December 30
Infected Cow Born Before Feed Ban
THE ASSOCIATED PRESS reports the Holstein infected with mad cow disease was born four months before the United States and Canada began to ban brain and spinal cord tissue in feed. That is the primary way in which the ailment is transmitted. Dr. Ron DeHaven, USDA's chief veterinarian, said the Washington state dairy farm's records show that was the infected cow's last home. In Canada, it was confirmed that the animal was born there in April 1997, before the new restrictions on cattle feed took effect.
DeHaven said that DNA studies should provide more evidence on the origin of the infected cow. They also are examining records of the herd that included the diseased cow. The cow had three calves after she entered the United States, officials said. One died, and another remains in a herd in Washington state. A third calf, a male, is being held in isolation with other animals, officials said.
The entire story is at http://www.cbsnews.com/stories/2003/12/23/health/main590039.shtml
Possible Change In Store for Meat Industry
THE CHRISTIAN SCIENCE MONITOR reports the investigation into the mad cow incident in Washington state could bring changes in the U.S. meat industry not seen in nearly a century - when Upton Sinclair's novel "The Jungle" led to the creation of the Food and Drug Administration. Statements from Capitol Hill, USDA and scientific and industry experts point to a host of new regulations that could be developed over the next year.
Government oversight of the massive feedlot system and slaughterhouses throughout the country could wind up resembling the European model which includes a ban on the human consumption of "downer" cattle (those so sick or injured that they cannot stand), a detailed cattle-tracking system, and new restrictions on grinding up cattle parts as feed for other animals. Also being studied are nonfood products derived from cow parts - everything from bone meal spread on flower gardens to hand cream and antifreeze.
The rest of the story is at http://www.csmonitor.com/2003/1230/p01s02-usgn.html
Cattlemen Want Other Nations to Reopen to U.S. Beef
Terry Stokes, CEO, National Cattlemen's Beef Association wants other countries to reopen their markets to U.S. beef imports. "In five short days and despite the holiday, USDA has traced this animal through ear-tag identification to Canadian records. These records suggest this cow is more than six-years-old and entered the United States with 73 other animals that are being traced by USDA.," Stokes said.
USDA confirmed the central nervous system tissue from this animal never entered the human food chain, he continues in a statement. "Rather, it was sent to rendering for non-human food uses. Scientists agree these central nervous system tissues, such as spinal cord and brain, are the carrier of BSE. The BSE agent is not found in muscle meat, like steaks, roasts or ground beef."
The NCBA applauds USDA for collaborating with Canada, and requested an "indefinite extension" on final comments on the opening of the Canadian border to live animal trade until the investigation is complete.
The entire story is at http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2411
USDA Confirms Work with Canada on Mad Cow
In an update Monday, USDA officials said they were still working with Canadian officials to "verify the traceback of the index animal," a reference to the cow found with mad cow disease in Washington state. USDA is working with Canada to conduct DNA testing to verify that the correct animal has been identified.
The age of the animal is significant, USDA said. She would have been born before feed bans were implemented in North America in August 1997. The feed bans prohibit the inclusion of ruminant protein in feed intended for other ruminants to eat. "That practice has been identified time and time again as the primary means by which BSE spread, the USDA statement said.
Also, USDA is continuing to trace the other 73 head of cattle that came in the same shipment and has identified another shipment of eight cows from the same herd in Canada which USDA also is tracing.
The entire news release is available at http://www.usda.gov/news/releases/2003/12/0448.htm
U.S. to Look Again at Border Opening
REUTERS reports U.S. officials plan to take another look at USDA's proposal to reopen the border to some Canadian cattle after finding mad cow disease in Washington state. In May this year, Canadian officials discovered a single case of mad cow disease in a black Angus cow in Alberta, but USDA said it was too early to speculate on whether the two cases were related. The Canadian outbreak prompted the USDA and other foreign countries to shut their borders to Canadian beef and cattle.
USDA has proposed resuming imports of Canadian cattle under 30 months of age and said it would take another look at its proposal in light of the discovery of mad cow disease in the border state. "New information from the investigation will be taken into consideration," said USDA spokeswoman Julie Quick, referring to the USDA proposal. Canadian officials have said they were hoping the United States would reopen its border early next year as Washington had intended to begin work on a final ruling next month.
For the entire story, go to http://www.agriculture.com/worldwide/IDS/2003-12-28T013306Z_01_N27223299_RTRIDST_0_MADCOW-TRADE-CANADA-UPDATE-1.html
December 28
BSE Case Confirmed Christmas Day
It was Christmas Day, Dec. 25, when the BSE world reference lab in Weybridge, England, confirmed USDA's Dec. 23 preliminary diagnosis of BSE in a single nonambulatory dairy cow that had been slaughtered on Dec. 9 at Vern's Moses Lake Meats in Washington State. At the time of USDA's preliminary diagnosis on Dec. 23, USDA's Food Safety and Inspection Service (FSIS) issued a Class II recall for the facility's entire day's production. The recall was classified as Class II due to the extremely low likelihood that the beef being recalled contains the infectious agent that causes BSE. The herd from which the affected animal came is under a state quarantine in Washington. While USDA has not made any decisions on the disposition of this herd, any cattle that die on the farm will be tested for BSE.
USDA's Animal and Plant Health Inspection Service (APHIS) has determined that USDA's primary line of inquiry suggests that the affected animal likely entered the United States as part of a group of 74 dairy cattle that were imported through Eastport, ID, from Canada in 2001. Canadian officials are actively participating in efforts to trace this animal back to its birth herd. Officials said there is some discrepancy in the records on the animal in question. Initial information obtained from the index herd owner indicate that this animal was 4 to 4-1/2 years old; Canada's records indicate that she was born in April 1997, making her 6-1/2 years old. USDA is working with Canada to ascertain the correct age of the animal in question and is initiating DNA testing to verify that the correct animal has been identified.
The cow recently had given birth to a bull calf (resulting in the complications that led to her being culled), which was sold to a location in Sunnyside, WA. Since the calf was not tagged, all bull calves at the Sunnyside premises under 30 days of age will likely be slaughtered. The cow in question has previously had two additional calves while in the index herd in Washington. One died at birth shortly after the cow's initial purchase by the index farm. One, a yearling heifer, remains in the index herd, where it is under a state quarantine.
USDA's news release on the subject is at http://www.usda.gov/news/releases/2003/12/0445.htm
Officials in Japan to Talk Mad Cow
THE ASSOCIATED PRESS reports U.S. agricultural officials are in Japan where they will talk with officials there about the discovery of the first mad cow disease case in the United States. Japan bought more than $1 billion in U.S. beef last year but now has joined almost 30 nations that suspended imports after a cow in Washington state tested positive for the disease last week.
A USDA delegation led by David Hegwood, a trade adviser to Agriculture Secretary Ann Veneman is to meet today with Japanese officials in Tokyo. The USDA's chief veterinary officer, Dr. Ron DeHaven, said on
Sunday that any trade ban on American beef "should be well-founded on science." He noted that science shows that certain meat cuts are safe from infection. Ground beef from labeled cuts like chuck or round, as well as beef steaks, roast, liver and tongue, are considered safe, experts say. DeHaven said that suggests that the trade restrictions being imposed "are not well-founded in science."
For the full story, go to http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/12/28/international0721EST0421.DTL
Veneman Says Cow Being Traced
The VOICE OF AMERICA reports Agriculture Secretary Ann Veneman says officials are trying to determine if any by-products from the slaughtered cow that had mad cow disease have reached consumers. Her comments came in an interview on the Cable News Network, Veneman also said USDA will recall any and all beef that may have been tainted.
She said officials remain confident that the nation's food supply is safe and that the current risk to human health is minimal. Veneman says meat from the Holstein cow in question - which was slaughtered Dec. 9 - traveled through three processing plants before test results indicated a problem.
Find the rest of the story at http://www.truthnews.net/daily/2003120405.htm
Organic Producers Look for Windfall
THE ASSOCIATED PRESS reports organic beef producers are expecting a windfall from the mad cow scare that is sure to spread throughout the country and cause many consumers to shun beef. Mad cow disease, officially known as bovine spongiform encephalopathy or BSE, is believed to be spread through cattle feed containing protein or bone meal from infected cows or sheep. Although the government banned feeding cattle such products in 1997, organic food advocates say the law has loopholes and is poorly enforced.
U.S. organic beef standards became effective in October 2002. They provide for certification of producers whose practices have been approved either by a state or private inspector. The standards include an all-vegetable diet once the animal is weaned. "We will now see a huge increase in the demand" for organic beef, which currently accounts for no more than 1% of U.S. beef sales, predicted Ronnie Cummins, national director of the Organic Consumers Association, of Little Marais, Minn. Nick Maravell, owner of Nick's Organic Farm, said he sold all the beef from his Black Angus herd in Adamstown, MD, almost immediately after the autumn slaughter. Maravell, vice chairman of the Maryland Organic Food and Farming Association, said he expects next year's crop of six animals to go just as fast.
The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=6&SMContentSet=0
Long-Awaited CSP Rule Proposed
USDA has released a proposed rule to implement the new Conservation Security Program (CSP) designed to reward the best conservation stewards of the most environmentally sensitive areas in targeted watersheds. Authorized by the 2002 farm law, the fundamental intent of CSP is to complement existing conservation programs by supporting ongoing conservation stewardship of agricultural working lands and enhancing the condition of America's natural resources. To ensure that CSP's limited resources are focused first on the most pressing environmental concerns, the rule proposes to prioritize eligibility based on selected priority watersheds. The eligible watersheds would be announced and identified through a CSP sign-up notification, which is targeted for the summer of 2004.
Additionally, through intensive management to increase soil and water quality, such as conservation tillage, nutrient management and grazing management, the program is expected to yield benefits to wildlife habitat and at-risk species of wildlife. Under the proposal, agricultural land in cropland, orchards, vineyards, pasture and range will be eligible for CSP, regardless of size, location or crops produced. Exceptions are forest land or land enrolled in the Conservation Reserve Program, Wetlands Reserve Program or Grassland Reserve Program.
Applicants must address water quality and soil quality concerns as program eligibility criteria and enrollment will be targeted to those demonstrating the highest levels of stewardship. CSP payment limitations will be based on three "tiers" that represent increasing levels of resource treatment. Payments increase with increased levels of treatment and can include four components: 1) an annual base component for the benchmark conservation treatment, 2) an annual existing practice component for maintaining existing conservation practices, 3) a one-time new practice component for implementing additional practices, and 4) an enhancement component for exceptional conservation effort. The three tiers are capped at $20,000, $35,000 and $45,000 annually and will last for five years for Tier I and 5-10 years for Tier II and Tier III.
The entire news release is available at http://www.usda.gov/news/releases/2003/12/0425.htm
December 18
Sheep Decline but Not Production
New Zealand reports sheep numbers should continue to decline, but production per animal is expected to continue to increase over the next three years. A government report says the downward trend in the size of the country's breeding flock is likely to continue as more land is converted into deer, forestry and dairy cattle production.
But meat production will be increased by lambs tailed per ewe and rising lamb carcass weights. It says that over the next year, to September 2004, inspected lamb production is expected to decline to 408,000 tons carcass weight that reflects poorer mating conditions in autumn 2003 and localized poor lambing conditions in spring 2003.
However, by the year ending September 2007, both lamb and mutton production will increase. The report says this reflects rising productivity in terms of lambs born per ewe, hogget mating and lamb carcass weights, partially offset by a continuing fall in the sheep breeding flock. Exports of lamb during this time mirror production trends, and out to 2007 also reflect the rising productivity from a declining national sheep flock.
The entire report is at http://www.scoop.co.nz/mason/stories/BU0312/S00228.htm
U.S. Urged to Release Food to North Korea
The United Nations World Food Program is urging the United States to release 60,000 tons food aid pledged to North Korea. The aid was held because U.S. officials didn't like the way North Korea monitored the handouts. The WFP announced a new $171 million emergency operation that aims to feed 6.5 million North Koreans suffering from the impact of floods, drought, a lack of fertile farmland and economic crisis following the loss of support from the former Soviet Union.
REUTERS reports that in February, the United States agreed to give North Korea 40,000 tons of food aid, with another 60,000 tons okayed if Pyongyang let donors track its distribution and provided access to all vulnerable groups in the country. "We had hoped to receive 100,000 tonnes, but negotiations are still going on with Washington on the remaining 60,000 tons," Jean-Jacques Graisse, WFP deputy executive director.
The U.S. State Department said on Thursday it had not decided whether to release the remaining tranche of aid. "We are considering that extra chunk of 2003 assistance right now," spokesman Richard Boucher said. Graisse said Rome-based WFP had sent a letter to the U.S. government a few weeks ago to ask U.S. authorities to release the outstanding 60,000 tons of aid. WFP's sister agency, the U.N. Food and Agriculture Organisation (FAO), appealed this week for $3.5 million for agricultural projects to produce food for nearly two million people living in rural areas of North Korea.
For the entire story, go to http://www.planetark.com/dailynewsstory.cfm/newsid/23154/story.htm
Corn Boon for Midwest Future
The OMAHA (NE) WORLD HERALD reports that Nebraska and Iowa could become leaders in future industrial chemical production because of corn. Agricultural groups and economic-development officials consider it "value-added agriculture" when referring to the creation of more products from crops. Now chemists are doing much the same with the unused value of grains.
Cargill, with a main focus on food ingredients, is exploring industrial products from the chemical compounds derived from corn, soybeans and other crops. These compounds replace petroleum-based polymers. Cargill officials believe corn and soybeans can replace petroleum in a variety of manufactured products. "I really think it can be a revolution in the chemical industry," said James Stoppert, senior director of industrial bio-products for Cargill.
Larry Johnson, director of the Center for Crop Utilization Research at Iowa State University in Ames, said bio-refining is a coming reality for small farm cooperatives as well. "We are on the verge of a bio-economy. The question is: How fast will it develop?" Researchers at Iowa State have developed their own products, including a soybean-based glue they may sell to companies that make building materials.
The entire story is at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=6&SMContentSet=0
Four in Central America Agree to FTA
THE ASSOCIATED PRESS reports the United States and four Central American countries - Guatemala, El Salvador, Nicaragua and Honduras - have reached a free trade agreement. Textiles and agriculture were part of the agreement, which was to be formally announced by U.S. Trade Representative Robert Zoellick and the trade ministers from the four Central American countries. Costa Rica abandoned the talks because of what it termed excessive demands being made by the United States for the nation to open up its market to foreign competition in telecommunications and insurance. U.S. officials said they hoped Costa Rica can be included over the coming weeks in time for Congress to approve the pact early next year.
A breakthrough in textiles came after all-night negotiating. Some Central American trade ministers did not think an agreement could be reached during this negotiating round and predicted that the talks would have to recess and start again in January.
However, strong opposition has been mounted against the deal with U.S. sugar cane and sugar beet farmers; they fear competition from lower-priced Central American sugar, and U.S. textile officials are concerned that the deal will open that industry to even more foreign competition.
For the entire story, go to http://www.ajc.com/business/content/business/ap/ap_story.html/Financial/AP.V5590.AP-Free-Trade.html
American Crystal's Sugar Prices Decline
The Central American free trade agreement appears to be taking a toll on the price of American Crystal Sugar Co. sugar beet shares, the GRAND FORKS (ND) HERALD reports. The price has declined from a high of $2,050 a share this fall to a trade Monday of $1,775 a share. One share of American Crystal stock is equal to one acre, according to Alerus Securities/Botsford and Qualey, which has been the clearinghouse for sugar beet stock in the region since 1994.
"Obviously, since the news came out about sugar being included in CAFTA, it's made buyers step back and re-evaluate whether they want to buy at the levels we're at," said Dale Weston, a registered representative for Alerus in West Fargo. The main issue concerns including sugar in the Central American FTA; industry representatives say that will lead to more sugar imports and drastically lower prices. Sugar growers would prefer that sugar be excluded from all trade deals except worldwide trade agreements. But other U.S. farmers and ranchers have opposed any exclusions, for fear that U.S. trading partners will retaliate.
Initial quantities imported from Central America would be small, though, so changes in the stock value could also represent other factors, such as dietary changes that have made U.S. sugar demand stagnant or even declining.
Otherwise, it's been a bright year for North Dakota farmers. "We've probably had one of our busiest falls," said Jayson Menke, Weston's counterpart in Grand Forks. "Up until the district meetings, most farmers were coming off of a good crop year, and they'd just announced the payment for the 2003 crop, so everybody was pretty fired up."
The rest of the story is at http://www.grandforks.com/mld/grandforks/news/7509202.htm
Cattlemen Look for More Exports
The trade agreement between the U.S. and the Central American countries of El Salvador, Guatemala, Honduras and Nicaragua will offer immediate access for high-quality U.S. beef exports into these four countries, with all tariffs on U.S. beef eventually phasing out to zero, according to the National Cattlemen's Beef Association.
"This is a great deal for the U.S. cattle industry," said Idaho rancher and NCBA President Eric Davis. "We asked the U.S. government to fight for trade initiatives that reduce barriers to access for U.S. beef, and that's exactly what we are getting with this new agreement."
"The tourist and travel industry is thriving in Central America, and these hotels and restaurants are key to growing this market for U.S. beef," explains Michelle Reinke, NCBA's manager of Trade Policy. "Through this agreement, U.S. cattle producers will have an excellent opportunity to expand high quality U.S. beef exports to the region immediately, on a duty-free basis. It also provides for a phase out of duties applied to other U.S. beef products over the course of the transition period."
For this entire story, go to http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2392
Monsanto Tries to Settle Label Lawsuit
WIRED NEWS reports Monsanto Co. Is trying to settle with a small dairy in Maine over the farm's use of labels that promise hormone-free milk, according to both companies. Oakhurst Dairy in Portland has a label that states: "Our farmers' pledge: no artificial growth hormones."
Monsanto sued Oakhurst in July on a claim the label implies the dairy's milk is somehow better than milk from cows treated with recombinant bovine somatotropin, or rBST. Monsanto sells the hormone as Posilac. About 17% of dairy farmers use rBST, injecting 32% of all cows in the United States, according to USDA. A federal judge in Boston had set a trial date for Jan. 5, but both companies hope to settle out of court.
The entire story is at http://www.wired.com/news/medtech/0,1286,61612,00.html?tw=wn_tophead_2
December 17
Grain Export Expectations Optimistic
The ST. LOUIS (MO) POST-DISPATCH reports a scientific panel in St. Louis has heard almost nothing but optimistic projections of the amount of corn to be shipped down the Mississippi River over the next half century. USDA officials expect corn exports to increase 3% a year. A private consultant hired by the Army Corps of Engineers said that significant barge traffic increases probably are coming from increased foreign demand for grain.
This is the basis for the corps' proposal to build up to seven new locks on the Mississippi and Illinois rivers at a cost of up to $2.3 billion. Increased shipping needs also could help justify doubling the size of current locks. The experts addressed a National Academy of Sciences panel that is reviewing the corps' plan. But the panel issued a report last week expressing skepticism that the corps had not developed reliable data on the need for such an expensive construction project.
For the rest of the report, go to http://www.stltoday.com/stltoday/news/stories.nsf/News/A0E89885CF83E34686256DFF0016A738?OpenDocument&Headline=Scientists+question+projections+for+river++
Sick Cattle Were Vaccinated
THE ASSOCIATED PRESS reports from Cheyenne, WY, that the 31 cattle testing positive for brucellosis on a ranch near Boulder had been vaccinated against the disease, USDA said, forcing officials to decide what to do next to contain the outbreak. They were weighing a number of options, including providing booster shots to Sublette County cattle.
Bret Combs, a veterinarian with the USDA's Animal and Plant Health Inspection Service, said that seven of the infected cattle had been inoculated with the Strain 19 vaccine and the rest with the newer RB51 vaccine, which began being administered around 1996. It is impossible to tell how many cattle were exposed to Brucellosis bacteria, but testing has shown the disease in about 8% of the 391 cattle on Donald Jensen's herd.
The rest of the story is at http://www.trib.com/AP/wire_detail.php?wire_num=17368
Massachusetts Considers Biotechnology Crackdown
Stiff penalties could be in store for foods from biotechnology that cause health or environmental hazards. The BOSTON HERALD reports a bill, proposed by state Sen. Brian A. Joyce would make biotech companies liable for claims by consumers harmed by their products. "It is critically important that our food supply be safe," Joyce said. "The intent is to provide an economic incentive for these large manufacturers to assure the safety of their products."
Joyce said he wants Massachusetts to seek tighter controls over agriculture-related biotechnology, something other states also have done. "There really is insufficient federal regulation and oversight, perhaps as an effect of food manufacturers," Joyce said.
Opponents said the manufacturers now are highly regulated by the federal government with three agencies in charge of oversight. "We know a great deal about crops and food improved through biotechnology and they have in fact proven to be beneficial for farmers as well as for the environment," said Peter Wiley, spokesman for the Massachusetts Biotechnology Council. Biotechnology can help to make foods more resistant to pests and diseases, reducing the need to use chemicals on crops, he said.
The entire story is at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=6&SMContentSet=0
Cattle Genome Project Launched
The (Canada) GLOBE AND MAIL reports a $53 million project has begun to map the genetic makeup of cattle. One aim is to enhance human health by controlling cattle-borne disease. USDA launched the multinational project that seeks to identify the functions of cattle genes. Research will be carried out by Baylor College of Medicine's Human Genome Sequencing Center in Houston, the University of Alberta and Genome British Columbia at the British Columbia Cancer Agency in Vancouver.
Of the total funding, $25-million, will come from the U.S. National Human Genome Research Institute, part of the National Institutes of Health. USDA is contributing $11-million and the state of Texas $10-million. Additional funding will come from organizations in Canada, Australia and New Zealand. The project "will lay the groundwork for breakthroughs that are still to come, which hold the promise of significant enhancements to both human health and agriculture," U.S. Agriculture Secretary Ann Veneman said at a ceremony launching the project.
The entire story is at http://www.globeandmail.com/servlet/story/RTGAM.20031212.wcatt12/BNStory/Front/
U.S. Reps Swarm to Havana
THE ASSOCIATED PRESS reports more than 250 U.S. agribusiness representatives traveled to Cuba in hopes of negotiating sales and marking the second anniversary of the first U.S. commercial food shipments to the communist island. Pedro Alvarez, head of Cuba's food import company, Alimport, told the AP he expected at least $130 million in new sales contracts would be signed during four days of talks, which begin today.
"We've had a really strong response from companies" to the government's invitation to participate in the talks, said Alvarez, adding that 147 companies from 29 states, Washington, DC, and Puerto Rico are expected to attend. The company list includes Riceland Foods Inc. of Stuttgart, AR; Cargill Inc., of Minnetonka, MN; Archer Daniels Midland of Decatur, IL; FC Stone of Des Moines, IA, and Kaehler's Homedale Farms in St. Charles, MN.
For the entire story, go to http://www.charleston.net/stories/121403/wor_14cubabiz.shtml
Iowa Leads in GM Value
The OMAHA (NE) WORLD HERALD reports Iowa leads the nation in garnering value from genetically modified crops, but Nebraska isn't far behind. GM technology creates high-paying science jobs in states where farmers plant more biotech crops, and that is an impetus to push the economic impact of biotechnology beyond the farm. "We know that these states are leading the way in creating jobs for biotech and food scientists," said Ford Runge, a professor at the University of Minnesota and the author of the report. Runge is director of the university's Center for International Food and Agricultural Policy. Financial supporters of the center include two of the nation's largest food-processing companies: Cargill Inc. and Archer Daniels Midland Co.
Based on the 2002 crop, Runge's study showed that biotech varieties of soybeans, corn, canola and cotton account for $20 billion in value, about half the total value the four crops generate in the United States. Iowa led nationally, with $3.8 billion in value, while Nebraska was fourth with $1.8 billion in value, according to the report. Midwest farmers have embraced GM crops, particularly in soybeans and corn. GM soybeans, introduced first planted in 1996, now account for 81% of the total crop. In Nebraska, 86% of the soybean crop is GM, and about 84% of Iowa's soybeans are biotech varieties.
The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0
Wheat Growers Call News Report 'Ridiculous'
National Association of Wheat Growers President Tommy Womack terms a newscast by ABC last week entitled "How to Get Fat Without Even Trying" "a ridiculous premise that farm programs are causing obesity in children." The show "underscores the biggest problem facing agriculture today - public misperception of farmers and farm policy," said Womack.
"Linking government farm support to obesity is a big stretch. In fact, it's much more plausible that watching too much television - and thereby not exercising - contributes more to obesity than anything identified in ABC's program."
Alone, farmers are two million individual voices, but together we can't be ignored. We can't be silent any longer. If we are silent, people will continue to hear and believe absurd statements, such as 'the farm bill makes kids fat.' ABC should know better, and it should provide a more accurate accounting to its viewers," said Womack.
The entire story is at http://www.wheatworld.org/html/news.cfm?ID=480
Cattlemen Oppose CME Move
Cattlemen want more dialogue with the Chicago Mercantile Exchange (CME) on how to deal with irregular market activity - such as what occurred this fall - and are opposing CME's proposal to double the daily price limit on live cattle futures contracts. In comments submitted to the Commodity Futures Trading Commission Dec., National Cattlemen's Beef Association (NCBA) President Eric Davis wrote "We cannot support the CME request to double the daily price limit, from the current $1.50 per hundredweight to $3 per hundredweight…This change will have a direct result upon margin limits, lending requirements and financial arrangements between producers and their lending institutions."
The CME proposal reflects a response to the unusual market activity that occurred this fall when price and basis levels were at extraordinary levels. In its comments, NCBA urges more discussion to develop an appropriate method of dealing with this type of market activity should it occur again. "We expect this to be a very important topic of discussion at the NCBA Live Cattle Marketing Committee meeting on Jan. 30, 2004," says NCBA Director of Legislative Affairs Bryan Dierlam. "In the meantime, we are asking the CME to withdraw this proposed rule change, and we have invited the CME to send representatives to the Jan. 30 committee meeting in Phoenix, Ariz."
The entire story is at http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2389
December 16
Optimism, No Progress in WTO Talks
THE ASSOCIATED PRESS reports from Geneva that representatives of world governments continued to express their optimism that an international trade treaty is possible, but when trying to relaunch talks Monday, there was little real progress. The talks have been stalled since the collapse of a ministerial meeting in Cancun, Mexico, in September.
"We have reached a point where the key issues are much clearer and where possible solutions are also becoming visible," said Carlos Perez del Castillo, chair of the WTO's ruling General Council. "However, moving on to grasp those solutions will require intensive negotiations backed by political determination and willingness to make the necessary compromises."
Major disagreements between rich and developing countries over wealthy nations' government subsidies for agricultural produce helped doom the Cancun talks; poorer countries claim the subsidies undermine their farm exports.
For the entire story go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0
ND Groups Split on Wheat Mergers
The GRAND FORKS (ND) HERALD reports the state's wheat organizations are having a tough time agreeing on how and when to consolidate national wheat group organizations. The North Dakota Growers Association voted Dec. 11 to "support the concept of unifying the wheat industry into one voice." But there was no direct vote on whether to endorse a new reorganization plan at its annual meeting and Small Grains Conference in Bismarck, ND.
Each of the groups will have delegates at national group annual meetings in Atlanta Jan. 23, and if approved there, the plan immediately will combine the groups - the National Association of Wheat Growers, the U.S. Wheat Associates and the Wheat Export Trade Education Committee. Among other things, the plan would give each wheat-producing state one member on the new board for $5,000. A second seat would cost the state organization 40% of the state "assessment" based on wheat production. Large wheat-producing states could be eligible for seven to nine seats. The new board could include 60 to 80 members.
For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=9&SMContentSet=0
End Cuban Embargo, Say Business People
REUTERS reports U.S. agribusiness, shipping and farm representatives in Havana to develop more trade with the island nation called for an end to sanctions on Cuba as they negotiated contracts for the new year. "The Cuban market represents a great opportunity for U.S. agriculture ... Cargill supports normalizing relations between our two countries," Thomas Rahn, a senior executive with the world's largest privately held agribusiness, said at the opening of a conference to mark the anniversary. James Sumner, president of the U.S. Poultry and Egg Export Council, said Cuba was now the sector's eighth largest market.
About250 Americans are attending the conference. It is the largest gathering of U.S. business interests in the island since a U.S. agriculture trade show in September of last year. The United States now allows agricultural sales for cash. Cuba began buying American farm products in December 2001. Pedro Alvarez, chairman of Cuba's state food importer Alimport, said Cuba would sign $125 million in contracts for delivery in 2004 during the event.
Alvarez said up to 40% of Cuba's bulk-food purchases this year, mainly grain, cereal and poultry, would come from the United States. Canada and Europe dominated the market until 2002. He added that if relations were normalized with the United States his country could receive U.S. tourists and export, earning revenue which then could be used to increase U.S. food and other imports.
For the entire story, go to http://www.forbes.com/business/newswire/2003/12/15/rtr1181397.html
An ASSOCIATED PRESS article notes new sales could total $130 million. Alvarez signed contracts to buy $4.7 million worth of rice from Riceland Foods Inc. of Stuttgart, AR. Later, Alvarez signed contracts for Cuba to buy $700,000 in peas and lentils from PS International Ltd., of Chapel Hill, N.C., and $600,000 in chicken leg quarters from Gold Kist of Atlanta.
Many more contracts were expected through the end of Wednesday as nearly 250 representatives of 147 companies from 29 states, Washington and Puerto Rico mark the second anniversary of the first U.S. commercial food shipments to post-revolutionary Cuba. For the rest of this story, go to http://seattlepi.nwsource.com/business/apbiz_story.asp?category=1310&slug=Cuba%20US%20Agribusiness
Contract Farming Explored for India
The HINDU GROUP OF PUBLICATIONS reports India's national agriculture policy looks to private sector participation through contract farming and land leasing to accelerate technology transfer, capital flow and assured markets for crop production, especially of oilseeds, cotton and horticultural crops The NDA government has drafted a model law on agricultural marketing to provide, among other things, legal support to contract farming agreements.
Several state governments, including Andhra Pradesh, Gujarat, Karnataka, Punjab and Tamil Nadu, are promoting contract farming, changing laws to enable and support it, and providing companies interested in it with a variety of incentives, including lifting of land ceilings, subsidies and tax rebates. Other governments such as West Bengal are being urged to change their policy towards contract farming.
Contract farming is defined as a system for the production and supply of agricultural or horticultural products under forward contracts between producers/suppliers and buyers and a commitment of the cultivator to provide an agricultural commodity of a certain type, at a time and a price, and in the quantity required by a known and committed buyer, typically a large company.
The entire story is at http://www.thehindubusinessline.com/2003/12/16/stories/2003121600030900.htm
BSE Trip Slated
SUCCESSFUL FARMING reports USDA will take part in a trip to France and Belgium this week for industry representatives to gain first-hand information about bovine spongiform encephalopathy (mad cow disease or BSE) from the international disease experts at the World Organization for Animal Health (OIE) in Paris and other European sources. The information is designed to help the U.S. cattle and beef industries evaluate the U.S. proposal to reopen the border to cattle trade with Canada, closed since May when a single BSE case was found.
R-CALF USA, one of the participating groups, says it believes the trip can be a chance to view a post-BSE cattle industry and the hardship that resulted as well as an opportunity to visit directly with the international experts on BSE regarding the risks that such a disease can pose the U.S. cattle industry.
The American Meat Institute, the Meat Export Federation, the American Meat Institute Foundation, the National Meat Association, and the National Cattlemen's Beef Association also will take part in the mission.
For the entire story, go to http://www.agriculture.com/default.sph/AgNews.class?FNC=goDetail__ANewsindex_html___50990___1
Soybean Rules Changed
USDA is amending the soybean promotion and research rules and regulations. The change will require first purchasers and producers in the states of Delaware, Louisiana, South Carolina and Texas, and the Eastern and Western Regions, to remit and report assessments on a quarterly basis rather than a monthly basis. The Soybean Promotion, Research, and Consumer Information Act and the Soybean Promotion and Research Order contain provisions for the board to develop and recommend changes to the rules and regulations. The United Soybean Board, in conjunction with the affected states and regions, made the recommendations to USDA. The amendment will reduce the administrative costs for these smaller soybean producing states and regions.
The amendment will be published in today's Federal Register and become effective April 1. For more information contact Kenneth R. Payne, Chief, Marketing Programs Branch, AMS Livestock and Seed Program, USDA Stop 0251, 1400 Independence Ave., SW, Washington, D.C. 20250-0251; telephone (202) 720-1115, fax (202)720-1125 or e-mail Kenneth.Payne@usda.gov. http://www.ams.usda.gov/news/204-03.htm
December 15
Cattle Genome Project Launched
The (Canada) GLOBE AND MAIL reports a $53 million project has begun to map the genetic makeup of cattle. One aim is to enhance human health by controlling cattle-borne disease. USDA launched the multinational project that seeks to identify the functions of cattle genes. Research will be carried out by Baylor College of Medicine's Human Genome Sequencing Center in Houston, the University of Alberta and Genome British Columbia at the British Columbia Cancer Agency in Vancouver.
Of the total funding, $25-million, will come from the U.S. National Human Genome Research Institute, part of the National Institutes of Health. USDA is contributing $11-million and the state of Texas $10-million. Additional funding will come from organizations in Canada, Australia and New Zealand. The project "will lay the groundwork for breakthroughs that are still to come, which hold the promise of significant enhancements to both human health and agriculture," U.S. Agriculture Secretary Ann Veneman said at a ceremony launching the project.
The entire story is at http://www.globeandmail.com/servlet/story/RTGAM.20031212.wcatt12/BNStory/Front/
U.S. Reps Swarm to Havana
THE ASSOCIATED PRESS reports more than 250 U.S. agribusiness representatives traveled to Cuba in hopes of negotiating sales and marking the second anniversary of the first U.S. commercial food shipments to the communist island. Pedro Alvarez, head of Cuba's food import company, Alimport, told the AP he expected at least $130 million in new sales contracts would be signed during four days of talks, which begin today.
"We've had a really strong response from companies" to the government's invitation to participate in the talks, said Alvarez, adding that 147 companies from 29 states, Washington, DC, and Puerto Rico are expected to attend. The company list includes Riceland Foods Inc. of Stuttgart, AR; Cargill Inc., of Minnetonka, MN; Archer Daniels Midland of Decatur, IL; FC Stone of Des Moines, IA, and Kaehler's Homedale Farms in St. Charles, MN.
For the entire story, go to http://www.charleston.net/stories/121403/wor_14cubabiz.shtml
Iowa Leads in GM Value
The OMAHA (NE) WORLD HERALD reports Iowa leads the nation in garnering value from genetically modified crops, but Nebraska isn't far behind. GM technology creates high-paying science jobs in states where farmers plant more biotech crops, and that is an impetus to push the economic impact of biotechnology beyond the farm. "We know that these states are leading the way in creating jobs for biotech and food scientists," said Ford Runge, a professor at the University of Minnesota and the author of the report. Runge is the director of the university's Center for International Food and Agricultural Policy. Financial supporters of the center include two of the nation's largest food-processing companies: Cargill Inc. and Archer Daniels Midland Co.
Based on the 2002 crop, Runge's study showed that biotech varieties of soybeans, corn, canola and cotton account for $20 billion in value, about half the total value the four crops generate in the United States. Iowa led nationally, with $3.8 billion in value, while Nebraska was fourth with $1.8 billion in value, according to the report. Midwest farmers have embraced GM crops, particularly in soybeans and corn. GM soybeans, were first planted in 1996, and now account for 81% of the total crop. In Nebraska, 86% of the soybean crop is GM, and about 84% of Iowa's soybeans are biotech varieties.
The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0
Wheat Growers Call News Report 'Ridiculous'
National Association of Wheat Growers President Tommy Womack terms a newscast by ABC last week entitled "How to Get Fat Without Even Trying" "a ridiculous premise that farm programs are causing obesity in children." The show "underscores the biggest problem facing agriculture today - public misperception of farmers and farm policy," said Womack.
"Linking government farm support to obesity is a big stretch. In fact, it's much more plausible that watching too much television - and thereby not exercising - contributes more to obesity than anything identified in ABC's program."
Alone, farmers are two million individual voices, but together we can't be ignored. We can't be silent any longer. If we are silent, people will continue to hear and believe absurd statements, such as 'the farm bill makes kids fat.' ABC should know better, and it should provide a more accurate accounting to its viewers," said Womack.
The entire story is at http://www.wheatworld.org/html/news.cfm?ID=480
Cattlemen Oppose CME Move
Cattlemen want more dialogue with the Chicago Mercantile Exchange (CME) on how to deal with irregular market activity - such as what occurred this fall - and are opposing CME's proposal to double the daily price limit on live cattle futures contracts. In comments submitted to the Commodity Futures Trading Commission in December, National Cattlemen's Beef Association (NCBA) President Eric Davis wrote "We cannot support the CME request to double the daily price limit, from the current $1.50 per hundredweight to $3 per hundredweight…This change will have a direct result upon margin limits, lending requirements and financial arrangements between producers and their lending institutions."
The CME proposal reflects a response to the unusual market activity that occurred this fall when price and basis levels were at extraordinary levels. In its comments, NCBA urges more discussion to develop an appropriate method of dealing with this type of market activity should it occur again. "We expect this to be a very important topic of discussion at the NCBA Live Cattle Marketing Committee meeting on Jan. 30, 2004," says NCBA Director of Legislative Affairs Bryan Dierlam. "In the meantime, we are asking the CME to withdraw this proposed rule change, and we have invited the CME to send representatives to the Jan. 30 committee meeting in Phoenix, Ariz."
The entire story is at http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2389
Dorgan Calls for Trade Overhaul
USAGNET reports Sen. Byron Dorgan (D-ND) wants a "top to bottom overhaul" of U.S. trade policies. He announced a list of criteria he said should help guide future trade negotiations. The outline came in a speech to the North Dakota Farmers Union State Convention. The senator said farmers and American manufacturing industries are suffering from bad trade agreements, and both sectors of the economy urgently need new trade policies.
"In recent years, trade agreements have remained soft-headed foreign policy initiatives instead of hard-nosed economic policy. We're on the wrong path and need a new road map," he said. "Developing one must be a top priority for the coming year." America needs new trade policies because "for the past twenty years, trade agreements the U.S. has negotiated have consistently resulted in U.S. trade deficits where there were surpluses, the shipment of U.S. jobs overseas, and unfair competition for U.S. family farmers."
The entire story is at http://www.wisconsinagconnection.com/story-national.cfm?Id=1343&yr=2003
Australia Selling Beef at Heavy Volume
Australia's beef exports to the United States in November reached the largest amount ever shipped in a single month. ABC NEWS RADIO reports attractive US prices are prompting exporters to send more to the market. US sales now account for almost half of Australia's total exports. Peter Weeks, chief market analyst with meat and livestock for Australia, this means Australia now may fill the export quota when earlier in the year that looked impossible. "Well, it's really come about by very strong surge in prices from the US, offset a lot of the increasing dollar that happened earlier in the year, so it's left us with certainly some pretty attractive returns at the moment. I mean we've got lower production at the moment and yet exports to the US surged by about 13% higher than this time last year, and that's almost 50% going to the U.S.," he said.
For the entire story, go to http://www.abc.net.au/rural/news/stories/s1010272.htm
Soybean Prices Stay High
REUTERS reports soybeans will remain at the highest price levels since the late 1990s. Exports are being led by China. This year's crop, damaged by drought, should bring an average $7.25 a bushel, the highest since 1996/97, USDA reported. Those prices will remain high for months as exporters, food makers and livestock feeders scuffle for a shrinking supply of soybeans. "Ten dollars (a bushel) is not out of the question," said analyst Emily French of the consulting firm World Perspectives. "They could hit double digits."
In a monthly look at crops worldwide, USDA said U.S. corn and wheat prices would be the highest since 1997/98, thanks to larger exports. Soybean oil prices would be the highest in nine years.
The late 1990s were euphoric times for growers as world stockpiles ran low and prices soared. Without abundant crops in Brazil and Argentina, soybean prices could show "spectacular" increases, said private consultant John Schnittker.
The rest of the story is at http://www.agriculture.com/default.sph/AgNews.class?FNC=goDetail__ANewsindex_html___50982___1
December 12
Daschle Calls for Rail Adjustments
AG WEB NEWS reports Senate Minority Leader Tom Daschle (D-SD) wants USDA to reinstate comprehensive plans to evaluate and correct agricultural transportation infrastructure problems in his state and nationwide. "Rail car shortages and other transportation problems threaten family farms throughout our state," said Daschle. "I sincerely hope Secretary (of Agriculture Ann) Veneman will recognize the severity of this problem and immediately reinstate efforts to fix the significant flaws in our railroad and other transportation networks."
In a letter to Veneman, Daschle said reports of a significant shortage in rail equipment, crews, and grain cars as well as significantly higher freight costs, have left "significant quantities of corn and soybeans piled on the ground and awaiting transportation," he said.
For the entire story, go to http://www.agweb.com/news_show_news_article.asp?file=AgNewsArticle_200312111633_1512&articleid=103952&newscat=WA
More Red Tape from U.S., Australia FTA
THE AGE (Australia) reports that country's food exporters to the United States now face more difficulties in selling their products. The U.S. Bioterrorism Act to protect the U.S. food supply from possible terrorist attack, is law now. General Manager of Austrade's government industry and policy group, Fiona Buffinton, said the Act mandates that exporters register with the U.S. Food and Drug Administration and provide notice of incoming shipments.
She said firms exporting food to the U.S. should be aware they faced more administrative and compliance measures to get their product into U.S. markets. "These requirements apply to all Australian companies exporting food for human and animal consumption to the United States, except meat, poultry and egg exports covered already under the US Department of Agriculture jurisdiction," she said in a statement. "The new regulations are not meant to impede the movement of goods or hold up trade, they are strictly measures taken by the US government to protect consumers."
The rest of the story is at http://www.theage.com.au/articles/2003/12/12/1071125647738.html
Food Label Update Urged
REUTERS reports federal advisers are telling federal authorities to update food and supplement labels to reflect nutritional guidelines and warn against such dangers as eating too many foods with artery clogging trans-fat. Labels now are based on 1968 guidelines which have been updated many times over the years, they said. So instead of relying on outdated material, U.S. and Canadian labels should be based on the current Dietary Reference Intakes, the Institute of Medicine committee said. "The familiar 'percent daily value' figures included in nutrition facts boxes, which are required on the labels of most food products in both countries, are not based on the most current scientific information," said the committee, one of the National Academies of Sciences, in a statement.
"We hope that the U.S. Food and Drug Administration, the U.S. Department of Agriculture and Health Canada will use these principles to revise the scientific basis for nutrition labels and discretionary fortification," said Irwin Rosenberg, a nutrition scientist at Tufts University in Boston. The committee, which issued the report at the request of FDA, USDA and Health Canada, said the information still should be based on the average recommended 2,000-calorie diet and expressed as a percentage of those calories.
For the entire story, go to http://story.news.yahoo.com/news?tmpl=story&cid=571&ncid=751&e=2&u=/nm/20031211/hl_nm/health_labels_dc
Vanclief Bows Out
REUTERS reports Canadian Agriculture Minister Lyly Vanclief will not seek re-election nor does he expect to be sworn into a new cabinet today. "I don't anticipate that I will be (in the cabinet), but I don't know," said the 60-year-old minister who oversaw Canada's handling of this year's mad cow crisis. Paul Martin was scheduled to be sworn in this morning as prime minister, along with his new cabinet. Jean Chretien is retiring after 10 years in the country's top political job. "You know more about Martin's cabinet list than I do," Vanclief told reporters, adding he does not intend to run in the next federal election, widely expect to be held next spring.
U.S. Agriculture Secretary Ann Veneman earlier this week commended Vanclief's handling of the single case of bovine spongiform encephalopathy found in Alberta May 20. The discovery significantly affected the country's cattle industry when export markets closed their doors to beef shipments. On Thursday, Vanclief signed a letter of intent with his Chinese counterpart to study closer working ties between both countries' dairy industries. Summing up his six and a half years as agriculture minister, Vanclief said it was an "incredible opportunity" to have worked with the agricultural community.
To read the entire story, go to http://www.forbes.com/home_asia/newswire/2003/12/11/rtr1178215.html
Tennessee Seeks More Farm Income
THE ASSOCIATED PRESS reports Tennessee state officials are listening to farmers and others in agriculture who are seeking more ways to increase income. West Tennessee farmers attended a meeting earlier this week of the Legislature's Joint Economic and Community Development Committee at Murphy Tractor Co. Speakers included state Agriculture Commissioner Ken Givens, Tourism Commissioner Susan Whitaker and committee member Sen. Don McLeary, D-Jackson.
Most of the discussion focused on ways to improve agriculture economics, but other topics ranged from water issues to boll weevil eradication "We're very appreciative," said Jim Odle, a Madison County cotton farmer who said the economics of farming are a concern to many. "It's expensive, with chemicals, seed, equipment, cost of land, interest on money, land taxes, machinery, labor ... all of this figures into the net profit of a farmer," he said. "I'm not a big farmer, and to tell the truth, I don't want to be a big farmer. I can't afford it."
Farmers were told to enhance their main business, farming, with agri-tourism, attracting people to visit farms and see corn mazes, farm festivals, agricultural museums, petting zoos, and "pick-your-own" farms that bring tourists to rural areas. "We know it's not for everybody," said Ramay Winchester, who is in charge of the agri-tourism effort with the Department of Tourist Development.
The entire story is at http://reviewappeal.midsouthnews.com/news.ez?viewStory=15898
Confusion Reigns Over Mexican Onions
The PITTSBURGH (PA) POST-GAZETTE reports conflicting messages are coming from U.S. and Mexican officials over an investigation into contaminated onions eaten at a Beaver County, Pennsylvania restaurant. There now are indications the scallions may have come from U.S. sources. Mexican officials are saying the storage facilities of green onion distributors in California have become the focus of the investigation into the cause of recent hepatitis A outbreaks in Pennsylvania, Tennessee and Georgia. But a top U.S. Food and Drug Administration official seemed to contradict that, saying the information-gathering phase of the investigation was mostly complete.
FDA and Mexican officials are considering visits to California firms, but U.S. investigators believe the visits aren't necessary; the distributors have been checked already, said Jack Guzewich, director of emergency coordination and response in the FDA's Center for Food Safety and Applied Nutrition. The U.S. firms didn't have problems of the sort the FDA identified during inspections last week in Mexico, he said.
"I think they're trying to protect their industry down there," Guzewich said of the Mexican government's statement. "We're always open to identifying new information about contamination, whether it occurs in the U.S. or Mexico. ... But we've been satisfied up until now that we've covered the issues on this side of the border."
The entire story is at http://www.post-gazette.com/pg/03345/250041.stm
Beef Task Force Moves on COOL
A National Cattlemen's Beef Association (NCBA) Country of Origin Labeling Task Force has created a country of origin labeling program consisting of a U.S. label that provides information to consumers and meets the expectations of producers who want beef from their cattle to carry the USA label. The Task Force, representing all industry segments from the cow/calf producer to the consumer, outlined the initial steps during a meeting this week in Denver. The plan will be presented to cattlemen at the Cattle Industry Annual Convention in Phoenix, Jan. 28-31.
The Task Force identified two key actions: cooperate with representatives from the food industry to develop pilot projects for country of origin labeling using existing USDA guidelines. This includes all segments of the industry, from cattlemen to the retail sector, and conduct consumer market research to identify benefits to producers and consumers. "Cattlemen want country of origin labeling and we are working on a program that meets their needs," says Jim McAdams, NCBA vice president. "We're about creating a workable solution to address their concerns."
The pilot programs would be conducted under existing approved USDA programs. The first steps, to take place in January, would be to identify existing programs that could be used as partners/models for NCBA pilot projects. Likewise a meeting will be held with other industry segments to review the task force recommendations and seek input and participation.
"The goal all along has been to create a program that puts money into producers' pockets, not one that subtracts from it," McAdams says. "Now we will return to our work of creating a country of origin labeling program that works - one that gives everyone who sells U.S. beef, not just retailers, the right to tell their customers they sell the best beef in the world, and we will work to do it in a way that is profitable for the participants."
For the entire story, go to http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2387
Market Development Grants Go to 40 States
USDA has approved 184 value-added agricultural product market development grants in 40 states, totaling more than $28.7 million. The grants will foster the development of new products and markets for agriculturally based products. Authorized as part of the 2002 farm law, the Value-Added Agricultural Product Market Development Grants Program provides an opportunity to refine agricultural commodities and products to increase their value in the marketplace.
Applications selected for funding range from Planters Cotton Oil Mill, Inc. in Arkansas who will receive $497,000 to develop a feasibility analysis and business plan for marketing and manufacturing of an oilseed processing products (neutralized dried soap stock), to Massachusetts where Woodlands Cooperative, LLC has been selected to receive $499,253 to expand markets that focus on forest stewardship, green certified materials and other value-added forest products.
Applications focusing on bio-mass and renewable energy were selected to receive $4.3 million in grant funds. For example, in Illinois Central Illinois Energy Cooperative will utilize $250,000 to assist with the construction of a 30-million ethanol processing and co-generation facility.
Funding of selected applicants will be contingent upon meeting the conditions of the grant agreement. A complete list of the selected grant recipients can be found at the USDA Rural Development web site at: http://www.rurdev.usda.gov
The entire story is at http://www.usda.gov/news/releases/2003/12/0417.htm
December 11
India Pressures for Lower Subsidies
The INDO-ASIAN NEWS SERVICE (New Delhi) wants developed countries to reduce trade subsidies before an upcoming meeting of the G-20 nations, including China and Brazil. The meeting will deal with ways to develop a strategy for World Trade Organization talks. "There has to be meaningful reduction in domestic support and export subsidy by developed countries as there is inter-linkage and equilibrium between the three pillars - agriculture, trade subsidies and talk of market access," said Indian Agriculture Minister Rajnath Singh.
"There has to be a balance between the three and they cannot be taken independent of each other," Singh told reporters at a briefing on his bilateral talks with participating countries at the annual Food and Agriculture Organization meeting in Rome last week. During talks with officials from Japan, Sweden, Finland and the European Union (EU), Singh said he had emphasized that "the livelihood and nutritional security of over 650 million people of India could not be compromised under any condition".
For the full story, go to http://www.hindustantimes.com/news/181_490929,0002.htm
Food Cost Increases Coming
REUTERS reports food industry officials believe new bioterrorism measures that force food and beverage suppliers to the U.S. market to register with the federal government will mean higher food costs that severely could affect supplies. Only 100,000 of an estimated 400,000 suppliers have registered, and the Food and Drug Administration has given U.S. and foreign companies an additional four months to comply with the new rules that resulted from the Sept. 11 attacks.
Once the grace period expires, however, industry officials warn U.S. food supplies could be significantly disrupted if large U.S. food company suppliers are limited by the FDA. "This four-month honeymoon phase is going to be a real wake-up call to those companies that don't understand this actually impacts them," said Mari Stull, director of international regulatory policy at the Grocery Manufacturers Association of America, which represents $500 billion in food sales. "And it's going to be a real wake-up call to some of the big companies here in the United States that haven't been really sure that their supply chain is complying," Stull told REUTERS at a conference in Miami on trade with the Caribbean and Central America.
For the full story, go to http://www.forbes.com/business/newswire/2003/12/09/rtr1175343.html
Canada's Young Farmers Getting Funds
STIRLING COMMUNITY PRESS (Canada) reports Canada's Outstanding Young Farmers Program will provide $75,000 over the next three years to build enthusiasm among young people in agriculture. The funding is from the Agricultural Policy Framework (APF). "Young farmers are the future of the industry and it's important to ensure they are engaged and motivated," said Agriculture and Agri-Food Minister Lyle Vanclief. "By recognizing outstanding individuals, this program raises the bar for all young farmers. It celebrates excellence and encourages the type of continuous learning needed for success in today's fast-paced industry."
Canada's Outstanding Young Farmers Program was founded in 1979 and operates annual competitions in seven regions of the country. Regional winners meet each year where a national winner is selected. Farmers between the ages of 18 and 39 are eligible. "This program is about more than awards," added Vanclief, who was a regional winner in 1983. "It's about farmers sharing information and ideas and about building networks that strengthen the industry. I came away from my experience with Outstanding Young Farmers energized and equipped with ideas that have helped me a great deal in my career."
The program is designed to raise public awareness of the importance of agriculture and highlight within the industry the innovation exemplified by the winners, innovation that range from new business strategies to food safety systems, environmentally sound farming techniques and new technology.
Go to http://www.communitypress-online.com/template.php?id=11542&RECORD_KEY(Ag)=id&id(Ag)=11542 for the entire story.
Australia Wins Position in Rebuilding Iraqi Agriculture
The HERALD SUN (Australia) reports Australian companies will be part of a $162 million contract to rebuild Iraq's agricultural sector. CSIRO and South Australian firm Sagric will join a U.S. consortium appointed by USDA to revitalize Iraq's food supply industry. Other Australian firms also want into the hundreds of millions of dollars worth of work in power, infrastructure, water, sanitation and education sectors.
Trade Minister Mark Vaile was briefed by the head of the rebuilding taskforce Rear Admiral David Nash in Baghdad, and his office confirmed agriculture work was confirmed within the contract and that a bid for a $40 million contract for wetlands revitalization was being assessed.
For the entire story, go to http://www.heraldsun.news.com.au/common/story_page/0,5478,8126888%255E662,00.html
Brazil May Harvest Soybeans Early
REUTERS reports from Cuiaba, Brazil, that favorable rains, higher returns and Asian soy rust should combine to force farmers into early harvesting of soybeans in Brazil this year. Producers at a seminar in Cuiaba, the capital of Brazil's No. 1 soy producer state Mato Grosso, said they planted more early maturing soybeans this season. "If rains continue as they have since September, I expect to start harvest on January 20," producer Rogerio Cabral told REUTERS.
Cabral, who raises soybeans during September-May on 10,000 acres in southern Mato Grosso, said it was more profitable to harvest early. He said that 25% of his soy crop was flowering. "You get better prices that early and it allows me to plant corn, cotton and perhaps in the future wheat in the off season," Cabral said. He added that wheat makes good sense as a rotation crop to be grown February through September in the center-west to reduce disease.
USDA Reduces Wheat Loan Rates
For the earliest ever, USDA announced the 2004 national and county loan rates for wheat, barley, oats and other oilseeds, as authorized by the 2002 farm law. The rates are lower this year compared with 2003. Rates for corn, grain sorghum, soybeans and pulses will be announced early in 2004. The 2004 county loan rates for each commodity announced now reflect the most recent information available about price relationships around the country and should help market wheat, barley, oats, and other oilseeds. The 2002 farm law established specific national loan rates for each commodity, with one level set for the 2002 and 2003 crops and somewhat lower levels for the 2004-2007 crops. These changes are reflected in the county loan rates announced today.
The entire story is available at http://www.agriculture.com/default.sph/AgNews.class?FNC=topStoryDetail__ANewsindex_html___50962___1
December 3
Iowa State Starts Hog Study
THE ASSOCIATED PRESS reports Iowa State University is using a $480,000 USDA grant to study odor from hog farms. Researchers will measure downwind odors from hog farms, then determine how those odors are affected by weather, seasons, animal growth cycles and building design and management. ISU associate professor Steve Hoff said the project will develop a computer model that can be used by farmers and community planners when large hog confinements are being expanded or built at a new location.
For the entire story, go to http://www.theiowachannel.com/education/2692169/detail.html
Two-Year COOL Delay Approved
REUTERS reports the House has approved legislation to delay for two years requirements that grocers and food makers include country-of-origin labels on their meat, fruits, vegetables and peanuts. The delay was part of a $375 billion bill that funds USDAS and several other federal departments for fiscal 2004. It was scheduled to come before the Senate today (Tuesday), but objections may well postpone a vote until January.
Voluntary COOLs are scheduled now to be mandatory Sept. 30, 2004. The deadline would become Sept. 30, 2006, under the House-approved bill. The only items still to face a 2004 deadline for labeling would be farm-raised and wild fish.
Consumer groups and major farm groups support mandatory labeling as a way to distinguish U.S.-produced foods from foreign competitors on the retail shelf. The two largest groups representing U.S. cattle and hog farmers oppose the law as a costly burden that will lower livestock prices.
For the entire story, go to http://www.forbes.com/business/newswire/2003/12/08/rtr1173397.html
China Cooling Off on Textiles
China could buy U.S. soybeans and wheat again as tempers cool over new U.S. textile import controls, REUTERS reports. China is the largest foreign buyer of U.S. soybeans. In recent months, China has increased its purchases, buying millions of metric tons. U.S. growers also hope China will buy large amounts of wheat and cotton in coming months.
However, the Bush administration's announcement Nov. 18 a new quota would be imposed on some Chinese textile goods prompted Beijing to pause in its stated intentions to buy more U.S. soybeans and wheat. But with Chinese Premier Wen Jiabao now in the United States to polish up relations with Washington, Beijing is back to its pre-Nov. 18 posture. "We might increase imports of soybean and wheat," said Vice Commerce Minister Ma Xiuhong in remarks to REUTERS in New York, "if the price is correct."
For the rest of the story, go to http://www.forbes.com/markets/newswire/2003/12/08/rtr1173408.html
Farm Exports Still Complicate Australia FTA
OSTERDOWJONES reports agricultural exports continue to bedevil efforts to finalize a U.S.-Australian free trade agreement. After meetings in Washington between the two countries, Australian Trade Minister Mark Vaile said he remains confident of finalizing a pact in early January. But he cautioned there remained unresolved farm trade issues. He added that the current position would not win the support of Australia's powerful National Farmers Federation.
The major issue for Vail is a change in U.S. quotas - particularly in sugar, beef and dairy. Vaile said President George W. Bush and Prime Minister John Howard may have to personally finalize an agreement. Australia wants to sell more farm products, cars and ships to the United States and wants a relaxation of restrictions on the ability of Australian companies to bid for U.S. government contracts. Washington wants more access to Australian markets for its television, radio and film industries, reform of Canberra's subsidized prescription drug scheme and the end of some state-run export monopolies for products like wheat.
For the rest of the story, go to http://www.cropdecisions.com/show_story.php?id=22566
Decade Needed to Rebuild Afghan Livestock
IRIN NEWS says a new report shows four years of drought and more years of war have devastated Afghanistan's livestock. It could take up to 10 years to regenerate the herd naturally, according to the UN's Food and Agriculture Organization (FAO). "It is the first-ever livestock census in Afghanistan," Etienne Careme, an FAO information and liaison officer, told IRIN from the Afghan capital, Kabul. An earlier report from the FAO in 1995, had been just a "survey," Careme said.
Preliminary results show that there are 3.7 million head of cattle in Afghanistan, 8.8 million sheep, 7.3 million goats, 1.6 million donkeys, 180,000 camels, 140,000 horses and 12.2 million units of poultry, an earlier FAO press release said. Comparisons with earlier surveys showed that the number of farm animals per family had dramatically declined: the number of cattle per family that had declined from 3.7 in 1995 to 1.22 in 2003, while the number of sheep declined sharply from 21.9 to 2.9 over the same period.
Afghan farmers and their families depend on livestock production for a major source of income and food. For some, such as the Kuchi nomads, animals were the only source of income, the media release said, adding that the Kuchi tribes and other semi-nomadic pastoralists had been particularly hard hit by the drought in the provinces of Ghazni, Zabol, Kabul and Kandahar. About 60% of Kuchi households had lost all their livestock, it said.
The entire story is available at http://www.irinnews.org/report.asp?ReportID=38281&SelectRegion=Central_Asia&SelectCountry=AFGHANISTAN
National Animal ID System Planned
The IOWA FARM BUREAU FEDERATION reports the U.S. livestock industry plans to create a national animal identification system (ID) that can track livestock movements from birth to slaughter. USDA's Animal and Plant Health Inspection Service (APHIS) will publish within the next few months a proposed rule to establish a national livestock ID system, said Dr. John Wiemers, national ID coordinator for USDA-APHIS, at the Iowa Farm Bureau's annual meeting earlier this month.
"We've been talking about animal ID and tracking animals for 20 years," Wiemers told Farm Bureau members. "Just recently, in the last two to three years, it (animal ID) has become more of a 'have-to' kind of thing as we're faced with foreign animal diseases, such as foot-and-mouth and mad cow disease, that are knocking at our doorstep." USDA is using the draft U.S. Animal Identification Plan developed by the National Food Animal Identification Task Force as a guide for a national livestock ID system.
The task force was formed in April 2002 from members of more than 30 livestock and meat industry organizations, including the National Cattlemen's Beef Association, National Pork Board, American Farm Bureau Federation, National Milk Producers Federation and the National Institute for Animal Agriculture. The system will collect information as needed only to address animal health problems.
For the entire story, go to http://www.ifbf.org/publication/spokesman/story.asp?number=21999&type=News
Louisiana Expects Bumper Crops
THE ASSOCIATED PRESS reports Louisiana is expecting a "great year" for cotton, rice and soybean yields. In addition, prices could turn out to be the best in decades. Agriculture Commissioner Bob Odom said, "We had an excellent growing season and the weather during harvest this fall has been near perfect.... Things are looking up for a lot of people and I think even better days are ahead for Louisiana agriculture."
If it turns out as expected, the solid yields and strong prices will follow a disastrous 2002, when tropical storms and heavy rains in the fall ruined what had looked to be promising harvests.
Cotton prices are about 72 cents a pound, up from 45 cents a year ago. Soybeans are up from $5.60 to $7.75. Rice has more than doubled, from $3.60 to $7.80 per hundred pounds. Corn rose from around $2.10 a bushel in recent years to near $2.50.
Cotton producers are looking for the highest yield on record, 895 pounds per acre. Production, forecast at 970,000 bales, is 31% more than 2002; national increases of about 8% are expected.
Rice yield should reach 5,800 pounds per acre -- 300 pounds more than last year. Rice production, estimated at 25.8 million hundredweight, will decline 12% from last year - mostly because 100,000 acres were taken out of production.
For the entire story, go to http://www.nola.com/newsflash/louisiana/index.ssf?/base/news-6/1070822946258051.xml
Vanclief Works on Cattle Markets
FARMING LIFE reports Canada's Agriculture and Food Minister Lyle Vanclief is pressing hard for global agricultural leaders to reopen their markets to Canadian beef. Vanclief has been in Rome for the 32nd conference of the United Nations Food and Agricultural Oraganization (FAO). There he updated several ministers on the status of Canada's single case of Bovine Spongiform Encephalopathy and urged ministers to support a trilateral initiative by Canada, the United States and Mexico to establish a science-based trade response to any and all future BSE issues regardless where they occur.
He said many countries have responded to Canada's plight by closing borders to Canadian beef without ever completing a risk assessment that, he added, caused extreme and unnecessary hardship. "A more practical, science-based assessment would substantially reduce the economic pain felt by a country if and when BSE is discovered," said Vanclief.
For the entire story, go to http://www.farminglife.com/flnews/content_objectid=13695864_method=full_siteid=51658_headline=-Vanclief-on-the-Offensive-name_page.html
FTA Seems Sure in New Year, with Reservations
CHANNEL NEWS ASIA reports Australian officials believe they will be able to negotiate and finalize a free trade agreement with the United States early in the New Year. But some of the more troublesome aspects may be put aside temporarily, the government said.
After the final round of face-to-face talks by the two countries in Washington, Trade Minister Mark Vaile said the deal would stand or fall on a handful of key negotiating positions including access for Australian farmers to key U.S. agricultural markets.
The two nations have been negotiating throughout 2003 to finalize an FTA which both wanted to have signed before 2004 elections in Australia and the United States. There are strong elements of opposition in both camps.
Trade unions, churches, welfare, health groups and film producers as well as many economists are convinced the FTA would not be in Australia's interests.
Australian farmers are being told the pact would ensure its farmers greater access to the U.S. market. Australia also wants changes in U.S. shipping and automotive sectors, and changes to restrictions on tenders for American government contracts. So far the United States has given few indications of a willingness to give ground on access to the key dairy, sugar and beef markets, and also for changes to some other agricultural markets.
For the entire story, go to http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/60837/1/.html
DDT Regaining a Reputation
GREENWIRE reports that after three decades of being banned in the United States and treated like a pariah throughout the world, the chemical pesticide DDT is gaining renewed attention, this time as an effective killer of malarial mosquitos in the developing world. The favorable attention comes even in the face of the pesticide's known environmental threats.
Increased use of DDT comes as malaria, the world's second most prevalent infectious disease, persists as the leading cause of death in much of the developing world, including parts of Africa, Asia and Central and South America.
Analysts at an American Enterprise Institute forum in Washington, DC, have called for significant increases in the use of DDT worldwide, because it is a vital tool in the fight against malaria, which directly or indirectly causes up to 2.7 million deaths annually, according to the U.S. Agency for International Development. The most vulnerable populations to the disease are young children and pregnant women, with 90% of the world's malaria deaths occurring in Africa.
For the entire report, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0
GM Wheat Becoming a Matter of Choice
The SACRAMENTO (CA) BEE reports the day is closing in when stores will have to make a decision on whether to offer baked goods made from genetically modified wheat. The Food and Drug Administration soon is expected to complete its safety and nutrition review of Monsanto's hard red spring wheat, a favorite of bakeries, which is genetically engineered to withstand doses of the popular weed-killer Roundup.
FDA's review, voluntary on the company's part, does not mean biotech wheat soon will be grown in this country; that still is likely a few years from now. Wheat will be the first test of the company's new list of promises to protect buyers and farmers before it commercializes Roundup Ready wheat.
The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0
Problems Ahead for Farm Subsidies
THE WASHINGTON TIMES reports U.S. and European Union farm subsidy policies are going to be open to attack probably next month at the World Trade Organization, not as an onslaught against wholesale programs but as barriers against specific products. The threat of a WTO case against the subsidies also offers leverage in ongoing trade negotiations.
"I think U.S. and European subsidy policies are subject to legal challenge at the WTO. There are billions or tens of billions of dollars in consequences," said Richard Steinberg, a law professor at the University of California at Los Angeles. Steinberg co-authored a paper on the so-called peace clause that expires Dec. 31 and is considered an authority on its legal implications.
The clause allows countries to use agriculture subsidies and be protected from WTO dispute settlement. Subsidies generally are illegal, but the 1992 clause grants an exemption for farm payments. Most wealthy countries offer some support to farmers, with the European Union, Japan and the United States at the head of the list, but South Korea, Norway, Switzerland and Iceland also offer significant payments to producers.
For the entire story, go to http://washingtontimes.com/business/20031207-114046-8545r.htm
Beef Prices Show Some Weakness
The CHICAGO SUN TIMES reports beef prices are beginning to show some slipping after reaching record highs. Futures prices for cattle declined for three straight days on the Chicago Mercantile Exchange last week in the wake of speculation that consumers will buy less expensive turkey and ham for December holidays instead of beef.
Cattle futures have declined more than 8% since reaching a record on Nov. 11. It has been reported that Tyson Foods Inc., the world's largest meat processor, passed on costs to consumers when prices soared after a U.S. ban on Canadian animals in late May that reduced supplies. The restriction came after mad cow disease was discovered in a cow in Alberta.
Cattle futures have soared 27% in six months. Wholesale beef prices reached a record $2.0118 a pound on Oct. 16, a 41% gain since the ban on Canadian cattle was imposed.
For the entire story, go to http://www.suntimes.com/output/business/cst-fin-cattle08.htm
Activists Protest Protection Law
THE ASSOCIATED PRESS reports California activists believe their rights to discover and document animal abuse are being abrogated by a state law designed to shield farms from protestors and protect the food supply from contagious disease. The law becomes effective Jan. 1 and makes trespassing on lands where animals are raised for human consumption a misdemeanor punishable by six months in jail and/or a $1,000 fine. Someone who now trespasses faces a citation and a $10 fine.
Seven states have considered bills to make so-called animal and ecological terrorism subject to stiffer penalties, said Sandy Liddy Bourne of the American Legislative Exchange Council. The bills are based on model legislation developed by the Washington-based group.
Several animal rights groups, including the Humane Society of the United States, opposed the legislation claiming its real purpose is to stop attempts to document inhumane conditions at farms.
For the entire story, go to http://www.bayarea.com/mld/mercurynews/business/7440312.htm
December 5
More U.S. Soybeans Likely to Head to China
A delegation of major Chinese soybean processors is scheduled to arrive in Chicago Dec. 17-18 to buy U.S. soybeans.
Zhao Xiaoping, vice representative of the American Soybean Association (ASA), confirmed Friday that Chinese government officials won't be participating in the trip. "This is a nongovernmental trip...Only major soyoil makers are included in the name list," Zhang said.
The trip was delayed in mid-November after the U.S. imposed trade restrictions on some Chinese textiles.
Earlier this week, talk circulated in the market that China could reschedule its soybean-buying trip to the U.S. The speculation supported soybean futures on the Chicago Board of Trade, as China is the world's largest soybean importer.
Farm Income and Exports to Remain Strong in 2004
Agriculture Secretary Ann M. Veneman said that farm income and agricultural exports should stay strong in 2004, and consumer prices are expected to remain steady.
“We expect farm income and exports to remain strong into 2004,” Veneman said during remarks at the Farm Journal Forum. “Consumer prices are expected to remain steady so food prices should continue to be a good bargain for the Nation’s consumers.”
During her remarks to an audience of food and agriculture leaders, Secretary Veneman said that net cash farm income in 2003 will be at a record high, rebounding sharply from 2002 and above long-term averages. Net cash farm income is forecast to be $65 billion, up 33 percent over 2002, she said.
“Part of the improvement is due to brighter export prospects,” Veneman said. “Exports for 2003 are estimated at about $56.2 billion, while the level of agricultural exports for 2004 is forecast at $59.5 billion. This is just short of the all-time record of $60 billion set in 1996.”
“The demand for farm products is being spurred by the President’s tax cuts, low interest rates and inflation, and a decline in the value of the dollar,” Veneman said. “Expanding payrolls and declining unemployment in the coming year are expected to further accelerate food demand.”
Bush Repeals Steel Tariffs - Trade War Averted
In a rare turnabout on policy from an administration not noted for reversing course, yesterday President Bush, repealed the high tariffs imposed last spring on steel, which were ruled by the World Trade Organization in November, ruled illegal, allowing other countries to prepare to impose retaliatory tariffs this month.
The tariffs, which were as high as 30 percent when imposed 21 months ago, were lifted at midnight, 15 months before their scheduled expiration. Bush said the tariffs had done their job, stemming a flood of cheap steel imports long enough to allow U.S. producers to consolidate and get back on their feet.
In a written statement read by his press secretary, the president also noted that economic circumstances have changed markedly since the tariffs were imposed. Surging demand for steel has boosted prices, and a weakening dollar has made U.S. steel exports more competitive in the global market, administration officials said.
The European Union and Japan were poised to slap onerous duties on $2.3 billion U.S. exports, many of which would have been imposed on agricultural products, destabilizing the export market. (See related story - http://www.agriculturelaw.com/steel.htm)
FDA and U.S Customs to Investigate Safety of Food Shipments
The Food and Drug Administration (FDA) announced it reached a cooperative agreement with U.S. Customs and Border Protection agency, allowing the two agencies to work together to investigate food imports to prevent bioterrorism. Under the agreement, U.S. Customs officers will help investigate imported food shipments and FDA will have expanded authority to inspect those food shipments arriving by sea and air.
"We are committed to using the bioterrorism law to safeguard our food supply to the fullest extent possible, without imposing any unnecessary costs or restrictions on food imports," said FDA Commissioner mark McClellan.
Under the federal Bioterrorism Act now in effect, the FDA can order the detention of any food or animal feed if there is "credible evidence" that it presents a health threat. By working together, the FDA can use Customs agents to conduct investigations related to the FDA's new rules requiring notice be given to authorities before the food imports arrive at the ports.
Tobacco Farmers Face Quota Cut
American companies have indicated they will be buying about 30 million pounds less tobacco from American growers, the U.S. Department of Agriculture announced Wednesday.
The U.S.D.A. said tobacco companies plan to purchase about 254 million pounds or about 10 percent less tobacco in 2004 than was bought this year. In 2003, tobacco companies purchased 283.3 million pounds. That means farmers could see a reduction in quota allotment of as much as 21.7 percent.
Efforts to get a quota buyout passed through Congress have so far failed this year. Faced with a possible large quota cut, many farmers will soon be forced out of business, according to Keith Parrish, a Harnett County tobacco grower who is also executive director of the National Tobacco Growers Association.
"This is going to put the nail in the coffin for a lot of farmers," Mr. Parrish said. "I mean, it's going to be one of the things that, if something is not done to get farmers some relief in the form of a buyout or some influx of funding to help the farmers over this, there will be thousands of farmers going out of business."
Since 1998, a quota allotment, or the amount of tobacco farmers are allowed to grow, has been cut by 54 percent. An additional cut of 20 percent in 2004 means that farmers would be growing 75 percent less tobacco than they did just five years ago. In 1997, farmers harvested over a billion pounds of tobacco.
Cheaper foreign tobacco from Africa and South America are driving tobacco companies away from the domestic leaf, Mr. Parrish said, although the quality of American tobacco is still considered superior.
As long as American farmers grow tobacco under the quota system, which was put in place by the federal government during The Great Depression, domestic tobacco prices will be less able to compete on the world market. Most farmers believe a buyout, which would end the price-support system, would help reverse the decline in domestic tobacco growing.
"We are not able to compete on a world market with our prices being as high as they are, so they are importing millions and millions more pounds of tobacco each year from offshore, from Brazil, from Zimbabwe and Argentina," Mr. Parrish said.
U.S. Rep. Bob Etheridge of Lillington said he has already written a letter to U.S. Agriculture Secretary Ann Veneman, urging her to use her discretion to raise the quota by a maximum of 3 percent. The quota is determined each year based on the tobacco companies intended purchases, average exports and the amount of leaf needed to attain reserve stock levels. Rep. Etheridge has also written letters to Philip Morris, Brown & Williamson, R.J. Reynolds and Lorillard tobacco companies asking them to purchase more domestic tobacco.
"This drop in purchase intentions is another blow to North Carolina's tobacco farmers," Rep. Etheridge said in a statement. ". ...This historic cut in quota could cripple farmers fighting to keep their farms, their families and their communities afloat."
Parts of South Dakota Declared Disaster
The U.S. Department of Agriculture announced thirty-three South Dakota counties have received a disaster declaration because of drought and other problems the past year. The designation allows family farms to apply for low-interest emergency loans through the Farm Service Agency if they meet eligibility requirements.
The designation covers 33 primary counties and 22 counties that adjoin them.
The disaster declaration covers these primary counties: Beadle, Bennett, Bon Homme, Brule, Buffalo, Butte, Campbell, Charles Mix, Corson, Deuel, Dewey, Grant, Gregory, Haakon, Hamlin, Hand, Harding, Hughes, Hyde, Jackson, Jones, Meade, Mellette, Perkins, Potter, Shannon, Spink, Stanley, Sully, Todd, Tripp, Walworth and Ziebach.
Included as contiguous counties are Aurora, Brookings, Brown, Clark, Codington, Custer, Day, Douglas, Edmunds, Fall River, Faulk, Hutchinson, Jerauld, Kingsbury, Lawrence, Lyman, McPherson, Miner, Pennington, Roberts, Sanborn and Yankton. RMA Announces Harvest Prices
Yesterday the Risk Management Agency (RMA) of the USDA announced the harvest prices which will be used for crop insurance purposes for the 2003 crop year:
Crop Revenue Coverage (CRC) policies for cotton in counties with a February 28 or a March 15 cancellation date the harvest price will be $.73 per pound. Under Revenue Assurance (RA) polices the 2003 harvest price for corn is $2.37 per bushel and $.73 per pound for cotton.
Crop insurance policies with Income Protection coverage will have harvest prices of $2.37 per bushel for corn, $2.13 per bushel for grain sorghum and cotton will be $.73 per pound. The 2003 harvest price for corn insured under a Group Risk Income Protection policy will be $2.37 per bushel.
New wheat contracts available at Minneapolis Grain Exchange
The Minneapolis Grain Exchange has approved rules and regulations for Soft Red Wheat Index (SRI) and Spring Wheat Index (SWI) futures and options. The contracts are scheduled to launch December 19 on the exchange's electronic trading platform, MGEXpress.
The new contracts will join the Hard Winter Wheat Index (HWI) in the exchange's suite of financially settled wheat futures and options and its pit-traded hard red spring wheat futures and options contracts. The Soft Red Wheat Index (SRI) is a simple average of approximately 360 country elevator bids for U.S. No. 2 soft red winter wheat collected daily by Data Transmission Network (DTN), an Omaha-based electronic commerce and information services company. The Spring Wheat Index (SWI) is an average of approximately 200 country elevator bids for U.S. No. 1 hard red spring wheat.
Disaster aid sign-up ends Jan. 30
USDA announced sign-up ends January 30, 2004, for the Crop Disaster Program (CDP), which provides payments for producers who suffered 2001 or 2002 crop-year losses due to a natural disaster.
"USDA has issued $2.2 billion in benefits to about 325,000 farmers across the country," according to Agriculture Secretary Ann Veneman. "We encourage qualified farmers to take advantage of this assistance."
The program, authorized under the Agricultural Assistance Act of 2003, has no overall funding limitation, but each "person" is limited to $80,000.
Producers are reimbursed for qualifying crop production and quality losses, for crops other than sugar cane, sugar beets or tobacco, for either the 2001 or 2002 crop years. Payments are issued for losses exceeding 35% of expected production at:
· 50% of the established price for crops that were covered by crop insurance;
· 50% of the established price for crops for which crop insurance was unavailable; and
· 45% of the established price to producers for crops that could have been insured but were not.
Producers will also be reimbursed for quality losses of at least 20% for certain crops.
Eligible producers who did not have crop insurance or Noninsured Crop Disaster Assistance Program coverage during the year of the disaster must agree to purchase crop insurance coverage for each of the next two crop years.
CDP payments will be reduced if the sum of: the CDP payment; the net crop insurance indemnity; and the value of the crop that was not lost, exceeds 95% of what the value of the crop would have been in the absence of a loss.
More information on CDP and other USDA disaster assistance programs is available at your local Farm Service Agency office and on the FSA website: http://disaster.fsa.usda.gov/fsa.asp
Tax implications of selling cow/calf crop now
"Now is a good time for year-end tax planning and assessing drought-related income issues," said Tina Barrett, Director of the University of Nebraska Farm Business Association.
This year's drought creates opportunities for farmers in these counties to defer income from livestock sales to next year, Barrett said. This means if farmers had to sell last year's and this year's cattle crops in 2003, they can defer partial income to the 2004 tax year. This situation only is due to drought conditions and applies to cattle that couldn't be fed or were sold due to drought.
"With high cattle prices, producers have extra incentive for selling now instead of holding until later this year or into January," she said.
Producers should visit with a tax advisor since it can be complicated to calculate how much income can be deferred to next year, Barrett said.
"Even if you didn't make any money this year, it's important to do tax planning. It's more important now than in a high income year," she said.
Producers who show a loss in farm income could miss opportunities to offset that loss with next year's income to obtain a zero balance, Barrett said. This will minimize self-employment taxes. It's important to manage tax brackets to pay the lowest amount of tax during the life of the business.
Farmers also may be concerned about taxes on conservation reserve program acres. For active producers, CRP is treated as regular income, which is subject to self-employment tax, instead of rental income, Barrett said.
Active farmers earn self-employed income, which is subject to self-employment taxes. However, retired farmers can use CRP income to replace rental income, which is not subject to these taxes, Barrett said.
"It's taxable income for both farmers, but the addition is the self-employment taxes, which are significant," she said.
It is important to minimize self-employment taxes since they amount to about 15 percent of farmers' income. Self-employment taxes include Social Security and Medicare taxes. Normally, employers pay these taxes, but since farmers are self-employed, they must pay both taxes.
Refer to the 2003 Farmers' Tax Guides (Publication 225) from the Internal Revenue Service for more information.
December 4
BUSH SIGNS FOREST HEALTH BILL
President Bush signed the Healthy Forests Restoration Act of 2003 today, at a ceremony at the Agriculture Department. The bill represents a victory for the President, who proposed it in January, as well as for the House and Senate Agriculture Committees' leadership, who pushed the measure through Congress. A USDA statement called the bill "a strong bi-partisan commitment to reduce the threat of catastrophic wildfire to communities and restore our nation's forest and rangelands." USDA said the legislation -
o Strengthens public participation in developing high priority forest health projects;
o Reduces the complexity of environmental analysis;
o Provides a more effective appeals process encouraging early public participation in project planning; and
o Instructs courts being asked to halt projects to balance the short-term effects of implementing the projects against the harm from undue delay and the long-term benefits of a restored forest.
A description of the new forestry law is at http://www.usda.gov/news/releases/2003/12/fs0405.htm
USDA WILL EXEMPT ORGANIC PRODUCERS FROM ASSESSMENTS
Moving to implement a requirement of the 2002 farm bill, USDA says it will exempt organic farms from being assessed under marketing orders. The proposed regulation would apply to 28 marketing orders, mostly for fruits and vegetables, that carry out promotion activities. Producers with 100% organic operations would not have to pay assessments. Eventually, the exemption will also apply to national research and promotion programs, but this week's rule did not address these programs directly.
USDA's announcement of the proposed rule is at http://www.ams.usda.gov/news/219-03.htm
USDA ANNOUNCES $115 MILLION FOOD FOR PROGRESS PROGRAM
The Foreign Agricultural Service announced $115 million in development projects under USDA's Food for Progress program. These Food for Progress allocations include more than 250,000 metric tons of U.S. wheat and flour, rice, vegetable oils, soybeans and soy products, corn, beans, peas and other commodities that will be purchased on the U.S. market and donated by USDA. The commodities will go to private voluntary organizations and the United Nations World Food Program primarily to support agricultural development projects.
For a complete list of the allocations, go to http://www.fas.usda.gov/scriptsw/PressRelease/pressrel_dout.asp?Entry=valid&PrNum=0308-03
FARM GROUPS TELL BUSH THEY SUPPORT LABELING
The National Farmers Union and 164 other groups wrote President Bush to say they still support country of origin labeling. Objecting to statements by Secretary Ann Veneman, the groups decry the idea that Congressional action to block labeling came "at the behest of farm groups," arguing that most farmers and ranchers favor country of origin labeling. Many of the signing groups are local or state organizations, while some such as Public Citizen are not normally considered farm groups. Congress has settled on a two-year delay for country of origin labeling and the regulations to implement the program, but the massive appropriation bill containing the delay has not yet come to a final vote in either the House or the Senate. It is not expected to change, though.
The groups' letter can be found at http://nfu.org/documents/legislative/cool/cool_letter_bush_120303.pdf (.pdf format)
December 3
The Choice is Now or Years from Now
THE ASSOCIATED PRESS REPORTS USDA Under Secretary J.B. Penn said global trade talks may have to be shelved for years unless there is progress at talks this month in Geneva. Members of the World Trade Organization are to resume trade talks Dec. 15 in Switzerland, following the breakdown of negotiations in Cancun, Mexico, in September. The talks broke down in part over complaints from developing countries about U.S. and European Union farm policies.
"I think (countries) have realized that this is the opportunity of a generation. If we don't seize the opportunity now we're likely to not have multilateral trade talks for a long time," said U.S. Department of Agriculture Undersecretary J.B. Penn. He cited U.S. presidential elections in 2004 and the enlargement of the E.U. from 15 to 25 members next spring as potential reasons that trade talks might be delayed if no progress is made by the start of next year.
For the entire story, go to http://www.hpj.com/dtnnewstable.cfm?type=story&sid=10485
Tree Conservation Program Draws Praise
THE ASSOCIATED PRESS reports Deputy U.S. Agriculture Secretary James Moseley has praised a national initiative to restore flood plains by planting bottomland hardwood trees in the Mississippi, Missouri and Ohio River valleys and the southern coast. Moseley said the program has multiple benefits. Moseley said planting hardwood trees helps reduce soil erosion and the impact of floods, restore a habitat for wildlife, improve water quality and carbon sequestration. The program will have a continuous signup for farmers in an effort to get trees planted on their land. Participants receive 50% of the cost to plant the trees. About 50,000 acres in Mississippi could qualify for the program. "This (program) is one we feel pretty strongly about," Moseley said. "From a conservation standpoint, it is pretty darn important. This program is one we think will capture quite a bit of attention," he said.
For the entire story, go to http://www.sunherald.com/mld/sunherald/7395648.htm
India Urges Domestic Support Reductions
The NEW KERALA NEWS (India) reports India is urging developed countries to make a substantial and real reduction in domestic support for agriculture. An agreement on agriculture that did not consider the concerns of small and marginal farmers in developing countries would endanger their livelihood and food security, Agriculture Minister Rajnath Singh said. He was addressing a conference of the Food and Agriculture Organization in Rome.
Experts estimate that United States alone gives subsidies worth more than $360 billion to the agriculture sector. Also Singh called for "a genuine differential treatment to the developing countries to address their special concerns." Expressing disappointment at the outcome of the WTO Ministerial Conference at Cancun, Singh said enough recognition had not been given the interests of farmers, particularly small landholders in developing countries.
The entire story is at http://www.newkerala.com/news-daily/news/features.php?action=fullnews&id=1746
WTO Upholds U.S. Against Japan on Apples
AGWEB.COM reports the World Trade Organization (WTO) Appellate Body has upheld earlier panel findings that Japan's import restrictions on U.S. apples are not justified and are in violation of Japan's WTO obligations. Japan imposes heavy limits on imported U.S. apples; Japan says tje restrictions are to protect Japanese plants from fire blight, a plant disease. The United States, however, showed that there is no scientific evidence that mature apple fruit can transmit fire blight, and the panel and Appellate Body agreed.
U.S. farmers export more than $390 million worth of apples every year, mostly from Washington State and Oregon. However, Japan's severe fire blight restrictions essentially blocked U.S. apples from reaching Japanese consumers; for example, U.S. apple exports to Japan were limited to only $377,000 in 2001. Removing Japan's import barriers would increase U.S. apple farmers incomes by providing the opportunity to increase U.S. exports.
The entire story is at http://www.agweb.com/news_show_news_article.asp?file=AgNewsArticle_20031221240_1312&articleid=103581&newscat=WA
World Program Thanks U.S. Largess
THE UNITED NATIONS WORLD FOOD PROGRAM reports it is launching a quiet campaign to thank America - especially its farmers - for the millions of tons of agricultural products the US has provided to help the world's hungry this year. Each day, 20 planes and 40 ships help move U.S.: wheat, corn, rice, sorghum, soy and dairy products, blended foods and flours, lentils, peas, beans and sugar. They are sent to areas where hunger is ever present. The food helps transform the lives of those who receive it in fundamental ways, thereby improving not only the individuals, but entire communities.
"A sad paradox assures us that there is plenty of food to go around, even in the most difficult of times," said Judith Lewis, director of WFP's U.S. relations office, in a Thanksgiving salute to US growers and agribusinesses. "And we have the ability to move this food all over the world, getting it directly into the hands of those who most need it."
For the entire story, go to http://www.agriculture.com/default.sph/AgNews.class?FNC=sideBarMore__ANewsindex_html___50914
December 2
Australian Imports Will Be Smooth
FERRET.COM.AU reports Australia believes the United States will not impede Australian imports during implementation of new U.S. food security regulations. The U.S. Bioterrorism Act, designed to protect the US food supply from bio-terrorist attacks, goes into effect Dec. 12. It imposes additional administrative and compliance measures on all Australian companies exporting food for human and animal consumption to the United States. The exceptions are meat, poultry and egg exports already regulated through USDA. "The Australian Government has made suggestions to the US about how the new regulations can be implemented in ways that least disrupt trade," Trade Minister Mark Vaile said. Agriculture, Fisheries and Forestry Minister Warren Truss cautioned exporters of food to the United States and other Australian businesses supplying these exporters to make sure they know how the requirements of the Bioterrorism Act will affect them and what they will be required to do after 12 December 2003.
For the entire story, go to http://www.ferret.com.au/articles/cb/0c01c3cb.asp
EU Rules Sit Uneasily with Corn Growers
The National Corn Growers Association (NCGA) objects to the European Union's newly adopted traceability and labeling rules as non-tariff trade barriers that violate World Trade Organization (WTO) requirements. NCGA believes the new labeling requirements will cause a sharp reduction in U.S. agricultural exports and urges the United States Government and WTO to take immediate action.Published on October 18, the EU regulations contain traceability requirements, labeling of food and feed products and safety assessments for food and feed produced through biotechnology. The EU regulations use the "Precautionary Principle" and other non-science based factors to assess food and feed imports.
"These regulations have nothing to do with human health or environmental safety, rather, they are an extension of the trade barriers we have been dealing with for a long time," said Leon Corzine, NCGA first vice president. "They simply discriminate against U.S. producers by targeting our products with severe scrutiny, despite the EU's inability to identify any science-based risks with biotechnology or U.S. commodities." NCGA believes the labeling requirements may cause a sharp reduction in U.S. agricultural exports to the EU as food companies reformulate products to avoid the use of U.S.-origin commodities. Furthermore, countries that import U.S. grains for use in processed food product exports may reduce the use of U.S. grains to avoid EU regulatory difficulties.
The entire story is available at http://www.ncga.com/news/notd/2003/december/120103a.htm
StarLink Still Turning Up
It's been three years since StarLink was banned from human consumption but turned up in taco shells. It's still showing up, reports the SAN JOSE (CA) MERCURY NEWS. A federal testing program found traces of StarLink in more than 1% of samples submitted by growers and grain handlers in the past 12 months, government records show.
StarLink was designed to produce its own pesticide and be limited to animal feed and industrial use out of fear it might cause severe allergic reactions. While the health effects of StarLink are still unsettled, many worry that the government remains unprepared to deal with unexpected health problems from genetically engineered crops, especially those now being field-tested to mass-produce medicines, vaccines or industrial chemicals.
For the entire story, go to http://www.bayarea.com/mld/mercurynews/business/7386106.htm
Food Safety Issues Get New Attention
AGRINEWS reports USDA has a new publication, "Food Safety and Food Security: What Consumers Need to Know. It's an effort to answer the public's questions about food safety. The brochure, developed by USDA's Food Safety and Inspection Service, is available in both English and Spanish. It provides tips for safe food preparation and for keeping foods safe from contamination. It also lays out comprehensive and practical information about safe food handling practices, food-borne illness, product recalls, keeping foods safe during an emergency and reporting suspected instances of food tampering.
For the entire story, go to http://www.agrinewspubs.com/Main.asp?SectionID=1&SubSectionID=207&ArticleID=6139
India Prepares to Buck Sugar Trend
THE HINDU BUSINESS LINE reports India is ready to buck a global trend on sugar that shows worldwide production will remain large in 2003-04 and consumption will not meet the supply. World sugar prices won't recover from low prices anytime soon. India, however, is going to face, for the first time in five years, the situation of sugar consumption outstripping production, leading to a significant reduction in stocks. The year may end with the inventory level falling considerably below the 10-million-ton mark.
World sugar production is forecast to reach 144.6 million tons, raw value, in 2003-04. In its latest forecast, USDA raised the production number by some 6 million tons compared with the forecast made in May this year. This follows greater production in Brazil and Asia, mainly India. USDA had raised production and consumption numbers for 2002-03 also.
Global consumption, on the other hand, is expected to grow slowly. Consumption is expected to decline in the United States, Western Europe, Eastern Europe, West Asia and Africa. In Central and South America, sugar use will be steady, but it should increase in Asia.
For the entire story, go to http://www.thehindubusinessline.com/2003/12/02/stories/2003120200711100.htm
Goats Sell, But a Profit Is Something Else
THE BIRMINGHAM (AL) NEWS reports if you ever meet Ray Cox you're likely to walk away with a ballpoint pen and business card for R&J Critter Farm. He advertises on an area Hispanic radio station and in newspapers. His goat mailbox is to let his Hispanic customers know where to find the 15-acre farm he and his wife operate. The 66-year-old Limestone County man even considers his gray ponytail a promotional tool for selling his goats: it's not something you forget.
"Our biggest problem is selling our product," said Cox, a retired production manager for a houseboat manufacturing company. "I do make a profit, but to live off it is a totally different story." Goat farming has become a multimillion-dollar enterprise in Alabama, with growers catering to demands for goat meat from a growing ethnic market. The number of foreign-born residents living in the United States has risen steadily, and goat farmers say that's good for their business, because goat is eaten more than any other meat worldwide. But there are obstacles to the growth of the industry, and it will be quite a while before goat production ranks with cattle, hog and poultry production.
For the entire story, go to http://www.al.com/news/birminghamnews/index.ssf?/base/news/107027380889652.xml
Afghanistan Grateful for U.S. Wheat
The DES MOINES REGISTER reports Afghans are grateful for the U.S. wheat that allows them to make the traditional flat bread that is distributed at 32 United Nationsl bakeries to the poorest of Afghanistan's 3 million people. "It's a great honor for us to put food aid to such good use," Agriculture Secretary Ann Veneman said as she handed out the bread during a recent tour of Kabul. About three dozen women, most of them covered head to toe in blue burqas, sit on the bare ground and wait for their daily allocation of loaves. Each is entitled to buy five loaves a day at one afghani, about 2 cents, per loaf. "We are very happy for the people in your country," says one of the women, a mother of eight, through a translator.
For the rest of the story, go to http://www.dmregister.com/news/stories/c4789004/22877790.html
EU Farm Chief Calls for Others to Match EU Reforms
THE ASSOCIATED PRESS reports Franz Fischler, European Union agriculture commissioner, believes the EU has launched reforms of its farm subsidies to such an extent that it's time for developing countries recognize the contribution and non-EU nations come up with concrete proposals to allow progress in trade talks. The EU has reduced trade-distorting policies, but countries outside the EU, including in the developing world, aren't doing the same, Fischler told reporters.
Members of the World Trade Organization will resume trade negotiations on Dec. 15. Talks in Cancun, Mexico, broke down in September, partly because of complaints from developing countries about European farm policies. "Too many people are still too bogged down in the fiction to get a clear look at the facts," Fischler said. He said a decision made in June to de-couple farm subsidies from production levels among EU nations, part of EU efforts to reform its costly farm support program, was an example of how far the EU has gone.
For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=5&SMContentSet=0
December 1
Not all Farmers See Trade as a Gain
The St. Joseph (MO) News Press reports at least one farmer is not looking at free trade as a way to make more money -- but at no trade as a way to make more money. Russ Kremer says farmers don't have to imagine any more because the beef industry is a living example. One case of mad cow disease Canada this summer and the United States cut off Canadian beef imports. "When we closed the border off, beef prices soared," Kremer said.
Cattle prices may have reached record highs this fall, but several factors contributed o the increase, aid Dean Kleckner, former president of the American Farm Bureau Federation and now chairman of Truth About Trade and Technology, a farm group that advocates free trade. Using the current beef situation to campaign against global trade is short-sighted, Kleckner said, noting that the United States exports more beef than it imports. "Without trade and without exports, we're just dead," Kleckner said.
And a decade after the North American Free Trade Agreement was put into effect, the agriculture community continues to debate its value to farmers and agribusinesses. "It's so terribly important to agriculture," said Jim Runyan, a cattle producer from Stewartsville, MO. "Mxico is our No. 2 customer for ag products."
For the entire story go to http://www.stjoenews-press.com/Main.asp?SectionID=81&SubSectionID=272&ArticleID=47539
A Fictionalized Nightmare
The ST. LOUIS (MO) POST-DISPATCH paints the following picture: A man casually strolls through the livestock section in the final days of the Illinois State Fair. He reaches into the stalls to pat the snouts of prize-winning pigs and steers, seemingly innocent gestures that in fact are the start of a deadly terrorist plot. Three days later farmers returning from the fair see their livestock showing the first signs of foot-and-mouth disease. In a week, the disease has spread to nearly half the country.
By the time the federal government realizes what has happened, 24 million animals are infected and need to be destroyed, losses to food producers are measured in the billions of dollars and a panicked public questions the safety of every bit of food. Meanwhile, the terrorist is on a plane, calmly returning to his home country. He faces no risk because the foot-and-mouth virus he transported in a soiled handkerchief does not affect humans.
This nightmare - fortunately fictional - scenario was discussed last month at a hearing of the Senate Governmental Affairs committee, where lawmakers vowed not to ignore the less obvious threats America's ranchers and farmers may face. "The fields and pastures of America's farmland might seem at first to have nothing in common with the towers of the World Trade Center," Sen. Susan Collins (R-ME) said at the hearing. "However, they are merely different manifestations of the same high-priority target - the American economy."
For the entire story, go to http://www.sunherald.com/mld/sunherald/news/politics/7377417.htm
Less Odor, More Power
An Idaho Falls (ID) engineering company and a Rupert, ID, dairy owner will build an anaerobic digester to create power from cattle manure that also could reduce the odor which has the diary's neighbors. Jake Dustin, vice president of Intrepid Technology and Resources, said the details have been finalized to start construction of the $1 million biogas facility in the spring. It could begin operations by fall. The dairy owner´s name has not been made public yet. The digester is believed to be the first of its kind in Idaho, but Jerome dairyman John Beukers also is planning one at his operation. He received a $500,000 grant from USDA build a $3 million system. Digesters usually use bacteria to break down the waste and create biogas which contains between 60% and 65% methane. The methane powers a turbine to create power for the dairy. Any extra power could be sold to a utility.
For the full story go to http://www.idahostatesman.com/Story.asp?ID=55062
Sticking Points Hold Up Australian FTA
The SYDNEY (AUSTRALIA) MORNING HERALD reports U.S. and Australian negotiators are about ready to finalize free trade agreement talks, but several sticking points remain. The United States wants changes to the Pharmaceutical Benefits Scheme (PBS) which the Australian federal government has said will not be fundamentally altered in any deal. There also will be discussions over the U.S. push for changes to quotas on local content in film, television and radio and on future media. But for its part Australia will be pushing hard for its key demands in agriculture. Australia wants significant improvements in access to America's dairy, beef and sugar markets, as well as in other farm commodities.
For the entire story, go to http://www.smh.com.au/articles/2003/12/01/1070127309913.html
Kansas Wheat Takes a Back Seat
The WICHITA (KS) EAGLE reports so far little U.S. wheat has made it into Iraq, something many in the U.S. industry didn't expect. U.S. wheat groups blame Australia, which has used diplomatic leverage to get a lock on the current market. Australia claims its actions are responsible, and all it's doing it protecting its interests. "It's become an incredibly complicated situation," said David Frey, head of the Kansas Wheat Commission. Last spring, as U.S. forces sped across Iraq, it became clear the country faced a humanitarian crisis. President Bush authorized 600,000 tons of the U.S. grain reserve to be sent to Iraq. That's about 22 million bushels of wheat, a little less than one-tenth of an entire annual Kansas wheat crop. Kansas wheat farmers had hoped to see a steady flow of grain to Iraq -- and a chance to eventually sell wheat in a new market. But it didn't happen. "Honestly, I don't think it had much affect at all," said Bruce Ott, a Kansas wheat grower.
For the entire story, go to http://www.kansas.com/mld/kansas/7377802.htm
California Wheat Crop Damaged
The FRESNO (CA) BEE reports officials in California's San Joaquin and Sacramento valleys trying to figure out just how much of the state's wheat crop was lost to a stripe rust fungus last spring; yields in some varieties were reduced as much as 80%. For four Valley counties -- Fresno, Merced, Madera and Tulare -- the damage has been estimated at about $22.6 million. The final total is expected to go much higher, considering the number of counties still calculating losses and the fact that Kings County's figures are not yet available. Kings County was the state's No. 1 wheat producer in 2001.
For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0