December 27

IDAHO, TEXAS COUNTIES ELIGIBLE FOR LOANS. Fifty-eight counties in Texas and 10 in Idaho are eligible for emergency loans because of drought and other weather-related disasters, USDA announced. 

FNS ANNOUNCES 2002 SENIORS FARMERS' MARKET PROGRAM. USDA's Food and Nutrition Service (FNS) has invited grant applications for the Seniors Farmers' Market Nutrition Program (SFMNP) for fiscal year 2002. States, including territories and federally recognized Indian tribal governments, can submit the applications through January. A total of $10 million for the SFMNP is available. 

U.S. WILL DONATE FOOD TO HONDURAS. The U.S. Department of Agriculture announced that it will donate 7,560 metric tons of U.S. agricultural commodities to Catholic Relief Services (CRS) for use in Honduras under the Global Food for Education (GFE) program. CRS, a private voluntary organization, will use the commodities to implement a school feeding program in 50 schools in the Lempira region. 

PEOPLE IN THE NEWS:  Before adjourning, the Senate confirmed James Newsome as chairman of the Commodity Futures Trading Commission, leaving the CFTC with one vacancy … Secretary of Agriculture Ann Veneman named Gilbert Gonzalez as Deputy Under Secretary of Agriculture for Rural Development. Gonzalez is the founding president of the San Antonio Business Development Fund, Inc, a multi-bank community development corporation. He has been active in banking, housing and economic development efforts in Texas since 1984. 

USDA AWARDS DAIRY EXPORT BONUSES. USDA's Commodity Credit Corporation accepted bids from two exporters under the Dairy Export Incentive Program (DEIP) for nonfat dry milk to Caribbean, Central & South America. The quantities totaled 5,570 metric tons of nonfat dry milk for delivery December 21, 2001 through September 30, 2002. The DEIP bonus (subsidy) $429.69 per metric ton. After these sales, the remaining global DEIP balance for future sales is 46,737 metric tons, CCC said. 

NEWS BRIEFS:  Corn, wheat and soybean export inspections were all below last week's pace, USDA reported. For the marketing year so far, soybean exports continue well ahead of the year-ago levels, while wheat and corn are lagging … House Agriculture Committee Chairman Larry Combest (R-TX) commended President Bush for the administration's support of $73.5 billion in additional farm bill spending. The commitment came in a letter from Office of Management and Budget Director Mitch Daniels … The U.S. International Trade Commission (ITC) released a study of wheat trade between the United States and Canada. U.S. wheat growers filed a Section 301 petition with the U.S. Trade Representative in October 2000, alleging trade distorting practices by the Canadian Wheat Board (CWB) and the Government of Canada. More information is at http://www.usitc.gov/er/nl2001/ER1221Y1.HTM. 
 

December 21

American Soybean Association Urges USDA to Announce Loan Rates for 2002. The American Soybean Association (ASA) is urging Agriculture Secretary Ann Veneman to act immediately to announce loan rates for 2002 crops this month. ASA President Bart Ruth commented "with no certainty that the next farm bill will be in effect for 2002 crops, farmers and their lenders need to know as soon as possible what next year's farm program will be under the final year of the FAIR Act." 

Agriculture Secretary Veneman Provides Assurances After Senate Farm Bill Failure. After the Senate failed to reach agreement on the farm bill, Agriculture Secretary Ann Veneman stated that "the Administration had hoped that a bipartisan consensus bill would be developed, as all Senate farm bills of the past have been." She stated "we want to reaffirm that this in no way jeopardizes the assistance that farmers can expect next year. We remain committed to working with the Congress to complete a farm bill quickly and expect this can be accomplished soon after Congress returns." 

USDA's CCC Announces Payment Rates for Upland Cotton. Yesterday, USDA's Commodity Credit Corporation announced the prevailing world market price, adjusted to U.S. quality and located (i.e., the adjusted world price or AWP), for upland cotton at 28.1 cents per pound. In addition, the loan deficiency payment rate was established at 23.11 cents per pound. The user marketing certificate (Step 2) payment rate will be in effect from 12:01 a.m., Eastern Standard Time (E.S.T.), Friday December 21, 2001, through midnight Thursday, E.S.T. on January 17, 2002. 

Ag Secretary Veneman Says Administration Committed to $73.5 Billion in Additional Spending for the Farm Bill. As reported by the NATIONAL JOURNAL'S CONGRESS DAILY, Agriculture Secretary Ann Veneman yesterday said in a telephone news conference with farm broadcasters that "this administration supports the funding level agreed to in the budget resolution agreed to this year" for the farm bill. The fiscal year 2002 congressional budget resolution provides $73.5 billion in additional agricultural spending above the baseline for agriculture. 

Holiday Fruitcake Under Attack in Nevada. According to REUTERS, the Reno Gazette-Journal mounted a series of experiments to determine the best way to destroy a gift of fruitcake, which is referred to as an unloved seasonal treat that "nearly everyone receives and few actually want." The first experiment involved dropping fruitcakes from the roof of a two-story house onto a concrete basketball court. The reporter for the Reno, Nevada newspaper observed "in the moments before it was let fly, our team wondered if the fruitcake would shatter, bounce or remain intact. The answer was none of the above." Instead, the cake survived the drop relatively unscathed, exhibiting only a few "fissures" in its dense body. Other tests involved running over a fruitcake with a 3,000 pound SUV, submitting a fruitcake to the power of a football place kicker, and finally – shooting fruitcakes with submachine guns (however, pummeling a pair of fruitcakes with two M-11 fully automatic submachine guns resulted in only minor damage). 

December 18

Senate Continues Farm Bill Debate. The Senate will return Tuesday to the 2001 farm bill – which looks increasingly likely to turn into the 2002 farm bill even if the Senate takes a final vote this week. Congress will probably have its last formal sessions of the year at week's end, as lawmakers strain to finish the last of 13 annual spending bills and perhaps complete work on an economic stimulus bill and other priority legislation. 

Veneman Announces Bioenergy Funds. Agriculture Secretary Ann M. Veneman announced over $260 million in loan and grant funds for 24 states to boost bioenergy production, expand rural business ventures and improve economic and community development. 

USDA Sets Peanut Quota But Notes Program May Change. The U.S. Department of Agriculture Friday announced a national poundage quota for peanuts for the 2002 marketing year of 1,180,000 short tons (2,360,000 billion pounds), unchanged from the 2001 level. But the Department said the peanut program could change profoundly if Congress enacts new farm legislation in time for the 2002 crop. 

USDA Announces Flue-Cured Tobacco Program. The U.S. Department of Agriculture on Friday announced the provisions of the 2002 flue-cured tobacco program and said that the no-net-cost assessment will be 5 cents on each pound of 2002-crop flue-cured tobacco that is marketed. USDA set the no-net-cost assessments at 2.5 cents per pound for the producer and 2.5 cents per pound for the purchaser for crop year 2002. 

House Continues Criticism of Senate Bill.  Continuing a series of acerbic commentaries on the Senate's proposed farm bill, the House Agriculture Committee sent reporters a series of video clips of Chairman Larry Combest (R-TX) pointing out flaws in the bill compared to its House-passed counterpart. The committee also drew attention to a timeline that lays out Senate delays in detail, and concludes that with "six days until Christmas" farmers face "financing and planting decisions without the new farm bill and the safety net they have demanded." The House material is at http://agriculture.house.gov/farmbill.htm. 

TODAY AT USDA:  The Food Safety and Inspection Service has updated its library of export requirements for meat, poultry and eggs in various overseas markets. For details, go to http://www.fsis.usda.gov/OFO/export/explib.htm. Potato growers are getting prices 32% above a year ago, reflecting a 14% reduction in 2001 crop-year production, USDA's Economic Research Service reports. The new report for potatoes and other vegetables is at http://www.ers.usda.gov/publications/vgs/dec01/vgs288.pdf. 

Caterpillar Inc. will sell its tractor business to AGCO Corp., The Wall Street Journal reports.  The move may be bigger news for the farm equipment sector than for Caterpillar, which got only 2.5% of revenue from farm tractors in 2000 ... New Zealand, which frequently touts its free-market agriculture, has tightened government restrictions on selling farmland to foreigners, Dow Jones Newswires reports ... A professor at West Virginia University says a blend of 65% diesel and 35% chicken manure can power an engine with no significant difference in performance, the Associated Press reports. That could have major implications not only for energy independence but also for the environment, since poultry waste is often blamed for pollution problems, especially around the Chesapeake Bay watershed ... The Senate Finance Committee will continue its markup of Trade Promotion Authority legislation Tuesday. The panel has already voted approval of the measure, but continues to amend it. 

December 17

American Farm Bureau Federation (AFBF) Says "Stalling Tactics" Are Jeopardizing the Farm Bill. AFBF President Bob Stallman reacted strongly to the failure of the Senate to move forward on the farm bill, saying the "stalling tactics used by some Senators...have jeopardized needed assistance for farmers. If the result is that we don't get a final bill until next year and the $73.5 billion allocated to agriculture in the budget is cut, we'll know who to blame." 

Australian Wheat Growers Welcome the Delay in the U.S. Farm Bill. Australian wheat growers have welcomed the news of a delay in the passing of a new U.S. farm bill, revealing that they will now take advantage of the opportunity to try and convince the U.S. Senate to change its plans for the bill, especially its passage of huge subsidies to U.S. farmers. 

Despite Heavy Lobbying, the Senate Approves a Ban on Meat Packer Ownership of Livestock. Although the meat sector vigorously opposed an amendment to the farm bill to force beef and pork packers to divest themselves of cattle and hog ownership, within six and 18 months respectively, the amendment was approved by a vote of 51 to 46. 

Spanish Farmers Say U.S. Citrus Ban May Provoke a New Trade War. As reported by REUTERS, the current U.S. ban on clementine imports may lead to other new trade conflicts with Spain because Spanish inspectors failed to find the destructive Medfly pest in its own tests. According to Jose Ugarreo of the Young Farmers Association, "if this situation is not resolved soon we will organize acts of protest across Spain against this ban." He also told REUTERS, "I think there's a possibility of a diplomatic war, not only in citrus products." Although the ban was imposed after live medfly larvae were found in several Spanish shipments to the United States, a spokesperson for the Valencia regional government said U.S. agricultural inspectors last Thursday ended a four-day search for the Medfly in the citrus growing region after finding nothing. REUTERS was told by various agricultural associations in Spain that it was impossible for live medfly larvae to be found in Spanish shipments because the citrus products were transported at low temperatures to kill the larvae pursuant to a protocol between the two countries. Spanish clementine exports to the United States were estimated to reach 100,000 tons this year. 

U.S. Food Arrives in Cuba for the First Time Since 1962. REUTERS has reported that a ship carrying U.S. chicken arrived in Cuba on Sunday, which completes the first direct food trade between the two politically estranged countries since the United States placed an embargo on the Castro/Communist run island in 1962. Historic food and medicine sales were prompted by Hurricane Michelle, which devastated Cuba's crops last month. The shipment of 500 tons of frozen chicken was followed by a second ship carrying 24,000 tons of corn. The sales come in spite of President Fidel Castro's pledge not to buy "a single grain of U.S. rice or aspirin" soon after the year-old law exempting food and medicine from U.S. trade sanctions was signed. These sales and others that have been contracted for U.S. wheat, corn, soybeans, rice and chicken, are expected to heighten debate in the United States between farmers and Cuban exile groups who want tougher sanctions. 

December 14

Bond Amendment Defeated by Senate. The Senate Thursday defeated 43-54 a proposal by Sen. Christopher (Kit) Bond (R-MO) that would have given the Secretary of Agriculture the authority to review proposed federal agency actions that could have a significant adverse economic impact on or jeopardize the personal safety of farmers. If the Secretary of Agriculture had found that the proposed agency action would hurt farmers, the Secretary would have been authorized to consult with and offer alternatives courses of action to whichever agency is pushing the harmful actions. Bond offered it as an amendment to the farm bill being debated by the full Senate. 

Obesity Ruining Health Gains. Health problems from overweight and obesity could reverse many of the health gains achieved in the United States in recent decades, according to a Surgeon General's "call to action" issued Thursday. The report, entitled "The Surgeon General's Call to Action to Prevent and Decrease Overweight and Obesity," outlined strategies that communities can use in helping to address the problems. Those options included requiring physical education at all school grades, providing more healthy food options on school campuses, and providing safe and accessible recreational facilities for residents of all ages. 

Almost $400 Million Goes to Rural Areas. Agriculture Secretary Ann M. Veneman has announced the release of more than $384 million to 41 states and Puerto Rico to help rural communities improve public schools, invest in road improvement projects, and strengthen forest stewardship programs. Veneman, who was joined by Sen. Larry Craig (ID), Sen. Ron Wyden (OR), and Sen. Gordon Smith (OR), at a news conference announcing the funds. Oregon will receive $154 million; California, $65 million; Idaho, nearly $23 million; and Washington, approximately $44 million. 

Cloture Vote Fais In Senate. Senate Democrats fell short Thursday in an effort to accelerate debate on the new farm bill, getting only 53 votes on a so-called "cloture" motion rather than the requisite 60. Technically, the vote was on whether to limit debate on a substitute amendment crafted by Senate Majority Leader Tom Daschle (D-SD) and Agriculture Committee Chairman Tom Harkin (D-IA). Although debate on other farm bill amendments continues Friday, the Senate is also acting on other legislation and will not begin voting on farm bill issues again till Tuesday afternoon. Also on Thursday, the Senate approved a partial ban on packers owning livestock. That amendment was offered by Sen. Tim Johnson (D-SD). 

Red Tape Chokes Italy's Organic Market.  REUTERS reports that Italy is a fast-growing market for organic food, but red tape is choking business opportunities. Italy has the largest organically farmed area in Europe, with more than one million hectares planted in 2000, some 200 times the area 15 years ago, according to the Rome-based U.N. Food and Agriculture Organization (FAO). "Organic farming growth in Italy is rapid and the domestic organic market is taking off," said an FAO report entitled "World markets for organic fruit and vegetables." Relatively high financial support for organic producers has encouraged farmers to convert to organic production, it said. The FAO study said Mediterranean countries had good prospects to export to Italy due to long-standing commercial ties with other food sectors, such as olive oil. It said Italy was a promising market for organic produce grown in developing nations, particularly around the Mediterranean rim, including pre-processed products such as concentrated juices and processed foods like canned tomatoes. But it warned that Italian bureaucracy was stifling trade opportunities. 

Brazil Gets Tough on U.S. TPA.  Brazil got tough Thursday in its opposition to U.S. legisaltion to grant trade promotion authority to the President. Brazil threatened to boycott Americas-wide free trade talks unless parts of the bill relating to agriculture are changed, according to a REUTERS report. Government and political leaders severely criticized the bill, which is still working its way through the U.S. Senate, that would give President George W. Bush powers to finalize trade treaties that can be approved or rejected by lawmakers but not amended. Analysts say Brazil's vociferous opposition may force the United States to modify the bill if it is to reach its long-term objective of creating the Free Trade Areas of the Americas (FTAA), a 34-nation trade accord spanning the hemisphere. "The FTAA without Brazil is not worth very much to the United States, and the FTAA without good access for Brazil to the U.S. market is not worth very much to Brazil," said Jeffrey Schott, an analyst with the U.S.-based Institute for International Economics. 

Pork Becomes Bargain for Consumers.  Consumers are finding some bargains on pork chops because of an abundance of hogs this fall has surprised analysts and increased fourth-quarter pork production, pushing some wholesale pork prices to a three-year low. REUTERS reports that Kansas City, MO, stores were featuring chops this week at $2.99 per pound, down from the normal price of $3.99. In Washington, they were $1.99 and in Chicago they were advertised at $2.49, a savings of $1.80. Wholesale prices for pork loin, the section of meat that produces pork chops, are the lowest since 1998, said Kevin Bost, a commodity analyst with Topco Associates, a Chicago-based food cooperative that supplies about 2,000 supermarkets nationwide. The abundance of hogs this fall surprised livestock experts. A comprehensive government hog inventory report released in September indicated there would be fewer hogs now compared with a year ago. But more recent government pork production data shows that hog supplies are up about 1%. "I think we missed some of the (herd) expansion in the U.S.," said Chris Hurt, an agricultural economist at Purdue University. 

December 12

Appeals Court Rules USDA Standard Invalid.  A three-judge federal appeals panel has ruled unanimously that USDA's Salmonella performance standard conflicts with the statutory language in the Federal Meat Inspection Act (FMIA) and therefore is invalid. The Salmonella performance standard is part of the 1996 HACCP/Pathogen Reduction rule. 

RFA Urges California to Hold the Line. The Renewable Fuels Association (RFA) has urged California Gov. Gray Davis to maintain the original deadline - Dec. 31, 2002 - for removing MTBE from California's gasoline supply to protect water resources. Delaying the ban could make it difficult for California to secure the future ethanol supplies needed to remove MTBE, RFA noted. A letter to Davis was prompted by reports the state is considering delaying the phasing out of MTBE. 

New Dairy Subsidies Approved.  The Senate Tuesday approved $2 billion in new subsidies for dairy farmers after rejecting a GOP move to defeat the idea. THE ASSOCIATED PRESS reports that the dairy program is considered critical to getting the support of northeastern senators for the Democratic farm bill, which primarily benefits grain and cotton farms in the Midwest and South. "We are back to moving forward and making progress on this farm bill," said Senate Agriculture Committee Chairman Tom Harkin (D-IA). ‘If we maintain the progress that we have made we can pass this important bill sometime this week." Farm groups are pressing the Senate to approve the legislation this week and work quickly to reach a compromise with the House, which passed its own version in October. 

France to Help Jordan in Self-Sufficiency.  THE ASSOCIATED PRESS reports that France will work with Jordan in an effort to spur the Middle East country to become self-sufficient in food production. A Jordanian Agriculture Ministry report said a five-year memorandum of understanding was concluded late November in the capital Amman between Jordanian officials and the French Ministry of Agriculture and Fisheries. The agreement, which took effect last week, seeks to unify regulations dealing with the import and export of live animals, livestock products, laboratory testing of animals and veterinary services, the report said. Under the agreement, both sides will exchange technical data in veterinary medicine and relevant scientific research to prevent disease, the report said. 

Baucus, Grassley Agree on TPA Bill.  Sen. Max Baucus (D-MT, chairman of the Senate Finance Committee, and Sen. Charles Grassley (R-IA), the ranking member, says they have agreed on a joint bill on trade promotion authority for committee consideration today (Wednesday) that closely tracks the House version. "If we were to present our own separate versions of this trade legislation, those drafts would differ in a number of respects. We felt, however, that there was considerable value in restoring a greater degree of bipartisanship to both the activities of the Finance Committee and to trade policymaking more generally," they said in a statement. The bill provides the President the authority he needs to complete trade negotiations with Chile and Singapore, pursue global negotiations under the auspices of the World Trade Organization, and potentially launch other trade negotiations in the future. The legislation provides direction to the President on negotiating on key issues, including agriculture, services, and electronic commerce. The legislation also provides meaningful direction to the President to address the controversial issues of labor rights and environmental protection and directs U.S. trade negotiators to preserve key U.S. trade laws. 

UK Consumer Groups Says Scrap Farm Policy.  REUTERS reports that a leading consumer groups in the United Kingdom has told the European Union to get rid of its agriculture policy, because it costs British shoppers their money and their health and destroys the countryside. The Consumers' Association said Europe's Common Agricultural Policy was forcing British shoppers to spend dozens more pounds on beef, lamb, oil and rice than those in New Zealand with few guarantees of their health and safety. "The Common Agricultural Policy (CAP) is well past its sell-by date," Sheila McKechnie, director of the Consumers' Association, said in a statement. "The policy has led to appalling levels of waste, inflated food prices, and a market that is rigged against consumers, and for the interests of producers...We need a European food policy, not a European agriculture policy." The government has launched inquiries into how to shape future agricultural policies while lobby, farming and environmental groups have queued up to outline their demands. 

Brazil Questions U.S. TPA. Opposition is mounting among powerful commodity producers in Brazil, Latin America's biggest economy, to the U.S. efforts to obtain trade promotion authority for the Bush administration. REUTERS reports that Brazil has said Congress must give the U.S. president the authority to negotiate trade pacts with other countries. Last week, the U.S. House did just that and the Senate now is considering a similar bill. But Brazilian President Fernando Henrique Cardoso's response was measured, saying that conditions imposed in the bill "if taken literally" mean there would be no Free Trade Area of the Americas (FTAA). Cardoso was objecting to conditions in the bill preventing the U.S. president from reducing import tariffs for some commodities without congressional approval. That irks Brazil's producers of such products as sugar, steel and orange juice, who say they face unfair barriers to their products in United States. 

India Food Exhibit Open to U.S. Interests.  U.S. companies interested in exporting food products to India have until Jan. 15 to sign up to exhibit at a USA Food Pavilion at the AAHAR 2002 food show in New Delhi, India. USDA's Foreign Agriculture Service will sponsor the special pavilion at the show March 6-10. Last year, India removed quantitative restrictions on imports of food and beverage products, making this trade show a great opportunity for U.S. exporters to explore sales in a market of more than a billion consumers, according to FAS. India's economy is growing at 6% a year. Its growing middle class has as many as 155 million consumers whose tastes favor Western fare, thanks in part to expanded tourism. India's agricultural imports total nearly $3 billion annually. The best market prospects at AAHAR 2002 include almonds, dried fruits, food ingredients, snack foods, jams and jellies, frozen french fries, chocolates, cheese, condiments and fresh fruits. In addition, high-value products such as health foods, beverages, horticultural seeds and nursery products have good potential. Participants may staff their own booth or send product samples to be featured in the American Café pavilion. Sending samples, rather than staff, to the American Café is a cost-effective means of reaching India's buyers in the wholesale, supermarket, hotel and restaurant industries. For more information on exhibiting products at AAHAR 2002, or for information on other USDA-endorsed trade shows, contact Tobitha Jones at 202-690-1182, or by e-mail at jonest@fas.usda.gov

December 11

Senate Returns to Farm Bill.  The Senate was scheduled to return to consideration of a farm bill today with Senate Agriculture Committee Chairman Tom Harkin (D-IA) ready to propose a substitute for the committee's version that adds another $1 billion to conservation and includes a new dairy provision as well. More than 30 agriculture and food groups urged the Senate to wind up debate by Wednesday so enough time can be taken for a conference with the House before the holiday recess. 

U.S. Wants Another WTO Dairy Hearing.  The United States intends to continue to pursue a favorable ruling on Canada's dairy export policies by requesting a further World Trade Organization panel hearing to present additional information. Although Canada ostensibly had revised its dairy export program due to earlier adverse WTO rulings, in July the WTO found that Canada's program was an export subsidy that violated WTO rules. Canada appealed and last week the WTO determined that it was unable to make a ruling because of an incomplete factual record. The Appellate Body stated that its ruling "does not amount to a finding that the measure at issue is WTO-consistent" and that "it remains possible that the measure is such an export subsidy." 

Tulsa Sues Poultry Companies.  The City of Tulsa, OK, and the Tulsa Metropolitan Utility Authority (TMUA) have filed suit in U.S. District court for the Northern District of Oklahoma against six out-of-state poultry processors alleging that "overwhelming taste and odor problems" in the city's drinking water are linked to waste from chicken production. Included as defendants are Tyson Foods, Cobb-Vantress, Peterson Farms, Simmons Foods, Cargill and George's. The City of Decatur, AR, is also a defendant in the suit. 

Rooster.com Ends. THE ASSOCIATED PRESS reports that Rooster.com, an Internet web site that provided commodity prices, news and other services to farmers, closed Monday. An inability to raise money to maintain operation was given as the reason. The company opened its web service in May 2000 after receiving start-up funds from Cargill, Cenex Harvest States Cooperatives and DuPont. In addition to agriculture news, the site aimed to be an electronic trading place for farm supplies and commodities. On Monday, the company's home page carried a notice that said, "We regret to inform you that effective today, Rooster.com will cease operations. In this tough economic climate, we were unable to secure additional funding." The notice also said Rooster.com had over 30,000 registered users. 

Japan, China Fail to Resolve Dispute. KYODO NEWS reports that Japan and China failed to resolve their trade dispute over Tokyo's import curbs on three farm products, mostly from China. The failure, which came in a ministerial meeting in Beijing on Tuesday, increasing the likelihood the row could escalate enough to warrant the World Trade Organization's (WTO) dispute-settlement process. Nearly three hours of talks, including 40 minutes of direct talks between the ministers concerned, failed to produce a breakthrough on fundamental differences, with parties merely reaffirming their wish to continue talks aimed at a settlement. ''We had a number of points in accord, but fell short of striking a final agreement on the fundamental point,'' Japanese Economy, Trade and Industry Minister Takeo Hiranuma told reporters after meeting with Chinese Foreign Trade and Economic Cooperation Minister Shi Guangsheng. A spokesman for China's Foreign Trade and Economic Cooperation Ministry told KYODO NEWS that Beijing intends to continue talks with Japan. 

Russia Could Join WTO by Mid-2003.  REUTERS reports that World Trade Organization Director-General Mike Moore believes Russia would be able to join the body by the middle of 2003. But he warned against trying to force the process, saying that "short cuts take longer in the long run." He added, "In my view, Russia will be sitting at the table as a full member by the next ministerial conference." The remarks came to reporters as Moore greeted Moscow's chief WTO negotiator, Maxim Medvedkov, in Geneva for entry talks. Ministers from the soon-to-be 144 WTO member countries agreed in Doha, Qatar last month to a January launch of a new round of negotiations to lower barriers to global trade. They are due to meet again in the summer or autumn of 2003, probably in Mexico. Moscow -- which once scorned the WTO's predecessor as an "instrument of imperialist exploitation" -- applied for membership in 1993, two years after the Soviet Union's collapse. 

December 10

Michigan Court Upholds Veneman in Pork Case.  The U.S. District Court for the Western District of Michigan has ruled that Secretary of Agriculture Ann Veneman acted in accordance with the law when she entered into a settlement agreement continuing the pork checkoff program. The February 2001 settlement between USDA, the Michigan Pork Producers Association, the National Pork Producers Council (NPPC) and three Michigan pork producers continued the program but required the administrative separation of checkoff and non-checkoff activities. 

Daschle, Combest Trade Barbs.  It was partisan politics at its classic best late last week as Senate Majority Leader Tom Dashcle (D-SD) and House Agriculture Committee Chairman Larry Combest (R-TX) traded sharp criticisms over who is to blame for the Senate possibly not finishing a farm bill in time to have a conference committee finalize a bill this month. 

Milk Substitute Fed to Infected Cows.  KYODO NEWS reports that a milk substitute fed to the three cows in Japan diagnosed with mad cow disease contained an animal fat produced in the Netherlands. Twenty-one cases of the disease have been confirmed in the Netherlands since 1997. Officials of Japan's Ministry of Agriculture, Forestry and Fisheries said the animal fat is believed to have been imported to Japan by a subsidiary of the National Federation of Agricultural Co-operative Associations (ZEN-NOH). The ministry inspected the subsidiary and will send two of its officials to the Netherlands in the near future to investigate whether dangerous cow parts were mingled with the fat, the officials said. Four cow organs -- brains, spinal cords, eyes and ilea, the third and last portion of the small intestine -- are most susceptible to the disease, known as bovine spongiform encephalopathy (BSE). The milk substitute given to the three cows was produced at Scientific Feed Laboratory Co., another subsidiary of ZEN-NOH. 

Japan Ignored MBM Warning Years Ago.  KYODO NEWS reports that Japan's farm ministry ignored until late last year a warning by two experts five years earlier about using meat-and-bone meal (MBM). The report says minutes of a government panel meeting made available Friday showed the Ministry of Agriculture, Forestry and Fisheries had delayed discussions on the warning that called for legal prohibition of the use of MBM as feed for cows to prevent mad cow disease. The ministry presented the minutes to the government's investigative panel on the MBM issue which held a meeting Friday. The minutes contradict the ministry's explanations in 1996 when reports surfaced that mad cow disease could infect humans. The ministry said at that time that it issued an administrative guidance to limit the use of MBM but did not take stricter measures after listening to opinions from experts. According to the minutes, the two experts issued the warning at a meeting in April 1996 of a livestock subcommittee of the Agricultural Material Council. 

Finland Latest Mad Cow Victim.  REUTERS reports that Finland has confirmed the country's first case of mad cow disease and will now expand livestock tests. "Unfortunately, the first case has been found," senior Agriculture Ministry official Jaana Husu-Kallio told a news conference. The suspected case was found a week ago. Tissue samples were sent to Britain for thorough testing after preliminary tests proved inconclusive. Officials said the source of the bovine spongiform encephalopathy (BSE) infection in the six-year-old animal was unknown, but the farm in northern Finland had not used bonemeal, which is suspected of causing the disease, in animal feed for more than 20 years. The ministry said the infected cow had been killed and all 42 other cattle on or from the dairy farm would also be destroyed. Officials refused to reveal the location of the farm or identify the owners, who they said were not to blame. 

December 7

Close TPA Vote Still a ‘Very Positive Development.' Despite a one vote margin Thursday to approve trade promotion authority in the House, Agriculture Secretary Ann Veneman called the result "a positive signal that the United States is committed to expanding trade opportunities for farmers and ranchers." Speaking to reporters after the vote, she said she considered it "a very positive development" because "everyone said we couldn't win this one." 

Agriculture More Than Pleased at TPA Vote. Reaction came swiftly and positively from agriculture circles late Thursday in the wake of a 215-214 vote in the House to approve trade promotion authority. The Agriculture Coalition for Trade Promotion Authority (TPA) called the vote "the key that will open the door to increased exports and a better future for American farmers and ranchers." 

Codex Agenda to Be Discussed. Potential agenda items for the eighth session of the Codex Committee on Meat and Poultry Hygiene will be discussed at a public meeting Dec. 12. USDA's office of the under secretary for food safety is sponsoring the public meeting. The Codex Committee on Meat and Poultry Hygiene was established in July to draft basic international standards for meat and poultry hygiene. The committee's eighth session will meet Feb. 18-22, 2002 in Wellington, New Zealand. The public meeting to discuss the agenda will be held from 9 a.m. to 12 p.m., Wednesday, Dec. 12, in the Diplomat Room, Washington Plaza Hotel, 10 Thomas Circle, Washington, D.C., 20005. To submit comments or to receive copies of documents on the agenda, contact the FSIS Docket Room, Docket #01-038N, U.S. Department of Agriculture, Food Safety and Inspection Service, Room 102, Cotton Annex, 300 12th Street, SW, Washington, DC 20250-3700. The documents are available electronically at http://www.codexalimentarius.net/agend.htm. 

Canada Ready to Fight on Dairy. REUTERS reports that Canada is ready to fight another expected challenge from the United States and New Zealand over Canada's dairy export system. WTO appeals judges ruled Monday that Canada was not breaking global trading rules with its latest version of its dairy export program. The ruling from three members of the WTO's semi-judicial Appellate Body overturned an earlier finding by a panel in a four-year-old dispute brought to the WTO by the United States and New Zealand. The WTO decision also removed threats by the two countries to impose trade sanctions worth a total of $70 million on Canadian products they import, ranging from dairy produce through cereals and alcoholic drinks to pharmaceuticals. The United States and New Zealand are expected to launch another challenge to the Canadian program Friday, Quebec officials said Thursday. Canadian Agriculture Minister Lyle Vanclief said that the country was prepared a for battle and was convinced it would win again. 

Final Farm Bill Steps Must Wait, Says Daschle. REUTERS reports that Senate Majority Leader Tom Daschle has suggested the final steps in getting a farm bill ready for President Bush would have to wait until next year. But, he added, the Senate would not adjourn for the year until it passed a farm bill. At that point, House and Senate negotiators would write a compromise version to be ratified by both chambers, then sent to the president. Negotiations often take a week or more. "It's looking more difficult, I have to be honest," said Agriculture Committee chairman Tom Harkin. But if the legislative session lasted until late December, Harkin said, there might be time. "I'm willing to stay until Christmas Eve." 

India Will Allow Some Biotech Trials.  India will test some gene-altered crops along the lines of tests being undertaken for a genetically modified (GM) cotton seed variety, a senior government official said on Friday, according to REUTERS. "The government has allowed field testing (of gene-altered crops) for rice, maize, tomato and cauliflower," Agriculture Commissioner C.R. Hazra told reporters on the sidelines of a meeting on fertilizer. Hazra said the process of testing itself will take four years and only then its value for commercial use could be assessed. Agriculture Minister Ajit Singh said the government would likely approve commercial production and sale of a GM cotton seed variety once the extensive tests were completed by February. Singh said BT, or bacillus thuringiensis, cotton seed production had been allowed over 300 hectares (741 acres) in Andhra Pradesh. BT cotton is resistant to the cotton bollworm, which causes heavy damage to the Indian cotton crop. 

December 6

Administration Makes It Plain: Pass Cochran-Roberts.  The Bush administration doesn't want either the House-passed farm bill or the bill reported from the Senate Agriculture Committee. It prefers a bill proposed by Sens. Thad Cochran (R-MS) and Pat Roberts (R-KS). Agriculture Secretary Ann Veneman and Cochran and Roberts told farm broadcasters Wednesday the bill's features make it the preferable measure that President Bush will sign. 

New Study Touts Benefits of Renewable Fuels.  The Renewable Fuels Association (RFA), National Corn Growers Association (NCGA), and National Biodiesel Board (NBB) have issued a new analysis of the economic and energy security impacts of implementing a renewable fuels standard (RFS) of 6.6 billion gallons by 2011, increasing to 8.8 billion gallons by 2016. The report claims that implementing an RFS will increase energy security, stimulate the U.S. economy and increase farm income. 

Dairy Groups Cautious on WTO Ruling.  U.S. dairy organizations greeted a new World Trade Organization (WTO) ruling with cautious optimism after the WTO's Appellate Body decided that a compliance panel's analysis of Canadian government export subsidies required further analysis. Additional study is required to determine the full effects of the Appellate Body's ruling and subsequent steps for the U.S. dairy industry, the groups said. 

EPA Issues Organophosphates Assessment.  The Environmental Protection Agency has released a preliminary assessment of the cumulative risks of organophosphate pesticides and is seeking both scientific peer review and widespread public comment on the scientific methodologies used to develop the risk assessment. New methodologies, developed over the past five years with extensive scientific peer-review, allow EPA to evaluate potential exposures to multiple pesticides, taking into account food, drinking water and residential uses. A public comment period is open through March 8. 

GOP Lobbies Businesses for TPA Votes.  THE ASSOCIATED PRESS reports that Republicans are lobbying computer companies in an effort to convince enough Democrats to vote for trade promotion authority, scheduled for full House consideration today. The news agency says the three GOP leaders in the House sent aides to meet with company lobbyists behind closed doors to map out a last-minute campaign. The message at Friday's meeting in House Majority Whip Tom DeLay's office, according to lobbying and congressional sources, was: If new presidential trade authority is truly high-tech's top issue, it's time to help deliver the votes. "They haven't really brought many Democrats on board, so that's what we're saying: ‘We're working hard, the bill is up next week, you guys have got to realize this is the final push,'" said Emily Miller, spokeswoman for DeLay (R-TX). The high-tech industry is responding with a full-scale deployment of CEOs and lobbyists through the actual vote. 

December 4

Farm Groups Weigh In On TPA.  The Agriculture Coalition for Trade Promotion Authority sent a letter to Congress signed by 95 groups, further evidence, the group said, that momentum is building for a positive TPA vote Thursday. But at least one farm organization urged defeat of the measure. The House is expected to take up the measure for floor action on Thursday. 

USDA Announces Crop Insurance Price Elections.  USDA's Risk Management Agency has announced the established price elections for most 2002 crop year spring crops insured under the federal crop insurance program. Price elections are the basis of crop insurance premiums that help farmers manage risk throughout the growing season. 

U.S.-Belgium Rice Dispute Settled.  United States Trade Representative Robert B. Zoellick says the favorable resolution of an agricultural dispute between the United States and Belgium has been finalized. The issue centered on excess duties collected on shipments of U.S. rice to Belgium in 1997 and 1998. 

Dreier Confident on TPA Vote.  REUTERS reports that Rep. David Dreier (R-CA) believes the House will approve trade promotion authority despite continued opposition from most Democrats. "I'm convinced that by Thursday we will have the votes that we need to win," Dreier, chairman of the House Rules Committee, told reporters. He acknowledged it would be "a bit of a stretch" to say supporters already had enough votes to pass the measure in a vote scheduled for Thursday. Rep. James Moran, a Virginia Democrat, said it was possible no more than two dozen Democrats would support the measure. That would require Republicans to supply as many as 190 to 200 votes to win approval. Of the 221 Republicans in the 435-seat House, more than 50 voted in 1998 to deny former President Bill Clinton the TPA that the White House has lacked since 1994. The bill also requires Senate approval. Supporters say without the legislation other countries would refuse to negotiate seriously with the United States because they would know Congress could change any agreement. The Bush administration wants trade promotion authority to conclude negotiations on several pending trade agreements, including bilateral pacts with Singapore and Chile, a regional agreement covering 34 countries in the Western Hemisphere and a pact with the 142 members of the World Trade Organization. Many lawmakers oppose the measure because they fear efforts to open up markets and reduce trade barriers could lead to job losses at home. Others are pushing for stronger language on labor, the environment, investment and congressional oversight of trade negotiations in the bill. 

Japanese Gravitate toward Organic Produce. REUTERS reports that Japanese consumers are abandoning conventional fruit and vegetables for the "gnarled but chemical-free produce" from organic farms. Japan's first case of mad cow disease, or bovine spongiform encephalopathy (BSE), in September, plus a massive outbreak of food poisoning last year due to insanitary practices at the nation's top dairy producer, have heightened consumer awareness. "BSE forces people to think about how food is produced and that is the first step towards understanding the value of organic (food)," said Donald Nordeng of QAI, a company licensed by the government to judge if produce grown overseas is organic. Organic food can be more than 50% more expensive than ordinary produce, but teacher Akiko Kajikawa, lunching with a colleague at a recently opened organic cafe in central Tokyo, says money is irrelevant when it comes to health issues. "I want to eat organic food," Kajikawa said. "But I often have difficulty getting hold of it, so I'm really happy to get lunch here." The Japanese market for organic products was estimated at between $3.7 billion and $4.5 billion last year, compared with $1.5 billion five years earlier. 

Korea Will Freeze Rice Prices. South Korea will freeze its rice and barley purchasing prices next year at 2001 levels. Local farmers are facing economic hardship from oversupply and bearish prices, the agriculture ministry said today, according to a REUTERS report. Korea will buy a total of 789,264 tons of rice to be harvested next fall at 60,440 won ($47.66) for the first grade 40-kg rice crop -- equivalent to 167,720 won per 80 kg of rice after milling, the ministry said in a statement. Last month, an advisory committee suggested cutting prices by 4-5% to make domestic rice more competitive -- on average it costs six times more than imported rice -- but price declines of more than eight percent this year have angered farmers. The government will also buy barley to be harvested next summer under contracts between farmers and the National Agricultural Cooperative Federation at the same prices as this year -- 31,490 won ($24.83) for the first grade 40-kg unhulled barley and 35,690 won for the first grade 40-kg rye. 

New Zealand's Dairy Battle with Canada Continues. New Zealand expects to continue a long legal fight with Canada over Canada's dairy supply scheme, despite a World Trade Organization (WTO) finding that it did not breach global trade rules. REUTERS reports Agriculture Minister Jim Sutton said the decision by WTO appeals judges on Canada's latest version of a program managing the country's milk and dairy products supply left the door open for New Zealand and the United States to pursue further legal action. "While we need to study the ruling closely, our preliminary view is that we will continue the legal challenge," Sutton said in a statement. The ruling from three members of the WTO's semi-judicial Appellate Body overturned an earlier finding by a panel in a four-year-old dispute brought to the WTO by the United States and New Zealand. But the body also said that it was unable to complete its analysis of claims made by the United States and New Zealand. 

December 3

Senate Bill Favors Organic Farmers.  THE ROOSTER NEWS NETWORK reports the proposed conservation proposal in the Senate farm bill cold make U.S. producers more competitive in the international organic market. European Union (EU) organic producers have captured much of the international market due to government subsidies, says Luanne Lohr, holder of a University of Minnesota School of Agriculture endowed chair in agricultural systems. Lohr says European organic producers have benefited from early development of EU organic certification standards in 1991 and agri-environmental support programs implemented under a EU regulation in 1992. U.S. organic farmers have fallen behind since they're at a disadvantage due to lack of similar government support, she says. "The Conservation Security Act could level the playing field by providing farmers with financial support for practices that protect the environment. This includes organic production, and these payments would not be subject to WTO limits on subsidizing production." The proposed Conservation Security Act is the only policy tool U.S. agriculture has to counter the European Union's advantage, say Lohr. "The European agri-environmental program is a 'Green Box' policy under the World Trade Organization (WTO). This means it's not subject to spending limits or elimination as long as payments are related to environmental enhancement rather than production or export performance." 

New Zealand Cautions on Kyoto Climate Report. THE WALL STREET JOURNAL reports the New Zealand government believes a new report on the Kyoto Protocol on Climate Change includes analytical limitations and should be treated with caution.The report by the New Zealand Institute of Economic Research, or NZIER, concluded that New Zealand will face high costs in implementing any policy to substantially reduce greenhouse gas emissions. The NZIER report was released by the Greenhouse Policy Coalition and the Petroleum Exploration Association, or GPC/PEANZ.But Hodgson cited the recent government-commissioned Australian Bureau of Agricultural and Resource Economics (ABARE) report, which indicated the economic impact would be slightly positive overall. "This (GPC/PEANZ) report says the impact could range between slightly negative and very negative, depending on how extreme a policy scenario is applied...This report is interesting but not illuminating, given the uncertainty surrounding its conclusions," Hodgson said. If enough countries ratify the Kyoto Protocol, New Zealand will have to reduce, then stabilize, net greenhouse gas emissions at 1990 levels in the five-year period ending Dec. 31, 2012.