December 28, 2000

USDA Workforce More Diverse. USDA's workforce has grown more diverse during the Clinton-Gore Administration, according to Agriculture Secretary Dan Glickman. Women now occupy more than 42% of USDA's permanent positions, and 21% of the department's employees are minorities, the highest percentage in history. 

Former Veneman Colleague Praises Her Qualities. Gary Blumenthal of World Perspectives, Inc., a former colleague of incoming Agriculture Secretary Ann Veneman, believes she is the best choice for the job. President-elect George W. Bush's nomination of Veneman "is the best possible choice he could have made," says Blumenthal. "She will be good for American agriculture." 

ARS Releases Two Rice Varieties. Two new rice varieties containing a gene to improve cooked rice texture, Cadet and Jacinto, entered commercial production this year after a new technology from USDA's Agricultural Research Service speeded their development. ARS scientists at Beaumont, TX, and their colleagues at the Texas Agricultural Experiment Station, College Station, used the fast-paced biotechnological selection process--called marker-assisted selection--to locate desirable genes in noncommercial varieties and deploy them into the new varieties through conventional breeding.

News Summaries

StarLink Goes for Beer, Processed Foods. KYODO NEWS reports from Tokyo that the Health and Welfare Ministry confirms that U.S.-grown StarLink corn banned for consumption in Japan has been mixed with corn used for brewing beer and making processed foods. Officials from the health ministry's Food Sanitation Division said the ministry is investigating the safety of StarLink corn; there have been no reports of health problems so far. Japanese officials estimate around 28,000 tons of 38,000 tons of corn imported from the United States were blended with the StarLink variety. The grain was processed into foods and materials for industrial products and sold by manufacturers to distributors in Japan. About 17,000 tons were used to make beer, starch syrup and other foods, according to the ministry. 

Bush, Farm Leaders Discuss Issues. THE ASSOCIATED PRESS reports from Austin, TX, that President-elect Bush mostly listened to farm organization leaders at a meeting Friday. Ann Veneman, Bush's nominee for agriculture secretary, and Christine Todd Whitman, the nominee for head of the Environmental Protection Agency, were part of the meeting. "We had a wide-ranging discussion. We know, I know, how important agriculture is to our country," Bush said. "There are a lot of issues farmers now face. I'm worried about the family farmer and people who make a living off the land." The AP article notes the new administration faces several potential headaches in agriculture. Federal farm subsidies continue to increase while commodity prices have been stuck in a three-year slump. Congress returns to work early next year hoping to rewrite a farm program that expires in 2002. The new administration needs to keep Europe's mad-cow scare from spreading to the United States and also faces court battles over the Clinton administration's food safety initiatives and USDA's treatment of minority farmers. Bush mostly listened without making specific promises, said Tony Anderson, president of the American Soybean Association. "President-elect Bush made it very clear that there would not be a wish-list that would be fulfilled, you know, what we all want for Christmas," Anderson said. 

CFTC Approves Online Derivatives.  BLOOMBERG NEWS reports that the Commodity Futures Trading Commission has approved an online derivatives market and clearing firm that will compete with traditional exchanges offering energy, agricultural and financial futures trading. OnExchange Board of Trade plans to offer trading of energy and agriculture futures next year, the CFTC said. OnExchange and OnExchange Clearing Corp. are the first exchange and clearing firm approved by the CFTC since President Clinton signed a new law deregulating derivatives markets Dec. 21. The article says OnExchange wants to use the speed, flexibility and low cost of the Internet "to establish futures trading in markets that are too small for traditional exchanges" and in new markets such as single-stock futures, according to Ed Cuoco, OnExchange's chief operating officer. It is the latest online exchange to try to capitalize in part on the industry's deregulation. 

Monarchs More Safe than Thought.  Genetically engineered corn may not be as risky for monarch butterflies as once feared, say scientists who studied the insects this summer, according to an article from THE ASSOCIATED PRESS. Pollen from the corn can be toxic to the butterflies, whose favorite food, milkweed, grows in and around corn fields. But the research to be published next year suggests the risk is low, the scientists say. The federally subsidized research is the first comprehensive effort to determine the impact of biotech corn on monarchs. The Environmental Protection Agency is expected to use the research as it decides whether to renew approval of the biotech corn as well as varieties of gene-altered cotton and potatoes, the AP says.

December 27, 2000

Producers Weigh Farm Policy Options. The American Cotton Producers (ACP) Policy Committee, chaired by North Carolina producer Billy Carter, has developed farm policy recommendations for the National Cotton Council. The recommendations include adequate congressional budget authority of about $20 billion a year, elimination or "mitigation" of payment limits and targeting of benefits and maintaining planting flexibility. 

NCC Comments on Singapore FTA Negotiation. National Cotton Council President Bob McLendon has urged U.S. officials to make certain that any free trade agreement with Singapore include rules of origin for textiles that are no less restrictive than those in North American Free Trade Agreement (NAFTA). McLendon also stressed what NCC considers the importance of securing reciprocal market access for both countries. 

EPA Seeks Comments on Malathion Risk Assessment. The Environmental Protection Agency is taking public comments for 60 days on malathion as part of a follow up to EPA's technical briefing in which agency stated some mitigation would be needed to address risk assessment concerns for the organophosphate. Cotton is the largest user (84% of total agricultural pounds annually) of this insecticide, which is a key tool in boll weevil eradication program. 

Grants for Obesity Research Announced. Agriculture Secretary Dan Glickman has announced $2.3 million in grants for research on obesity, perinatal nutrition, and food stamp participation among the elderly. Among the issues researchers will address are the association between dietary habits during adolescence and development of obesity; the relationship between food insecurity and hunger and poor birth outcomes and how to increase food stamp participation among the elderly. 

Trade Surplus Increases. The U.S. agricultural trade surplus increased again in October, and was 17% more than in October 1999. The January- October surplus of $9.7 billion is 18% greater than in the same period in 1999. Exports to date of $42.2 billion are 7% higher than the past year, while imports are only 4% more. 

New Soy Soap Marketed. SOYP™, a new soy-based consumer hand cleaner is being marketed by Henneberry Marketing of El Paso, IL. It contains soybean oil, which is a significant source of vitamin E. "With a name like SOYP, it has to be made from soybeans. It's a natural ingredient for a hand cleaner," said Mark Henneberry, president of Henneberry Marketing.

News Summaries

USDA Makes Dairy Payments. USDA has begun making payments to dairy producers under the DMLA (dairy market loss assistance payments) III program. The payments were authorized under section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001. The first payments will be made to dairy producers who received payments under section 805 of Public Law 106-78 (DMLA-II). The payment rate will be $.6468 per hundredweight (cwt.) and payments will be available on production up to 39,000 cwt. DMLA II payments were limited to 26,000 cwt. DMLA-III payments will be handled similar to DMLA-II in that the payments will be automatically paid to eligible DMLA-II recipients by Farm Service Agency county offices. A signup will be held in early 2001 for new dairy operations and for dairy operations that were paid on less than 12-months' production under previous DMLA programs. Dairy operations that were paid on less than 12-months' production have the option of changing their production base to the period Oct.1, 1999, through Sept. 30, 2000, and having their DMLA-III benefits recalculated accordingly. A subsequent program announcement will be made to announce the signup for these new dairy operations and for dairy operations that were paid for less than 12-months production under previous DMLA programs. 

No Problems with StarLink Reported. KYODO NEWS reports from Tokyo that test results showed no genetic problems in the meat of broiler chickens raised by feed containing StarLink corn. The Ministry of Agriculture, Forestry and Fisheries made the statement an interim report released Monday. The ministry has conducted tests on animal feed including StarLink which contains a gene that creates a germ-killing substance said to possibly cause allergic reactions in some humans. Under the tests, ministry researchers fed 130 chicks with feed composed of 70% StarLink since Nov. 9 and examined the meat, plucks and blood of 16 of the broilers 20 days after. The report said there was no evidence that a gene and protein specific to StarLink were carried over to the broiler samples. A final report is expected to be released in late January. 

Tyson Applauds Pardon.  REUTERS reports that Tyson Foods Inc., the largest U.S. poultry processor, Friday applauded President Clinton's decision to pardon former company executive Archie Schaffer. Schaffer was convicted of trying to influence U.S. agricultural policy by attempting to influence former Agriculture Secretary Mike Espy by arranging for Espy to attend a company party in 1993. The conviction under a 1907 law had been criticized by Arkansas politicians who said an independent counsel used Schaffer to help build a case against Espy. Espy was finally acquitted in late 1998. "We have expressed our belief in Archie's innocence from the very beginning of his long, arduous ordeal," said the company in a statement issued Friday. "We're pleased that this move will bring finality to this situation and hope that Archie and his family may now return to a normal life." Schaffer was sentenced to a year and a day in prison and a $5,000 fine under the Meat Inspection Act, a law that forbids giving anything of value to federal officials.

December 22, 2000

Farmers Approve Milk Order Changes. Producers supplying milk for the 11 federal milk marketing orders have approved amendments to the current Class III and Class IV pricing formulas. USDA determined producer approval by polling the producer cooperative associations in eight of the markets and by conducting referenda in the Northeast, Mideast, and Upper Midwest markets. The interim amended orders will become effective for milk marketed on or after Jan, 1. 

Animal Proteins Banned from Import. USDA has banned imports of rendered animal protein products, regardless of species, from Europe. This decision followed the recent determination by the European Union that feed of non-ruminant origin was potentially cross-contaminated with the bovine spongiform encephalopathy (BSE) agent. 

Pediatrics Group Reviews Irradiation. The American Academy of Pediatrics has published a review of food irradiation, basically finding that irradiated foods are safe. Published in "Pediatrics," the report notes that although approved for use in selected foods in the United States, widespread use "remains controversial because of public concern regarding the safety of the technology and the wholesomeness of irradiated foods."

News Summaries

Farm Bureau Members to Gather in Orlando. An expected 5,000 Farm Bureau members from across the nation soon will be converging on Orlando, FL, for the American Farm Bureau Federation's (AFBF) 82nd convention and annual meeting, Jan. 7-10. During the meeting, farmers and ranchers from the 50 states and Puerto Rico will discuss agricultural issues, review the latest equipment exhibits, choose leaders and set policies to guide AFBF throughout 2001. AFBF President Bob Stallman will speak at the Jan. 8 general session. The speech will mark the Texas rice and cattle producer's first AFBF annual meeting address to members since his election as AFBF president last year. In line with this year's convention theme, "Farm Bureau's Focus is Agriculture's Future," Daniel Burrus, one of the world's leading technology forecasters, will follow Stallman with a speech regarding the scope of technology affecting agriculture in tomorrow's world. Burrus, the founder and CEO of a research and consulting firm that specializes in global innovations in science and technology, has been called one of America's "top three business gurus" by The New York Times. An issue conference that will draw considerable attention Monday afternoon is titled "Preparing for the Next Farm Bill." That conference, chaired by AFBF President Stallman, will include as speakers: Missouri Farm Bureau President Charlie Kruse; Indiana Farm Bureau Vice President Don Villwock; Paul Drazek, a farm policy specialist from DBT Associates and former AFBF staff member; and Bruce Babcock of Iowa State University. 

Bush, Veneman Meet Farm Leaders. REUTERS reports that President-elect George W. Bush will sit down with farm leaders today to discuss his agricultural agenda. Bush and Agriculture Secretary-designee Ann Veneman will meet in Austin, TX, with leaders from the cotton, corn, wheat, soybean, rice, sugar, dairy, beef, pork and fruit and vegetable industries and state secretaries of agriculture from Wisconsin, Pennsylvania, Florida, Tennessee, Michigan, Texas and Ohio. Clayton Yeutter, who served as agriculture secretary for the first two years of Bush's father's administration, will also take part in the talks Friday. 

Agriculture Issues May Prove Difficult.  THE ASSOCIATED PRESS reports that President-elect Bush and Agriculture Secretary-designee Ann Veneman may find food and agricultural issues especially difficult in the coming months. Federal farm subsidies are skyrocketing because of a three-year-old slump in commodity prices. Congress returns to work early next year to rewrite a Republican-authored farm program that expires in 2002. The article also notes that the new administration needs to keep Europe's mad-cow scare from spreading to the United States. It also faces court battles over the Clinton administration's food safety initiatives and USDA's treatment of minority farmers. "USDA is a tough thing to govern," said Lester Crawford, who served with Veneman in the department under Bush's father. "She certainly knows how it's organized and where the land mines are." Crawford, who directs Georgetown University's Center for Food and Nutrition Policy, ran USDA's food safety agency when Veneman, as the department's deputy director, was the No. 2 official.

December 21, 2000

Veneman Reactions Positive. President-elect George W. Bush's nomination of Ann Veneman as Secretary of Agriculture has brought positive reactions from outgoing Secretary Dan Glickman and several farm organizations. "I think she'll do a fine job,'" Glickman told reporters. "I think the president-elect has made a very good choice." He said he had worked with Veneman on several issues and added she understands USDA. 

Final Organic Rule Announced. Agriculture Secretary Dan Glickman has announced final national standards for the production, handling, and processing of organically grown agricultural products that he calls the "strongest and most comprehensive ... in the world." For farmers, the standards are designed to create clear guidelines on how to take advantage of the exploding demand for organic products. And for the organic industry, these standards should provide an important marketing tool to help boost exports since trading partners will now deal with only one national standard rather than multiple state and private standards, according to Glickman. 

Corn Growers Plan Biotech Liability Push. The American Corn Growers Association (ACGA) plans to make biotechnology liability protection for farmers a major priority in the upcoming 107th Congress. In a presentation to the Policy Committee of the National Farmers Union in Minneapolis, ACGA Executive Director Lynden L. Peter said the organization would work with the new Congress on legislation "to make sure that producers are compensated for lost markets and protected against environmental risks."

News Summaries

USDA Will Review Some Pork Ballots. USDA will review ballots cast in the pork checkoff referendum that were declared invalid to determine whether they can be counted as valid ballots. Farm Service Agency (FSA) county offices reported that, of the approximately 30,000 ballots cast, more than 2,000 ballots were declared invalid because certain required information was missing. Such missing information on registration and certification forms included the person's address and the date the form was signed. The missing information was for administrative needs, including identifying voters for challenge purposes. FSA county offices are being directed to review the registration and certification forms for ballots previously determined to be invalid. Based on the new instructions, FSA county offices will count and report the results of their review. USDA expects to announce the results of the vote by the first week of January. 

Cattle Industry Readies San Antonio Convention. Plans are being finalized for the 2001 Cattle Industry Convention and Trade Show in San Antonio, to take place Jan. 31-Feb. 4. Titled "Define the Industry: Be Part of the Adventure," the event is expected to be one of the largest ever, with cattle producers gathering from across the country to learn how their operations can better compete in a changing industry and joining forces to address challenges facing the industry. The trade show is sold out for exhibitors, with nearly 300 companies expected to participate. Registrations for the Convention and Trade Show are also being submitted at a pace ahead of previous years. More than 6,000 people are expected to attend. Organizations participating in the Convention are the Cattlemen's Beef Promotion and Research Board, the National Cattlemen's Beef Association, the American National CattleWomen, Inc., National Cattlemen's Foundation and Cattle Fax. Each organization will conduct its annual meeting at the event, while special combined programs and entertainment will be presented. A "Cattlemen's College" Feb. 1 will also provide producers with information in a variety of areas for improving their operations. Although on-site registration is available for the event, discounted pre-registration for the 2001 Cattle Industry Convention and Trade Show ends Jan. 3. For more information, contact the National Cattlemen's Beef Association's (NBCA) Convention and Meetings Department, 303/694-0305. 

Canada Threatens Spud Retaliation.  THE ASSOCIATED PRESS reports that Canada is threatening trade retaliation because a fungus found in one potato field on Prince Edward Island has led to a U.S. ban on spuds from the Canadian territory. The island's government will compensate farmers for at least some of the estimated $14.5 million in losses since the U.S. ban on potato shipments began in late October. Federal Agriculture Minister Lyle Vanclief spoke with U.S. Agriculture Secr etary Dan Glickman on Tuesday and also is considering giving federal money to affected farmers. Sylvie Millette LeDuc, Canadian spokeswoman, said U.S. agriculture officials were ignoring Canada's evidence that the potato wart fungus found in a field in New Annan, Prince Edward Island, had yet to turn up anywhere else. The potato wart is a fungal disease that makes the potatoes unmarketable. It can be transferred in soil. 

Vets Win Pig Battle in Britain. REUTERS reports that Britain welcomes the end of a ban by the European Union on live pig exports from eastern England. British officials say it proves veterinarians are winning a battle against swine fever in the region. The European Commission banned pig exports in August after the discovery of swine fever that can wipe out herds but is not dangerous to humans. Swine fever was found at locations in Norfolk, Suffolk and Essex. UK, Dutch and U.S. veterinarians have battled against the disease and only two farms remain under surveillance, the Agriculture Ministry said. "This is great news for the pig farming community in East Anglia. After the difficulties of the last few months I know the lifting of the ban before Christmas will come as a welcome boost to the industry," Baroness Hayman, UK minister of state for agriculture, said in a statement. "The State Veterinary Service and MAFF (ministry) officials have worked hard to control and eradicate the disease. I am pleased our efforts have been rewarded and we have been able to demonstrate to the European Commission and other member states that the export ban is no longer necessary." 

Woman Sues Over E. Coli. A Wisconsin woman, Rose Deede, is suing American Foods Group Inc. after she became ill from E. coli bacteria after eating a hamburger. She accuses the Green Bay meat packer of negligence. THE ASSOCIATED PRESS reports that it is the first to be filed in Wisconsin following an E. coli outbreak that sickened at least 43 people in Wisconsin and Minnesota, according to her attorney, Michael Hanrahan. A St. Paul, MN, woman and an Illinois couple who claimed they were sickened in the outbreak have also filed suit. The article says American Foods supplied ground beef to Cub Foods stores, where all three groups said they bought the meat that made them ill. Deede, 57, said she developed nausea, diarrhea and abdominal pain four days after cooking the ground beef. Tests showed evidence of E. coli bacteria, her lawsuit says. Deede's lawsuit seeks unspecified damages. Seattle attorney William Marler, who represented victims of a 1993 Jack in the Box E. coli outbreak, is helping her case.
 

December 18, 2000

Veneman Expected to be Named Today.  Ann Veneman, veteran USDA top official under former President George Bush and a former director of the California Food and Agriculture Department, is expected to be named today to the position of U.S. Secretary of Agriculture, according to accounts in THE WASHINGTON POST and other media. President-elect George W. Bush is said to be ready to name Veneman along with other cabinet nominations. She was one of several candidates for cabinet positions who met with Bush on Monday. 

ASA Claims $1 Billion from Soybean Loan Rate.  The American Soybean Association says the USDA decision to set the 2001 soybean loan rate at the maximum $5.26 per bushel means nearly $1 billion for soybean producers. ASA believes farmers would have lost $960 million had the loan rate been decreased 34 cents per bushel. 

Pioneer Postpones Hybrid Sales.  Pioneer Hi-Bred International, Inc., will postpone sales of Pioneer® brand corn hybrids that contain a combination of the YieldGard gene and LibertyLink gene for the 2001 growing season to minimize confusion in the marketplace for its customers, according to a company statement. 

Market Improvement Funds Available.  USDA has invited state departments of agriculture and other appropriate state agencies to submit proposals for matching funds under the Federal-State Marketing Improvement Program (FSMIP). For fiscal year 2001, USDA has allocated $1.35 million in federal funds for the administration of FSMIP grants. This represents a $150,000 increase over FY 2000 funding levels. USDA's Agricultural Marketing Service administers the program. 

USDA Expands AGR Pilot Program.  USDA will expand the adjusted gross revenue (AGR) crop insurance program. The "whole farm" insurance plan guarantees a percentage of the gross farm revenue derived from the sale of agricultural commodities. Larry N. Atkinson, director of the Raleigh, NC, regional office of USDA's Risk Management Agency said RMA will improve and expand the AGR with grower associations, several state agriculture departments, agricultural lenders, cooperative extension specialists, insurance companies, and other USDA agencies.

News Summaries

StarLink Won't Deter Exports.  REUTERS reports that Japanese and South Korean diplomats said on Tuesday the discovery of StarLink bio-corn in cargoes going to both countries' food and animal feed supply would not affect future U.S. corn exports. Two U.S. corn shipments destined for Japan's food supply and South Korea's animal feed industry Tuesday were found to be tainted with the genetically-altered StarLink corn. Masaki Sakai, Japanese counselor for agriculture to the United States, said the world's largest buyer of American corn intended to honor a U.S. trade agreement it approved earlier this week because of the incident. Japan's Agriculture Ministry on Monday agreed to expand a U.S. plan, or protocol, for testing shipments of corn for animal feed to ensure they do not contain StarLink bio-corn. The original agreement, approved last month, applied only to U.S. corn exports bound for Japan for human consumption. 

EU Threatens WTO Complaint on Bananas.  BLOOMBERG NEWS reports that the European Union said it will file a complaint at the World Trade Organization if the U.S. fails to remove $191 million in trade sanctions once the EU revises its banana import regulations. EU ministers were expected to sign off on the new banana import rules Tuesday. The WTO last year decreed the existing regulations illegal. The current system favors the bloc's banana- exporting former colonies in Africa, the Pacific and the Caribbean, over Latin American bananas exported by U.S. companies Dole Food Co. and Chiquita Brands International Inc. The WTO allowed the United States and Ecuador to require compensation for the illegal rules in the form of punitive tariffs on EU exports until the law was changed. The new system would allocate EU banana import licenses on a first-come, first-served basis until 2006 when it would switch to a tariff-only import system. The U.S. says the new rules don't comply with WTO demands. 

Philippines, China Ink Trade Deal.  REUTERS reports that the Philippines signed an agreement Wednesday to draw nearly $100 million in agricultural credit from China. President Joseph Estrada said about $50 million would be used to expand a fishing port in General Santos City in Mindanao in the south of the country. "This will be a big help in our agricultural program," Estrada said after the loan agreement was signed at the presidential palace. Finance Secretary Jose Pardo said the loan will have a maturity of 10 years and an interest of 3%. Pardo signed the agreement for the Philippine government while China was represented by Liu Jianling, general manager of the China National Constructional and Agricultural Machinery Import and Export Corp (CAMC).
 

December 17, 2000

Cheese Firms Correct EPA Violations.  Ten cheese companies have corrected 264 environmental violations under the Environmental Protection Agency's audit policy which allows the agency to reduce or eliminate penalties when companies voluntarily audit, promptly disclose and correct violations. EPA waived 100% of potential gravity-based penalties in return for the companies' voluntary disclosure of violations and a speedy return to compliance. 

World Losing Animal Breeds.  Every week, the world loses two breeds of its domestic animal population, according to estimates just published in the third edition of the World Watch List for Domestic Animal Diversity. The publication, issued by the Food and Agricultural Organization and the United Nations Environment Program, results from 10 years of data collected in 170 countries, covering 6,500 breeds of domesticated mammals and birds: cattle, goats, sheep, buffalo, yaks, pigs, horses, rabbits, chickens, turkeys, ducks, geese, pigeons and even ostriches. 

Loan Rates Announced.  USDA has set marketing assistance loan rates for 2001-crop wheat, feed grains, oilseeds, upland and ELS cotton, and rice at the maximum levels. Loan rates for wheat, corn, soybeans, and minor oilseeds are required to be no less than 85% of the simple average of prices received by producers during the immediately preceding five years, excluding the high and low years.

News Summaries

Bush and a Parade of Candidates.  THE ASSOCIATED PRESS reports that President-elect George W. Bush conducted "a parade of private job interviews" Monday for potential cabinet secretaries, including his leading candidate to head the Pentagon. The article says former Sen. Dan Coats (R-IN) is likely to be Bush's choice as defense secretary, according to several advisers. They said Bush wanted to talk to the former senior member of the Senate Armed Services Committee before making a final decision. Bush also planned to meet Paul H. O'Neill, leading candidate for treasury secretary, and Ann Veneman, top prospect for agriculture secretary, while in Washington for a round of high-profile courtesy calls, said two Bush advisers who spoke on condition of anonymity. 

Bids Taken for Poultry Export.  USDA has accepted two bids from an exporter under the Export Enhancement Program (EEP) for frozen poultry to Middle East countries. The award totaled 152 metric tons of frozen poultry. Delivery is Dec. 18-Jan. 15 with an average bonus of $650 per ton. Tyson Foods, Inc., will receive the bonuses.
 

December 16, 2000

EPA Proposes Animal Waste Rules.  The Environmental Protection Agency Friday proposed strict new controls designed to protect public health and the environment from what it claims is one of the nation's leading causes of water pollution -- animal wastes from large, industrial feedlot operations. 

Commodity Bill Finalized.  Congress Friday finalized the commodity futures bill designed to modernize the existing regulatory framework for exchange-traded and over-the-counter derivatives, and allow exchange-traded single stock futures. Supporters of change say the economic potential of the derivatives and futures markets is hampered by a regulatory structure that has not kept pace with the rapid changes in world markets.

Bt Crops Considered Safe in Journal Evaluation.  An evaluation of plants protected against insect pests through biotechnology finds that Bt (Bacillus thuringienisis) crops are as safe as conventional plant varieties and provide significant economic, environmental and agricultural benefits. The study appears in the peer-reviewed scientific journal, Regulatory Toxicology and Pharmacology. 

Canada's Trade Record Spotty.  Canada's trade and investment regime is among the world's most transparent and liberal, but there also are persistent barriers in a few important areas including agriculture, says a new WTO report on the trade policies of Canada. Reaping the fruits of a generally outward looking environment, both trade and investment flows have continued to expand rapidly since Canada's previous trade policy review in 1998. Barriers persist in certain agri-food industries, textiles and clothing, and some services activities, notes the report.

News Summaries

Cotton Online Trading Passes Mark.  The Seam, the world's first online cotton marketplace, has completed its first week of trading with more than 13,000 bales changing hands. This new business-to-business enterprise provides a total online trading platform, allowing buyers and sellers to initiate, negotiate and complete transactions on The Seam's website. The system is modeled after the industry-standard TELCOT® technology that has been in operation since 1972 and enabled more than 25 million bales to be traded online. That technology, previously available only to TELCOT subscribers, is now available nationwide through The Seam's website, www.theseam.com. Sellers of cotton upload their bale data to The Seam's site where cotton buyers browse the bales on the system or search for lots by specific attributes such as quality, price and location. Buyers are immediately able to purchase cotton with The Seam's Quick Buy feature, or consolidate several lots for review before purchase. 

Cotton Works to Unify Policy Positions.  National Cotton Council leaders are working to unify industry positions on farm policy specifics. NCC President McLendon, NCC Vice President Phil Burnett and Vice President Washington Operations John Maguire, met recently with leaders from other commodity organizations, and another such meeting is scheduled for this week to determine where consensus exists and broaden coalition on as many farm program principles as possible. The American Cotton Producers farm policy committee is meeting Tuesday and Wednesday to focus more intently on program details, and NCC's leadership committee will meet Jan. 10 for similar discussions. The goal is to have consensus recommendations for consideration by NCC's program committees, board of directors and delegates when these bodies convene during NCC's January annual meeting. 

Producers, Processors Work for Pork Quality.  Pork producers, processors and other industry specialists met recently in Kansas City, MO, to discuss ways to ensure consumers can purchase high-quality pork products. They gathered as members of the National Pork Producer Council's (NPPC) Pork Quality Solutions Team during the checkoff sponsored 2000 unified research meeting, held by NPPC and the National Pork Board. The committee met to review research proposals studying pork color stability, texture, water holding capacity and pH. They also requested projects looking at biochemical factors and harvest factors affecting pork quality. Out of the 24 project proposals received in the pork quality area, six were selected to be approved by the National Pork Board for funding with checkoff dollars. In addition to awarding funding to researchers, the committee also discussed the formation of a new program to promote research in this area. The pork quality research initiative will be designed to gather funding from packers and genetics companies for further research to be able to measure pork quality on-line in packing plants. 

Smaller Cattle Herd Indicated.  BLOOMBERG NEWS reports that feedlots took in fewer cattle for the third straight month, a signal that beef processors will have a smaller herd to slaughter at a time when they already are paying the highest prices in seven years. Ranchers in the seven biggest cattle-producing states sent 1.678 million head to feedlots in November, 8% fewer than the1.823 million in the same month a year ago, according to USDA. That was a larger decline than the 7.4% expected by analysts in a BLOOMBERG NEWS survey. The news agency says feedlots are getting fewer young animals to fatten for slaughter because they got so many in the summer, when a drought scorched pastures in Kansas, Oklahoma and Texas. Ranchers were forced to sell the animals sooner than normal to avoid higher feed costs, leaving fewer available in later months. The expected smaller herd and signs of strong beef demand have sent cattle futures up more than 16% since early September to a 7 1/2-year high earlier this week. 

Iowa Farmer Gets Prize for Corn Yield.  Francis Childs, Manchester, IA, again is the first plance winner with a corn yield of 357.3 bushels per acre in the 2000 national corn yield contest. The popular National Corn Growers Association (NCGA) contest drew more than 3,500 farmers from throughout the nation. While they earned him the top prize in the 2000 contest, Childs' yields were down significantly from his 1999 record yield of 393.7 bushels per acre. A hail storm reduced his plant population and lowered his overall yield. Weather once again played a significant role in yields ranging from the winning 357.3 bushels to the lowest national yield of 216.7 bushels per acre. A complete list of winners will be posted on the NCGA web site: www.ncga.com. 

WTO's Moore Wants New Round in His Term.  RETUERS reports that World Trade Organization Director-General Mike Moore wants to see a new global round of trade talks launched during his term in office, which ends in August 2002. But Moore told a year-end news conference he recognized that agreement on a round among the WTO's currently 140 members was still a long way off, although many governments were showing "increasing flexibility" on the issue. "I'd like to do that (oversee the round launching)," declared the former New Zealand prime minister, who is serving a three-year term and will be succeeded by Thailand's Deputy Prime Minister Supachai Panitchpakdi. "I do believe we can do most for most people around the world inside a round....It would bring benefits to our member countries and to the global economy as a whole," he said. 

Chile Wants to Be Close to Mercosur.  Chile seeks stronger relations with the four South American countries that make up the Mercosur trade bloc, BLOOMBERG NEWS reports. Thje country's president says the goal is not to join another trade pact with the U.S., Canada and Mexico. Chilean President Ricardo Lagos said Chile is negotiating a free trade agreement with the United States at the same time the country is also looking to iron out differences with Mercosur member countries Brazil, Argentina, Uruguay and Paraguay to be able to boost trade. "I want to call your attention (to the fact that) we are working on a free trade agreement, we are not negotiating to join (the North American Free Trade Agreement)," Lagos said. "Chile doesn't want to be a member of another trade bloc, Chile wants to be a member of this trade bloc." The remarks came as the presidents of Mercosur joined for their closing statements at the two-day summit and may give new life to Mercosur. Recent disputes between Brazil and Argentina on automobile trade and agriculture exports, as well as Chile's decision to negotiate a separate treaty with the U.S. raised concern about the effectiveness of the South American trade pact, according to this report. 

U.S., Japan Agree on StarLink.  KYODO NEWS reports from Tokyo that Japan and the United States have agreed on procedures to test U.S. feed corn shipments for the presence of StarLink, a genetically altered variety of corn not currently approved in Japan. Japan's Agriculture, Forestry and Fisheries Ministry and USDA reached the agreement after the corn was found in food products on Japanese supermarket shelves in October. The number and size of sample will be consistent with U.S. government guidelines on domestic food use. The article also says Japan may send its inspectors to the U.S. so that they can monitor the testing of corn and distribution prior to export. If concerns arise, Japan's ministry officials will confer with U.S. officials and corrective measures will be taken where necessary, they said. 

`Super Potato' Announced.  REUTERS reports from London that scientists have pioneered a genetically modified "super potato" that glows when it needs water. Researchers at Edinburgh University injected potato plants with a fluorescence gene borrowed from the luminous jellyfish aequorea victoria, which causes their leaves to glow green when dehydrated. "This is an agriculture of the future," Professor Anthony Trewavas told REUTERS. "We were trying to design a way of monitoring the resources within a field and decided it was the plant itself which has that information." The potatoes are not intended to be eaten but would act as "sentinels," planted beside the commercial crop to alert a farmer that the rest of his field needed watering. The glow is barely visible to the naked eye but can be detected using a small hand-held device. Field trials are due to start next year though Trewavas predicted it could take some 20 years before the plants are commonly used. 

Aventis Moves to Cover Costs.  PRO FARMER reports that Aventis CropScience will accrue 100 million euros (pre tax) during the fourth quarter to cover certain recall related costs and liability costs related to its StarLink corn. "As we are in the midst of discussing this issue with our licensees who sold StarLink seed and insurance providers, this is currently the best estimate that we can provide," said Patrick Langlois, chief financial officer of Aventis. "Fortunately, we have significant insurance coverage towards resolving this issue. This accrual will be treated as an exceptional item, and does not alter the earnings outlook of Aventis on a full year basis."
 

December 15, 2000

Beef Industry Welcomes Bush Administration. The National Cattlemen's Beef Association says cattle producers "look forward" to working with a Bush Administration and the new Congress to solve issues important to the future of farms and ranches. "President-Elect Bush and Vice President-Elect Dick Cheney share many views with American beef producers such as elimination of the death tax, local control of environmental policies and making sure that trade laws are fair, protect U.S. producers and continue to open new overseas markets for U.S. beef," said NCBA President George Hall, a cattle producer from Mustang, OK. 

WTO Ruling Should Mean More Beef to Korea. A recent World Trade Organization ruling that upheld a decision declaring Korea's import regime to be illegal means U.S. beef producers likely will continue to expand their exports to Korea, according to the National Cattlemen's Beef Association. A WTO appellate panel on Monday upheld an August ruling that declared Korea's system of restricting 90% of imported beef from retail market channels to be illegal. The panel also let stand a ruling that declared Korea's excessive subsidies to its producers violate its WTO commitment to reduce domestic support. 

Genome Sequencing Brings Corn Growers' Applause. The National Corn Growers Association (NCGA) says the announcement of the completion of the genome-sequencing project for a mustard plant, Arabidopsis, is the first complete plant genome sequence and the most complete sequence of any higher organisms, even more complete than the human genome announced earlier this summer. The National Science Foundation, an independent government agency that focuses on funding basic research, made the announcement in Washington Wednesday. The NSF said the Arabidopsis has become the plant counterpart to the lab mouse, providing clues to how many organisms work and with potential applications in agriculture, energy and medicine. The mustard plant is a model for more than 250,000 other plant types.

News Summaries

GM Plant Risks Not Proven. REUTERS reports that studies aimed at showing whether genetically modified plants pose a risk to the environment "have so far failed." Researchers said there could be serious risks -- such as the development of "superweeds" that resist pesticides -- but studies so far have not shown either result is likely, the review, published in the journal Science shows. This is in part because it is so hard to tell what is going to happen in nature, LaReesa Wolfenbarger, a research fellow at the U.S. Environmental Protection Agency who helped write the paper, said in a telephone interview. "There are definitely studies that suggest that the crop that has been looked at does not have a certain risk," Wolfenbarger, who reviewed 35 different studies, said. "There are also studies that suggest there may be ecological risk. But I think that what we are often lacking is a test in the field." 

Kansas Scrambles for Hay. THE ASSOCIATED PRESS reports that short hay supplies from a drought last summer have Kansas ranchers scrambling this winter to feed their cattle. Some have had to look for hay as far away as Canada, according to the article. "The problem is especially acute because the drought not only cut production of alfalfa, but many ranchers were forced to begin feeding hay earlier than usual this fall when their pastures dried up," according to the AP. "Everything is pretty tight, and especially grinding alfalfa," said Gary Mills of USDA's livestock and grain reporting office in Dodge City. "We continue to import some hay from surrounding states and even had hay shipped in here from Canada - a lot of freight on that." The Kansas Agricultural Statistics Service estimated that the state will produce this year 6.07 million tons of all types of hay, a 16% decline from a year ago. 

Cargill Recalls Poultry Products. Cargill Turkey Products, Waco, TX, is recalling voluntarily 16.7 million pounds of ready-to-eat poultry products packaged under various brands, THE ASSOCIATED PRESS reports. Company officials say the products could be contaminated by Listeria. The items were produced at the company's Waco facility from May 1 to Dec. 11 and were distributed to grocery stores, restaurants and institutions throughout the United States, Iceland and Venezuela. John O'Carroll, company president, said customers should return the items to the place of purchase for a refund. The Springdale, Ark.-based company has contacted restaurants and delicatessens that purchased the products in bulk to remove them. The Centers for Disease Control and Prevention and USDA's Food Safety and Inspection Service are studying whether some products from the Waco facility might contain Listeria monocytogenes, associated with 25 cases of listeriosis in the United States, most of which have occurred since July. 

Sorghum Gains at Corn's Expense. REUTERS reports that "corn's loss is proving to be sorghum's gain" in some production areas as a result of the risk to corn of the presence of StarLink. "The frustration and confusion surrounding the Starlink contamination problem that has been stifling export demand for the U.S. corn crop has helped U.S. producers of sorghum, which has a starch matrix similar to that of corn, reap higher prices and garner growing interest from both export and domestic markets, according to sorghum industry players," according to the news agency. In Superior, NE, for example, a bushel of sorghum, or milo, was bringing $1.94 on Thursday, compared to $1.89 for a bushel of corn. Typically, sorghum trades at 85-95% of the price brought by corn. "It's been the strangest market that we've seen in many years," said National Grain Sorghum Producers Association executive director Tim Lust. 

Futures Bill Could Pass Congress Yet. BLOOMBERG NEWS reports that Congress is set to pass legislation to ease rules for futures markets, end an 18-year ban on single-stock futures and keep the government from regulating investments known as over-the-counter derivatives. An accord among lawmakers and regulators cleared the way for the legislation to be included in a budget package expected to come up for a vote today, according to Rep. Tom Ewing (R-IL), a major supporter of the bill. The agreement builds on a measure that passed the House 377 to 4 in October, making House and Senate approval likely, Ewing said. BLOOMBERG reports that the plan is good news for banks, futures exchanges and energy companies who say the U.S. will lose its share of the multi-trillion-dollar futures and derivatives market unless they have more freedom. Years of disagreements within the industry and government over which markets should be regulated and by whom ended just days before Congress is set to adjourn.
 

December 14, 2000

Researchers Seek Genes' Performances.  Plant researchers are intent on finding out what job each of 25,000 genes in a mustard family plant performs as part of an attempt to improve crop yields and quality. The plant is called the thale cress or mouse ear cress. Scientists hope to discover the traits that these genes control, such as resistance to attack by insects or diseases. Once those genes are identified, scientists may be able to shuttle them into plants that lack natural protection, or they may be able to retool the genes to enhance their effectiveness. 

Export Promotion Budget Is $33.5 Million.  USDA has announced budgets of $33.5 million for 25 U.S. trade organizations for export promotion activities under the Foreign Market Development program (FMD). Program activities focus on reducing market impediments, improving the processing capabilities of importers, modifying restrictive regulatory codes and standards, and identifying new markets or uses for U.S. products. 

Naming New Secretary No Easy Task.  Regardless of who takes the oath of office Jan. 20 as president, farmers will expect a new secretary of agriculture who will serve as an advocate for their "diverse needs," says the American Farm Bureau Federation. That will be no easy task "considering the variety of production in this country as well as the commodity price drops, weather disasters, costly regulations, and other issues growers are confronted with," AFBF adds. The outlook is complicated further by a Senate split 50-50 between Republicans and Democrats and the GOP holding a slim nine-member majority in the House. 

Pork Producers Approve Research Projects.  More than 90 pork producers, industry scientists and other specialists gathered in Kansas City, MO, to discuss progress and innovation in the pork industry. Members of five producer committees reviewed more than 150 research proposals during the checkoff sponsored 2000 Unified Research Review Meeting, organized by the National Pork Producers Council in conjunction with the National Pork Board.

News Summaries

Simplot Chooses New Potato Plant Site.  REUTERS reports that Canada's prime potato producer, Prince Edward Island, could be "challenged as spud central" after the Boise-Idaho based J.R. Simplot Company chose Manitoba as the site of another major potato processing plant. "It's one of the prime growing areas in Canada, certainly, and probably in North America," Simplot spokesman Fred Zerza told the news agency Wednesday, one day after the company announced plans to construct a $80 million (C$120-million) processing facility near Portage La Prairie, Manitoba. The plant, to be completed by the middle of 2002, will produce about 300 million pounds (136.1 million kg) of frozen french fries and hash browns that will be shipped mainly to fast food restaurants in the eastern United States. "From a competitive standpoint this is a strategic move for us in order to be competitive in the eastern markets," said Zerza. 

USDA Announces Peanut Quota.  USDA has announced a national poundage quota for peanuts for the 2001 marketing year of 1,180,000 short tons, (2.360 million pounds) unchanged from the 2000 level. The 2001-crop national poundage quota will be allocated to each State based on the State's share of the 2000-crop national poundage quota. Keith Kelly, Administrator of USDA's Farm Service Agency, said this level has been determined to be the quota level which will provide peanuts for domestic use in accordance with the statutory formula for establishing the quota. The announcement of the final national poundage quota must be made by Dec.15 for the 2001 marketing year, which begins Aug.1. The national average 2001 quota price support level is set by statute at $610 per short ton. For further information contact Daniel Stevens, telephone (202) 720-5291, E-mail address Daniel_Stevens@wdc.fsa.usda.gov. 

Investment Mission to Russia Announced.   U.S. agribusinesses wanting to explore investment opportunities in Russia have a chance to participate in an investment and trade mission April 20-30. The trip has 10 openings, and the deadline to apply is March 15. The mission will be targeting the Lipetsk, Rostov, and Samara regions. Medium-sized businesses are encouraged to apply, but all agribusinesses are welcome. The program is open to food producers, processors, and marketers in a variety of sectors. Participants will be provided with interpreters and other logistical support. They will have a chance to meet with pre-screened strategic or financial partners in the host country. There will be briefings from U.S. embassy and trade officials, and opportunities to meet with local government and banking officials. Hotel accommodations outside Moscow will be provided, as well as travel in country and some meals. Participants must pay their own international travel and hotel costs in Moscow. Coordinators in the Foreign Agricultural Service's office of International Cooperation and Development encourage interested executives to apply early and make preparations soon. A passport and visa will also be required for this trip. The country's economy has improved significantly in 2000. Business-friendly tax reforms and rising investment from Europe are further indicators of opportunities for investment. To apply for participation, contact: Jim O'Meara, Mission Coordinator, USDA/FAS. Phone: (202) 690-2895; fax: (202) 690-3982; email: Omearaj@fas.usda.gov.
 

December 13, 2000

Governments Meet to Discuss Biosafety Protocol.  Representatives from 177 countries are meeting this week in Montpellier, France, to discuss the operational procedures of the Cartagena Protocol on Biosafety, an agreement adopted earlier this year to establish a system of international trade in genetically modified organisms (GMOs). According to the United Nations Environment Program, key issues to be discussed at the meeting include a review of international rules and standards pertaining to the handling, packaging and identification of GMOs, and facilitating decision-making by parties that may wish to import GMOs. 

Beef Checkoff Budget a Record.  The Beef Promotion Operating Committee has recommended the largest budget amendment ever in an effort to build consumer demand for beef. The $6,642,000 fiscal 2001 budget amendment will be used to support checkoff-funded beef promotion, research, consumer information and foreign marketing efforts; funds will come from three sources: 1) the amount by which FY2000 record checkoff revenue exceeded projections; 2) the amount by which the Beef Board's administrative expenses came in under budget; and 3) a number of Beef Board projects that were completed for less than the amounts approved.

News Summaries

China grain group seeks U.S. Guidance toward WTO entry.  REUTERS reports a Chinese delegation of grain officials met with U.S. Agriculture Department representatives and U.S. trade groups Monday and Tuesday to discuss how farm marketing policies and help further pave the way for China's entry into the World Trade Organization. USDA officials said the delegation was composed of 22 Chinese representatives from the country's State Administration of Grain. The Chinese team met with USDA officials and U.S. trade groups to learn more about U.S. farm policy with an emphasis on promotion and development of overseas markets. China hopes to enter the WTO before the end of the Clinton administration on Jan. 20. The delegation met with representatives from FAS, National Agricultural Statistics Service, the U.S. Grains Council, U.S. Wheat Associates and the North American Export Grain Association. 

Large Farm Targeted by Coalition.  An editorial in the Bloomington, IL, PANTAGRAPH newspaper -- one of the state's newspapers with extensive farm coverage and readership -- notes that a coalition of groups is mounting a legal campaign in Illinois and six other states against mega-farms. Mega-hog farms are the primary target, but other factory-type livestock operations, including dairy farms such as the one proposed between Bellflower and Mansfield also will be addressed. The coalition is made up of environmentalists, family farm activists and animal welfare advocates and it is being represented by more than a dozen law firms experienced in lawsuits against major industries. The legal assault is being headed by Robert Kennedy Jr., president of Water Keeper Alliance. An official from Smithfield Foods Inc., the nation's biggest hog producer and the first operation targeted with lawsuits by the coalition, said Kennedy and "his trial lawyer cohorts are engaged in a self-serving, unfounded and terribly irresponsible campaign against hog farmers." 

China Doesn't Buy, Risks U.S. Ire.  BLOOMBERG NEWS reports from Beijing that China's failure to honor agreements to buy U.S. wheat, meat and citrus "may sour the attitude of the U.S. Congress should it be forced to review trading privileges for China next year." Sen. Max Baucus (D-MT) said, "I think China's purchases have been unsatisfactory and there has been some foot-dragging in respect to implementing that agreement. The clock is ticking. Baucus is leading a 20-member state trade delegation to Beijing. Baucus notes that China will face another review for renewal of trade privileges if it doesn't join the World Trade Organization in the first few months of the year, he noted. 

FDA Chief Notes StarLink Questions.  Jane Henney, who heads the Food and Drug Administration, says the "jury is still very much out" on the question of risk to humans from StarLink corn that caused the recall of more than 300 foods. The article, from REUTERS, also notes that federal health officials are investigating some 44 Americans who claim they had intense itching, nausea and other allergic symptoms after eating foods with StarLink. "I think that the jury is still very much out on whether this is actually a cause for concern, in terms of public health," Henney said in a speech at the National Press Club.
 

December 12, 2000

Decline Expected in World's Hungry.  USDA's Economic Research Service (ERS) projects that average per capita food consumption for 67 low-income countries will increase in the next decade and also that the number of people failing to meet their nutritional requirements will decline from 774 million in 2000 to 694 million in 2010, providing an improved outlook for global food security. 

Apple Growers Get Loans.  USDA will make low interest loans available to apple farmers who are suffering hardships due to low prices for their fruit. Loan funds may be used to refinance debt; pay costs associated with reorganizing a farm to improve profitability; pay annual operating expenses; purchase farm equipment or fixtures; acquire, enlarge or lease a farm. 

Tenderizing Meat May Make It Safer.  A process to make ground meat more tender may also make it safer to eat, according to the Agricultural Research Service. In the process, called the hydrodynamic pressure process (HDP), ARS scientists place meat in a container of water, then detonate a small amount of explosives that create a shock wave in the water. The shock wave tenderizes meat by severing the stringy striations that can make meat tough. 

RFA, NCGA Again Call on EPA to Deny Waiver.  The Renewable Fuels Association (RFA) and National Corn Growers Association (NCGA) again have called on the Environmental Protection Agency to deny California's request for a waiver from the federal reformulated gasoline (RFG) oxygen requirement. The RFA and NCGA forwarded to the EPA a new study that concludes ozone and particulate emissions will increase if the oxygen requirement is set aside. 

Two WTO Rulings Favor U.S.  The World Trade Organization has issued two rulings in favor of the United States. One, by the appellate body, rejects a European Union appeal claiming that U.S. tariffs now in place in the bananas dispute violate WTO rules. United States Trade Representative Charlene Barshefsky also announced an appellate body ruling that affirms the findings of a WTO panel which concluded last July that Korea's import regime for beef discriminates against imports from the United States and other foreign suppliers.

News Summaries

Pricing Session Scheduled.  USDA's Agricultural Marketing Service (AMS) will hold an informational and outreach session on Dec.19 to assist producers and other market participants in understanding how the new mandatory livestock price reporting program will affect them. AMS says the informational session will help ensure that interested parties fully understand the different types of new information that will be made available as well as what this change will mean to users of the current voluntary market news reports that AMS now publishes. Contact John Van Dyke on (202) 720- 6231. The final rule can be found on the AMS web site at:http://www.ams.usda.gov/lsg/price.htm. 

SA Leaders Seek Common Market.  REUTERS reports that six South American leaders meet in Brazil this week to set economic targets to create a common market. But Chile's plans to negotiate a free trade agreement with the United States could steal the spotlight, diplomats and analysts said on Monday. The leaders meet Thursday in Florianopolis, Brazil, to begin a European-Union type of regional economy. Chilean President Ricardo Lagos began the year seeking to make his nation a full, rather than associate, member of Mercosur, the world's third-largest trade bloc that includes Brazil, Argentina, Uruguay, Paraguay and associate Bolivia. The report says Lagos shocked his country's neighbors when he announced on Nov. 29 the start of free trade talks with the United States, which prompted Brazil on Dec. 2 to suspend talks to make Chile a full Mercosur member. "I would think that the Chile-U.S.-Mercosur dynamic will be uppermost on the minds of the presidents at their summit," said Riordan Roett, director of Latin American Studies at Johns Hopkins University's School of Advanced International Studies. "Given the current weakness of the Argentine economy, the loss of Chile is a blow to the evolution of Mercosur." 

Milk Pricing Increase Proposed.  A task force of dairy cooperative leaders has come up with a proposal designed to supplement low milk prices and dairy farmers' incomes: augment the Class III milk price. Class III milk prices have been at 20-year lows for the past year. The price of that class of milk is tied directly to the wholesale price of cheese, and that price has been abnormally low for more than a year. Under the task force's proposal, USDA would make available each month to each market order any funding needed to bridge the gap between USDA"s announced monthly Class III price that processors must pay producers and a target price of $11.08 per hundredweight. The supplemental funds would augment dairy income within each market order based on that order's Class III use, including California and other state marketing orders. The proposal assumes the current milk price support remains at $9.90 per hundredweight. The draft proposal will be presented this week to the National Milk Producers Federation Board of Directors. If the board approves it, NMPF will begin working with members of Congress to develop legislation to implement the plan. 

Greenpeace Blocks Ship Unloading Soybeans.  REUTERS reports from Bordeaux, France, that Greenpeace activists prevented a ship on Monday from unloading U.S. genetically modified soybeans, but allowed a batch of traditional soybeans to be unloaded. Port authorities said the freighter Polidefkis P. arrived at Bordeaux in southwestern France early in the day carrying a 22,000-tonne cargo of oilseeds from New Orleans, LA. The article says, "Militants from the Greenpeace environmentalist group at first tried to stop the boat from docking but later relented amid fears that the Greek-registered ship might run aground during low tide. Around 40 activists then prevented the unloading of the cargo by taking over two port cranes. They only let some of the oilseeds off after being told that it did not contain genetically modified organisms (GMOs)." According to Arnaud Apoeker, head of the Greenpeace action, "We have allowed the unloading of two of the four containers on the cargo ship because we have guarantees, with documents to back this up, that the soybeans in them are not genetically modified." 

EU BSE Decision Moves Today.  THE WALL STREET JOURNAL reports that the European Union's decision to contain bovine spongiform encephalopathy by destroying all cattle over 30 months old, unless the animals have been tested for the disease, will be put into legal text later today by its beef management committee. The committee will decide on the duration of the temporary "purchase for destruction" plan, which the EU Commission requested begin Jan. 1, 2001, and last until June 13. The article also says the committee will consider how controls should be instituted and applied to ensure that meat destined for destruction or consumption are kept separate. EU governments have been wrangling for weeks over a coordinated response to the public panic over BSE that began in late October, when potentially infected meat found its way onto French supermarket shelves. Since then, EU beef consumption has declined an average 30%-40%, according to figures from the Committee of Agricultural Organizations. 

Commodity Exchange Bill Doubtful.  THE WALL STREET JOURNAL reports that Congress' ability to get new commodities laws passed this year is doubtful as lawmakers and regulators continue to "stumble over the same issues that have hung up the legislation since October." One industry lobbyist, who asked to remain anonymous, said, "Everybody's just sort of beaten down about it. It's hard to get enthused and go after the same problem, which only gets bigger, instead of smaller, every time you try to attack it." Lawmakers working on rewriting U.S. commodities laws "are operating on borrowed time," says the article, as Congress keeps extending its adjournment date to accommodate Republican leaders and the White House in their struggle to iron out their few remaining budget deals for the year. 

NC Farmers Visit Havana.  Farmers from North Carolina, home state of Sen. Jesse Helms, a leading supporter of the U.S. economic embargo against Cuba, began a five-day visit Monday to the communist-ruled island in an effort to sell food products under a new U.S. law. A 25-member delegation of farmers, agribusiness executives and agriculture officials want to explore sales opportunities now permitted under the existing embargo. "We would like to do trade with Cuba as it is partially allowed now," Allen Wellons, a North Carolina tobacco, timber and grains producer who also serves as a Democratic state senator, told a news conference in Havana.
 

December 11, 2000

Dairy Payments Due by Year's End.  The National Milk Producers Federation says USDA officials have indicated that $667 million in dairy market loss payments will begin to be made this week. USDA wants to have all checks in producers' hands by the end of the month. 

Easements Guide Published.  The American Farm Bureau Federation and two land management specialists have produced a guide for landowners considering the sale of conservation easements on their land. "The Landowner's Guide To Conservation Easements," authored by Dr. Steven Bick and Dr. Harry L. Haney, covers all the issues related to the sale of conservation easements so landowners can be fully informed before making a final decision. 

Indian Institute, Monsanto, MSU Seek Enriched Oil.  A leading Indian research institute in New Delhi, India, has launched a multi-year project to develop a "golden mustard" that will yield cooking oil high in beta-carotene (pro-vitamin A). Working in partnership with Michigan State University (MSU) and Monsanto Company, the not-for-profit Tata Energy Research Institute (TERI) said successful development and adoption of the enhanced oil from "golden mustard" has the potential of helping hundreds of thousands of children suffering from vitamin A deficiencies, particularly in northern and eastern India, where mustard oil is commonly used for food preparation and cooking.

News Summaries

EU Wants More Reform.  The European Union is willing to work out an agreement on more agricultural trade reform, whether nor not broader negotiations covering other trade sectors are launched next year, EU officials said on Friday, according to a REUTERS report. "We are committed to seriously negotiating on agriculture," said Joao Pacheco, a key European Commission agricultural trade official based in Brussels. The EU will present an agricultural proposal to the World Trade Organization in Geneva next week. It will be discussed in detail at the next meeting of the WTO agriculture committee in early February, Pacheco told reporters at the EC delegation's weekly briefing here. As expected, the EU proposal is at odds with the United States on many key issues. In particular, the EU favors a "formula" approach that would require all WTO members to make equal percentage cuts, no matter what their level of farm spending, Pachero said. 

WTO Resumes China talks in January.  BLOOMBERG NEWS reports that the World Trade Organization again will discuss Chinese membership next month, trying to work out an agreement on issues still holding up China's entry into WTO membership. The WTO's 140 member countries will meet Jan. 10-17 for the next round of talks after almost agreeing on a draft text with China on intellectual property rights, non-tariff measures, services licensing and transparency, and industrial policy. Agreement is close, says the article, on several of the issues that will form the legal basis of China's accession terms, and difficulties remain in areas ranging from trading rights to agriculture and safeguards on textiles. Analysts say a final agreement could still be several months away. 

U.S., Vietnam Talk Bilateral Trade.  Agriculture officials from the United States and Vietnam will conduct seminars on animal and plant protection this week as part of talks on exports and imports related to a bilateral trade pact yet to be ratified, officials said on Friday, according to a REUTERS report. A U.S. embassy statement said the seminars involving the USDA and Vietnam's Agriculture Ministry, would begin in Hanoi Thursday and Friday, followed by a two-day session in Ho Chi Minh City from Dec.18. Vietnamese ministry officials said most of the time would be spent with U.S. experts advising on standards and legal issues in animal and plant protection and quarantine. Vietnam and the United States signed a bilateral trade agreement in July which is expected to be ratified next year and to dramatically boost trade between the former foes. 

Freedom to Farm's Rocky Road Explained.  Patricia Klintberg, in an article found on the FARM JOURNAL web site, explains the reasons for the rock-strewn path down which the 1996 farm law has traveled. Policy experts agree, says this article, "that it's the congressional money machine, not the 1996 farm act, that's to blame for excess production." The article continues, "In congressional hearing rooms and in rural coffee shops across America, it is political gospel that the Republican-driven 1996 Freedom to Farm act has failed. That's how Congress rationalizes having shelled out $70 billion to the farm sector since 1996, about $30 billion more than originally budgeted to date. It is why the National Farmers Union (NFU), which favors policy diametrically opposed to current law, has the upper hand in the early debate about a new law. And it is one reason why supply controls, banished as economic disasters in the mid-1990s, are again courting favor. Wrong scapegoat? Two prominent farm policy consultants contacted by TOP PRODUCER (magazine), however, argue that the law didn't so much fail as it was smothered by emergency payments made for political gain." The entire article can be found on the Internet at http://www.agweb.com/news/news.cfm?id=16462∓breakingnews=1. 

ID Card Tracks Mad Cow Disease.  THE WALL STREET JOURNAL, in an article from Reggio Emilia, Italy, tells how Oriol Ribo, a red-meat lover and veterinarian, thinks he knows how to make sure beef is safe: issue cows a high-tech ID card. "It's a question of traceability," says the Spaniard, who is coordinating a 17 million euro ($15.1 million) European Union test of an electronic system for tracking cattle, sheep and goats from birth to death. Under EU rules, the article notes, all cattle are required to be identified by means of an official ear tag and accompanying documentation that records the animal's birth date, provenance and any transportation from one farm to another. But the ear tags sometimes get lost, data sometimes are recorded incorrectly and the system is susceptible to fraud. If a cow is determined to have bovine spongiform encephalopathy, or mad-cow disease -- which can only be established after it is slaughtered -- there is no foolproof way of immediately quarantining animals from the same farm. 

USDA Now Sued for Women, Elderly Discrimination.  THE ASSOCIATED PRESS reports from Harlem, MT, that five farmers, including two from Montana, are suing USDA claiming discrimination against female and elderly farmers in loan programs and other assistance. The suits allege that the Farm Service Agency required more collateral for loans from elderly or female farmers and that the FSA approved smaller loans for them than they did young, white, male farmers. The class-action federal lawsuit seeks $3 billion in damages and is similar to claims filed against the USDA on behalf of black and American Indian farmers in other states. USDA settled the lawsuit by black farmers for more than $2.2 billion. Rosemary Love of Harlem, the lead plaintiff in the latest lawsuit, contends she wasn't offered the same federal help to bail out her Hi-Line sheep ranch during the farm crisis in the 1980s as male farmers in similar financial straits. She said the FSA's actions drove her family into bankruptcy.
 

December 8, 2000

OSHA Increases Dust Standard's Flexibility.  The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) Thursday issued a final rule on washed cotton that will add an improved method of washing cotton to other washing procedures and increasing the standard's flexibility. 

Corner 'Turned' on Agricultural Exports.  John Skorburg, senior economist and international trade specialist for the American Farm Bureau Federation, says based on the latest USDA trade figures, "the corner appears to have been turned" for agricultural exports. After hitting a cyclical low of $49.1 billion during fiscal 1999, figures have increased for both 2000 and 2001. 

USDA to Buy Fruits, Vegetables.  USDA will purchase large quantities of apples, black eyed peas, cherries, citrus, cranberries, onions, melons, peaches, and potatoes in coming months, using newly appropriated funds totaling $200 million, to bring relief to farmers burdened with critical surpluses and depressed market prices. The Agricultural Marketing Service also has identified figs, plums, dried plums, apricots, pears, beans, corn, tomatoes, sweet potatoes, certain mixed vegetables, and certain tree nuts as meeting the criteria specified in the law. 

Farm Bureau Membership Tops 5 Million.  Membership in the American Farm Bureau Federation nationwide now exceeds 5 million -- 5,009,268 member families. The milestone was passed as state Farm Bureaus reported 57,024 additional families signed up for membership in 2000 -- the 40th consecutive year of membership growth. 

Corn Growers Criticize Corps for Spring Rise.  The National Corn Growers Association (NCGA) has criticized the U.S. Army Corps of Engineers' announcement that it will proceed with plans initiated by the U.S. Fish and Wildlife Service to implement a "spring rise" on the Missouri River. 

Sugar PIK Diverts 101,833 Acres  The payment-in-kind (PIK) program offered sugar beet producers earlier this year resulted in 101, 832.9 acres being diverted from production, USDA announced Thursday. The program offered sugar beet producers the choice of diverting from production a portion of their crop in exchange for sugar held in inventory by USDA. Producers submitted 5,022 acceptable bids to participate in the program.

News Summaries

Corn Sales to Japan High.  REUTERS reports that "surprisingly high" weekly U.S. corn export sales on Thursday reflected "optimism that StarLink fears were softening among Japanese importers." "Obviously its quite a reversal from last week," said Tim Galvin, USDA's Foreign Agricultural Service administrator. "It reflects some optimism that we will reach some understanding with various importers regarding the importation of U.S. corn." In its weekly export sales report, the USDA said that net U.S. corn export sales for the week ended Nov. 30 were 937,700 tons, well more than the range of trade estimates of 550,000 to 850,000 tons. The net sales of 937,000 tons was more than double the week-earlier figure and was 68% more than the four-week average. Japan was the major buyer in the latest week, purchasing 312,600 tonnes, followed by Mexico and Taiwan. "There is a perception out there that prices will likely increase across the board," Galvin said. "Therefore, the time to buy is now." 

FTAs May Hurt WTO Leverage.  BLOOMBERG NEWS reports that World Trade Organization Director General Mike Moore warns that a recent increase in free- trade pacts among countries may be seen as an alternative to WTO's broader membership system. Many of the WTO's 140 member governments have entered smaller-scale trade accords among themselves or are pushing ahead with plans to do so after last December's failure in Seattle to start a round of market-opening talks. The Geneva-based WTO estimates those agreements now cover as much as three-quarters of world trade, and market barriers are dropping from East Asia to Latin America. At least 20 regional free-trade pacts are now in place, and the list of country-to- country agreements is growing. There is a "growing danger" that the surge in trade agreements "could come to be seen as a substitute for multilateral liberalization rather than a complement to it," Moore said in a report to the WTO's trade policy review body. 

FDA Considers BSE-Related Limits.  THE WALL STREET JOURNAL reports that government advisers will consider whether new restrictions should be imposed on blood donors who have traveled to Europe. The consideration comes in the wake of new cases of mad-cow disease among cattle in Germany and Spain. Advisers to the Food and Drug Administration are scheduled to meet Jan. 18 to consider whether France and other European countries could be sources of new-variant Creutzfeldt-Jakob Disease, a fatal, brain-wasting human disease that is believed to be transmitted by eating animals infected with mad-cow disease. People who have spent six months or more in the United Kingdom between 1980 and 1996 already aren't allowed to donate blood in the United States, the article notes. During that time, tens of thousands of animals infected with mad-cow disease entered the U.K. food supply, said Ermias Belay, an epidemiologist with the Centers for Disease Control and Prevention. No cases of mad-cow disease -- formally known as bovine spongiform encephalopathy, or BSE -- or new-variant CJD have been found in the U.S.
 

December 7, 2000

Price Rule 'Solid Step.'  USDA's mandatory price disclosure rule for meat packers is a "solid step in the right direction," according to Sen. Charles Grassley (R-IA). It will give independent livestock producers "a shot at better bargaining power with the nation's meat packers" and "let the sun shine in on the prices packers pay farmers and ranchers for their hogs, cattle and sheep." 

Pork Producers Defend Environmental Efforts.  Pork producers "clearly recognize" their responsibility for a clean environment and have demonstrated "a willingness to take an objective look at our own practices on the farm and to commit millions of our own checkoff dollars to find the scientific answers we need to address environmental challenges," according to the National Pork Producers Council.

Comprehensive Cotton Biotech Report Available.  Plantings of genetically engineered cotton crops are expected to increase to 50% of the world's cotton crop within five to seven years, because researchers are working on special varieties, according to a comprehensive report, "Expert Panel on Biotechnology in Cotton." A summary of the report was delivered to the International Cotton Advisory Committee's (ICAC) plenary meetings in Australia by panel Chairman Phil Wakelyn, National Cotton Council (NCC) senior scientist of environmental health and safety. The panel was composed of nine scientists from eight countries and included James Stewart of the University of Arkansas and the panel's co-chair O.A. Momtaz of Egypt. 

Mad Cow Disease No Problem in U.S.  Consumers worldwide benefit from more than 10 years of aggressive, coordinated government and industry efforts that have kept the U.S. cattle herd free of bovine spongiform encephalopathy (BSE), better known as 'mad cow' disease, the National Cattlemen's Beef Association (NCBA) said Wednesday. 

Pest Management Awards total $10.9 Million.  Agriculture Secretary Dan Glickman has announced $10.9 million in grants for pest management programs. The grants will be used to research safe and effective strategies for managing destructive farm pests. Grants were awarded in four separate pest management programs.

News Summaries

Seed Producer Emergency Loans.  USDA's Farm Service Agency has announced the Emergency Loans for Seed Producers Program. These loans are available to farmers who produced a 1999 crop of grass, forage, vegetable, or sorghum seed in the United States under contract to sell to AgriBiotech and who filed a timely proof of claim in the bankruptcy proceedings. The program is designed to help seed producers affected by the bankruptcy filing of AgriBiotech, one of the largest turf, forage, and alfalfa seed companies in the United States. Eligible producers can receive up to 65% of the amount of their proof of claim against AgriBiotech, minus any proceeds received for seed sold (that was included in the original claim), since the claim was filed. Applications for the program will be accepted until all loan funds have been exhausted or AgriBiotech's bankruptcy is completed and a discharge of the debt in bankruptcy is entered. Other regulatory requirements apply and were published in Wednesday's Federal Register. Applicants should contact local FSA offices or USDA service centers for more information. 

Japan About to Approve U.S. Protocol.  REUTERS reports that Japan hopes to approve next week a U.S. protocol for testing American corn shipments used for Japanese animal feed, an effort to address concerns that exports might be contaminated with StarLink corn. Masaki Sakai, the Japanese counselor for agriculture to the United States, told the news agency that Japanese and U.S. negotiators were "very close" to an agreement on expanding the protocol on testing U.S. corn exports. "We hope an agreement can be reached by next week," Sakai said. "We don't have much difficulty with the protocol, but we are taking a look at practical aspects on whether this is feasible." The original U.S. protocol, agreed to in November, applies only to U.S. corn exports bound for Japan for human consumption. 

Environmentalists Target Hog Farms.  Large hog farms are polluting the water and fouling the air around them, environmentalists said Wednesday, and they announced a legal strategy against the industry in seven states, according to THE ASSOCIATED PRESS. The lawsuits are simiilar to those last summer in North Carolina against Smithfield Foods Inc., the nation's biggest hog producer, and allege a variety of violations of the federal Clean Air Act and other laws. The AP says hog producers "have used their political clout" to curb government regulation at both the federal and state level, according to Robert Kennedy Jr., president of the Water Keeper Alliance, a group that is coordinating the legal strategy. "This collapse of environmental enforcement has allowed corporate hog factories to proliferate with huge pollution-based profits," Kennedy said. The other states targeted are Iowa, Minnesota, Illinois, Indiana, Nebraska and Missouri. 

U.S. Soybeans Benefit from Mad Cow Disease.  Concern over news cases of "mad cow" disease in Europe appears to be helping exports of U.S. soybean and soybean meal, REUTERS reports Agriculture Secretary Dan Glickman said Wednesday. "Soybeans, soybean meal are looking good, particularly because of the problems in terms of cattle feed in Western Europe and other places," Glickman said. Prompted by a rising number of cases of mad cow disease and the possibility some tainted meat was sold in shops, European Union countries agreed Monday to a six-month ban on animal feed, including meat and bone meal, which is believed to be responsible for the spread of BSE. On Monday USDA increased its forecast of fiscal 2001 soybean exports to $5.4 billion from its earlier projection of $5.0 billion. It also boosted the soy meal forecast slightly to $1.3 billion. 

Report on Diets Coming from USDA.  REUTERS reports that USDA will release a report next month summarizing the latest research on the health and nutrition effects of popular diets. Agriculture Secretary Dan Glickman said, "The diet folks represent a multibillion-dollar industry, so I think they should also be subjected to the highest level of scientific scrutiny." The department will release its upcoming "white paper" report at a Jan. 11 symposium on popular diets. It hosted similar conference earlier this year. "It's not the government's role to tell people what to eat or what not to eat," Glickman told reporters. "We're trying to give people some information source" to assess the multitude of popular diet books on the market, he said. Glickman also criticized the medical community for being slow to explore the relationship between diet and health. "That's changing, but not fast enough," he said. 

U.S., Korea Agree on Corn Tests.  REUTERS reports that South Korea and the United States have reached a preliminary agreement on testing of U.S. corn shipments and processed foods to make sure they do not contain genetically-altered StarLink corn. A Korean Food and Drug Administration official said the countries had reached a preliminarily agreement whereby USDA would issue certificates ensuring corn shipments were StarLink-free if buyers and sellers assumed the costs of testing. The group responsible for buying corn for human consumption, the Korea Corn Processing Industry Association (KOCOPIA), is still talking with corn suppliers about whether buyers or sellers will pay for StarLink testing in the United States. 

Organic Standards Coming Soon.  THE ASSOCIATED PRESS reports that national standards for organic food will be released soon, and they will make clear that such products aren't safer or more nutritious than conventional products. In interview Wednesday, Agriculture Secretary Dan Glickman said the rules will be one of his last acts in office, as will finalizing a ban on road building in 58.5 million of the 192 million acres of national forests that he oversees. Less certain is when his department will require nutrition labels on meat, something President Clinton proposed last spring. The organic rules, which USDA was required to develop under a 1990 law, have been debated inside and outside the department throughout Glickman's nearly six years in office. The food industry claims that the special USDA seal that would go on the labels of organic products may lead consumers to believe that the organic products are preferable to food made with conventionally grown ingredients. The seal the department proposed this spring would include the words: ``USDA Certified Organic.'' The National Food Processors Association wants USDA to add a disclaimer such as: "This symbol does not signify that the food is superior with respect to safety, quality, or nutrition, compared to a food that does not bear the symbol."
 

December 6, 2000

Glickman Lists Available Assistance Programs.  Agriculture Secretary Dan Glickman Tuesday provided a list of farmer assistance programs now available. "There are many USDA programs that are available to farmers this year to help them through difficult times," said Glickman. "I urge farmers to call or visit their local USDA office to ensure that they know about all the help they may be eligible for and to sign up before the deadline." 

Argentina Opens Market to U.S. Pork.  National Pork Producers Council President (NPPC) Craig Jarolimek announced Tuesday that U.S. pork producers now can ship their product into Argentina "following years of concerted effort." The certification initially covers boneless pork products. The approval to ship bone-in pork cuts is pending. The Argentine market for imported pork is estimated at 30,000 metric tons a year. 

Taiwan Million Ton U.S. Wheat Market.  Wheat purchases by Taiwan are at a record high this calendar year following a 20% increase. With the latest purchase of 34,000 metric tons, Taiwan has bought 1.03 million tons of U.S. wheat, marking the first time that country has imported 1 million tons or more from the United States, according to the U.S. Wheat Associates. 

Milk Pricing Changes 'Modest'.  USDA's recently announced modifications in the pricing formulas in the federal milk marketing order system should result in a modest increase in dairy farmer prices, according to an analysis by the National Milk Producers Federation. NMPF found that the changes would have resulted in a higher Class III price of approximately $.05 per hundredweight during the first 11 months of 2000 for milk with 3.5 % butterfat, and a higher Class IV price of $0.12 per hundredweight. But those numbers will depend on the market price for cheese, butter and nonfat dry milk powder which form the basis of the classified pricing system. 

FSIS Works on Cull Cow Residue Issues.  USDA's Food Safety and Inspection Service says surveys have found illegal residues in meat and poultry at a low rate, but the agency still wants to improve how its officials approach residue issues, including choosing cull cows for sampling. An FSIS survey of veterinary medical officers in plants that generally slaughter older cows shows that agency standards are not being applied uniformly. 

EPA Panel Gives StarLink Report.  The Environmental Protection Agency's Scientific Advisory Panel issued its report Tuesday, saying available information indicates there is a "medium liklihood" that the protein in StarLink corn is a potential allergen. With low levels in the U.S. diet, there would be a "low probability" of allergic reactions in people exposed to the corn.

News Summaries

Asia Drives Positive Export Forecast.  Strong global economic growth and reduced competition are pushing U.S. agricultural exports to a projected $53 billion in fiscal 2001, $2.1 billion over the final fiscal 2000 figure of $50.9 billion. Much of the gain is expected in Asia, as that region's economic growth continues recovering from the financial crisis of 1997-1999. Exports to Canada and Mexico also are likely to rise. However, depreciation of the euro against the dollar is expected to continue to dampen U.S. exports to Western Europe. Agriculture Secretary Dan Glickman said he was "hopeful that these data, though preliminary, are a good sign for America's farmers that the strengthening global economy will help boost farm exports and, therefore, farm incomes." 

Stenholm, Veneman Mentioned for Secretary.  REUTERS reports that Rep. Charles Stenholm (D-TX)and veteran Republican regulator Ann Veneman have been tagged by farm lobbyists, consultants and lawmakers as likely front-runners for agriculture secretary in a new administration. Veneman and Stenholm were among a half-dozen people from each party considered as possible successors to Dan Glickman as head of one of the largest federal departments, the news agency reports. 

Swiss Hits Back at U.S. Criticism.  A senior Swiss trade official hit back on Tuesday at U.S. criticism of his country's extensive support for its farmers, saying the United States should move much faster to open its textile markets, REUTERS reports. Lucius Wasescha, the top Swiss official for foreign trade relations at the Economics Ministry, was speaking on Swiss Radio after U.S. trade ambassador Rita Hayes called on Switzerland to cut back on subsidies for farmers. He said Switzerland supported the idea of progressive reform, "but the withdrawal of state support is not feasible for the moment either in Switzerland or in Europe. So this progressive liberalisation will take a long time. I see no reason to be ashamed of this, because the United States is taking a long time to liberalize its textile sector, which is emotionally less important than our agriculture," he added. 

Commodities Bill Still Alive.  THE WALL STREET JOURNAL reports that members of Congress who are vital to the approval of U.S. commodities laws said Tuesday that they have an "agreement in principle" and hope to get a bill done this year. "We are optimistic based on the conversations the chairman has had over the last 24 hours that we may be able to get this legislation through before Congress adjourns," said Senate Banking Committee spokeswoman Christi Harlan, speaking of committee chairman Sen. Phil Gramm (R-TX). "There's just not that many issues remaining to work out." Lawmakers have resumed negotiations on a commodities bill that passed the House 377-4 in October, trying to smooth passage in the Senate. The legislation would lift the U.S. ban on single-stock futures, exclude over-the-counter derivatives from commodities laws and ease regulations for U.S. futures exchanges. "There's still a ways to go, but people are feeling pretty good about it," said Elizabeth Meyer, the spokeswoman for Rep. Thomas Ewing (R-IL), who is retiring at the end of this year and who has been the driving force behind the commodities bill in the House.
 

December 5, 2000

Ethanol Production Sets Record.  The Renewable Fuels Association (RFA) says the domestic ethanol industry has set a new all-time monthly production record in October. According to the latest data from the Department of Energy's Energy Information Administration (EIA), the ethanol industry produced more than 111,000 barrels per day on average in October, exceeding the previous monthly record set in April of 110,000 b/d. The ethanol industry is on pace to set a yearly production record of greater than 1.6 billion gallons of ethanol in 2000. 

Tyson Bids for IBP.  Tyson Foods Inc., the world's largest poultry producer, has bid $2.8 billion for meat-packing giant IBP Inc. The offer comes within a few weeks of pork industry leader Smithfield Inc. making its $2.7 billion offer for IBP. 

Poultry Manure Made Safer in ARS Project.  Wastes from drinking water treatment plants and industrial plants have made poultry litter a safer fertilizer for nearby farms, according to USDA's Agricultural Research Service. Alum in the water treatment residues and iron in certain industrial residues strongly bind the phosphorus in poultry manure, reducing water-soluble concentrations of phosphorus and making it much less likely to wash into waterways. The water treatment residues also contain liming materials which can make soils less acidic. 

Mixed Pesticide Use Cited in New Report.  A new study comparing pesticide usage in U.S. agriculture between 1992 and 1997 prompts the National Center for Food and Agricultural Policy (NCFAP) to estimate that although overall annual usage increased by 93 million pounds, there were many instances of major reductions in use. The NCFAP report points out that uncontrollable natural and economic forces resulted in a few major increases in use that overwhelmed reductions. 

California Farm Bureau Takes Land Case to Court.  California's Farm Bureau plans to take a case over farm land losses to state court. Farm Bureau sued Cal-Fed in September to prevent the loss of farmland and agricultural water supplies by halting land and water purchases by Cal-Fed. The joint federal-state program was created to find long-term solutions to environmental and water problems in the Sacramento-San Joaquin Delta and San Francisco Bay.

News Summaries

EU Imposes Bone Use Prohibition.  BLOOMBERG NEWS reports that the European Union has imposed a six-month ban on the use of bones and other animal remains as livestock feed to help halt the spread of ``mad cow'' disease and allay consumer fears about eating meat. The EU action is in response to restrictions imposed in Germany, Britain and elsewhere to combat the outbreak in France of the cattle disease, which can kill humans who eat infected meat. "I am very pleased that we have now a common position for Europe that can lead to ridding us of this dreadful scourge," said Ben Gill, president of the U.K. National Farmers' Union. The article also says the destruction of unused animal meal may force the 15-nation bloc to increase imports of soybean meal as a substitute. EU agriculture ministers also agreed that fish meal may be fed to chickens and pigs as a substitute. Soybean meal prices have risen 14% since Nov. 10 in part on expectations of increased demand from Europe. Soybean meal for January delivery was last at $189.30 a short ton on the Chicago Board of Trade, according to the article. 

China 'Not Far' from WTO Membership.  REUTERS reports that China's top negotiator in its marathon bid to join the World Trade Organisation (WTO) believes membership success is "not far away," but diplomats involved in the talks said agreement could take several months. The official, Long Yongtu, spoke to reporters as four days of talks got underway with negotiators from many of the 140 nations in the body on finalizing the text of an entry accord. "I think the momentum is there," said Long, speaking after a private meeting with senior U.S. official Don Philips. "We're trying to make more progress as we did last time." Diplomats involved in the talks say there is little chance that the remaining areas, which include agriculture, services and textiles, as well as the extent to which China will open up its vast market to foreign trading companies, can be wrapped up quickly. "It looks like this is going to take a few more months," said one envoy. 

EU Meal Producers Want Subsidies.  Meat and bone meal (MBM) producers across Europe want government subsidies to meet a liquidity crisis sparked by Monday's six-month ban by the European Union, industry associations said on Tuesday, according to REUTERS. Producers in Germany, Italy and Denmark said they hoped for national or EU subsidies, while British farmers saw the decision as creating a level playing field. "I don't know how many of them will or won't survive, but they will have serious liquidity problems," Christina Mieles, marketing official of the German meat feed producers' association told the news agency. "There will be a (German) federal-level meeting on Wednesday where we will look at financial aid possibilities," Mieles added. 

U.S. Farmers Sue Aventis.  Aventis SA is being sued by U.S. farmers who say the French drug firm's genetically modified corn, StarLink, has contaminated other corn crops and caused prices to fall, daily La Tribune reported, according to BLOOMBERG NEWS. "We represent the farmers who have not planted the StarLink corn but whose harvest has been contaminated because of Aventis's negligence," the paper reported lawyer Elisabeth Cronise saying. More than 300 products were recalled from supermarket shelves in September after StarLink, which is not approved for human consumption because it may cause allergies, was found in food such as taco shells. Since then, corn prices in the U.S. have fallen as overseas buyers fear cargoes may be tainted with the corn, according to Agriculture Secretary Dan Glickman. Cronise didn't specify the amount of damages the farmers were seeking, though she said that they were of a "large scale," according to La Tribune. Aventis general manager John Wichtrich said the French company had "the financial means" to find a "satisfactory" agreement, according to the paper.
 

December 4, 2000

Label, Refrigeration Rules Final for Shell Eggs.  The Food and Drug Administration has issued a final rule on labeling and refrigeration requirements in an effort to prevent food-borne illnesses results from salmonella-contaminated shell eggs. The refrigeration requirement will be effective in six months, while the safe handling requirement will be effective in nine months. 

Barshefsky Urged to Protect Agriculture in China Accession.  A group of agriculture associations along with food processors and marketers has called on U.S. Trade Representative Charlene Barshefsky to make sure agricultural interests are protected under the U.S.- China trade agreement and not abrogated when China accedes to the World Trade Organization. One issue is China's effort to get "special treatment" for its agricultural subsidies, the groups said. 

House Policy Hearings Coming in February.  The House Agriculture Committee will conduct hearings on commodity programs beginning in February. Republican staff members, in a meeting last week with commodity and general farm organization representatives, said committee Chairman Larry Combest (R-TX) will ask for specific recommendations for modifications and improvements to commodity programs early in the year. 

Pork Exports Continue to Increase.  From January through September, the United States exported 942.393 million pounds of pork, 9.5% more than in the same period last year, according to the National Pork Producers Countil. The pork exported from January through September was worth about $914 million and equaled 6.8% of U.S. pork production.

News Summaries

Trans-World Gets Madigan Award.  Agriculture Secretary Dan Glickman announced the selection of Trans-World Genetics Ltd., of Sheboygan Falls, Wis., as the first recipient of the Edward R. Madigan U.S. Agricultural Export Excellence Award. Founded in 1974, Trans-World Genetics Ltd. is a leader in the production, distribution, and international marketing of frozen bull semen, frozen bovine embryos, live breeding stock, and the design of multi-national progeny testing programs. The company has a presence in more than 20 countries. In fiscal year 1998, its total sales reached $3.6 million, up 76% from the year before; while its export sales alone topped $2.7 million, a 25% increase. Created under the Federal Agricultural Improvement and Reform Act of 1996, the Madigan award honors those who substantially encourage entrepreneurial efforts to advance U.S. food and agricultural exports. The new award commemorates the late Edward R. Madigan, former congressman from Illinois and U.S. Secretary of Agriculture from March 1991 to January 1993. 

USDA Assesses Grain Transportation.   USDA says based on November 2000 forecasts, production of corn, sorghum, barley, oats, wheat, rye, and soybeans in 2000-2001 is expected to be 16 billion bushels, a 4% increase from 1999-2000. Grain and soybean stocks are forecast down 220 million bushels from last year, a total of 4,861 million bushels. This is the second largest grain and soybean stock level since 1993. Although grain exporters have experienced higher ocean rate spreads in 2000, the ocean rate spreads between the Gulf and Pacific Northwest still favor shipments from the Gulf. The year 2000 started with higher oil prices, which increased the cost of all modes of transportation including ocean vessels. The higher ocean freight rates that started the second quarter of 1999 continued their positive trend through the third quarter of 2000. The anticipated crop production of approximately 10 billion bushels of corn and 2.77 billion bushels of soybeans comes at a time when the nation's farmers are experiencing the fourth year in a row of depressed grain prices. Low prices are almost certain to guarantee scarce storage space for fall corn and soybeans as producers and grain elevator operators will continue their reluctance to release grain to market. While the major rail carriers are confident of providing adequate service, a sudden rise in grain prices could cause a surge in grain marketing efforts and an increase in the demand for rail transportation activity. Although the Class I railroads serving North America have indicated that no substantial problems are anticipated in providing transportation services during the fall harvest and peak shipping season, both Union Pacific and Burlington Northern Santa Fe railroads have increased demurrage charges, or penalties for shippers who hold cars beyond the allotted free time to load them. The truck situation is generally healthy, although diesel fuel prices and an ongoing labor shortage affecting the motor carrier industry could affect regional grain deliveries during the late harvest season. 

Lamb Promotion Projects Announced.  USDA will begin accepting proposals to fund up to $1 million in competitive marketing and promotion projects under the market promotion funding of the Lamb Meat Adjustment Assistance Measures Program. On Nov. 15, USDA announced the initial awards of 15 cooperative agreements totaling nearly $3.85 million under this program. The additional funds were made available to provide a greater opportunity for the lamb industry to make domestic lamb meat more competitive with imported meat. New or existing programs that focus on marketing, promotion, merchandising, market feasibility analysis, market identification, or value enhancement will be considered for funding. Funding for the promotion projects will be awarded prior to Feb. 1, 2001, with projects to be completed by Sept. 30, 2002. Additional information can be accessed on the web at: www.ams.usda.gov/lsg/201lamb/201.htm. 

Milk Price Formula Decision Announced.  USDA announced a tentative final decision to amend the current Class III and Class IV pricing formulas under federal milk orders based on testimony and data presented at a public hearing held May 8-12, 2000, in Alexandria, VA, to consider proposals submitted by the industry to change the formulas. The decision provides for separate butterfat prices for milk used in Class III (cheese) and Class IV (butter and dry milk products) based on the value of butterfat in cheese and butter. The manufacturing (make) allowance for cheese is proposed to be reduced slightly, from 17.02 cents per pound of cheese to 16.5 cents. The make allowance for dry whey, also a factor in calculating Class III value, would be increased from $0.137 to $0.140 per pound of dry whey. The make allowances used in calculating Class IV value are proposed to increase slightly, from 11.4 to 11.5 cents per pound of butter and from 13.7 cents to 14 cents per pound of nonfat dry milk. The proposed changes are expected to have limited impact on returns to dairy farmers. Interested persons have until Feb. 5, 2001, to file comments in response to the tentative decision. A tentative final decision is being issued because the Congressional deadlines of Dec. 1, 2000, for publication of a final decision and Jan. 1, 2001, for effectuating order amendments do not allow enough time to issue a recommended decision and receive and consider comments before issuance of a final decision. USDA will determine whether dairy farmers approve the amended orders. 

On-Line Poultry Processing Allowed.  USDA's Food Safety and Inspection Service has proposed a change to its regulations that will allow the on-line reprocessing of pre-chill poultry carcasses if significantly lower pathogen reduction standards for E. coli and salmonella are met. Poultry carcasses contaminated with digestive tract contents will be allowed to remain on the main processing line for removal of the digestive tract contents rather than having to be moved off the main line. Voluntary adoption of this on-line reprocessing approach will be coupled with requirements for the reduction of salmonella and E. coli on raw poultry below the present performance standards. If this proposal is adopted, pre-chill carcasses with no visible contamination may undergo the same antimicrobial treatment as those carcasses with visible contamination. Plants would be allowed to use food-grade processing agents, such as trisodium phosphate and sodium chlorite, to reduce pathogen levels. The on-line treatment would expose all carcasses to rinsing and to antimicrobial treatment. However, birds whose entire carcasses are affected with contamination or are mutilated would not be permitted to be reprocessed on-line. Each bird would still be required to meet the current agency zero tolerance policy on fecal contamination prior to application of the on-line treatment. FSIS is not proposing specific pre-chill Salmonella and E. coli standards because, at this time, various antimicrobial treatments have been demonstrated to have differing effects. FSIS invites comments, especially in the form of data, on specific performance standards that establishments would be required to meet. The proposal was announced in the Dec.1 Federal Register. Written comments on this proposal must be submitted by Jan. 30, 2001, to the FSIS Docket Clerk, Room 102, Cotton Annex Building, 300 12th Street, SW, Washington, DC 20250-3700 and should refer to Docket Number 98-062P. Copies of all comments submitted in response to this proposal will be available for public inspection in the FSIS Docket Room between 8:30 a.m. and 4:30 p.m., Monday through Friday. 

Farmer Income Relief Supported.  REUTERS reports that a commission established by Congress to steer U.S. farm policy into the new millennium supports new programs to send more money to growers during hard times, "like the price slump now entering its fourth year." If the proposals make it into law, it could mean outlays of $10 billion or so annually to support farm income when prices sour, according to the news agency, far more than the $4 billion a year now guaranteed to growers. Commission members put the new "counter-cyclical" payments plan into recommendations scheduled for a final vote Jan. 17. Under the package, farmers would have the power to switch from crop to crop, as they do now, and crop support rates, now thought to favor soybeans, would be realigned. Created under the 1996 "Freedom to Farm" law that partially deregulated U.S. agriculture, the Commission on 21st Century Production Agriculture will announce its report on Jan. 30 before the Senate Agriculture Committee. Members met for two days last week to prepare the report for a final vote. 

Pork Referendum Results Possible Mid-Month.  Pork checkoff referendum ballots were counted Nov. 29 in local Farm Service Agency (FSA) offices around the country, says the National Pork Producers Council. According to the rules for the referendum, the ballots will be sent to state FSA offices by Dec. 1 and by Dec. 8 be sent to USDA in Washington. Sometime following the receipt of the ballots, Agriculture Secretary Dan Glickman will announce the results. While the county vote counts remain confidential, NPPC says it "continues to be cautiously optimistic that the final vote will reflect continued support for the checkoff and its many successes." 

EU Ministers Work Against Cow Disease.  British Agriculture Minister Nick Brown called Monday for Europe-wide solutions to eradicate mad cow disease as EU farm ministers gathered in Brussels to decide how to contain the disease, REUTERS reports. EU food safety Commissioner David Byrne will present plans to prohibit livestock feed containing animal remains and to keep older cattle out of the food chain unless tested for mad cow disease, or BSE (bovine spongiform encephalopathy), the article says. Brown urged that European solutions be adopted to the long-running beef crisis, which since the mid-1990s has been marked by national embargoes and damaging splits between EU member states. "I think the French were wrong on their ban against British beef ... They are wrong on science and they are wrong in law," Brown told BBC Radio on Monday before heading to Brussels. "For the rest of the European Union to replicate that would be a mistake. There aren't national solutions to this. The (cause of the) condition in cattle knows no national boundaries. It would be much better to take action at European Union level," he added. 

U.S. Can Benefit from EU's Mad Cow Disaster.  U.S. farm exporters are in a good position to gain market share if the European Union decides to ban trade of locally produced meat-and-bone meal because of an outbreak of mad cow disease, USDA says. REUTERS reports that Europe plunged back into a mad cow crisis after fresh outbreaks of bovine spongiform encephalopathy (BSE), or mad cow disease, were found in France, Spain and Germany late last month. The EU is the world's largest exporter of meat-and-bone meal; exports in 1999 totaled 561,241 tons with Poland, Indonesia and Egypt as its biggest importers, according to the USDA. By comparison, the United States exported 381,493 tons of MBM in 1999, according to REUTERS. 

EU Ties Retaliation to U.S. Retaliation.  FARM JOURNAL reports that the European Union says it will break an agreement to delay $4 billion in sanctions on American products if the United States seeks to implement "carousel" retaliation on the long-running beef and banana trade disputes. "Delaying EU sanctions in the dispute about U.S. tax breaks for exporters will fall through if the United States rotates $308.2 million in sanctions against the EU in the beef and banana disputes every six months, say trade counselors with the European Commission," says this article. European Union trade counselors have said that the U.S. beef industry appears to have lost interest in resolving the disagreement about the EU's ban on hormone-treated beef, however. If no deal is reached at the upcoming U.S.-EU summit on Dec. 18, the Clinton administration may again be pressured to rotate sanctions on EU goods, according to FARM JOURNAL. Legislation passed earlier in the year requires sanctions to be rotated in what sponsors call a "carousel" approach. But the Administration has not implemented the law, which is mandatory. The article adds that industry observers say Clinton may leave the issue for the next president to handle, rather than trigger $4 billion in EU sanctions.
 

December 1, 2000

Glickman Touts Food Safety Record.  Agriculture Secretary Dan Glickman, in a speech Thursday to the Joint Institute for Food Safety Research, said the structural reform of USDA's food safety mission in 1994 was followed by "major substantive reforms" that included the hazard analysis and critical control point (HACCP) system for meat and poultry inspection that "revolutionized" those industries. 

USDA Holds Pricing Sessions.  USDA's Agricultural Marketing Service will provide educational and outreach sessions around the country to assist producers and other market participants in understanding how the new mandatory livestock price reporting program will affect them.

News Summaries

Food Safety Grants Announced.  Agriculture Secretary Dan Glickman has awarded $14.2 million in competitive grants for 29 integrated food safety research and education projects. Funded projects include Cornell University where researchers will receive nearly $600,000 to develop a comprehensive food safety education and training program for farm workers; Colorado State University researchers who will receive $479,223 to develop ways to reduce the risk of listeria monocytogenes and other pathogens in dried food; Michigan State University researchers who will receive $345,671 to study antibiotic usage and the risk of antimicrobial resistance in pork production; New Mexico State University where $529,528 will be used to help extend the public-private food safety education campaign "Fight BAC!" to high-risk under- served communities, including Spanish-speaking consumers. 

Poultry Committee to Meet.  The General Conference Committee of USDA's National Poultry Improvement Plan will meet Dec.12 and 13. The meeting will focus on the "U.S. salmonella clean program" for meat-type chicken breeding flocks; a mycoplasma gallisepticum epidemiology update; proposed changes to the provisions of the national poultry improvement plan; and salmonella enteritidis in egg-type chicken breeding flocks. The committee will meet from 9:00 a.m. to 4 p.m. on Dec. 12 at the USDA South Building, 14th Street and Independence Avenue, S.W., Room 3501, Washington and from 8 a.m. to noon on Dec.13 at the USDA Center at Riverside, 4700 River Road, Room 2D02CN, Riverdale, MD. 

Japan Buys U.S. Corn.  Japanese importers are believed to have bought only about 100,000-150,000 tons of U.S. corn this week, REUTERS reports. Buying remains under pressure due to controversy over StarLink biotech corn, traders said on Friday. Japanese buying of U.S. corn has declined substantially since tests by a domestic consumer group in October revealed traces of the unapproved genetically modified corn variety in food and livestock feed made from corn imported from the United States. According to REUTERS, one trade house dealer said, "Local importers were believed to have bought this week around 100,000-150,000 tonnes of U.S. corn for January-March shipment. Their buying is still scant on the StarLink issue." The purchases were made under conditions agreed between several local importers and U.S. shippers for their own tests for StarLink corn and for settling the test cost later, he said. 

Farm Group Confident of Pork Defeat.  A Midwestern farm organization believes there will be enough votes to terminate the pork checkoff program made famous by "Pork: The Other White Meat" advertisements, according to a REUTERS report. The Campaign for Family Farms, a coalition of seven Midwest farm groups opposed to the program, said its members monitored the vote counting at local Farm Service Agency (FSA) county offices in 32 counties in seven states. FSA began counting votes from the Sept. 19-21 referendum on Wednesday. "We are predicting we will win," said Rhonda Perry, spokeswoman for the farm group. "The unofficial totals that came out there certainly have us in the lead by a reasonable margin."