February 29, 2000

Glickman Orders Pork Checkoff Vote: NPPC `Appalled.' Agriculture Secretary Dan Glickman will order the Agricultural Marketing Service to conduct a referendum on whether the pork promotion order should be continued. The National Pork Producers Council is "appalled" and finds it "unbelievable that the law was somehow bent" in favor of politics.

High Court Hears Grazing Case Wednesday. The U.S. Supreme Court is scheduled to hear a case brought by cattlemen against Interior Secretary Bruce Babbitt over Babbitt's changes in the nation's grazing program. Arguments will be heard on grazing preference, range improvements and mandatory qualifications for a grazing permit applicant.

Farm Credit Demand Dampened by Price Outlook. USDA says uncertainty over how long low commodity prices will persist is depressing demand for farm credit. However, widespread negative effects on farm loan portfolios have not materialized.

White House Seeks $123.5 Million Supplemental Ag Appropriation. The White House's FY 2000 Supplemental Appropriation request to Congress for agriculture, includes $13 million for the Risk Managment Agency's FCIC Fund, $81 million for CCC Fund producer-owned marketing association loan forgiveness, and $29.5 million for the Rural House Service.

Ag News Summaries

Antitrust Hearings Scheduled in Senate. Senate Judiciary Chairman Orin Hatch (R-UT) will schedule hearings this year on current antitrust laws due to concerns about agricultural concentration, reports NATIONAL JOURNAL'S CONGRESSDAILY. He made the announcement to the National Farmers Union convention in Salt Lake City. Senate Ag committee staff director Keith Luse says Senate Agriculture Committee Chairman Richard Lugar (R-IN) also will hold hearings on agricultural checkoff programs at either the full or subcommittee level. Hatch said he wants to determine whether the Justice Department is fully enforcing antitrust laws and whether the laws are adequate to meet the needs of producers and consumers.

Milk Protein Kills E. Coli. A naturally occurring substance in cow's milk can be applied to raw meat to help protect consumers from E. coli, REUTERS reports. The technique appears to be a safe and natural way to kill harmful bacteria on meat without affecting taste, color or smell, scientists at California State Polytechnic University said. The key ingredient is lactoferrin, a protein in cow's milk that protects young animals from harmful bacteria wile their immune systems develop. 

Cargill Accepts GMO Crops. Cargill Inc., one of the world's largest grain handlers, will accept genetically altered corn and soybeans from farmers for at least the next year, even if some gene-altered corn varieties aren't approved for use in Europe, BLOOMBERG NEWS reports. At a conference sponsored by Farm Journal magazine, Cargill President and CEO Warren Staley said, "We're going to accept crops enhanced through modern biotechnology, period."
 

February 28, 2000

Campbell Recalls Soup with Metal Contamination. Campbell Soup Co., Camden, NJ, is recalling about 109,000 pounds of vegetable beef condensed canned soup because the product may contain pieces of metal. The problem was discovered after consumers complained to the company.

USDA Approves Minnesota Poultry Program. USDA's Food Safety and Inspection Service has approved a Minnesota state poultry inspection program. The state program's requirements at least are equal to those of the federal meat inspection program.

Honey Order Changes Proposed. USDA is seeking public comment on a proposal to amend the Honey research, promotion and consumer information order. Some changes must be approved by producers, packers, handlers and importers in a referendum; other changes are required by law and will be implemented regardless of a referendum.

Sign-up Begins Today for Oilseed Payments. Sign-up begins today and runs through March 31 for an oilseed payment program that will pay producers $475 million. The appropriations bill approved by Congress last year authorizes a one-time payment to producers who planted oilseeds in 1999.

Mexico Conforms to WTO Ruling. Mexico's government has decided not to appeal a ruling by the World Trade Organization that Mexico violated an antidumping agreement by imposing duties on imports of high fructose corn syrup from the United States. The Corn Refiners Association views the decision as an acknowledgment by Mexico that it did violate the agreement.

Ag News Summaries

UK Says It Is `Neutral' on GMO Foods. The United Kingdom government takes a "neutral" stance over the safety of genetically modified food, Cabinet Minister Mo Mowlam said after Prime Minister Tony Blair said for the first time there is uncertainty on the issue, BLOOMBERG NEWS reports form London. Blair wrote in the Independent newspaper Sunday there are "potential benefits and risks" from the technology and the "jury is still out." The statement differed from the government's position last year that the technology was safe. "We have been saying consistently we are neither pro- nor anti-GM foods," Mowlam said. 

Union Reps Quit China Trade Panel. AFL-CIO President John Sweeney and two other union leaders resigned from a White House panel that advises President Clinton on trade policy. They were protesting the agreement with China, according to REUTERS report. In his resignation letter, Sweeney accused business leaders on the panel of pushing through a pro-China agenda over the objections of labor and consumer groups. 

USDA Sees Cap on Sugar Forfeitures. U.S. sugar processors could forfeit as much as 500,000 short tons of sugar under the government loan program in fiscal 2000, REUTERS reports. Dan Colacicco, Farm Service Agency sugar program specialist, says USDA does not have an official estimate of how much sugar could be forfeited but the upper limit probably is about 500,000 tons. Current low domestic sugar prices have raised the prospects of loan forfeitures for the first time since 1994. USDA can store the sugar, resell it to the market, sell it for restricted uses such as ethanol manufacturing or donate it for humanitarian purposes.
 

February 25, 2000

ASA Wants Monsanto Refund on Seed.The American Soybean Association says Monsanto should discontinue and refund technology fees on Roundup Ready soybean seed to help equalize seed prices between the United States and Argentina. A General Accounting Office report says U.S. growers are charged a fee of $6.50 per 50-pound bag on top of the seed price to fund technology costs the company incurs.

Bleak Farm Price Outlook Somewhat Tempered.USDA Chief Economist Keith Collins paints a bleak picture for farm prices this year but tempers the outlook with several positive developments he expects will somewhat offset basement crop prices. Oil prices could add $1 billion to farmers' costs this year, he says.

Clinton Pushes for China Pact Approval. President Clinton took two opportunities Thursday to push for congressional approval of the U.S.-China trade agreement and normal trade relations with China. If NTR isn't approved, "we'll still be kicking ourselves in the seat of the pants" in 20 years, he said.

London Firm Invests in Internet Businesses. United News & Media will invest 370 million pounds sterling in its Internet businesses over the next two years. Agricultural markets will be part of the mix.

Economist Sees Internet as Ag's Future. Economist and futurist George Gilder says Internet agricultural information now is just a fraction of what will be available in five years. Information now seems jumbled and incoherent at times, he adds, but will become more useful and integrated with the entire farm enterprise.

Ag News Summaries

Canada Plans Transportation Farm Aid. Canadian Prime Minister Jean Chretien says the federal government will provide a one-time assistance of C$240 million to aid western Canadian farmers, report THE WALL STREET JOURNAL and REUTERS. Another C$160 million will be paid by Manitoba and Saskatchewan, major grain producing provinces. The aid should provide C$9,000-11,000 for each Manitoba farmer and be paid in early spring. Saskatchewan farmers will receive approximately the same amount on average. The package is to help farmers adjust to higher transportation costs as they face lower incomes. 

Ag Merger Bill Due in the Senate. Senate Democratic Leader Tom Daschle (D-SD) and Sen. Patrick Leahy (D-VT) plans to introduce legislation that allows the government to fine companies up to $100 million for antitrust violations. REUTERS quotes aides to the senators saying a fund would be created to compensate farmers and ranchers who suffer losses due to unfair practices. USDA could order firms to modify a deal to avoid anticompetitive or unlawful practices. 

EU Confident of China WTO Deal `Very Soon.' The head of a European Union negotiating team says he's confident a deal on China's bid to join the World Trade Organization will be worked even though four days of talks failed to yield an agreement, REUTERS reports from Beijing. Hans-Friedrich Beseler told reporters "significant progress" had been made, but major disagreements remained. "We are full of good will and we are confident that it will be made very soon," he said.
 

February 24, 2000

EPA Anti-Pollution Rules Examined.Senate Agriculture Committee Chairman Richard Lugar (R-IN) Wednesday told USDA to determine the cost of proposed Environmental Protection Agency water quality regulations on agriculture, state and federal agencies. The EPA regulations are "very complex," Agriculture Secretary Dan Glickman told the committee. One of his concerns was the lack of cost projections.

Greenspan: Exports Are Agriculture's Savior. Federal Reserve Chairman Alan Greenspan told the Senate Banking Committee the most effective way to rescue farmers from low prices and high costs is through increased exports. Despite a "very dramatic reduction" in the importance of oil in the U.S. economic production, he said, oil still is a "pervasive enough force" that if prices are high enough, economic growth is affected significantly.

Public Education on Biotech Needed. If farmers are to benefit fully from biotechnology, the public must be educated about the benefits, says North Carolina State University Professor Tom Hoban. In another address to the American Farm Bureau Federation's World Congress of Young Farmers, Deputy Agriculture Secretary Richard Rominger said the "enormous possibilities" of biotechnology should not be ignored because of the controversy surrounding it.

Ag News Summaries

Agchem Website Sees Trading Boom. Xsag.com, an Internet marketplace for seeds and agrochemicals, plans to move between $100-$500 million in products through its platform auction site in the upcoming planting season, THE WALL STREET JOURNAL reports. The article says founder Fulton Breen bases his "aggressive" projections on savings he offers farmers struggling with narrow profit margins brought on by high costs and low commodity prices. Xsag.com claims to offer product savings of 30-50% compared to local dealers. Of the 1.9 million farmers in the United States, 300,000 produce 80% of production and 65% of those have Internet access. Xsag.com expects its busiest time to be the March-May planting season. The company does not disclose current sales figures, but the total is thought to be in the seven-digit range.

Senators Say China Deal in Peril. Senate Finance Committee ranking Democrat Daniel Patrick Moynihan of New York warned U.S. Trade Representative Charlene Barshefsky Wednesday, "You're going to lose" a Senate vote to grant China normal trade relations, REUTERS reports. Finance Committee Chairman William Roth (R-DE) said Senate support for the trade agreement no longer was "a foregone conclusion." The senators said China's threat to Taiwan was the reason the trade agreement is in trouble. Reports that Vice President Al Gore, if he were to become president, would add labor and environmental provisions to the pact also may undermine support, they said.

EU Cuts Farm Spending to Fund Kosovo. The European commission decided Wednesday to switch funds from its farm budget to help rebuild Kosovo, REUTERS reports. The agreement resolved an internal dispute over budgetary resources between Budget Commissioner Michaele Schreyer and Farm Commissioner Franz Fischler who opposed any cuts to the ag budget. The ag budget, at $40.21 billion, represents half of all EU spending. 

Clinton, Cattlemen Meet. President Clinton and U.S. cattle ranchers met Wednesday to discuss low prices and unfair trade practices. REUTERS reports Clinton was "very responsive," according to the cattlemen. Senate Minority Leader Tom Daschle (D-SD) has said Clinton's support for country-of-origin labeling on imported meat would be helpful. "Our biggest problem right now is price," said Leo McDonnell, a Montana rancher and president of the Ranchers-Cattlemen Action Legal Foundation, a group formed to battle unfair imports.
 

February 23, 2000

Boxer Labeling Bill Garners Trade Opposition.Yesterday Sen. Barbara Boxer (D-CA) introduced a bill to mandate labeling of genetically engineered food products. Some 35 farm, food, retail and manufacturing organizations oppose it, saying it would cause consumer confusion and possibly increase food costs and reduce farm prices.

Survey Shows 16% GMO Planting Reduction. A survey sponsored by the American Corn Growers Association shows farmers who planted genetically modified corn last year will reduce GMO planted acres by 16% this year. Agri Business Group, Inc., an agricultural marketing research and consulting firm, conducted the survey.

CFTC Sends Changes to Congress. The Commodity Futures Trading Commission has sent to Congress a staff report that recommends changes to the regulatory structure that the CFTC administers. The report details changes designed to lessen the regulatory responsibilities on futures markets by creating a more flexible regulatory framework.

Ag Outlook Looks at China, World Meat Trade. USDA has issued the summary of its latest Agricultural Outlook, and it predicts net farm income would be $1.7 billion more than baseline projections in 2005, if China is part of the World Trade Organization. In other articles, the AO looks at railroads' "urge to merge" and the world meat trade.

Ag News Summaries

Ag Outlook Forum This Week. USDA's 76th annual outlook forum will be held Wednesday and Thursday in Arlington, VA, at the Crystal Gateway Marriott Hotel. The forum provides an overview of agricultural prospects and issues by government officials, industry analysts and farmers. Focus sessions will highlight the impact of biotechnology and other developments changing the business of agriculture. After the forum, speeches will be available on the USDA web site.

Lugar Announces Risk Management Mark Up. Senate Agriculture Committee Chairman Richard Lugar says the committee will hold a mark-up session on risk management, crop insurance legislation on Thursday, March 2, at 10:30 a.m. in Room 328A, Senate Russell Building. Last year, Lugar said he would report a bill by March 8. 

Senate Democrats Back China Pact. A group of Senate Democrats has joined free-trade Republicans in pressing for the passage of a market-opening agreement with China, bucking labor unions and other critics of the pact, REUTERS reports. "Nothing less than the continued strength of the U.S. economy and our leadership in the world is at stake," said Sens. John Breaux (LA), Bob Graham (FL), Mary Landrieu (LA), Joseph Lieberman (CT), Blanche Lincoln (AR) and Charles Robb (VA) in a letter to Senate leaders released that was Tuesday. 

Taiwan Tension May Affect Trade Pact. U.S. lawmakers have warned China that threats against Taiwan could undermine congressional support for a market-opening agreement, already under fire from U.S. labor unions, religious conservatives and other free-trade critics, REUTERS reports. China gave Taiwan an ultimatum on Monday to begin talks on reunification or face a military attack. The pronouncement outraged many U.S. lawmakers who are staunch supporters of Taiwan. 

Baucus Hopes China Visit Means Wheat Sale. Sen. Max Baucus (D-MT) will meet with Chinese wheat buyers when they tour Montana this week and hopes the visit will result in China's purchase of large amounts of U.S. wheat, REUTERS reports. "He (Baucus) hopes that this would be the beginning of what could be an immediate purchase on behalf of the Chinese government of larger quantities of wheat," Mike Siegel, Baucus spokesman, said.
 

February 22, 2000

Gold Kist Stops Nugget Distribution.Gold Kist Inc., Atlanta, voluntarily has stopped distribution of nine lots of chicken nuggets because of possible listeria contamination. The nuggets were to have been distributed for the national School Lunch Program. The product tested was from an open package.

Hawke Warns Bankers About Agriculture. Comptroller of the Currency John D. Hawke, Jr., has warned bankers they must practice creative risk management to weather the storms ahead for the agricultural economy. He predicted credit risk in agricultural lending will increase this year.

Harkin Talks Ethanol with Browner. Sen. Tom Harkin (D-IA) spent some time on the phone last week with Environmental Protection Agency Administrator Carol Browner, trying to make sure ethanol is the preferred substitute for MTBE in the nation's reformulated gasoline (RFG) program. Several states have found MTBE contamination in water supplies, and there have been requests of EPA to waive the RFG oxygenate requirement without ethanol as an alternative.

Glickman, Babbitt Propose Water Quality Plan. Agriculture Secretary Dan Glickman and Interior Secretary Bruce Babbitt have proposed a plan to combine federal efforts to protect water quality on federal lands. A draft proposal calls for a watershed management approach and better coordination among federal agencies, states, tribes and other interested parties.

Small Farms Drive Total Higher. The number of farms in the United States last year totaled an estimated 2.19 million, a fractional increase over 1998. USDA says the increase can be attributed to the continued rise in small farm numbers.

Irradiation Rule Is Food Safety `New Era.' USDA's rule to allow irradiation of red meat and hamburger goes into effect Tuesday and is considered the beginning of a "new era" in food safety by the National Food Processors Association. It took nearly seven years to develop and implement a final rule on the issue. Although considered a safe process for controlling pathogens in food, consumer acceptance will decide the success of the decision.

Ag News Summaries

FTC Seeks Info on Ag Chemical Deal. AstraZeneca and Novartis say the U.S. Federal Trade Commission has asked for more information as a precursor to approve the demerger and merger of the agrochemicals businesses of both groups, REUTERS reports from London. Swiss life science group Novartis and Anglo-Swedish rival AstraZeneca had agreed in December to merge their agrobusinesses to form Syngenta, the world's largest agricultural chemicals company.

Boxer to Introduce Labeling Bill. Sen. Barbara Boxer (D-CA) will introduce a bill to require labeling of food produced with or containing genetically engineered material. She plans a news conference Tuesday with officials from the Massachusetts General Hospital, Consumers Union and Worldwatch Institute to announce the legislation. 

Dairy Producers Announce Meetings. Six national farm organizations plan to hold a series of public meetings this spring to discuss issues affecting dairy producers. The groups are the National Milk Producers Federation, American Farm Bureau Federation, National Council of Farmer Cooperatives, National Farmers Organization, National Farmers Union and the National Grange. Representatives of the groups met in Dallas last month to plan the regional sessions. Meetings are scheduled for March 30-31 in Sacramento, CA; April 13-14 in Syracuse, NY; May 11-12 in Minneapolis, MN; May 15-16 in Dallas, TX; and May 18-19 in Atlanta, GA. 

Lugar Plans Bill on Food Donations. Senate Agriculture Committee Chairman Richard Lugar (R-IN) plans to introduce legislation this week to make it easier for restaurants, food production companies and farmers to contribute food to food banks, pantries and homeless shelters. The bill would allow the deduction of the full market value of donated food. Current tax law does not allow a deduction for expenses incurred by the business. 

Dairy Compact Pays Farmers $6.9 million. The Northeast Dairy Compact Commission has released $6.9 million to dairy farmers in New England and other states who provided fluid milk to the New England market in January. The money equates to $1.21 for every hundredweight of milk produced. The January payment represents about 8% of a farmer's paycheck, says the compact. 

U.S., EU Make Little Trade Progress. The United States and the European Union reported little progress in talks in Washington aimed at diffusing trans-Atlantic disputes over bananas, hormone-treated beef and farm subsidies, REUTERS reports. That dims prospects for a new round of global trade negotiations anytime soon. U.S. Trade Representative Charlene Barshefsky and EU Trade Commissioner Pascal Lamy met Thursday and Friday, but negotiators reported no breakthroughs.
 

February 18, 2000

Little Budget Impact Seen for Certificates.USDA Chief Economist Keith Collins sees little if any budget impact from the decision to issue certificates to farmers to redeem their crops under loan. It's "almost a wash," he says, because of a tradeoff between the cost of forfeited commodities and the cost of issuing certificates.

Lugar, Grassley Seek Fuel Cost Relief. Sens. Richard Lugar (R-IN) and Charles Grassley (R-IA) are seeking ways to blunt the impact of high fuel prices that have hit U.S. consumers. Lugar wants his bill to develop fuel alternatives adopted by Congress, and Grassley wants the Strategic Petroleum Reserve opened and International Monetary Fund retaliation against OPEC countries.

Size of Labeling Change Costs Uncertain, Says GAO. Mandatory country-of-origin labeling costs for meat would require changes in the industry's current practices, says the General Accounting Office, but the costs of complying are "uncertain." Legislation to mandate labeling is pending in Congress.

Ag News Summaries

Meat Irradiation Celebrated. Three food associations served irradiated hamburgers and chicken sandwiches at an informational luncheon Thursday on Capitol Hill, celebrating approval of food irradiation technology for red meat. The groups were FOOD TECHnology Service, Inc., Grocery Manufacturers of America and the Food Marketing Institute. Food industry associations and health officials also are calling for increased consumer education that will communicate the benefits of irradiation which can reduce or eliminate harmful pathogens such as salmonella, E. coli and listeria – three major causes of food-borne illnesses.

Farm Trade Row Blocks UN Plan for Poor. Approval of a key United Nations action to assist developing nations appears blocked by long-standing rows between rich and poor countries over farm trade and corruption, REUTERS reports from Bangkok. Diplomats and other officials say hopes are dwindling that the 52-page document, which details the agenda over the next four years for the UN's trade and development agency (UNCTAD) could be wrapped up as hoped by the end of the day today (Feb. 18). "It's not looking too good. There are differences between the big powers on agriculture and between North and South on governance and how we should handle corruption in our countries," said an Asia developing country negotiator.
 

February 17, 2000

Certificates Formalized for ProducersIn a notice to state and county offices dated Tuesday, USDA formalized a commodity certificate program for producers to begin next week. The value of the certificates is not subject to the payment limitation. Agriculture Secretary Dan Glickman, decrying what he told commodity groups would be "some mighty big payments" to large farm corporations, nevertheless went ahead and exercised his legal discretion to implement the certificate program.

Grassley Says Iowa Water Contains MTBE.Sen. Charles Grassley (R-IA) says MTBE has been found in Iowa water supplies, although MTBE is not supposed to be sold or used in the state. Earlier this month, Maryland officials said MTBE was detected in about 210 private wells and 140 monitoring wells near gas stations.

FAPRI Finds Some Crop Price Improvement. The Food and Agricultural Policy Research Institute has published a preview of its January 2000 baseline that shows crop prices generally should exceed the loan rates in 2002-2005.

House Panel Okays Rural Satellite Bill. The House Agriculture Committee has approved legislation to extend loan guarantees to companies willing to provide rural communities with access to local television via satellite. The National Rural Telecommunications Cooperative calls it a "major step toward bridging the `digital divide' looming in rural America."

Ag News Summaries

Colorado Firm Recalls Ground Beef. Callaway Packing Inc., a Delta, CO, meat processor, is recalling about 4,600 pounds of ground beef and related products that could be contaminated with E. coli. USDA says the problem was discovered through routine testing by the Food Safety and Inspection Service. The products were distributed to restaurants in Glenwood Springs, Montrose, Delta, Rifle, Mesa, New Castle and Durango, CO. 

Labor Begins Anti-China Campaign. The 13-million member AFL-CIO labor federation says it will launch a major television and radio ad campaign against the trade agreement with China, pressuring congressional Democrats to help scuttle the pact, REUTERS reports. The federation released a report that showed results of a national poll that found most Americans oppose granting permanent trade privileges to China. 

Fed Rate Cut Won't Help Farmers. The Federal Reserve would not be helping financially struggling farmers by reducing interest rates, the president of the Federal Reserve Bank of St. Louis said Wednesday. THE ASSOCIATED PRESS reports from Jonesboro, AR, that William Poole said he understood the pleas of farmers for help, but he could not justify a reduction in interest rates to help the farm economy. To lower interest rates in an attempt to help farmers would drive up inflation and hurt the nation as a whole, Poole said in an agriculture conference at Arkansas State University. 

Kerrey Will Lead New School University. Sen. Bob Kerry (D-NE), who announced last month he would not seek a third term, said Wednesday he will take a job offer as president of New School University in New York, THE ASSOCIATED PRESS reports. "I've had a longstanding passion and love of education and an interest in doing more," Kerrey said. "This is what I would like to do." He will start working for the university next January, after he officially has left office.
 

February 16, 2000

USDA Projects Weaker Ag Trade for 10 Years. USDA's latest baseline projections to 2008 point to weaker agricultural trade, either by reduced global demand or increased world supplies. The economic crisis in Asia and, to a lesser extent, the near-term economic contraction in Russia contribute to a prolonged period of weak global agricultural demand.

Brit Ag Chief Questions U.S. Commitment. Britain's agriculture minister, Nick Brown, says it's difficult to explain to European farmers why the United States is considered further ahead in agricultural reform when Congress approves $9 billion in emergency aid on top of other benefits. Then, he adds, that is followed by President Clinton's State of the Union address in which more billions in payments are announced.

Legislation Needed for OTC Benefits. Treasury Assistant Secretary Lee Sachs says legislation is necessary to take full advantage of the business and consumer benefits available from over-the-counter derivatives. With the existing regulatory framework, there is a risk those benefits will not be fully realized, he adds.

Lean Pork Measurements Improved. The National Pork Producers Council says measuring the lean composition of hogs has been improved so producers can be compensated "for the true economic value of the pork they produce." New equations will determine "percent of lean yield."

Ag News Summaries

EPA Exceeds Authority, Says AFBF. The American Farm Bureau Federation told a House water resources subcommittee Tuesday that the Environmental Protection Agency's effort to expand water quality regulations goes farm beyond congressional intent. "The proposed regulations empower EPA to regulate nonpoint sources of pollution through the total maximum daily load program," said John Barrett, Edroy, TX, farmer, testifying for the AFBF. "Congress did not intend for EPA to possess such power. Congress made a conscious decision to treat point and nonpoint sources differently and separately in the Clean Water Act."

China WTO Membership Promises $2 Billion in Trade. Agriculture Secretary Dan Glickman says China's World Trade Organization membership will result in at least $2 billion a year in additional U.S. agricultural exports by 2005. "A gain of $2 billion each year in expanded exports to China would be welcome news to American farmers and the struggling U.S. farm economy," Glickman told the Commodity Club of Washington. China's projected 7% annual gross domestic product growth likely will increase demand for many other products such as dairy, snack foods, grocery items, wine, beef, distilled spirits and tobacco, Glickman said.

WTO Talks Could End in 2004. Nick Giordano, international trade counsel for the National Pork Producers Council, told the International Sweetener Colloquium that "the magic year" for completing international trade talks is 2004. The talks will begin next year and finish three years later, he added. Giordano said it is unlikely negotiations initially will produce concrete results, because "too many countries out there want a more comprehensive round" that includes other sectors.
 

February 15, 2000

Milk Producers Say Soy Got No Milk. The National Milk Producers Federation has asked the Food and Drug Administration that soybean beverage makers be forced to stop using the term "milk" to describe products, because federal regulations "clearly" limit the use of the term to milk coming from cows.

Recognition of Soy Milk Is Reason Lawsuit Is Dropped. The Physicians Committee for Responsible Medicine has dropped its suit challenging the Dietary Guidelines for Americans, saying the guidelines' recognition of soy milk as a calcium source is enough to satisfy the group. Part of the suit alleged conflicts of interest within the advisory committee and claimed some members were linked to the dairy industry.

Cheese Makers Want to Use Filtered Milks. The National Cheese Institute has asked the Food and Drug Administration to formally amend the federal cheese standards of identity to include the use of filtered milks in cheese making.

Ag News Summaries

USDA Plans Lamb Purchases. USDA plans to buy up to $15 million in lamb products over the next three years to help sheep and lamb producers. The Agricultural Marketing Service will buy lamb roasts for distribution to recipients through food banks and other charitable institutions participating in federal food nutrition programs.

Supreme Beef Satisfies Feds. Supreme Beef Processors Inc., Dallas, TX, will be allowed to resume sales of ground beef to the federal school lunch program after making changes in its pathogen control system, THE ASSOCIATED PRESS reports. USDA had withdrawn its inspectors from the Dallas plant Nov. 30, effectively shutting it down. But a federal judge granted a temporary restraining order, forcing the inspectors back to the plant.

U.S. Billions to Farmers Makes EU Skeptical. When Congress rushes to approve billions in emergency aid for farmers, it does little to convince European producers that their own subsidies should be reduced as part of global farm reforms, REUTERS reports. "It is difficult to explain to European farmers why the United States is considered to be further ahead in the reform process when we hear of additional emergency aid packages of nearly $9 billion being granted this year," Brown said in a speech on farm trade at the Brookings Institution.

February 14, 2000

USDA Certain Poultry Products at Gold Kist Safe. Poultry products from two Gold Kist plants in Alabama are safe, says Thomas J. Billy, Administrator, USDA's Food Safety and Inspection Service. He called allegations to the contrary "disturbing because they call into question the quality and safety of the products we regulate."

Roberts Offers Package for Farm Relief. Sen. Pat Roberts (R-KS) will introduce legislation that doubles the 1996 farm law transition payments and reforms certain tax provisions and trade provisions. He blamed the Clinton Administration and Congress for "foreign policy trade failures."

Farm Bureau Wins in Identity Protection Legal Battle. The American Farm Bureau Federation and the Texas Farm Bureau have won again in court action to protect the identities of farmers and ranchers receiving predator control assistance through USDA's Wildlife Services. The action came in a federal district court in Waco, TX.

Milk Producers Want Higher Milk Prices. The National Milk Producers Federation has asked USDA to adjust the pricing mechanisms of the milk price support program to put more money into farmers' pockets "at a time when they need it most." NMPF specifically asked that the make allowance be adjusted upward.

`Beltway Ad' Urges Carousel Retaliation. The National Cattlemen's Beef Association used newspaper advertisements to urge Congress to support a "carousel" approach to retaliation against nation's found using unfair trade tactics. A carousel retaliation means that retaliatory duties on a nation's exports will be rotated among various export products.

Ag News Summaries

USDA Response Team in Mississippi. A rapid response team from USDA spent last week in Jackson, MS, to respond to poultry growers' concerns of unfair treatment under the Packers and Stockyards Act. The team investigated complaints made by poultry growers about changes to their grow-out contracts. James R. Baker, administrator of the Grain Inspection, Packers and Stockyards Administration, said the agency now would take the information gathered last week and determine if P& SA violations occurred.

Brits Want More Food Facts on Labels. More than half of British consumers want more information on food labels, the agriculture ministry says. REUTERS reports from London that two surveys found 75% of consumers found terms like "fresh," "natural" and "pure" were misleading, while about 50% had difficulty finding the information they sought from food labels. "The demand for more information about foods is clear but also many people find the information on labels difficult to use and some claims made on labels may confuse or mislead," said food safety Minister Baroness Hayman.

Environmentalists Blame Canada. Environmentalists have accused Canada of trying to block a United Nations forum on protecting the world's forests in a bid to defend its logging interests, THE ASSOCIATED PRESS reports. Negotiators attending a UN meeting finalized a proposal to create a standing UN body called the UN Forum on Forests to work on implementing existing international agreements. A demand by Canada that a new treaty be negotiated stalled final approval and forced negotiations to continue into late Friday. Environmental activists fear a new treaty would enable Canada and its supporters to put into law logging practices that they say are depleting the world's tropical forests at a rate of one acre per second.

USDA Wants Fee Increases. USDA is proposing to amend regulations under the Perishable Agricultural Commodities Act and the PACA rules of practice to increase license and complaint filing fees in fiscal 2001. The proposal would increase the current annual license fee of $550 to $850 for licensees with gross sales of $1 million or more. The license fee for small businesses with gross sales less than $1 million would increase from $550 to $600. The filing fee for informal complaints would increase from $60 to $100, all effective Oct. 1, 2000. The proposed rule will be published in the Feb. 15 Federal Register. 

Montana Counties Get Crop Insurance Option. USDA's Federal Crop Insurance Corporation has approved a pilot program in five Montana counties to help some producers obtain a more accurate insurance yield guarantee. As a result, many producers will be able to increase their insurance protection. The pilot program gives producers the option of combining yields produced on "optional units" into an average yield that will be substituted for so-called "T-yields." 

Grassley Wants Expanded Storage Program. Sen. Charles Grassley (R-IA) wants USDA to include silage in a new grain storage program being offered to farmers. USDA is about to formalize the rules on an on-farm storage program that gives producers access to loans at the Treasury rate. Grassley says cattlemen and dairy producers could use low-interest loans right now to build and upgrade silage storage. The program will use $500 million in Commodity Credit Corporation funding over two years.
 

February 11, 2000

Combest To Take Committee on the Road. House Agriculture Committee Chairman Larry Combest (R-TX) will take his panel members on the road in March, April and May to 10 cities for hearings on farm policy. At a news conference Thursday, Combest also said the Clinton Administration's proposal for supplementing farmers' incomes in lean years doesn't go far enough.

Greenspan Wants `Legal Uncertainties' on OTC Derivatives Settled. Federal Reserve Chairman Alan Greenspan wants the "legal uncertainties" surrounding over-the-counter derivatives settled. U.S. futures exchanges agreed but said they need equivalent regulatory relief.

Pork Producers See China Pact as `Monumental Opportunity.' National Pork Producers Council past President John Hardin believes the U.S.-China trade agreement on agriculture is a "monumental opportunity" for the pork industry.

Steak Products Recalled for Possible Allergens. An Oklahoma firm has recalled about 211,000 pounds of steak products because the products may contain an undeclared blend of buttermilk and whey, known allergens. Serious reactions could occur to persons with certain allergies if they consume the products, says USDA.

Gore Announces 3 Million Tons for Food Aid Program. Vice President Al Gore says USDA will donate about 3 million additional tons of surplus agricultural commodities as food aid. No recipient countries were announced, but the donations will include wheat, soybeans and soy products, rice and milk powder.

Ag News Summaries

Monsanto Expects More GMO Crops. Quoting the FINANCIAL TIMES, BLOOMBERG NEWS reports Monsanto, Co., St. Louis, MO, expects U.S. farmers to plant more genetically modified crops this year than in 1999. Monsanto expects sales increases for Round-Up Ready soybeans and Round-Up Ready corn, modified to withstand the company's Round-Up herbicide. But sales in Europe could decline because of controversy over genetically modified food, the company reports.

Iowa Judge Names Investigator. An Iowa judge has appointed a special investigator to examine Murphy Farms Inc.'s sale of its Iowa assets immediately prior to Smithfield Foods Inc.'s purchase of Murphy Farms, REUTERS reports. The Iowa attorney general has accused the two companies of selling the assets to a "sham" company to skirt a legal challenge to Smithfield's acquisition of Murphy. The attorney general said that violates the state's ban on corporate farming. Humboldt County District Court Judge Ronald Schechtman appointed Eric Lam, a Cedar Rapids, IA, attorney, to investigate the case. 

EU Likely Will Okay U.S. Beef Plan. The European Union likely will approve next month a new U.S. system for monitoring production and exports of hormone-free beef, says EU Consumer Affairs Commissioner David Byrne. REUTERS reports Byrne told reporters, "There's just a few things that the U.S. needs to put in place" before the EU can give its final okay. On Wednesday, EU veterinary exports, for the third time, extended a deadline for making a decision on whether to ban hormone-free beef imports from the United States. The group will examine the issue again in March.
 

February 10, 2000

Glickman Wants Long-Term Policy from Proposal. Agriculture Secretary Dan Glickman believes the farmer assistance package announced as part of the fiscal 2001 budget proposal to Congress should represent "a new philosophical direction that can help map a course toward the 2002 farm bill."

USDA's Support of Dairy Outdated, Irrelevant. The Senate Agriculture Committee was told Wednesday that the government's support for dairy producers is "completely irrelevant to modern-day economic realities and should be scrapped entirely." When milk producers, processors and the entire industry are forced to become more competitive internationally, it will be more productive and profitable for everyone, said John Frydenlund, director, Citizens Against Government Waste.

WTO Seattle Failure Due To Lack of Will. "Insufficient political will" and inadequate preparation contributed significantly to the failure of the World Trade Organization ministerial in Seattle last year, a House subcommittee was told. Now the focus should broaden beyond "our excessive focus on the European Union" with a tough approach to the agricultural talks.

Ag News Summaries

Ag Inspectors Admit Taking Bribes. Seven USDA produce inspectors pleaded guilty Wednesday to accepting bribes from wholesalers in exchange for lowering grades for fruit and vegetables, THE ASSOCIATED PRESS reports from New York. U.S. District Judge Lewis A. Kaplan said the inspectors face as much as two years, nine months in prison and fines as large as $60,000. Each of the inspectors read brief statements in court admitting they accepted bribes ranging from $50 to $350 to falsely grade produce lower.

EU Delays Ban on U.S. Hormone-Free Beef. The European Union says it will postpone a planned ban on U.S. hormone-free beef and other meat products by another month, to March, to give U.S. officials additional time to improve labeling and export controls, BLOOMBERG NEWS reports from Brussels. The EU suspended U.S. hormone-free beef last April after finding hormone graces in 12% of the meat. The United States has tried since then to overhaul its certification system to head off an EU ban due to take effect Feb. 15. 

Heinz Creates Organic Food Category. H.J. Heinz co., Pittsburgh, says it has created a new organic and nutritional foods category in hopes of capitalizing on the growing market for healthy foods, REUTERS reports. The new division will include the recently acquired Linda McCartney brand of frozen organic foods in the United Kingdom, nutritional drinks in India and infant foods in Italy. Heinz also recently acquired a stake in Hain food Group Inc., which makes natural snacks.
 

February 9, 2000

Dairy Hearing Again Exposes Deep Divisions. Deep divisions that have wracked the dairy industry for several years were exposed again Tuesday as the Senate Agriculture Committee heard fellow senators and industry officials argue for more legislation to straighten out pricing and income problems among farmers.

Fugitive Felons Snared with Food Stamp Records. USDA says 726 fugitive felons in the Washington, DC, metropolitan area have been arrested by matching them against government records of current or former food stamp recipients. Total arrests now are more than 5,000 nationwide. "Operation Talon" included a sting operation.

Aid for Oilseed Producers Announced. USDA will distribute $475 million to farmers who produced oilseeds last year. Producers have until Feb. 18 to report acreage, and sign-up for the income assistance program will be held Feb. 28-March 31.

Aging Farmers, Fewer Farms a Societal Problem. The number of farmers 55 years and older continues to increase. But with fewer, larger farms generally producing enough food and fiber to meet domestic and export needs, the unmet need for younger, beginning farmers is a daunting issue for policymakers.

Ag News Summaries

CRP Sign-Up Ends Friday. USDA is reminding farmers that Friday, Feb. 11, is the last day to sign up for the Conservation Reserve Program. Sign-up began Jan. 18. Further information is available at Farm Service Agency local offices and USDA Service Centers. All land offered in this CRP sign-up competes for acceptance based on an environmental benefits index that ensures fair and equal consideration for all types of land.

U.S. Considers Change in Beef Flap with EU. Washington is considering whether to hit a new group of European Union goods with retaliatory duties, REUTERS reports. Farm groups have urged the Clinton Administration to rotate the duties periodically to a new list of products to keep the EU off guard and motivated to reach a negotiated solution. U.S. Trade Representative Charlene Barshefsky told the House Ways and Means Committee she had urged an interagency panel to examine quickly the impact of rotating the $116.8 million in retaliatory duties to a new set of products.

Business Urges Action on China. Business leaders pressed Congress Tuesday to stop playing political games with trade and support a marketing-opening agreement with China. REUTERS reports that a coalition led by the Business Roundtable and the Chamber of Commerce has earmarked more than $12 million for the campaign in an effort to round up congressional votes for a trade accord that would open Chinese markets and clear the way for China to join the World Trade Organization.
 

February 8, 2000

Budget Released with No Surprises. President Clinton officially announced his fiscal 2001 budget Monday, the last of his administration, and Agriculture Secretary Dan Glickman did the same for USDA. Much of the USDA budget, especially as it applied to farm policy, had been announced over the past few weeks.

Flawed Research Needs Oversight. The authors of a Cato Institute study argue that federally funded research frequently has been tainted by poor methodology, dubious analysis, faulty data, politicized conclusions and even borderline cases of fraud. Independent review of federal research is needed for both good science and good public policy, the study says.

Nobel Winners Endorse Ag Biotechnology. Nobel Prize winners James Watson and Norman Borlaug are among more than 1,000 scientists worldwide who endorse a declaration in support of agricultural biotechnology. The declaration calls biotechnology a "powerful and safe means for the modification of organisms."

Ag News Summaries

WTO Farm Trade Talks Will Open. World Trade Organization negotiators agreed Monday to open talks on trade in agriculture and services, KYODO NEWS SERVICE reports from Geneva. REUTERS reports that WTO Director-General Mike Moore told a news conference, "The atmosphere is very good. We have set up a structure for negotiations...The WTO is back in business." Pakistan's WTO Ambassador Munir Akram told REUTERS, "Looking ahead, it's a minefield." Countries of the North and South continue to have radical differences on trade issues.

USDA Proposes Poultry Transit Be Allowed. USDA proposes to allow poultry carcasses, parts and other products not otherwise allowed in the United States from regions that Mexico has declared free of exotic Newcastle disease to transmit the United States en route to other countries. The transport of eggs and egg products is not considered in the proposal. Notice of the proposed regulation will be published in the Federal Register today (Feb. 8).

New Wheat Variety Introduced. North Dakota State University researchers are releasing their first wheat variety bred specifically for scab resistance, THE ASSOCIATED PRESS reports. The hard red spring wheat is called Alsen and is a crossbreed of three other wheat varieties. NDSU wheat breeder Richard Frohberg says it is only the first in what researchers hope will be more resistant varieties in the future.
 

February 7, 2000

Dietary Guidelines Opened for Comment. The Dietary Guidelines for Americans, 2000, has been released for public comment. Response from the food and beverage industries is mostly positive. The guidelines allow for the use of alcoholic beverages but "in moderation."

Oxygenate Waiver Request Spurs Reaction. Proponents of ethanol production and use in the nation's reformulated gasoline program have reacted strongly against a proposed waiver of the oxygenate requirement. It's not allowed by law, they say.

Special Programs for Rural Elderly May Be Needed. A new study from USDA says most of the rural elderly may need special programs to alleviate financial hardships. The status and location of the "oldest old" population needs to be "critically" examined, says the study.

Ag News Summaries

The Clinton Administration's budget proposal for fiscal 2001 will be released today. Agriculture Secretary Dan Glickman will detail the administration's proposals for USDA at a press briefing at 11 a..m., and USDA officials will brief lobbyists at 3 p.m.

"Super Marketing Loan Gain" Legal. PRO FARMER reports a "super marketing loan gain" strategy is legal and allowed by USDA "for now." A producer can lock in the repayment rate, based on the posted county price, for 60 days, then get permission for the county Farm Service Agency office to move the grain to another location in another county or state with higher loan rates. Then the loan may be repaid at the lower locked-in rate at the new location. The result is a wider spread between the locked in repayment rate and the county loan rate, resulting in a larger marketing loan gain payment.

Farm Bribery Scandal Probed. Tokyo police have begun questioning employees of an agricultural cooperative in Kagawa Prefecture over a wining and dining scandal involving farm ministry officials with an eye to establishing a bribery case, KYODO NEWS SERVICE reports. The probe is focused on allegations that several senior officials of the ministry's Agricultural Structure Improvement Bureau received excessive entertainment from the cooperative in return for a generous allocation of subsidies. 

Trade Deal Monitoring Proposed. President Clinton has proposed increasing the number of government personnel involved in monitoring foreign compliance with U.S. trade agreements, especially those involving China and Japan, REUTERS reports. The fiscal 2001 budget will include more funding for monitoring and enforcing compliance with trade pacts to "ensure that U.S. manufacturers and others benefit fully form the opportunities crated by our trade agreements and laws," the White House said.
 

February 4, 2000

Farm Storage Loan Program Announced. One day after Agriculture Secretary Dan Glickman announced USDA would implement an on-farm storage program, the Farm Service Agency said a proposed rule will be published soon to get the program underway. The program will use the Commodity Credit Corporation to fund 5 to 10-year loans at Treasury rates and should be operating later this year.

Senate Approves Bankruptcy Reform. The Senate has passed a bill designed to reform the nation's bankruptcy laws, including changes to Chapter 12 that applies to farmers. The House passed its version last summer, so the bills now go to conference for reconciliation.

Democrats Go After Freedom to Farm. The Democrat Policy Committee brought farmers and local officials to Washington this week to launch a series of hearings designed to show the failings of the 1996 farm law. The payments under the so-called Freedom to Farm program "do not make sense as a permanent policy," says the DPC, claiming the law fails to provide adequate income support.

Ag News Summaries

U.S. Still Tracking Illegal Hormone in Beef. U.S. officials continue their efforts to find the source of an illegal hormone that Swiss government officials say was found in a shipment of US. Beef. REUTERS reports the finding has raised questions about the effectiveness of USDA"s illegal hormone testing program. The article says the Center for Science in the Public Interest suggests the results of the investigation be turned over to the Justice Department for possible criminal prosecution.

GMO Crop Rules Warning Issued. A top Clinton Administration official warns U.S. trading partners not to abuse proposed new rules to govern trade in genetically modified crops, REUTERS reports. More than 130 nations reached a biosafety pact to regulate genetically modified organisms. The agreement requires countries to identify shipments that "may contain" genetically altered crops. David Aaron, Commerce Department under secretary, said the United States will be watching to see how countries follow the rules once they are ratified. "If they use (the rules) to try to do an end-run on their obligations in the World Trade Organization, then we will have problems," said Aaron. 

Dietary Guidelines Make Few Changes. Proposed new dietary guidelines make no major changes in recommendations from existing guidelines but include special sections for the first time on whole grains and food safety and expanded advice on weight control, THE ASSOCIATED PRESS reports. The also provide more specific choice of foods and ways to prepare them while advising consumers not to "overdo on fat, sugars, salt and alcohol." The article quotes Cyndi Thompson, American Dietetic Association spokeswoman, saying "They've done a really nice job of developing guidelines that are really user-friendly and correspond with what we know from the current literature."
 

February 3, 2000

Glickman Seeks Philosophical Context for Proposal. While spelling out the practical details in the Clinton Administration's farm policy proposal for the next two years, Agriculture Secretary Dan Glickman Wednesday also sought to provide a philosophy for change. Click here for the Fact Sheet on the Clinton Administration's Proposal for Improving the Farm Safety Net.

Landowner Incentives for Species Management Backed. The American Farm Bureau Federation supports legislation that would provide incentives for landowners to manage listed endangered species on their property. Most listed species are found on private property, AFBF says.

USDA To Test Insecticide Against Beetle. USDA plans to conduct field tests to determine if a systemic insecticide will help stop the spread of the Asian long-horned beetle. The only known way to get rid of the pest now is to remove the infected trees. Field tests on the insecticide will be conducted this spring.

Ag News Summaries

U.S. Investigates Banned Beef Hormone. A criminal investigation is underway into the shipment of U.S. beef last year that contained an illegal growth hormone, THE ASSOCIATED PRESS reports, but there is no evidence that there has been any other use of the banned substance, say federal officials. The Swiss government notified the United States in July that the banned carcinogen, diethylstilbestrol, or DES, had been found in two samples of U.S. beef that was to have been free of hormones. 

Beet Processors Will Appeal Ruling. Beet processors will file an appeal after suffering a second legal defeat in their effort to close a hole in U.S. restrictions on imported sugar, REUTERS reports. In a decision issued Tuesday, U.S. Court of International Trade Judge Judith Barzilay denied the beet industry's requires for a reversal of her Oct. 19 decision. That earlier ruling allowed Heartland By-Products of Taylor, MI, to continue importing sugar syrup from Canada at favorable tariff rates outside the U.S. tariff-rate quota. 

Black Farmers' Leader to Run for House Seat. John Boyd, Baskerville, VA, head of the National Black Farmers Association that led a recent multibillion dollar racism lawsuit against USDA, will run as a Democrat for a seat in the House of Representatives, REUTERS reports. He will challenge Rep. Virgil Goode, who recently left the Democrats to become an independent. Goode has been considered one of the most conservative Democrats in Congress and was one of the few to vote for President Clinton's impeachment in December 1998.
 

February 1, 2000

Lugar Suggests Quid Pro Quo on Trade Pact. Senate Agriculture Committee Chairman Richard Lugar (R-IN) says that if the European Union continues to be the major thorn in the flesh of international trade negotiators, it may be time to remind the EU that the region's security is not divorced from its commerce. "Our strategic relationship is NATO," says Lugar, yet "bit by bit we're being blockaded by unreasonable European import policies."

AFL-CIO Urges Thumbs Down on China. AFL-CIO President John Sweeney, in a letter to Congress, says the U.S.-China trade agreement does not reflect "human values" such as workers' rights, human rights and environmental protections. The union "strongly urges" that China not be granted normal trade relations. 

NCBA Thinks Grading Beef Imports May End. The National Cattlemen's Beef Association says a U.S. government proposal could end the practice of giving imported beef the U.S. grade. USDA is seeking public comments on the issue of using the quality grade on imported meat.

Ag News Summaries

EU, Biotech Industry Welcome Accord. The European commission and European biotechnology firms have welcomed the agreement reached in Montreal over the weekend to regulate trade in genetically modified food, REUTERS reports from Brussels. "This is a historical moment and a breakthrough for international agreements on trade and the environment," said European Environment Commissioner Margot Wallstrom. Under the agreement, shipments of genetically modified crop will eventually carry the label that they "may contain" GMOs. Greenpeace and Friends of the Earth also applauded the agreement. 

Wisconsin Corporation Settles Beef Board Issue. Christensen Sales Corporation of Abbotsford, WI, a collecting agent under the beef promotion act, has paid $51,088 in past due assessments, late payment charges and civil penalties to the Wisconsin beef Council and USDA as a result of a complaint filed by USDA's Agricultural Marketing Service. AMS says Christensen did not collect and remit assessments and provide required reports to the council.