declared agricultural disaster areas. Farmers have eight months to apply for emergency, low-interest loans to help cover some of their actual losses. USDA also is considering disaster declarations in Alabama, Delaware, Kentucky, Montana, Oregon, South Carolina, Utah and Washington state.

LDP reform still being considered. USDA officials still are trying to finalize a proposal to reform the loan deficiency program, REUTERS reports. The continuing delays make it unlikely that a new system will be in pace for this year's crops, a USDA aide says. "The notice is in clearance, and I hope it will be published soon," the aide said. The proposal has been rewritten, and the second draft has cleared USDA's general counsel's office. But various under secretaries, Secretary Dan Glickman and the Office of Management and Budget have yet to sign off on the proposal. Once finalized, the proposal will be published in the Federal Register with a 30-day comment period for the public to respond.

British blood donors restricted by U.S. officials. The Food and Drug Administration has restricted blood donations form people who lived in Britain at the height of the mad cow disease epidemic. In humans, the disease is incurable and fatal and has been traced to the blood. REUTERS reports that in December an FDA advisory panel recommended the government consider barring blood donations from people who lived in or visited Britain during the epidemic. No one has been shown to have contracted the human form of the disease from blood or blood products, but the disease has a long incubation period.

Consultant: Russia will seek more food aid. REUTERS quotes a leading Russian farm analyst as predicting that Russia will ask the United States for at least five million tonnes of food aid in the 1999/2000 season as this year's grain crop will fall far below requirements. Andrei Sizov of the SovEcon consultancy said the government was expected to request three million tonnes of wheat, one million of corn and one million of soybeans, according to REUTERS.

August 17, 1999

USDA releases hold on Belgium pork products. USDA's Food Safety and Inspection Service has released from ports of entry a hold on all pork products exported from Belgium. The action was based on information from Belgium and test results conducted for dioxin.

Wheat prices to continue under pressure. USDA expects that summer wheat prices will continue to be pressured by the heaviest marketings of the season. In the coming months, prices will increase but probably not strongly enough to offset the poor start to the 1999-2000 season.

Reduced supplies increase corn price outlook. With reduced corn supplies in 1999-2000 and lower ending stocks than projected in July, USDA increased the price outlook this month. The average corn yield is forecast at 134.7 bushels pr acre, and if realized, it would be the second highest yield ever.

EWG says infant exposure to atrazine underestimated. The Environmental Working Group says the herbicide atrazine is polluting tap water in almost 800 Midwestern communities, and the federal government has underestimated exposure by 15 times for infants fed formula mixed with tap water.

Ag News Summary

Locusts devour crops in Mexico. Mexican authorities are battling a plague of locusts that has devoured thousands of acres of crops in southeast Mexico. REUTERS says it could take four months for brigades of farm workers armed with insecticides to eradicate the locusts. There have been reports that clouds of locusts are up to five miles wide. The insects have an average length of six inches.

Senators call for end to Cuban embargo. Two Democratic Senators returning from a trip to Cuba said Congress should allow food sales to that country, THE WASHINGTON POST reports. Senate Minority Leader Tom Daschle (D-SD) and Byron Dorgan (D-ND) spoke to reporters after returning from a visit to Cuba, which has been the object of a U.S. embargo for nearly 40 years. Rep. Lincoln Diaz-Bahlart (R-FL) denounced the Senators' message, the POST said.

U.S. crop conditions worsen. Dry weather reduced the overall condition of major U.S. crops over the last week. REUTERS reports that soybeans, corn, cotton, rice and spring wheat conditions all deteriorated in the week that ended Sunday. The percentage of good and excellent soybeans declined 3% to 51%; the percentage of the corn crop also declined with 58% in the good and excellent categories, 2% less than the previous week.

Peanut farmers approve assessment. Peanut farmers have agreed to assess themselves 1% of what they collect for their peanuts to raise $10 million a year to research and promote their product. THE ASSOCIATED PRESS says USDA mailed 23,080 ballots to eligible growers in May for a referendum on the program. Of the 5,415 ballots returned, nearly 67% voted in favor of the program and the assessment. A new National Peanut Board will administer the program, funded by the checkoff similar to those for beef, pork, dairy, popcorn, watermelons, etc.

Fischler says food safety agency may be needed. In a replay of a debate that's occurring in the U.S. as well, European Union Agriculture Commissioner Franz Fischler said a single agency to consolidate food safety functions may be necessary in Europe, REUTERS reports. Fischler cited the need for coordination and public confidence-building in the wake of Belgium's dioxin scandal.

Ethanol could be helped, threatened. In a long feature, REUTERS reports that ethanol's prospects for further growth face good and bad news. One side effect of the devastating decline in corn prices is to make ethanol more competitive as a fuel. However, the controversy over competing fuel additive methyl tertiary butyl ether (MTBE) could hurt ethanol in the long term – the exact opposite of what ethanol advocates first thought. REUTERS notes that if Congress reacts to worries about MTBE's health effects by relaxing federal standards for oxygen in fuels, that could hurt prospects for ethanol derivative ETBE. If current clean air requirements stay in effect, though, ethanol advocates expect more use of ETBE.

August 16, 1999

Pork producers want presidential candidates' backing. On the eve of the Iowa Republican straw poll, the National Pork Producers Council proposed giving every pork producer $50,000 cash, regardless of size of operation. That was one of a series of recommendations NPPC also will urge on Congress in the form of a "recovery plan."

Clinton announces another push for cleaner waters. President Clinton wants more than 20,000 rivers, lakes and estuaries, now considered polluted, to be cleaned up through a federal-state partnership that could mean more stringent regulations for farmers. He also blasted congressional Republicans for "laying plans to roll back more than a quarter century" of progress in environmental protection.

Grassley wants probe of USDA's antitrust activity. Sen. Charles Grassley (R-IA) wants a review of how well USDA is preventing anti-competitive practices and protecting competition in agriculture under the Packers and Stockyards Act.

USDA expects grain storage to be `tight' this fall. With crop production 1% greater this year than in 1998 and carry-in stocks at the highest level in more than a decade, USDA expects grain storage to be strained this fall to meet the demand. The Central Plains and Eastern and Western Corn Belts will have the most problems.

For the Calendar

USDA is sponsoring a public meeting Tuesday (Aug. 17) to provide information about recent actions of the Codex Alimentarius Commission and take comments on the future direction of U.S. efforts in Codex. The meeting will be held from 1-4 p.m. in Room 107A, Jamie L. Whitten Building, 12th Street and Jefferson Drive, SW, Washington.

A public meeting will be held Tuesday and Wednesday (Aug. 17-18) in Omaha to discuss technical issues related to implementing the hazard analysis and critical control point (HACCP) systems final rule. USDA will hold the meeting. The final rule, published in the July 26 Federal Register, requires meat and poultry establishments to develop preventive control food safety system to reduce the risk of food borne illnesses. The meeting will be held from 8 a.m. until 4:30 p.m. at the Embassy Suites Omaha Downtown/Old Market, 555 South 10th St., Omaha. To register for the meeting, contact Deborah Arthur at (401) 221-7400; fax (402) 221-7438; e-mail: deborah.arthur@usda.gov.

Ag News Summary

More drought declarations announced. All of Pennsylvania and 13 counties in Arizona now are considered agricultural disaster areas due to drought. Farmers there are eligible for low-interest loans and other assistance to help cover losses. New Emergency Conservation Program funds totaling $5 million now are available for West Virginia. The money will help fund water conservation projects, including constructing and deepening wells, installing pipelines and providing water for livestock.

Funding needed for farm loan programs. USDA already has made nearly $287 million available in emergency farm loans this year, an increase of 222% over last year. Agriculture Secretary Dan Glickman has transferred funds to the program to support another $50 million in loans. He also wants "appropriate additional funding" to ensue the program will have enough money to support the requests.

Trade talks expected to succeed. The Clinton Administration expects the World Trade Organization negotiations to arrive at a common agenda in time to launch the new round of global talks in December, THE ASSOCIATED PRESS reports. However, some trade analysts point to a nasty fight over who would lead the organization as indicative of problems ahead. Deputy U.S. Trade Representative Susan Esseman says that won't affect the talks. "There is a desire to move ahead and an enthusiasm in moving forward," she says. Esseman did concede there are serious differences to be resolved among the United States, Europe, Japan and developing nations over negotiating goals for the new round of talks.

Mid-Atlantic crop losses at $800 million. REUTERS reports that drought conditions in the Mid-Atlantic have caused at least $800 million in crop losses this summer. State officials expects some farmers will be forced out of business. But THE ASSOCIATED PRESS reports that this drought is about average in size. If historical climate patterns hold true, however, the United States is due for a major drought that would affect at least a third of the country. And the nation is not prepared to deal with that, say government officials and drought experts. The last such drought was in 1988. There is no integrated observation network to monitor droughts as they develop. Communities frequently do not implement water conservation until they run low on water. Thousands of farmers do not buy crop insurance even though the government heavily subsidizes the premiums, the article notes.

U.S. group fears Japan labeling. The president of the U.S. Grain Council said a Japanese government plan to require labels on food made from genetically-modified crops threatens to harm U.S. agricultural exports, REUTERS reports. Under the proposal approved this week by a government panel, food made from genetically-modified crops, such as certain corn and soybean varieties, would have to carry a mandatory label in Japan by April 2001.

Canada warns U.S. on sugar issue. Canada has told the U.S. not to reclassify certain sugar syrup imports in a way that would keep them out of the U.S. market, REUTERS reports. The so-called "stuffed molasses" imports have grown to 100,000 tons and U.S. domestic sugar interests allege they are formulated to evade the tariff rate quota on sugar imports.

August 13, 1999

Clinton says bio-based fuels will add $20 billion in farm income. President Clinton started a process Thursday designed to triple U.S. bio-energy and use of bio-based products for fuels by 2010 and generate as much as $20 billion a year in new farm income. The plan also would reduce greenhouse gas emissions as much as 100 million tons a year, the equivalent of taking more than 70 million cars off the road. Republicans and Democrats hailed the action. 

Cattlemen concerned about EPA guidelines. The National Cattlemen's Beef Association has "major concerns" about the draft guidance released last week by the Environmental Protection Agency to enforce water quality standards on animal feeding operations. A major concern is an attempt to impose liability on the operation for off-site land applications by another party.

Combest criticizes administration on drought actions. House Agriculture Committee Chairman Larry Combest (R-TX) thinks the administration has not effectively used the Noninsured Crop Disaster Assistance Program to help drought-stricken farmers. He also criticized the administration for not submitting a formal recommendation to Congress for farmer relief. Click here for complete letter.

White House forms drought task force. The Clinton Administration has formed a task for to coordinate the federal response to the drought problems in various parts of the country, notably the East Coast. Federal responses to assist communities also were identified and announced.

For the Calendar

The 300,000 member National Grange will hold its 133rd national convention in Portland, ME, Nov. 8-14. Headquarters will be the Holiday Inn by the Bay at 88 Spring Street in downtown Portland. Theme of the event is "A New Century, A New Grange."

Ag News Summary

U.S. doesn't want antidumping reviewed. The United States opposes a proposal for the World Trade Organization that deals with the review of antidumping provisions under the new round of international trade negotiations, KYODO NEWS SERVICE reports. "We are opposed to any negotiations on antidumping under the new round," said Deputy U.S. Trade Representative Susan Esseman. Japan and other WTO members are calling for the WTO to include the issue on the agenda this fall in Seattle, WA.

U.S. warns EU of problems over biotechnology. The United Stats has warned of future trade problems with the European Union over biotechnology, accusing European lawmakers of "demagoguery" in their attitude toward genetically modified organisms, reports REUTERS. Richard Morningstar, newly appointed U.S. ambassador to the EU, said the EU's block on new GMOs would cost U.S. exporters more than $200 million in lost corn sales this year. "Until the EU can credibly separate science-based risk assessment and regulations from the political process, the outlook for resolution of this issue is bleak," says Morningstar.

U.S. asks WHO to include food safety on agenda.The United States has asked the World Health Organization to put food safety on the agenda for its executive board meeting in January, NATIONAL JOURNAL reports. Jo Ivey Boufford, U.S. members of the WHO executive board, suggested in a letter to WHO Director General Gro Harlem Bruntland that the "working title" of the session might be "Food Safety: The Role of WHO." Boufford also suggested the board address the subtopics of the scope of WHO food safety activities; the Codex Alimentarius Commission which WHO oversees along with the United Nations Food and Agricultural Organization; coordination with other global and regional health, trade and economic organizations concerned with food safety, and health and development aspects of food safety.

Power outage halts trading. Electric power problems in downtown Chicago prompted the Chicago Board of Trade to close an hour early Thursday, and cancel overnight Project A trading as well. The exchange said it will commence trading as usual today.

Agriculture tops agenda, USTR official says. A high official in the Office of the U.S. Trade Representative insisted on Thursday that agriculture would be central to the new round of World Trade Organization negotiations starting in November. In an interview with REUTERS and other press agencies, Susan Esserman rebutted fears expressed by U.S. farm groups that agriculture would be an afterthought in the talks.

U.S. sells first corn to Iran. REUTERS reports the first corn sale from the United States to Iran in four years. The 50,000 ton sale marks the first business under a new Clinton Administration procedure that was announced with much fanfare but took several months to implement.
 

August 12, 1999

Sugar symposium hears trade, farm law, subsidies discussed. The annual International Sweetener Symposium is being held this week in Napa Valley, CA, and the more than 400 people attending have heard from a host of speakers who have called for dramatic changes in the 1996 farm law, an end to export subsidies and fair trade.

Bill calls for biodiesel fuel in air improvement program; Clinton sets announcement. Reps. John Shimkus (R-IL) and Karen McCarthy (D-MO) have introduced a bill to allow biodiesel to compete for funds in the Congestion Mitigation Air Quality Improvement Program. The program funds transportation-related projects targeted to improve air quality.

Six-foot corn plants in drought-struck Maryland. On a test field at the Beltsville Agricultural Research Center there are green corn plants towering six feet over protective organic mulch despite the soil-parching drought that has hit the area. Nearby, corn planted in bare soil won't be worth harvesting.

Hog farmers' sign-up underway. Sign-up for a share of the $100 million second payment of the "small hog operation payment program" has begun. Small and medium sized hog farmers will begin to receive money from the program around mid-August.

Western farmers big Internet users. A new study finds 41% of farms in the western United States have Internet access compared with 29% nationwide. Among western farms, Internet use has more than doubled from 1997.

USDA increased slightly the expected farm prices for corn and soybeans in the latest supply and demand report issued this morning. Wheat farm prices remained the same as they were in the July report – $2.45-2.95 per bushel for 1999-2000. Expected corn production this year was lowered, from 9.65 billion bushels in July to 9.56 billion bushels in today's report. Some analysts, though, warned that the trade had been expecting a bigger cut.

Ag News Summary

Drought may drag into next year. A drought that has destroyed crops, dried up wells and forced some areas of the mid-Atlantic region to restrict water use may extend into next year, says John Kelly, director of the National Weather Service. REUTERS quotes Kelly as saying, "The drought is going to stay." It could be next year before enough rain makes up the moisture deficit. "We expect the drought to get worse in the southeast over the winter, a little better out West," he told a White House briefing.

"For the Northeast we expect the drought by and large to persist through the fall and into the winter." Kelly said close to normal rainfall is expected in the Northeast this fall, but it will not be enough to make up for the drought conditions. It will take a tropical storm to compensate for the rainfall deficit, he said. But that would being another set of problems such as flash flooding and soil erosion.

Commerce Secretary William Daley says there is no estimate of general drought damage yet, but he points to damage from the 1988 drought, the most costly weather disaster in recent history, that totaled $40 billion.

Immigrants fill a vacuum in American agriculture THE WALL STREET JOURNAL reports that "American agriculture is receiving the biggiest infusion of new blood since the original wave of immigrant farmers from Europe played out several generations ago." According to an article in today's edition, the number of small farms is growing, and the share of America's two million farmers who are white has fallen to 88% from 91% a decade ago. The article points out that in many cases Anglo farmers have no family members who want to farm and therefore are happy to sell out to eager immigrants. The immigrants tend to grow non-subsidized specialty crops, such as blueberries, apples and peppers, rather than the traditional subsidized basic agricultural crops.

Dueling views on farm aid. In its lead editorial, USA TODAY criticizes Presidential candidates and Congress for rushing to send emergency aid to farmers. Congress, the newspaper says, should "insist that farmers purchase their own crop insurance ... and ... [start] applying the laws of the marketplace that every other business must deal with." In a response, National Farmers Union President Leland Swenson says the real problem is that "prices today are half what they were prior to the passage of Freedom to Farm" and compares today's farm policies to the laissez-faire atmosphere of the 1920s. Despite the need for short term aid, Swenson says "longer-term structural changes are required" in farm policy. Click here to go to the editorial and Swenson's response.

August 10, 1999

Drought watch moves to New Jersey, New York. All of New Jersey and 34 counties in New York have been designated as agricultural disaster areas. Farmers in those areas now are eligible for emergency, low-interest loans to help alleviate the effects of heat and drought.

Corn growers laud passage of river bill. Congress gave final approval last week to river flood control, navigation and environmental restoration, among other issues, in a bill that the National Corn Growers Association believes is an important piece of legislation.

An $8 billion aid bill introduced in House. Rep. Jo Ann Emerson (R-MO) has introduced a bill with $8 billion worth of assistance for farmers. American Farm Bureau Federation, however, while supporting Emerson's bill, warns nothing is being done to alleviate the drought in the Mid-Atlantic, Midwest and Southeast, so Congress will be pressed to act on those needs as well.

Court says Arizona firm may sell milk in California. A California appellate court has ruled Shamrock Foods of Phoenix, AZ, may sell its milk in California. The decision reverses a San Diego Superior Court ruling that said Shamrock violated state law with the sales.

Views on farm aid now available.During the debate over farm income assistance last week in the Senate, three senators articulated strong cases for and against emergency relief. Click here to find out what Sens. Richard Lugar (R-IN), Pat Roberts (R-KS) and Tom Harkin (D-IA) had to say. It's another service AgricultureLaw.com provides its readers.

People Making Ag News

Dan Smith has left his position as Democratic staff director at the Senate Agriculture Committee to take the position of political director at the American Cancer Society. Mark Halverson, committee chief counsel, assumes Smith's duties in the interim until a new staff director can be named.

Ag News Summary

Final rule on meat irradiation by year's end? National Pork Producers Council says USDA will wait until at least November to issue its final rules for meat packers to use irradiation technology to kill pathogens in ground beef. USDA has taken nearly two years to draft rules outlining just how meat plants can use irradiation. Hundreds of letters, e-mails and faxes from the public, most demanding that irradiated meat be clearly labeled, contributed to the delay. Industry and consumer groups have been frustrated at the slow pace. A coalition of food groups is expected to file a new petition soon with the Food and Drug Administration seeking approval to irradiate processed meat products, such as hot dogs, lunch meat and sausages.

USDA investigates black farmers' complaints. USDA is investigating complaints that black farmers were improperly denied disaster assistance in Arkansas and Georgia this year even as the department was settling a multimillion dollar civil rights lawsuit, THE ASSOCIATED PRESS reports. About 120 people, including farmers, marched around USDA headquarters in Washington Tuesday chanting slogans such as "no justice, no peace" and "stop stealing our land." Rosalind Gray, director of USDA's civil rights office, met with 14 of the farmers for an hour and a half.

Cargill takes hits from lawsuit. Cargill Inc. says a lawsuit filed by Pioneer HI-Bred International alleging misappropriation of genetic materials largely was responsible for Cargill's $182 million loss in the fourth quarter. THE ASSOCIATED PRESS reports from Minneapolis that Cargill's loss for the quarter ended may 31 compared with earnings of $219 million in the same period last year. Pioneer filed the suit in Iowa against Cargill and two other seed companies last October, claiming the companies bred corn hybrids using genetic material developed by Pioneer.

Sugar growers more concerned about Mexico. Sugar grower groups released a new paper on imports of Mexican sugar that says the shipments threaten the U.S. price support program, REUTERS reports. American Sugar Alliance economist Jack Roney said growers will consider filing anti-dumping or countervailing duty cases if a solution cannot be found. Under the North American Free Trade Agreement, duties on Mexican sugar above the nation's import quota remain high but are being cut each year. Falling world prices have made it economical in some cases to import sugar from Mexico and pay the import duty, since the U.S. maintains its domestic price at a level which is now four times the world price. Sugar grower representatives refer to the world market as a "dump" market.

August 9, 1999

CA reforms would help consumers, farmers, says study. Another study from a group seeking the repeal of California's milk marketing policies finds both consumers and farmers would benefit if repeal became a reality. Repeal would mean the end of the state's mandatory mark-up law and allow imports of milk from outside California. That would bring more competition in retail pricing.

Natural food supermarkets gain popularity. Natural food supermarkets are achieving record growth as they gain acceptance from more and more health-oriented consumers, says a new report from USDA. Health food store sales reached $8.4 billion in 1997 compared to $7.6 billion in 1996.

U.S., Mexico agree on apple trade conditions. The United States and Mexico have reached an agreement that facilitates the export of U.S. apples to Mexico. The first phase began July 15 when Mexico reduced its inspectors in the United States from nine to six.

GAO says sugar import quotas need changing. The way USDA administers the tariff-rate quota for raw sugar to restrict low-cost sugar imports, if changed, would result in lower consumer costs for domestic sugar, says the General Accounting Office. For one thing, says GAO, the allocation process could be adjusted by redistributing unused quota allocations to countries that could fill the quotas.

Ag News Summary

Australia worried about U.S. farm aid. The $7 billion-plus farm assistance proposal before Congress has rattled Australia's farm sector and sparked serious concern within the government, REUTERS reports from Sydney. Australia fears the U.S. plan is a thinly-veiled disguise for export subsidies for U.S. produce especially. Australia's newly appointed trade minister, Mark Vaile, a farmer, will raise Australia's concerns at a meeting with Secretary of Agriculture Dan Glickman in Buenos Aires in coming weeks. Vaile said the U.S. aid package "is huge (and) heading in exactly 180 degrees to what it should be."

Stenholm calls ‘96 farm law `risky and foolish.' Rep. Charles Stenholm (D-TX) told the international sweetener symposium he considered the freedom to farm bill "risky and foolish" at the time it was considered by the House Agriculture Committee. Stenholm is the ranking Democrat on the panel. When U.S. farmers have to try to "compete in a theoretical marketplace, we're in trouble," he said. The 1996 farm law "ignores the reality of the world. It is not working nearly as well as it should. We are spending more for agriculture this year than in the so-called high point of 1986." He noted there will be another farm bill to be considered in 2002, and it must, among other things, respond to programs implemented by foreign governments in order to protect U.S. producers. "We can't let the world dump price be the price for our farmers," Stenholm said.

Farmers urged to glean crops. Farmers covered by federal crop insurance policies are being urged to glean their crops and recover what otherwise would be unused or destroyed. The guidelines USDA has issued do not affect a farmer's crop insurance indemnity. Information about the gleaning initiative is available on the Internet at http://www.fns.usda.gov/fns/menu/gleaning/recover.htm.

EU delays biotech action. The European Commission has postponed a meeting set for Tuesday, which was due to vote on whether to approve three new genetically modified organisms, a Commission spokesman told REUTERS on Monday.

August 9, 1999

EPA releases draft for animal waste management. The Environmental Protection Agency has released a draft guidance for managing animal waste in concentrated feeding operations. From 15,000-20,000 feeding operations will be required to develop comprehensive nutrient management plans and comply with Clean Water Act requirements.

`Under duress' dairy group votes for final milk rule. Dairy Farmers of America says no one should be misled by its yes vote on federal milk marketing order reforms. "This was a vote under duress," says DFA, an effort to keep the system intact until Congress can act on a milk pricing option that gives farmers more money for their milk.

Industry, agriculture, differ on WTO approaches. Industry and agriculture are at odds over how to handle the upcoming international trade talks, says American Farm Bureau Federation. Industry wants a pact wrapped up quickly, but AFBF says agriculture must be sure all issues are resolved before any agreement is signed.

Study examines what determines corn, wheat prices. A new USDA study examines how market factors and government programs influence corn and wheat prices. It examines how major deviations from trend yields may have a significant price impact, for example, and traces the demand factors such as domestic use which is an increasing component of demand.

Food insecurity in some countries will intensify, study shows. Another new USDA study predicts that food insecurity in many of the countries studied will intensify unless performance trends of key contributing factors are improved. In the poorest countries, productivity is the key to improving food security.

Ag News Summary

NCBA, FMI working on beef labeling system. The National Cattlemen's Beef Association and Food Marketing Institute are working on a system to identify U.S.-produced beef in grocery stores, according to THE ASSOCIATED PRESS. A voluntary system aimed at promoting U.S. products rather than stigmatizing imports would get around retailers' long-standing objectives to being told by the government what to put on food labels and to identify foreign products. Whether U.S. beef would be labeled as such or simply identified by a sign at the meat case has not been determined.

New Hampshire firm recalls beef after E. coli case. A New Hampshire meat processing company is recalling 250,000 pounds of beef after a seven-year-old boy became ill from E. coli bacteria after eating meat produced by the firm. REUTERS reports Jac Pac Foods, Manchester, NH, is recalling all meat produced on April 2, including frozen beef and hamburger patties and ground beef. The meat was sold to B.J.'s food retailers and to food service distributors nationwide and in Puerto Rico. The boy spent about a month in the hospital after getting sick July 1. He now is home and recovering.

Wine industry angry over subsidy. Winemakers say they'll fight a move by the Senate to cut off subsidies for exports of alcoholic beverages, THE ASSOCIATED PRESS reports. The Senate approved an amendment to the agricultural appropriations bill that would prevent the wine industry from getting funds in fiscal 2000 from the Market Access Program. The amendment applies to all alcoholic beverages. It was authored by Sen. Strom Thurmond (R-SC) who lost a daughter to a drunken driving accident. Thurmond spokesman John DeCrosta says the wine industry can afford to pay its own marketing costs. John De Luca, Wine Institute president, says Thurmond's "political vendetta against the U.S. wine industry continues to know no bounds." Thurmond also has proposed tripling the excise taxes on wine.

CME seeks to increase stocker futures. The Chicago Mercantile Exchange Board of Directors has approved a one-year "market maker program" to build liquidity and open interest in the stocker cattle futures contract. A $50,000 indemnification against losses will be designated to a special account, specifically for stocker cattle and stocker versus feeder and live cattle spreads at each market maker's clearing firm, says REUTERS. Trading has been slow in stocker futures. Open interest has increased to only 260 contracts recently after the inaugural trade on Nov. 30, 1998.

August 6, 1999

Reaction to farm aid package mostly positive. Initial reaction to the Senate's $7.65 billion in emergency aid to farmers has been positive, but the lead Democrat in the battle for $11 billion in assistance vows the fight isn't over. Senate Agriculture Committee Chairman Richard Lugar (R-IN) also admits there will be a "continuing debate" on the aid issue.

Roberts defends freedom to farm. Sen. Pat Roberts (R-KS), the "father" of the freedom to farm law now governing production agriculture, defended the law against the growing onslaught of Democrats calling for radical change. In floor debate this week, Roberts said farmers exercising their freedom to grow what they want has produced some dramatic results in cropping patterns.

CFTC's regulatory authority studied. A House subcommittee Thursday examined whether the Commodity Futures Trading Commission is providing effective relief to commodity exchanges. Subcommittee Chairman Tom Ewing (R-IL) is concerned that those affected by regulations participate adequately in the regulatory process.

Task force tells banks how to manage volatile ag situation. A task force of the American Bankers Association believes agricultural bankers benefit most from the guaranteed loan program when trying to manage their loan portfolios in the current volatile farm economy. The report contains a series of recommendations for managing agricultural risk into the 21st century.

Ag News Summary

ABA calls for expanded CRP. The American Bankers Association wants an expanded Conservation Reserve Program to at least 40 million acres. That will help growers and bankers manage a slump in commodity prices, REUTERS reports. To increase the CRP beyond the current limit of 36.4 million acres would help reduce surplus production that has contributed to the decline in grain and livestock prices over the last two years, says ABA.

Sanctions measure is approved by Senate. The Senate has approved legislation to require the President to get congressional approval before imposing sanctions on food and medicine exports. BLOOMBERG NEWS reports it could face strong opposition from the Clinton Administration. It passed as an amendment to the ag appropriations bill and requires the president to get the approval for sanctions unless they're against countries that sponsor terrorism or are part of an embargo supported by other countries. It differs from another bill that U.S. business and agricultural groups say is more likely to win support of the full Congress and the administration.

USDA to donate 225,000 tons of wheat. USDA will donate 225,000 tons of wheat to Pakistan, Ethiopia and the former Soviet republic of Georgia to alleviate food shortages and reduce U.S. supplies. BLOOMBERG NEWS reports USDA will spend $13 million to donate 100,000 tons to Pakistan, $10.8 million to buy and ship 90,000 tons to Ethiopia and $5 million to donate 35,000 tons to Georgia.

Rainer confirmed as CFTC chairman. The Senate Thursday confirmed William J. Rainer to be the new chairman of the Commodities Futures Trading Commission. He replaces Brooksley Born for a term that expires in 2004. BLOOMBERG NEWS reports that legislators and futures executives have supported the confirmation. "I will encourage the agency to develop a reputation for being a responsive and decisive agency," Rainer told the Senate Agriculture Committee last month. Born left the agency when her term expired June 1. David Spears, a Republican and former aide to retired Senate Majority Leader Bob Dole (R-KS), has served as acting chairman. Rainer was nominated by President Clinton.

Gold Kist founder dies. David William Brooks, founder of farming cooperative a poultry processing giant Gold Kist Inc., died Thursday at the age of 97. Brooks formed the cooperative in 1933 as the Georgia Cooperative Cotton Producers Association. Gold Kist now has annual sales of more than $2 billion, THE ASSOCIATED PRESS reports. Brooks served as an adviser to seven presidents. He also started Cotton Sales Mutual Insurance Companies in 1941 to provide farmers with fire and wind insurance. The company now insures farmers in 10 southern states.

Glickman turns off the sprinklers. Agriculture Secretary Dan Glickman didn't like what he saw as he drove up the horseshoe driveway to USDA Thursday, according to REUTERS. The sprinklers were on. Glickman ordered them turned off. Although no water restricitons have been imposed in Washington or nearby Virginia, Maryland has ordered people to turn off hoses and conserve much needed water during the current drought conditions. Glickman returned earlier this week from a tour of West Virginia and Maryland farms and declared 88 counties in the Mid-Atlantic region farm emergency areas because of extreme heat and little rain.

Environmental groups criticize new regulations. Even before the Environmental Protection Agency formally issues new regulations aimed at controlling runoff from large livestock and poultry operations, the Natural Resources Defense Council and other groups have criticized the new measures as inadequate, THE WASHINGTON POST reports.

WTO talks may start again soon. THE WALL STREET JOURNAL quotes Chinese officials as saying they are now ready to resume negotiating the terms of China's World Trade Organization membership with the United States. After high hopes earlier this year, the talks broke off after the accidental NATO bombing of China's embassy in Belgrade. The official said new meetings could occur within a month, THE JOURNAL reports.

August 5, 1999

Senate okays $7.4 billion in farmer assistance. The Senate has approved $7.4 billion in financial assistance for farmers, marking the second year in a row Congress has reacted to low prices by making the "freedom to farm" law more generous. The Senate defeated a larger package of aid offered by the Democrats in the day-long debate Wednesday. The aid will be included in the agricultural appropriations bill, and a September conference with the House of Representatives will be needed before the assistance package becomes final.

Dairy compact issue beaten back in Senate. The Senate defeated an effort to extend the life of the controversial Northeast Dairy Compact. The law says that the compact exists until such time as USDA implements the final rule on milk marketing order reform. So compact proponents sought to eliminate funding for a reformed order system, thereby continuing the Northeast Compact since a reformed order would not be possible without money.

Food safety now coordinated; no new agency needed. Federal agencies already have developed a coordinated and effective food safety system, making a new bureaucracy unnecessary, says the Grocery Manufacturers of America. The President's Council on Food Safety should be allowed to finish its work before any reorganization of food safety entities is tried.

EPA's FQPA management causes farmers concern. The Environmental Protection Agency has acted "irresponsibly" by restricting the application of two pesticides used on apples, other fruits and vegetables, says the American Farm Bureau Federation. The decisions are being made "outside the reassessment process that is slowly being built and are based on unrealistic default assumptions, unclear science policies and only serve to falsely scare the public about the safety of their food."

Ag News Summary

Russian wheat crop outlook reduced. The U.S. agricultural attache in Moscow says Russia's wheat crop has been reduced by 1 million tons because of locusts and heat, according to REUTERS.. Michael Fay says Russian likely will harvest 53 million tons of grain this year, 29 million tons of wheat. Last year, the grain crop was 47.8 million tons.

China expected to export more corn to Asia. China is expected to increase corn exports to Asia as the gap between Chinese and U.S. prices closed. Increased demand for soybean meal could revive China's imports, REUTERS reports from Hong Kong. Traders say China has lowered its price for corn exports and is taking advantage of higher U.S. prices caused by weather concerns in the Midwest to increase sales.

Corn Growers urge congressional action. The National Corn Growers Association wants Congress to approve short and long term provisions for farmers. "Farmers need immediate aid to help them weather the current crisis," NCGA told the Senate Agriculture Committee, "but at the same time, we cannot lose sight of the importance of forward thinking, long-term policies that will help us avoid future farm crisis by building stable markets for ouor products both at home and abroad."

August 4, 1999

Senate struggles on two fronts with major farm issues. The Senate today is faced with deciding whether to squelch a threatened filibuster over dairy issues and with how much money farmers should get this year to help shore up income losses from low prices. Senators rejected the Democrats' plan Tuesday, and efforts were underway to craft a compromise bill.

Glickman spells out preferences for farm law changes. Agriculture Secretary Dan Glickman believes that farm policy should concentrate assistance to producers suffering from low prices. Supplemental freedom to farm payments don't address the problem, he says. Many who get those payments are absentee landlords who are not active in farming.

Lugar provides treatise on farm income, `crisis' for colleagues. Senate Agriculture Committee Chairman Richard Lugar brought his rationale to the Senate floor this week for $2-3 billion in direct aid for farmers that would bring farm income about equal to the average of the 1990s. To do more, he told Senators, would make 1999 "one of the best years agriculture has ever had."

Crop insurance changes approved by House panel. The House Agriculture committee has finalized proposed changes to the federal crop insurance program with a bill designed to attract more farmers and ranchers to the program. For the first time, livestock producers could be insured.

USDA accepts bids for 50,000 tons of pork to Russia. USDA has accepted bids on 50,000 tons of pork to Russia as humanitarian assistance, but U.S. pork producers want another 50,000 tons authorized. USDA had rejected offers on two previous occasions because bids were too high.

Ag News Summary

Japan will label 28 GMO food products. Corn snacks and tofu are two of the 28 food products subject to mandated labeling for genetically modified organisms in Japan starting next April. KYODO NEWS SERVICE reports that a draft from the agriculture ministry stipulates the labeling of farm products made form GMOs and processed foods made mainly from GMOs for consumers. The draft excludes from the labeling requirement farm products not for consumer use and those made mainly of GMO-free food materials. Those include some soybean and corn products such as starch and flour. The plan is expected to come under criticism from domestic consumer groups opposed to GMOs and major exporting countries, including the United States, where exporters are worried about a decline in food exports to Japan.

Consumer advocates want sugar on food labels. Consumer advocates are urging that food labels disclose the amount of sugar added to the products. THE ASSOCIATED PRESS reports the current food labels report the total sugar in a product, but consumers cannot distinguish how much sugar was added to the product and how much occurs naturally.. The Center for Science in the Public Interest is one of the groups petitioning the Food and Drug Administration to change the current label requirements to add a line listing "added sugar" and show what percentage that is of a recommended daily amount.

Southern Africa urged to cooperate in agriculture. Southern African countries need to cooperate to increase the region's agricultural based economies and their international competitiveness. REUTERS quotes Agricultural Business Chamber of South Africa Executive Director Johan van Rooyen saying it is "imperative that the agribusiness community collaborate to formulate clear viewpoints in order to be influential in regional cooperation strategies and programs." Strategies also should be introduced to link small-scale farmers to commercial agriculture, he said.

Russia revises 1999 grain crop forecast. Russia has increased its forecast for this year's grain harvest to 60-62 million tons from 58-60 million following better crop reports from some key growing areas, REUTERS reports from Moscow. First Deputy Agriculture Minister Anatoly Mikhalyov told reports feed grain imports in 2000 could total 8.6 million tons. This year Russia will increase the acreage sown to winter grains to 16.1 million hectares compared to 13.6 million last year.

August 3, 1999
Senate considers two emergency relief measures. The Senate this afternoon (Tuesday) considers two emergency relief measures, one from the Democrats, the other from the Republicans, designed to provide billions to farmers facing low commodity and livestock prices. Sen. Tom Harkin (D-IA) will offer an amendment calling for $11 billion in aid, and Sen. Thad Cochran (R-MS) will offer the Republican version, worth $7 billion. The measures will be offered as amendments to the agricultural appropriations bill.

Senate could have showdown votes today on ag aid. Republicans and Democrats may get the chance to offer their respective farmer assistance packages in the Senate today. The Democrats will attempt to get a $10.8 billion emergency assistance attached to the agricultural appropriations bill; Republicans have a more modest $7 billion proposal. Meanwhile, the Senate Agriculture Committee has a hearing on farm income problems today at 9 a.m.

U.S. tables four ag proposals for upcoming WTO round. The United States tabled four short papers for the World Trade Organization negotiations that begin this fall on agricultural issues. The papers propose that the negotiations adopt objectives to end export subsidies and achieve other goals.

EPA restricts uses of two ag chemicals on produce. The Environmental Protection Agency has restricted the application of two pesticides used on apples, other fruits and vegetables. EPA says the actions are to protect children; American Farm Bureau Federation says it's politics.

USDA designates mid-Atlantic region disaster area. Agriculture Secretary Dan Glickman says West Virginia is a disaster area due to excessive heat and drought. Low interest loans will be available to farmers there and in 33 contiguous counties in five other states.

Fed's listeria control proposal a "band-aid," says GMA. The Grocery Manufacturers of America believes the federal government's proposal to control listeria contamination in ready-to-eat products is a "band-aid approach" that may not make much difference.

Ag News Summary

U.S. and Mexican cattlemen work to maintain trade. Joint action by the National Cattlemen's Beef Association and the Mexican cattlemen's group, Confederacion Nacional Ganadera, has kept live cattle exports to Mexico from tariffs the Mexican government had levied on U.S. beef. Both organizations had agreed not to support duties on live cattle trade between the United States and Mexico. "Open communications and negotiations have resulted in zero tariffs being levied against live cattle," says NCBA. NCBA will work with the beef industry and the U.S. government to overturn the duties as the case moves through the process of implementation.

Japan will name 28 foods for GMO labeling. Corn snacks, tofu and 26 other foods will be subject to mandated labeling for genetically modified organisms (GMOs) starting next April, KYODO NEWS SERVICE reports from Tokyo. The proposal is part of a government draft made available form the Ministry of Agriculture, forestry and Fisheries. Labeling of products made from GMOs and processed food made mainly from GMOs for consumer use would be required under the proposal.

Meat packers sell 50,000 tons of pork to USDA. Eight meat packers sold 50,000 tons of pork worth $88 million to USDA for donation as humanitarian aid to Russia. BLOOMBERG NEWS reports the sale of hams, pork bellies, whole hogs and other cuts for September-November delivery. The sale should help reduce a glut of U.S. pork supplies. IBP Inc., sold $29.6 million, Cargill's Excel unit sold $1 million, John Morrell & Co. sold $13 million and Smithfield Packing co. sold $11 million. Four other companies shared the rest of the total.

Senate considers two emergency relief measures. The Senate this afternoon (Tuesday) considers two emergency relief measures, one from the Democrats, the other from the Republicans, designed to provide billions to farmers facing low commodity and livestock prices. Sen. Tom Harkin (D-IA) will offer an amendment calling for $11 billion in aid, and Sen. Thad Cochran (R-MS) will offer the Republican version, worth $7 billion. The measures will be offered as amendments to the agricultural appropriations bill.

Senate could have showdown votes today on ag aid. Republicans and Democrats may get the chance to offer their respective farmer assistance packages in the Senate today. The Democrats will attempt to get a $10.8 billion emergency assistance attached to the agricultural appropriations bill; Republicans have a more modest $7 billion proposal. Meanwhile, the Senate Agriculture Committee has a hearing on farm income problems today at 9 a.m.

U.S. tables four ag proposals for upcoming WTO round. The United States tabled four short papers for the World Trade Organization negotiations that begin this fall on agricultural issues. The papers propose that the negotiations adopt objectives to end export subsidies and achieve other goals.

EPA restricts uses of two ag chemicals on produce. The Environmental Protection Agency has restricted the application of two pesticides used on apples, other fruits and vegetables. EPA says the actions are to protect children; American Farm Bureau Federation says it's politics.

USDA designates mid-Atlantic region disaster area. Agriculture Secretary Dan Glickman says West Virginia is a disaster area due to excessive heat and drought. Low interest loans will be available to farmers there and in 33 contiguous counties in five other states.

Fed's listeria control proposal a "band-aid," says GMA. The Grocery Manufacturers of America believes the federal government's proposal to control listeria contamination in ready-to-eat products is a "band-aid approach" that may not make much difference.

Ag News Summary

U.S. and Mexican cattlemen work to maintain trade. Joint action by the National Cattlemen's Beef Association and the Mexican cattlemen's group, Confederacion Nacional Ganadera, has kept live cattle exports to Mexico from tariffs the Mexican government had levied on U.S. beef. Both organizations had agreed not to support duties on live cattle trade between the United States and Mexico. "Open communications and negotiations have resulted in zero tariffs being levied against live cattle," says NCBA. NCBA will work with the beef industry and the U.S. government to overturn the duties as the case moves through the process of implementation.

Japan will name 28 foods for GMO labeling. Corn snacks, tofu and 26 other foods will be subject to mandated labeling for genetically modified organisms (GMOs) starting next April, KYODO NEWS SERVICE reports from Tokyo. The proposal is part of a government draft made available form the Ministry of Agriculture, forestry and Fisheries. Labeling of products made from GMOs and processed food made mainly from GMOs for consumer use would be required under the proposal.

Meat packers sell 50,000 tons of pork to USDA. Eight meat packers sold 50,000 tons of pork worth $88 million to USDA for donation as humanitarian aid to Russia. BLOOMBERG NEWS reports the sale of hams, pork bellies, whole hogs and other cuts for September-November delivery. The sale should help reduce a glut of U.S. pork supplies. IBP Inc., sold $29.6 million, Cargill's Excel unit sold $1 million, John Morrell & Co. sold $13 million and Smithfield Packing co. sold $11 million. Four other companies shared the rest of the total.

August 2, 1999
Clinton calls for aid, law changes. President Clinton believes the 1996 farm law "simply does not do enough to help...in hard times." He pledges to work with Congress on immediate aid and to change the law. Congress may be poised to take its own action.

Farm income total lowered slightly for 1999. Net farm income for 1999 now is expected to total $43.8 billion, a decline from $44.1 billion in 1998. But that's still near the decade-long average of $45.5 billion. Still, farm assets should increase in value and debt decline.

House Ag meets again Tuesday to complete crop insurance. The House Agriculture Committee meets again Tuesday in an effort to conclude action on its crop insurance reform bill. On Friday, the Committee passed an amendment to cut the bill's cost to the $6 billion mark allowed by Congress through fiscal 2003. An amendment may be offered to let USDA deliver catastrophic insurance policies.

Canada complains about perishables being held for clearance. Canada's Deputy Head of Mission D.G. Waddell has complained to the Food and Drug Administration that FDA is holding Canadian fruit and vegetable imports until they spoil. Since March, says Waddell, such instances have increased even though the products have been sampled "numerous times."

Animal waste managed as well as can be expected. The General Accounting Office says animal waste management practices are being conducted about as well as can be expected. Some other countries have government subsidized companies manage animal waste, and potential new practices could be adapted but at prohibitive cost.

Ag News Summary

Farm aid proposals are a rip-off, says economist. John Frydenlund believes the rush to provide farmers with billions in emergency aid is part of the "continuing drive to buy votes." Emergency relief packages reflect "a crisis of the truth" not a crisis of need. Frydenlund made his comments Friday at the Heritage Foundation. He is an economist for the taxpayers group Citizens Against Government Waste. REUTERS reports that at the same forum, Kevin McNew, ag economics professor at the University of Maryland, said farm aid can have unintended consequences. Large farms already are profitable and with government payments can grow even larger. But such programs can make it more difficult for small farmers to survive.

Australian farmers picket U.S. embassy for a month. Australian farmers have begun a month-long picket of the U.S. embassy in Canberra, BLOOMBERG NEWS reports. The protest is in response to last month's decision by the United States to impose tariffs on lamb imports from Australia and New Zealand. The Australian government supports the protest. Warren Truss, minister for agriculture, said the action "demonstrates to the world that the U.S. is not fair...about fair trade and does not practice what it preaches."