February 27

GAO Believes More Needs to Be Done to Prevent BSE.  A new report from the General Accounting Office charges that federal actions do not sufficiently ensure that all animals infected with bovine spongiform encephalopathy (BSE) remain outside the United States. The report also says that current safeguards may not detect and prevent the spread of the disease should it occur in this country. 

EPA Proposes Controls on Meat, Poultry Operations.  The Environmental Protection Agency has proposed what one industry organization says are "potentially far-reaching wastewater controls on red meat and poultry slaughter and processing operations." The proposed 350-page regulation, on which EPA has given industry 60 days to comment, includes new technology-based standards and discharge limits aimed at further reductions in nutrients and other loadings to rivers and streams.

British Farmers Alert for FMD. REUTERS reports that British farmers remain alert for foot and mouth disease although initial tests on two suspected cases of the disease have proven negative. Worry over a new flare-up of the virus, just six weeks after Britain was declared free of the world's worst outbreak, even showed up on currency markets overnight, with news of the suspected outbreak weighing on the pound in New York. Livestock movement restrictions are still in place at the affected farm ahead of final test results expected in the next four days, after a sharp-eyed vet spotted lesions in the mouths of two sheep during a routine inspection. An eyewitness at the site said yellow tape barring entry to the holding and a single drum of disinfectant were the only signs of the potential debacle facing British agriculture. But the farmer at the center of the alert in Hawnby, northern England, was said to have remained calm as the rest of his flock had been put in quarantine rather than slaughtered. 

Obesity Growing Problem in east Europe.  Obesity is a growing public health problem in eastern and central Europe even as diets have improved since communism fell, according to a REUTERS report. Nutritionists at a European food safety conference said on Wednesday that east and central Europeans were eating more fruit and vegetables than before the collapse of the Iron Curtain, benefiting from increased trade in agricultural produce, but diets still contained too much fat. Mirroring a trend seen in other parts of the world, increasing obesity appeared to be taking hold, especially among the older generation, as people led increasingly sedentary lifestyles. "I think obesity is a much bigger problem than it was before," said Lucjan Szponar, a senior nutritionist with Poland's Food and Nutrition Institute in Warsaw. He said that over the past 12 years in his country, average life expectancy had jumped by almost four years, due largely to improved diet. But obesity, linked to health problems such as diabetes, hypertension and heart disease, was a growing concern. He estimated that in Poland, 20% of women and 17% of men were obese. There were no reliable figures for obesity across the region. 

U.S. Subsidies Bring WTO Threat. Brazil, the world's No. 2 soybean producer, is ready to file a complaint at the World Trade Organization "in coming days" against U.S. soy subsidies, REUTERS reports. After bilateral talks and informal complaints against U.S. soy subsidies proved fruitless, Agriculture Minister Marcus Vinicius Pratini de Moraes said Brazil would officially contest the U.S.'s soy financing at the Geneva-based trade body. The United States is the world's leading soy producer, but Brazil is creeping up on its rival thanks to fast-rising production and lower costs. The move would follow a recent WTO victory for Brazil in a six-year battle with Canada over aircraft subsidies and is part of a broader bid by the Latin American agricultural giant to win a bigger slice of world markets for its massive agricultural output. 

Asian Rice Farmers Worry Over El Nino.  REUTERS reports that the possible recurrence of El Nino is worrying rice farmers in Asia. The UN food body says it could force them to hold onto stocks. The U.S. National Oceanic and Atmospheric Administration said this month that evidence showed the El Nino effect, which can cause drought in some countries and floods in others, was starting to kick in already although there was considerable uncertainty over its strength. Hartwig de Haen, assistant director-general of the U.N.'s Rome-based Food and Agriculture Organization (FAO), said fears that El Nino would recur may lead farmers to retain rice stocks. "If farmers believe in this possibility and if they have access to rice at the moment, they might wish to hold some higher stock in order to have enough supply at the time of the scarcity," he told REUTERS on the sidelines of a food safety conference in Budapest. 

Cotton Controls Give Life to New Pests.  DELTA FARM PRESS, Atlanta, reports that U.S. cotton producers are spraying less for insect pests due to Bollgard and boll weevil eradication. But the resulting "low spray environment," in conjunction with conservation programs and reduced tillage, is creating the opportunity for so-called secondary cotton pests to emerge. While the concept of low spray environment is relatively new, it will require producers to expand their insect control strategies beyond field borders while at the same time, doing a better job of targeting pests within a field, the article says.

February 26

Coalition Urges Senate Passage of TPA.  The Agriculture Coalition for Trade Promotion Authority (TPA) has called on the Senate to quickly pass TPA legislation. In a letter sent to each senator, the coalition noted that without TPA legislation, the WTO negotiations launched in Doha, which are critical to the future of U.S. agriculture, will be undermined. The Agriculture Coalition for TPA represents food and agriculture groups dedicated to the passage of legislation granting the president Trade Promotion Authority. It is co-chaired by the National Pork Producers Council and Farmland Industries. 

Rural Florida Gets $52.4 Million for Electricity.  USDA has approved $52.4 million in department funds to assist local economic and community development efforts and expand electrical distribution service in rural Florida. Four actions were taken.

News Report Misinterprets USDA Procedures.  Keith Collins, USDA's chief economist, says a news report indicating USDA inappropriately "leaked" market sensitive commodity projections prior to public release was the result of a misunderstanding of how USDA uses a review process to verify its projections. The "accusations inaccurately portray the process USDA uses to have its early-season projections reviewed by external reviewers," says Collins. "USDA practice has been to provide its projections of next year's markets in advance to carefully selected private sector analysts who agree to serve as external reviewers of the projections at the (Agriculture Outlook) Forum. This review process has been used since the mid-1990s. Those analysts selected as reviewers must agree to hold this information confidential until publicly released at the forum. USDA has no evidence that any analyst entrusted to perform this external review has violated this agreement." The practice is intended to obtain "critical, third-party review" of USDA's preliminary outlook for the upcoming crop season, he adds. 

Lester Crawford Takes FDA Deputy Post.  Health and Human Services Secretary Tommy G. Thompson has named Lester M. Crawford Jr. to serve as deputy commissioner of the Food and Drug Administration. Crawford moves into the position immediately. As deputy commissioner, he will be the senior official at FDA, pending the installment of a permanent commissioner of food and drugs. Crawford takes over from Bernard A. Schwetz, a career FDA executive who has served as acting principal deputy commissioner since Jan. 21, 2001. Schwetz, senior advisor for science, will continue to work on public health and FDA issues within the agency. Crawford most recently served as head of the Center for Food and Nutrition Policy at Virginia Tech. He also served as administrator of USDA's Food Safety and Inspection Service from 1987 to 1991 and as director of the FDA's Center for Veterinary Medicine from 1978 to 1980, and again from 1982 to 1985. 

Vaccines Needed as Bioterrorist Protection.  REUTERS reports from Budapest that Dutch Farm Minister Laurensw Brikhorst believes well-guarded national stocks of vaccines against diseases such as foot-and-mouth are vital to respond to a possible bioterrorist attack. "Bioterrorism is indeed an issue of concern, especially after Sept. 11," Brinkhorst told REUTERSeuters at a pan-European food safety conference. "What we must have is a stock of vaccines," he said in an interview. "We must then, of course, see to it that stock is well-guarded and is available at the shortest notice." International authorities are on high alert for possible deliberate contamination of food and water supplies after the Sept. 11 attacks against New York and Washington. Brinkhorst said that plans to privatize vaccines were being shelved in the Netherlands, ensuring the government continued to be responsible for their supply. 

California's War on Pest Returns Benefits.  THE ASSOCIATED PRESS reports that California's initial steps to fight the grapevine-killing glassy-winged sharpshooter are apparently paying off. So far, a pilot program in Kern County has taught farmers the precise timing of sharpshooter breeding. Among other things, that's allowed them to turn wasps loose to eat the sharpshooter eggs. Inspectors also have stepped up their inspections at nurseries, which researchers have learned are a major way the pest travels. The sharpshooter carries the bacteria for Pierce's disease, an incurable illness that kills grapevines and other plants by interfering with their ability to absorb moisture and nutrients. The disease has destroyed thousands of acres of Southern California vines and spread north to Kern County at the end of last year. Agriculture experts call it the most serious threat to the state's $2.7 billion grape industry in decades. Vintners in Southern California have lost millions of dollars as a result. A recent report carried some good news: sharpshooter populations were found in northern California only in pockets near Sacramento and Chico.

February 25

Differences, Contentiousness Color Conference.  J. B. Penn, USDA's under secretary for farm and foreign agricultural services told the 78th Agricultural Outlook Forum last week that the House-Senate conference committee that must draw up a final version of a new farm bill is going to focus on "highly contentious" issues, some of which reflect major differences in what the House and the Senate approved. One of those will be how to spend the added $73.5 billion in 10-year spending. Penn said the administration is hoping for a final bill from the conference in about a month. 

Bush's Call for Renewables Pleases Ethanol Forces.  President Bush is getting praise from the Renewable Fuels Association (RFA) for expressing a commitment to promoting renewable fuels, including fuels derived from crops like ethanol, during his weekly Saturday radio address. Bush also urged the U.S. Senate to pass comprehensive energy legislation. Bush said, "America is already using more energy than our domestic resources can provide, and unless we act to increase our energy independence, our reliance on foreign sources of energy will only increase… [M]y plan offers tax credits and other incentives for the use of renewable energy sources, like wind power, solar power, and fuels derived from crops. Renewable energy can increase our energy independence and help our farm economy."

Post Describes Faulty Foreign Inspections.  THE WASHINGTON POST, in a feature article, describes foreign meat inspection systems that USDA assumes are equivalent to the U.S. inspection system but really are greatly inferior to U.S. standards. Much of the article focuses on Mexico where the Carnes Valmo packing plant, that sold raw beef to U.S. consumers, contained beef contaminated with feces, and even "a disease-condemned carcass … ready for boning and distribution in commerce." USDA has relied on Mexico as the primary enforcer of U.S. sanitation laws -- a standard flunked by five out of 10 Mexican plants visited by U.S. inspectors that spring, according to the Post. Three months ago, the Bush administration ordered increased scrutiny of Mexican beef after uncovering evidence of more problems. In protecting nearly 4 billion pounds of meat imported each year, USDA increasingly relies on foreign governments -- including ones that have repeatedly failed to get the job done, says this article. USDA once based its own inspectors overseas, but trade agreements and universal standards allow a meat inspection in Mexico or Brazil to be considered an equivalent to a "USDA-inspected" stamp at home. The agency may inspect foreign meatpackers, but on average it visits a foreign plant only once every three to five years, the article says. "Even when it discovers serious flaws, it rarely returns to ensure that problems are fixed, according to agency records and interviews with dozens of inspectors and food-safety experts," says the Post. USDA says imported meat is safe -- safer, in fact, than many domestic foods, because it undergoes two inspections: one in the host country and another random check at the U.S. border. "It's inspected once, twice -- sometimes even three times, since a great majority of the meat goes on for further processing in USDA-inspected establishments in the United States," said John C. Prucha, a veterinarian and the assistant deputy administrator for program coordination at the USDA's Food Safety and Inspection Service. But the article makes a strong case for proponents of labeling imported meat as just that: imported meat. 

India to Give Sugar Freedom.  REUTERS reports that India soon will move to lift all controls on the sugar industry. President K.R. Narayanan made the announcement in a speech to parliament on Monday outlining government policy. India, sitting on an 11-million-tonne sugar stockpile, began easing controls on the industry last year to boost exports. "The sugar industry, which has already begun to benefit from delicensing, will also be fully decontrolled soon," Narayanan told parliament on the opening day of the budget session. India already has reduced the sugar quota which mills are required to supply to the government at reduced rates to 15% from 30%. The government also has allowed futures trading in sugar. But prices of sugar cane continue to be set by both national and state governments. 

Snow Brand's Use of Expired Butter Scored. KYODO NEWS reports a top Japanese farm ministry bureaucrat expressed displeasure Monday at Snow Brand Milk Products' use of expired butter in its dairy products. ''There may have been no infringement of the Food Sanitation Law, but considering consumers have various concerns, the company is obliged to give a more detailed explanation,'' said Yoshiaki Watanabe, vice minister of agriculture, forestry and fisheries, at a news conference. Having built up excessive inventories following a food-poisoning scandal in the summer of 2000, Snow Brand collected some 2,300 tons of frozen butter with expired freshness dates at its factory in Betsukai, eastern Hokkaido, in March last year. The company rewrote the dates, extending them by one year after confirming the butter was safe to consume. Some 760 tons of the butter have already been used in processed milk and other dairy products. In an advertisement published in newspapers Monday, Snow Brand said it would no longer rewrite expiration dates. 

Japan Lifts Ban on Poultry.  Japan has lifted its ban on U.S. poultry and poultry products from all states except Pennsylvania and Maine. Poultry products moving through either Pennsylvania or Maine for export remain prohibited from Japan. The controversial ban was imposed Jan. 12 following the confirmation of a low-pathogenic avian influenza virus in Pennsylvania and Maine. The United States contends that the ban was unwarranted since it was not in compliance with Office of International Epizootics (OIE) standards. After discovering the virus, Pennsylvania and Maine immediately took aggressive measures, including depopulating AIV-exposed birds to prevent any spread of the virus and implementing a stringent monitoring program to continually test birds for potential disease. The Japanese market is worth over $170 million annually to U.S. poultry producers. 

Chickens Culled at Hong Kong Farm.  REUTERS reports that Hong Kong culled 18,000 chickens at a farm outside a quarantined area after the H5 virus killed another 140 birds, but health authorities said the strain was not the kind that killed humans in 1997. In a statement late on Saturday, the Agriculture, Fisheries and Conservation Department said the 140 dead chickens from the Pak Sha farm were tested and showed the presence of the H5 virus. The rapid spread of the virus has prompted the government to kill hundreds of thousands of chickens and quarantine more than 20 farms since it was first reported in early February. 

Food Safety Guidelines Expected in March.  REUTERS reports that the Bush administration is expected to release in March an extensive list of food safety guidelines to protect the meat and poultry industries from a deliberate terrorist attack. Karen Hulebak, food safety adviser for USDA, told the news agency the federal guidelines will propose ways meat plants can protect their employees, products and property. "It will detail issues (meat plants) might need to concern themselves with when thinking about maximizing security of their plants' facilities against a terrorist threat," Hulebak said after speaking on biosecurity at USDA's Agricultural Outlook Forum. Government officials and food industry groups have been on heightened alert since the deadly Sept. 11 airliner attacks on the United States, Of particular concern are foot-and-mouth and other highly contagious livestock diseases, which are considered potential bioterrorism threats. Although the guidelines are meant for all meat plants, Hulebak said the department paid particular attention to small and very small meat processors when developing the list.

February 22

USDA Needs Better Biotech Reviews.  The U.S. Department of Agriculture should more rigorously review the potential environmental effects of new transgenic plants before approving them for commercial use, says a new report from the National Academies' National Research Council. The committee that wrote the report also said the public should be more involved in the review process and that ecological testing and monitoring should continue after transgenic plants have entered the marketplace. 

Veneman Keynotes Outlook Forum.  Agriculture Secretary Ann M. Veneman gave the keynote address Thursday at the 78th annual Agricultural Outlook Forum, a two-day conference sponsored by USDA that features discussions on issues confronting the U.S. food and farm sectors. Veneman used the opportunity to review her first year in office and reiterate administration's commitment to agriculture. 

New Fuel Standard Sought by Coalition.  National Corn Growers Association (NCGA) Ethanol Marketing Chairman and York, NE, corn grower Boyd Smith said a coalition of agriculture, ethanol and oil groups has come together to agree on a renewable fuel standard (RFS).

FDA Hearing on Poultry Medicine.  The Food and Drug Administration will hold a hearing on the safety of enrofloxacin for use in poultry. In 2000, FDA's Center for Veterinary Medicine proposed to withdraw this approval. Enrofloxacin, trade name Baytril, is a fluoroquinolone. It is a product of Bayer Corp., Shawnee Mission, KS. Bayer's product is approved for treating chickens and turkeys for certain bacterial infections. FDA Administrative Law Judge Daniel J. Davidson will preside over the hearing. A pre-hearing conference with Bayer and FDA is scheduled for April 8 in Conference Room F at the FDA Headquarters, 5600 Fishers Lane, Rockville, Md. 20857. At that conference, Judge Davidson will schedule the hearing. Any interested party can participate in the hearing but must file a notice of participation by March 22, 2002. See the Feb. 20 Federal Register for more information, or contact Robin Thomas Johnson, Office of Policy (HF-26), FDA, 5600 Fishers Lane, Rockville, MD 20857, phone 301-827-3480. 

Brazil Contests EU Sugar Policies at WTO. REUTERS reports that Brazil will contest European Union sugar export subsidies at the World Trade Organization. Brazil and the European Union are the world's two major sugar exporters. "After approval from the foreign trade office (Camex), consisting of other ministers involved, we shall contest the European Union's sugar export policy," Pedro de Camargo Neto, head of production and trade at the agriculture ministry, told REUTERS. No date has yet been fixed for starting the case. Camargo said Brazil will use the results of the WTO panel on a complaint by the United States against Canadian exports of dairy products. Brazil also is challenging a WTO waiver on trade preferences given by the EU to sugar imports from African, Caribbean and Pacific developing countries, saying that this sugar should not be re-exported. 

China Won't Budge on Rules.  REUTERS reports that President George W. Bush raised China's new regulations on bioengineered foods with that country's leader on Thursday, but Beijing said it would proceed with the rules that threaten $1 billion in U.S. soybean sales. National Security Adviser Condoleeza Rice said Bush broached the matter in a meeting with President Jiang Zemin. "To my knowledge, this is still an issue that has to be resolved," she told reporters. The topic of the oilseeds, used mainly in producing animal feed, is likely to be raised again during Bush's breakfast meeting with Chinese Prime Minister Zhu Rongji on Friday, U.S. officials said. The United States says the rules on genetically modified organisms (GMOs), which take effect on March 20, will hurt its farm goods sales to China, the world's top importer of soybeans. 

Farm Bill Meetings Start.  House and Senate staff members were scheduled to hold their first discussions on the new farm bill this afternoon. Senate sources said the staff would discuss the credit and rural development titles of H.R. 2646, which has passed both chambers of Congress. Separately, Under Secretary of Agriculture J. B. Penn today told USDA's annual outlook forum that he hoped for a completed farm bill by March 22, the first time the Administration has specified a particular date as its goal.

February 21

Europe Seeks Food Safety, Quality, Confidence Solutions. More than 40 European countries will meet later this month to discuss food safety and quality issues, and how to strengthen consumer confidence after recent food scares. The "Pan-European Conference on Food Safety and Quality" will be held in Budapest Feb. 25-28. The meeting is organized by the UN Food and Agriculture Organization (FAO) and the World Health Organization (WHO) and co-sponsored by the European Union and some FAO/WHO member countries, according to a statement issued by the two UN agencies. 

'Safe' Food Supply Probably Not Possible.  Despite significant success at improving the safety of the nation's food supply, current science on which safety is based does not sufficiently protect us from emerging issues inherent to a complex food supply. The evolving characteristics of food, technology, pathogens and consumers make it unlikely the marketplace will be entirely free of dangerous organisms at all times for all consumers.

Hungary Lobbies for High Subsidies.  REUTERS reports that Hungarian Prime Minister Viktor Orban lobbied the European Union Wednesday seeking the same level of subsidies for his farmers as those inside the European Union once Hungary becomes an EU member. The European Commission has annoyed candidate countries by proposing that their farmers receive only 25% of the aid dished out to current members when they join in 2004. The figure would rise gradually to 100% over 10 years. "The Hungarian economy including agriculture is quite competitive. Hungary is the only candidate country with a trade surplus in agriculture with the European Union," Orban told reporters after talks with Commission President Romano Prodi. "What we are arguing in favor of is not subsidies but competition...We want to provide Hungarian farmers with the same basis for competition that EU farmers already enjoy," he added. 

Minnesota Bill Seeks Water Protection.  Health and legal experts urged members of the state Senate Agriculture Committee to protect Minnesota groundwater from further pesticide contamination by supporting legislation designed to protect ground water. "Research shows a 'bulls-eye' of high incidence of non-Hodgkins Lymphoma in the upper Midwest agricultural areas. In addition, multiple myeloma, a related disease, has been linked to farm employment. I am concerned that the upper Midwest seems to be a hotspot for these diseases," said David Wallinga of the Institute for Agriculture & Trade Policy in his testimony before the committee. State Sen. Larry Pogemiller, chief author of the measure, told the committee that the bill seeks to reinforce the 12-year-old Groundwater Protection Act by directing the Minnesota Department of Agriculture (MDA) to increase groundwater monitoring for pesticides and to transfer data review and determination of magnitude of pesticides in groundwater to the Minnesota Department of Health (MDH).

February 20

FSIS Won't Act on Humane Slaughter Petition.  In a letter earlier this month to Burger King Corporation, Food Safety and Inspection Service Acting Administrator Margaret O'K Glavin said FSIS is not granting Burger King's petition for increased humane slaughter oversight. The letter was an apparent attempt to clarify another agency letter sent last month to the company in which FSIS said it was granting the petition and developing a proposed rule that will address the issue of humane handling, according to the American Meat Institute. Burger King released the earlier letter to the news media, resulting in extensive publicity. 

Djibouti Port Threatened with Pesticide Leaks.  Ten leaking shipping containers of a toxic pesticide are creating serious human health and environmental problems in the port of Djibouti, according to the UN Food and Agriculture Organization (FAO). The present location of the containers already is severely contaminated, according to FAO. The worst affected site is near a food aid store.

Indonesia May Import in Order to Export. REUTERS reports Indonesia may import rice from India in hopes that India, the world's largest edible oil consumer, will buy more of its palm oil. "At this moment we are already buying Indian wheat. We are looking at the possibility of rice," Indonesian Trade Minister Rini Sowandi told reporters. "We do hope India will look into the possibility of time to time reducing the tariffs," she said. India annually sells around 200,000 tons of wheat to Indonesia, but very little rice is being shipped. 

Dangerous Bacteria: Here for a Long Time.  THE ASSOCIATED PRESS reports that scientists believe dangerous bacteria are going to be a problem in the U.S. food supply for a long time as new germs arrive in imported products and microbes already here develop in new forms. In a report for the Institute of Food Technologists, the scientists also say the increasing use of manure as fertilizer poses the risk of spreading harmful bacteria to food, either by contaminating irrigation water or coming into direct contact with crops. Manure, which harbors bacteria such as E. coli O157:H7 and salmonella, substitutes for chemical fertilizer on both organic and conventional crops. In some foreign countries, chicken manure is fed to farm-raised shrimp. The report, which is being released today, also warns against the overuse of antibiotics in livestock, saying there is "growing body of evidence" that farm use of antibiotics is causing bacteria to become resistant to drugs. 

Senators Seek China Easing of Rules. Sens. Max Baucus (D-MT) and Charles Grassley (R-IA) have asked the Chinese government for more reasonable regulations regarding U.S. shipments of soybeans and other agricultural products to China. Baucus is chairman and Grassley the ranking Republican on the Senate Finance Committee. In a letter to Yang Jiechi, China's ambassador to the United States, the senators said the rules as now written are not transparent or workable. Also, "we are concerned that all trade in biotechnology products will be cut off after (China's) March 20 implementation date" for the new rules. They called for a 12-15 month delay, during which trade would continue and officials could work out details in the regulations and for Chinese officials to perform safety assessments on biotech crops currently planted in the United States. 

Farmers Eye Cuban Market.  It's not just farmers in the South who eye Cuba as a potential trade market for U.S. agricultural products. THE ASSOCIATED PRESS reports that Illinois farmer Garry Niemeyer is part of an expanding sphere of interest in the island nation. "When we have a market that's this close, it's a shame not to utilize it to the fullest extent," Niemeyer said. "The potential is overwhelming." Politicians from farm states, led in part by Republican Gov. George Ryan and his two icebreaking trips to Cuba, are putting increasing pressure on the Bush administration to ease the sanctions. And Fidel Castro has signaled a willingness to do business. Lately Castro has signaled a willingness to buy more than was allowed in recent shipments if Washington would allow sales on credit.

California's Cheese Making Makes Headway.  California's cheese industry showed dramatic growth in 2001. Preliminary estimates from the California Department of Food and Agriculture report that California's production of natural cheese reached a record 1.643 billion pounds in 2001, a 9.8% increase over the previous year. The increase was even more impressive coming on the news that total U.S cheese production declined by 1.2% to 8.155 billion pounds in 2001, according to USDA estimates. It was the first such decline in U.S. cheese production since 1984. California became the leading milk producing state in 1993 and currently is the second largest cheese producer. Many industry experts recently have projected that California soon will pass Wisconsin in total cheese production. In 2001, Wisconsin produced 2.124 billion pounds, a 3.1% decline for the nation's largest cheese producer.
 

February 19

Veneman, Conrad Trade Harsh Words. Sen. Kent Conrad (D-ND) last week charged that Secretary of Agriculture Ann Veneman sought the help of Canadian officials to change the shape of farm legislation making its way through Congress. Veneman shot back that the report "is simply inaccurate," and her account was confirmed by Canada. 

Consider U.S. Cattle Before Importing, USDA Told. Gary Wilson, chairman of the Cattle Health and Well-being Committee of the National Cattlemen's Beef Association, told USDA officials that they must, before agreeing to import Australian cattle, consider the health of the U.S. cattle herd. The comments were made to officials of USDA's Animal and Plant Health Inspection Service.

EU Applicants Want Equal Farmer Treatment.  REUTERS reports that farm ministers of the European Union applicant states demanded on Monday that their farmers be treated equally after enlargement. The European Commission, however, said they were not ready to receive the same amount of aid. The ministers say the Commission's proposal for funding EU enlargement is mean and unfair. The plan would phase in direct payments for farmers from the mostly ex-communist candidate nations over 10 years once they join the EU. "Is it really the case that the 15 member states want to conduct their historic obligation to overcome the division of Europe on the cheap," Polish Jaroslaw Kalinowski said in comments to the European Parliament. Kalinowski was one of 12 farm ministers from the candidate states attending talks organized by the Parliament's agriculture committee in Brussels. He said planned limits on Polish farm production, combined with the long transition period for direct payments, meant only large U.S.-style industrial farms would survive in Poland. Speaking to EU farm ministers, European agriculture commissioner Franz Fischler said granting immediate full direct payments to farmers in the candidate states would create stark income differences with the non-farm rural workforce. 

Advice Not Given Is Advice Not Taken.   KYODO NEWS reports that a top Japanese farm ministry bureaucrat said Monday his ministry should have given advice to his predecessor about the appropriateness of a job he had considered taking at a meat-industry group after resigning over the mad cow disease outbreak. Yoshiaki Watanabe, vice minister of agriculture, forestry and fisheries, was commenting on a controversy over the initial decision by former vice farm minister Hideaki Kumazawa to take a job at the Japan Meat Conference. ''The ministry was at fault because it failed to give advice or to seek the opinion of the farm minister (Tsutomu Takebe),'' Watanabe told a regular press conference. ''The problem was the timing and the (nature of the) group,'' Watanabe said, adding, ''I cannot say it (the plan to take the job) was exactly appropriate.'' Kumazawa resigned as vice minister on Jan. 8 amid complaints over the ministry's handling of early signs of the outbreak of mad cow disease. In April 1996, when Kumazawa was a director of the livestock industry bureau, he instructed farmers not to feed cows meat-and-bone meal (MBM), a suspected source of the disease. But he stopped short of outlawing MBM despite repeated calls for a ban from experts. In mid-January, the meat-industry group offered him a nonregular post which he accepted informally before later turning it down to avoid criticism.

February 15

Battle Shapes Up on 'Front Loading'. Even before the ink is dry on the Senate's farm bill, a battle is shaping up between House and Senate leaders over the Senate's "front loading" of spending authorizations in its legislation. Republicans are claiming the Senate bill "short changes" farm program spending over 10 years compared with the House bill. 

U.S.-Chile FTA On Weakened Track, Say Groups.  Forty agricultural and agribusiness entities are expressing "deep concern that the United States and Chile might conclude a free trade agreement (FTA) without having satisfactorily resolved certain issues necessary for a successful outcome." All members of the House and Senate Agriculture Committees and the Senate Finance and House Ways and Means Committees received letters urging close monitoring of the negotiations. 

GIPSA Will Appeal Excel Penalty Decision.  USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) intends to appeal an administrative law judge's decision not to assess a civil penalty in a case filed against Excel Corporation. Following a series of administrative hearings during 2000 and 2001, the administrative law judge found that Excel had violated the Packers and Stockyards Act but failed to assess any penalty for the violations.

Japan Tests Beef Origins at Retail. KYODO NEWS reports Japan's Ministry of Agriculture, Forestry and Fisheries will begin testing a computer system for installation at retail outlets to allow consumers to confirm the origin of beef and the results of mad cow disease checks. The trial run will be conducted on beef from Kagoshima Prefecture at a supermarket in Yamato, Kanagawa Prefecture, the ministry said. The system will prompt consumers to enter 10-digit identification numbers on beef packages and then display where the beef is from, the breed of cow and the results of ministry tests for mad cow disease, the ministry said. 

Decision Due on Canada Wheat Quotas.  REUTERS reports farmers are awaiting a decision today on whether the Bush administration will grant their request for punitive tariff-rate quotas against Canadian wheat. Farmers claim Canadian wheat is being marketed illegally in the United States and other foreign countries. While the U.S. wheat industry and the Canadian Wheat Board were predicting victory, experts said each side might win some and lose some with the announcement. Last week, U.S. Trade Representative Robert Zoellick indicated his opposition to tariff-rate quotas on wheat handled by the Canadian Wheat Board, a government-owned monopoly based in Winnipeg. During congressional testimony, Zoellick said such a quota on durum and other varieties of Canadian wheat sold in the United States might violate free-trade rules between the two countries. Currently, an unlimited amount of Canadian wheat can enter the United States tariff-free under the North American Free Trade Agreement. 

Monsanto Moves to Biotechnology in Australia, New Zealand.  THE AUSTRALIAN BROADCASTING CORPORATION reports Monsanto is moving away from herbicide sales to concentrate on development of biotechnology. Monsanto has appointed Nufarm as it's exclusive distributor of the Round Up brand of herbicides in Australia and New Zealand, a deal that still has to be approved by Australian Competition and Consumer Commission. Monsanto's Brian Arnst says there's been a downturn in the glyphosate market and biotechnology is the future growth sector in agriculture. 

House Leaders Oppose Senate Bill Provision.  Leaders of the House Agriculture Committee, who will be part of a conference committee charged with writing the final version of a new farm law, oppose a ban on meat packers raising and controlling the hogs and cattle they slaughter - part of the Senate farm bill, REUTERS reports. The so-called packer ownership ban is a high-profile issue for the new law. Sen. Tim Johnson (D-SD) and sponsor of the ban, said the prohibition would assure independent ranchers get a fair price for their cattle and would muzzle the power of monolithic packers. Foes say the ban could disrupt marketing and impede development of innovative arrangements that give farmers a larger share of the food dollar. Rep. Larry Combest (R-TX), chaiirman of the House Agriculture Committee, said he thought the ban was "a bad idea." He added, "We will go (into negotiations) quite united in the position of the House. There's some issues we don't even think should be in the bill. That is one of them." Rep. Charles Stenholm (TX), the Democratic leader of the committee, told reporters he was leaning against the ban. He said the House negotiators would be "the same House members who chose to put this in the House bill."

February 14

Senate Farm Bill Has Dairy Provisions.  The Senate Wednesday approved a five-year farm bill containing a new $2 billion counter cyclical payment program for dairy farmers, along with a package of other dairy policy provisions backed by dairy producers. 

'Bitter Pill' Forces Enzi's Opposition Vote.  The Senate may have passed a farm bill with several positive items he supported, but one "bitter pill" forced Sen. Mike Enzi (R-WY) to vote against it. Among the items Enzi found appealing were directing USDA to explore providing live lambs to aid war-torn Afghanistan, authorizing long-term drought assistance for ranchers, and barring meat packer ownership of livestock under certain conditions. 

Cattlemen Won't Support Senate Bill.  The National Cattlemen's Beef Association, satisfied with the farm bill that was voted out of the Senate Agriculture Committee, is "disappointed by many of the provisions" added in during floor debate and has informed committee Chairman Tom Harkin (D-IA) and ranking Sen. Richard Lugar (R-IN) the organization will not support the Senate version. 

Pork Producers Lobby Senate for TPA.  As senators settled back after the farm bill debate, pork producers sought to make sure their thoughts didn't stray too far from agricultural issues. About 60 pork producers from 15 states headed to Capitol Hill Wednesday with the message to senators to pass trade promotion authority (TPA). The lobbying effort is part of an intensive two-day public policy gathering to discuss key issues facing pork producers. 

Differing Philosophies Reflected in Harkin, Lugar Reactions. Reaction from the top Democrat and the ranking Republican on the Senate Agriculture Committee to the Senate's approval of a farm bill reflects opposing philosophical points of view regarding farm policy. 

Soybean Growers Like Senate Bill. Soybean farmers "congratulated" the Senate for the chamber's final version of a farm bill. Bart Ruth, president of the American Soybean Association (ASA), said, "The Senate bill's commodity provisions treat soybeans fairly and equitably with other program crops, and ASA looks forward to working with House and Senate Conferees to ensure the final bill is equally balanced, and is completed in time to be effective for 2002 crops." 

Farmers Union Finds 'Victory' in Senate Bill.  National Farmers Union (NFU) declared the Senate farm bill a victory. "Farmers Union congratulates the Senate for passing a comprehensive farm bill that tackles many issues influencing production agriculture," said NFU President Leland Swenson. "We commend the Senate for rectifying many of the multiple faults in existing commodity programs that Farmers Union has expressed for years." 

Consumers Accepting Irradiated Beef.  Consumer acceptance of irradiated ground beef is growing, according to a checkoff-funded study conducted on behalf of the Cattlemen's Beef Board (CBB). The study, which measured consumer perceptions about irradiated ground beef, revealed a sizeable potential market for the product.

Combest Launches Informal Conference. House Agriculture Committee Chairman Larry Combest (R-TX) has directed that working meetings begin immediately on differences between the House and Senate farm bills without waiting for the formal announcement of members to the House-Senate Conference. The Senate must formally report its bill to the House before a conference committee can be named officially. "Producers across the country are justifiably anxious for a new farm bill, and the House Agriculture Committee will begin immediate work to have a final House-Senate bill for the 2002 crop year," said Combest. "Much work in preparation has been well underway in order to promptly move House and Senate toward a well-balanced, good farm bill." 

Veneman Says Senate Sometimes 'Misses the Mark.' Agriculture Secretary Ann M. Veneman says that while Senators reached consensus on some titles of the farm bill, "there are many areas where the (farm) bill misses the mark. Of particular concern (to the Bush administration) is the Senate bill front-loads spending in the first five years, leaving farm programs shortchanged in the long-term. This will simply hurt farmers down the road. The House-passed bill spreads the funding much more evenly over a 10-year period. Her statement continued, "The President has outlined what he would like to see in a new farm bill. It is important to produce a conference bill that provides farmers a responsible safety net, promotes expanded trade, encourages improved conservation, establishes farm savings accounts and adheres to the budget agreement." The Conference Committee faces a "formidable and important challenge" in reconciling the House and Senate versions, she added. 

Sugar Farmers Like the Senate Bill.  Senate passage of a farm bill that provides provisions for operating U.S. sugar policy at no cost to the taxpayers, as it had under mandate by Congress in the 1980s and most of the 1990s, drew applause from the nation's sugar farmers. The provisions, which were approved in October by the House in its version of the farm bill, reinstate the Secretary of Agriculture's ability to balance sugar supply with demand during times of surplus, thus avoiding forfeitures on Commodity Credit Corporation-backed loans that could result in government costs. Dalton Yancey, chairman of the American Sugar Alliance, said, "The sugar provisions in this bill give us a chance of maintaining a viable industry at no cost to the government. It is our belief that this no-cost approach is vital to the continuation of U.S. sugar policy, and thus the livelihood of our farmers and their families, as well as the hundreds of thousands of workers in the nation whose jobs are directly or indirectly related to a healthy U.S. sweetener industry." The Congressional Budget Office though, has a different view, estimating that the bill's sugar provisions will cost taxpayers more than half a billion dollars. 

Europe Risks Being Left in Biotech Dust.  THE ASSOCIATED PRESS reports from Brussels that a top European Union officials warns that Europe risks being left behind in the booming biotechnology sector unless it finds a way to address public fears about genetically modified organisms. "We have to stop making decisions on such a difficult issue as biotechnology on a purely emotional basis," EU farm commissioner Franz Fischler said in a speech at a Belgian agricultural trade fair. "It is high time that Europe finds a way to address questions" regarding the potential health or environmental risks of gene-altered products, he said. Describing Europe's current response to biotech issues as "muddling through," Fischler urged EU leaders to focus on finding a comprehensive policy at their summit in Barcelona, Spain, next month. The European Commission, the EU's executive arm, released a broad strategy paper last month for the summit with recommendations for a common biotechnology policy. It expects that by 2010, the global biotechnology market, not counting agriculture, could total more than 2 trillion euros ($1.76 trillion). 

Time, Money on Conferees Minds. REUTERS reports that House and Senate negotiators face "a mountain of work" writing the final version of a new farm subsidy law. Disputes range from the size of crop supports to limiting subsidy payments to growers. The conference committee must decide fundamental questions like how long the law should run, five years or 10, and how much money should be spent. "We'll have an argument...about front-loading," said Senate Agriculture Committee Chairman Tom Harkin (D-IA) referring to the $45 billion that his bill would spend in five years - 61% of the $73.5 billion earmarked for the next decade. House Agriculture Committee Chairman Larry Combest (R-TX) said last weekend he would oppose a final farm bill that set a $275,000 limit per couple on subsidies. Major disputes for negotiators, lawmakers said, would include the payment limits, a ban on meatpackers raising the hogs and cattle they slaughter, dairy aid, crop support rates and water rights in Western states. 

USDA Publishes Avocado Rule. USDA is publishing a proposed rule to establish a national research and promotion program for Hass avocados. The proposed rule, which will appear in the Feb.19 Federal Register, contains the provisions of the Hass Avocado Promotion, Research, and Information Order. Producers and importers of Hass avocados will vote in a nationwide referendum to determine whether to implement the order. Approval of the order will be based upon a simple majority of Hass avocado producers and importers voting in the referendum. If the program is approved, producers and importers of Hass avocados will pay an initial assessment of 2.5 cents per pound on domestically produced and imported Hass avocados. This will finance a coordinated program to develop, maintain, and expand markets for Hass avocados in the United States. A final rule on the procedures that USDA will use to conduct the referendum will also be published in the Feb. 19 Federal Register. The referendum order, announcing the representative period for eligibility for voting in the referendum and the dates for registration and voting, will appear in the Federal Register at a later date. The proposed rule and referendum procedures will be viewable at http://www.ams.usda.gov/fv/rpb.html

February 13

Senate Passes Farm Bill. By a 58-40 vote, the Senate today passed its farm bill. It is expected that conferees will be named immediately, but the conference will take some time to complete. There are several major differences between the two bills, including commodity loan rates and payment limitations. Tuesday, several amendments were considered, the approval of one bringing a pledge of opposition from the American Farm Bureau Federation not to support the Senate bill. A complete copy of the bill with amendments will be available on this web site when it is available. 

Senate Retains Packer Amendment.  The Senate voted Tuesday to retain a part of the farm bill that prohibits packers from owning livestock 14 days before slaughter. Sen. Charles Grassley (R-IA), a major supporter, called it a significant victory for independent livestock producers. Sen. Larry Craig (R-ID) had offered an amendment to retract the amendment passed in December. 

Cattlemen Back Voluntary Origin of Labeling.  After extensive debate, policy to urge and advance market-driven country of origin labeling for beef was adopted during the 2002 Cattle Industry Annual Conference in Denver, CO. National Cattlemen's Beef Association (NCBA) chief economist Chuck Lambert said, "The resolution of the debate on the issue of country of origin labeling is evidence that producer directed policy development works. NCBA's members clearly indicated their desire to manage and control the labeling of beef ." 

Energy Report Says Ethanol Production Capacity Adequate.  A report completed for the U.S. Department of Energy (DOE) on the infrastructure requirements for an expanded ethanol industry finds that "no major infrastructure barriers exist" for producing and using more than 5 billion gallons of ethanol across the country each year.

Japan Needs Special Food Safety Agency.  KYODO NEWS reports that a committee studying the Japanese government's response to mad cow disease has called for the creation of an agency specializing in food safety. The nation's vertically divided administrative system hindered efforts to effectively cope with the disease, the committee says. Senior officials from the Agriculture, Forestry and Fisheries Ministry and the Health, Labor and Welfare Ministry, who were present at the committee meeting, basically supported the proposal, panel members said. The two ministries have been mostly involved in Japan's countermeasures for the disease, formally known as bovine spongiform encephalopathy (BSE), as the farm ministry is in charge of livestock affairs and the health ministry supervises food safety. 

China Announces Grains Tariff Quotas. The CHINA DAILY reports the Chinese government has announced 18.3 million tons of tariff quotas for imported grains, including corn, rice and wheat, for this year. It is the first time the government has formally made public import quotas, applicant qualifications and allocation principles since China became a WTO member in the second half of last year, the newspaper said. China plans to import 8.468 million tons of wheat this year from its trade partners and 90% of the quota belongs to state-owned foreign trade companies. For corn, the import quota is 5.85 million tons and 68% of the amount will be given to state-owned applicants. The State Department Development Commission (SDPC), authorized to set tariff quotas for major agricultural imports, also unveiled quotas for other key products including cotton, palm oil, rapeseed oil, rice, woolen yarn, soybean oil, sugar, wheat and wool, China Daily reported. 

Honey Producers, Importers Voting.  USDA's Agricultural Marketing Service is conducting a referendum among eligible honey producers and importers from Feb. 4 to March 1 to determine whether they favor the continuation of the honey research, promotion and consumer information order. The ballots have been mailed to all known and currently eligible voters - those who produced and imported honey or honey products between Oct. 1, 1999 and Sept. 30, 2001 (the representative period), and who were not exempt from assessments. AMS encourages all eligible individuals to vote in the referendum. Any eligible voter who did not receive a ballot should contact Kathie M. Birdsell, the referendum agent, at 1-888-720-9917 (toll free). Ballots must be received by USDA on or before March 1, 2002. For the honey program to continue, it must be approved by a majority of the voters in the referendum. Those voters must represent 50% or more of the honey and honey products produced and imported by all voters in the referendum. 

Vector Wants No Regs on New Tobacco.  REUTERS reports that Vector Group Ltd. has asked USDA not to regulate field tests of a genetically engineered tobacco the company has developed with sharply reduced nicotine. Vector says the plant poses no risk to other crops, the USDA said. Vector owns the Liggett Group, the fifth-largest U.S. tobacco maker. The biotech tobacco is part of the company's efforts to develop new products that are less harmful to smokers. A company spokeswoman said Vector aims to roll out the new cigarette in the second quarter of this year. The tobacco plant, known as Vector 21-41, is engineered to disrupt the plant's normal production of nicotine. The end result is trace amounts of nicotine in a cigarette, the USDA said in a Federal Register notice. 

EU Should Favor Organic Products, Say Greens.  REUTERS reports from Brussels that a green lobby group has proposed that organic products be given tax breaks throughout the European Union to help them compete with conventionally grown products. A study commissioned by the European Environmental Bureau (EEB) -- a federation of green groups in all EU member states -- said some 2.6 billion euros ($2.28 billion) would be needed to ensure that 10% of EU farmland is devoted to organic production by 2006. Gerwin Verschuur, spokesman for the Dutch-based Center for Agriculture and Environment, which carried out the study, said fiscal measures would help many conventional farms go organic. The EEB has presented the study to European Farm Commissioner Franz Fischler, urging that the results be included in the Commission's plans on further reforms to the Common Agricultural Policy due in 2002-2003. The EEB study also called for levies on the use of herbicides and nitrates, and for the money generated to be invested in organic farming.

February 12

Meat Packers Pull Full Court Press for Ownership Amendment.  As Senate debate on a new farm bill lurched into the final hours, the American Meat Institute urged members to contact their senators to vote in favor of retracting a controversial amendment that bans packer ownership of livestock under certain conditions. A vote on the amendment could come today with final passage of the bill later today or Wednesday. 

Everyone Must Enjoy Trade's Benefits, Says FAO.  Globalization and liberalization of trade for agricultural products, movement of capital and transfer of technology must enhance the living conditions of people in both the developed and the developing countries, warned UN Food and Agriculture Organization (FAO) Director-General Jacques Diouf. Speaking to African Agriculture Ministers gathered at the 22nd FAO Regional Conference for Africa, Dr. Diouf said: "For agriculture in particular, it is essential that the new negotiations under the World Trade Organization (WTO) should provide the developing countries with greater opportunities to participate in international trade. " 

Cotton Industry Remains 'In Peril,' Says NCC.  Even though the National Cotton Council has delivered supplemental assistance to growers for the past four years and addressed the administration of regional textile trade preference agreements to expand opportunities for U.S. textile mills, the U.S. cotton industry remains in peril, according to NCC economists in their annual outlook for delegates attending the NCC's annual meeting. In noting the U.S. dollar's strength and the reality of U.S. manufacturing being unable to compete against artificially cheap foreign products, they said, "firm closures and job losses continue across the U.S. as the nation finds itself unable to establish effective policies to address the situation." 

Cattle Group to Be Strengthened, Not Changed.  Wythe Willey, a cattle producer from Cedar Rapids, IA, the new National Cattlemen's Beef Association (NCBA) president, says he will enhance the group's strength, not change its mission. His remarks came during the NCBA Stakeholder's Congress at the 2002 Cattle Industry Convention and Trade Show in Denver. "We don't need to alter the direction of this organization," Willey told the audience. "What we do need, however, is an extended and expanded effort to help others in our industry see our vision and bring them onto our team."

Indiana Politician Will Be Named to Food Program Post. REUTERS reports from the United Nations that James Morris, long-known in Indiana politics, is expected to be named to replace Catherine Bertini, another American, as head of the World Food Program, Western diplomats said Monday. Jacques Diouf, director of the Food and Agriculture Organization, nominated Morris on Monday as the only candidate for the WFP top post to a board of directors responsible for both Rome-based U.N. agencies, the envoys said. The board is expected to announce its decision for the executive director job as early as Tuesday and U.N. Secretary-General Kofi Annan makes the final choice. In this case Diouf said Annan agreed with Morris' nomination, the diplomats said. There had been speculation that Australian Bruce Davis, head of his country's international development agency, AusAID, would get the job. But Davis denied to Australian newspapers he was a front-runner after U.S. news reports said he would get the post. The news agency notes the job is important to the United States as Americans provided more than $1 billion in cash and commodities to the WFP in 2001, U.S. officials said. Much of the food aid by the agency is in form of supplies, such as wheat, which are bought in the United States and elsewhere. 

Baucus Plans Disaster Aid Amendment. Adam J. Sharp, an official with extensive agricultural experience, has been named associate assistant administrator for the Office of Prevention, Pesticides and Toxic Substances, where he will provide farmer input into federal oversight of pesticides and toxic substances. "I am pleased that Adam Sharp will work with us at EPA," said Stephen L. Johnson, assistant administrator. "Adam's extensive knowledge of agricultural issues will help us ensure that the voices of America's farmers are heard as we continue EPA's oversight of pesticides in the United States." Sharp most recently served in positions in the American Farm Bureau Federation. Since 1995, Sharp has served the Farm Bureau in its Governmental Relations and Regulatory Affairs staff. For the past two years, he has been a director in the federation, responsible for coordinating efforts to promote various agricultural policies on the federal level. Sharp has focused on environmental law and regulation, pesticides, air quality and biotechnology issues. He also has extensive experience working with members of Congress and the executive branch. A native of Ohio, Sharp attended Ohio State University where he earned a bachelor's degree, majoring in agriculture communication and minoring in international economic and social development. 

Philippines Lifts Pork Import Ban.  REUTERS reports the Philippines has lifted the ban on pork and pork product imports from Britain after the world health animal body declared the country free of the foot-and-mouth disease. Manila imposed the ban on the import of live pigs, pork, pork products and semen on Feb. 23 last year after the Office of International des Epizooties (OIE) confirmed the outbreak of the disease. The OIE certified on Jan. 21 that Britain was now free of foot-and-mouth disease, Philippine Agriculture Secretary Leonardo Montemayor said in a statement. Montemayor ordered authorities to allow imports of pork and pork products from Britain on the condition these came from animals slaughtered in an approved abattoir for export. 

Snow Brand Stock Soars.  REUTERS reports that shares in Japan's scandal-racked Snow Brand Milk Products Co Ltd soared today on speculation that the company might enter an alliance with three domestic dairy operators to revive its troubled milk business. The increase came despite another scandal at its meat-packing subsidiary which announced on Saturday that it had falsely labeled imported pork as domestic meat, further hurting the Snow Brand group's reputation with the Japanese public. Japanese media reported that Snow Brand will form an alliance with the National Federation of Agricultural Cooperative Associations (Zenno), the National Federation of Dairy Cooperative Associations (Zenrakuren) and Kyodo Milk Industry Co. 

Hall to Take UN Post.   THE ASSOCIATED PRESS reports Rep. Tony Hall (D-OH) has told the White House he will take the offer of an appointment as U.S. ambassador to the United Nations' food and agriculture agencies, government sources said Monday. The White House and Hall's office said he would meet with President Bush this morning. Hall plans to accept the post then, said the sources, who spoke on condition of anonymity. Hall, 60, has been an outspoken advocate against hunger and human rights abuses. He has represented part of southwestern Ohio since 1978. His resignation from the House, once he is confirmed by the Senate, would lead to a closely contested election in a newly drawn district. Democrats want a speedy vote on the nomination so they can field a candidate in a special election which would take place in Hall's current district instead of the redrawn one. Based in Rome, the UN job has been unfilled since former South Dakota Sen. George McGovern (D) left in October.

February 11

Bush Warns Senate Against 'Political Gimmickry.'  President Bush, speaking Friday to the cattle industry's annual convention and trade show in Denver, CO, vowed he'll stick with his pledge to honor $73.5 billion in farm program spending over 10 years but warned Congress against using "political gimmickry" to spend the money. "We've got to have a good bill that not only enhances our nation's security by making sure we've got ample food, but that we, by having good farm policy, good agriculture policy, we can help create jobs all across America," he said. 

Western Senators Fight Water Farm Bill Provision.  Western senators are determined to remove a provision from the Senate farm bill that they say could "devastate carefully balanced state water law." Sens. Mike Enzi (R-WY) and Craig Thomas (R-ID), along with other senators from western states, oppose a provision that would allow the federal government to transfer4 or acquire water rights to protect endangered, threatened or sensitive species. A vote on the issue should come early this week to remove the section from the bill. 

Cotton Acreage to Decline.  Cotton producers intend to plant 14.74 million acres of cotton this spring, 6.7% fewer than 2001, according to the National Cotton Council's planting intentions survey. Upland cotton intentions are 14.49 million acres, a decline of 6.7% from 2001 plantings of 15.53 million acres. Extra long staple (ELS) intentions of 247,000 acres represent a 5.3% decline 2001. The results were announced at the NCC's 63rd anniversary annual meeting being held in Dallas, TX.

Combest Vows to Oppose Senate Limit Provision. REUTERS reports from Dallas that House Agriculture Committee Chairman Larry Combest (R-TX) has vowed to oppose any final farm bill that includes a provision limiting growers to $275,000 a year in crop subsidies. The Senate's proposed $275,000 annual limit would be 40% less than the current cap of $460,000. The Combest-sponsored House version would raise it nearly 20% to $550,000. The Texas Republican warned the controversial amendment passed by the Democrat-controlled Senate on Thursday would wreak havoc on farmers. "There's no way that the amendment as written will be workable," Combest told reporters after speaking at the National Cotton Council of America's annual convention. "So we will be looking at ways in which we can make substantive changes." 

Baucus Plans Disaster Aid Amendment. THE ASSOCIATED PRESS reports that the Senate will be asked to approve $2.4 billion in disaster aid for farmers when lawmakers return to work this week and take up the farm bill again. The money would go to wheat growers and other producers whose crops suffered drought or excess moisture last year. Sen. Max Baucus (D-MT) tried earlier to add the money to an economic stimulus package, but the Senate failed to get the 60 votes necessary to overcome procedural objections. The stimulus bill was later pulled by Majority Leader Tom Daschle (D-SD). Baucus said Friday that some farmers face financial ruin if they don't get the disaster assistance. His amendment includes $1.9 billion for crops and $500 million for livestock producers. The money would come out of this year's budget rather than the $170 billion earmarked for programs in the farm bill. The Senate is expected to finish work on the farm bill this week. The House version of the bill does not contain the disaster aid. 

France, Germany Criticize EU Enlargement Plans. THE ASSOCIATED PRESS reports from Caceres, Spain, that France and Germany are criticizing a plan to inject billions of dollars in farm subsidies and regional aid into 10 countries due to join the European Union in 2004. Officials said the two countries sought a 25% cut in proposed spending of EUR40 billion in 2004-2006 for farmers and poor regions in Cyprus and Malta and eight East European nations. The Netherlands, Sweden and Britain also said the spending plan of the EU Commission was too generous at a time when Europe must restrain farm spending. They said East European farmers shouldn't get income support subsidies and that the EU should provide money only to revive the economies of backward regions. 

Philippines May Withdraw from Cairns. KYODO NEWS reports the Philippines is considering pulling out of the Cairns Group of major farm produce-exporting countries over the group's lack of support for its position in a trade row with the European Union (EU) over canned tuna, the Trade Department said. ''We are reconsidering our membership,'' Trade Secretary Manuel Roxas told reporters. Roxas said the lack of support the Philippines and Thailand got on the tuna issue during the World Trade Organization talks in Doha in November shows the disparity among the rich and poor agriculture-exporting countries. ''Even if we are all interested in agriculture, our interests are not all aligned, because the agricultural interest of the rich is different from the agricultural interest of the poor,'' Roxas said. The Cairns Group consists of Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, the Philippines, South Africa, Thailand and Uruguay. 

Australia Supports Russia's WTO Bid.  REUTERS reports that Australia has appears to be supporting Russia's bid to join the World Trade Organization (WTO) but only if Moscow does not increase its subsidies for agricultural exports. Russia, the last major power outside the WTO, is hoping to secure admission to the 144-member trade body in 2003 after an eight-year bid but must first complete complicated trade talks with individual members. Australian Foreign Minister Alexander Downer said Canberra supported Moscow's bid but wanted its agricultural subsidies capped. "We don't want Russia to enter the WTO but then be able to substantially increase its trade-related agricultural subsidies," Downer told reporters.

February 8

No Sign China Ready to Cooperate on GM Products.  A team of officials from USDA, the office of the U.S. trade representative and State Department, during meetings in Beijing, was unable to get China to clarify its new regulations for imports and labeling of products derived from biotechnology. 

Senate Approves Payment Limitation.  The Senate Thursday approved an amendment to the farm bill that would limit farm payments. The measure limits direct and counter-cyclical payments to $75,000 and establishes a combined payment limitation of $275,000 for husband and wife. The provision also changes rules that allow individuals to receive multiple payments.

U.S. Tries to Get Asia to Accept Poultry. REUTERS reports Asian nations that have banned imports of poultry from the Pennsylvania due to fears of avian flu should lift the restrictions, because the virus is not harmful to humans, a U.S. trade official said. After China joined Japan and the Philippines in imposing the ban, which could damage the image of the multi-million-dollar U.S. poultry trade, the USA Poultry and Egg Export Council said it was holding talks with Asian trade and government officials. "There is no evidence to prove that the low-pathogenic virus found in Pennsylvania can be transmitted to humans. I don't know why these countries have imposed the restrictions," Margaret Say, the Council's regional director for the ASEAN (Association of South East Asian Nations) region, told REUTERS. 

Farmers Union Takes Lonely Stance. The National Farmers Union views the Senate's restrictions on farm payments with applause. Limits are necessary to ensure that benefit provided by federal farm programs are appropriately directed to those who need it most," said NFU President Leland Swenson. "This amendment will make sure farm programs are not responsible for helping large agribusinesses get larger." The amendment would limit payments for individuals at $225,000 and $275,000 for married couples, and eliminate multiple entities. Most other farm organizations have opposed the restrictions. 

Ohio House Member Offered UN Job.  THE ASSOCIATED PRESS reports that Rep. Tony Hall (D-OH) has been offered a job as ambassador to the United Nations' food and agriculture agencies. Government sources said the appointment could come as soon as next week. The AP said Hall's office and the White House declined comment on the pending appointment, which was confirmed by sources who spoke on condition of anonymity. Hall's resignation to take the Rome-based post would pave the way for a heavily contested election in his congressional district around Dayton. Republicans have conducted a poll to test their chances and are touting a potential replacement for Hall, former Mayor Mike Turner of Dayton. Democrats have been trying to persuade Hall to stay in the House. Hall, 60, has served in Congress since 1978. He said last week he had been talking with the Bush administration for several months about a humanitarian-related job. He said he would decide soon whether to seek re-election. 

Environmentalists Will Sue Idaho on Bluegrass.  THE ASSOCIATED PRESS reports that an environmental group will sue to try to force Idaho bluegrass seed growers to stop burning their fields each year, a practice medical experts say jeopardizes human health. It's the latest battle in a long fight by clean-air advocates to end field stubble burning. In neighboring Washington, the state stopped almost all bluegrass burning in 1998. Grass seed, grown for lawns, golf courses and many other uses, is a major agricultural product in eastern Washington and northern Idaho. Farmers say burning is the best way to remove stubble from fields and prevent disease, which in turn increases yields. Idaho Gov. Dirk Kempthorne, in his State of the State address, made finding an economically viable alternative to field burning a priority. The University of Idaho has been enlisted to help with research.

February 6

Central America FTA Has Dairy, Sugar Implications.  President Bush's recent announcement that the United States is actively exploring a free trade agreement with five countries in Central America could spell implications for the U.S. dairy and sugar industries. The potential agreement would provide added momentum toward the realization of the Free Trade Area of the Americas (FTAA), a proposed Western Hemisphere trade liberalization pact that the International Dairy Foods Association supports. 

Greenhouse Gas Emissions Reduced by Ethanol.  The Renewable Fuels Association (RFA) says the latest figures from Argonne National Laboratory show the use of ethanol-blended fuels reduced CO2-equivalent greenhouse gas emissions by approximately 3.6 million tons in the United States during 2001. This reduction is equivalent to removing more than 520,000 cars from the roads. 

ITC Probing Lamb Relief Effectiveness.  The U.S. International Trade Commission (USITC) is initiating an investigation into the effectiveness of the relief action imposed by President Clinton on imports of fresh, chilled and frozen lamb meat. The tariff rate quota ended Nov. 15.

Senate May Return to Farm Bill Wednesday. With Senate Majority Leader Tom Daschle (D-SD) poised to pull an economic stimulus bill from the Senate floor, the farm bill may be next in line for Senate consideration. If Democrats fail to get enough votes to limit debate on the stimulus bill, Daschle will turn to other business. Late Tuesday, several Senate sources in both parties said they expect farm bill debate to resume Wednesday, and last for several days. Earlier, Daschle said he wanted to complete the Senate farm bill by February 15. The bill then goes to a House-Senate conference committee. 

Agriculture Key to Finishing WTO Round.  REUTERS reports that concluding a new round of world trade talks by 2005 could depend on reaching early agreement on agriculture and new technical assistance programs for developing countries. World Trade Organization Director-General-designate Supachai Panitchpakdi told reporters there must be substantial progress in those two areas by the WTO's next meeting in Mexico in 2003 or else the ambitious trade talks launched three months ago in Doha, Qatar could be in jeopardy. In a speech to the same group, U.S. Deputy Trade Representative Peter Allgeier said the United States was "absolutely committed" to concluding the WTO talks by the Jan. 1, 2005 target date. To keep on track, it favors holding the Mexico meeting in "the middle of 2003," rather than later in the year as some countries want, he said. 

USDA Revises Wheat Cleanliness Standards.  USDA has revised standards of cleanliness for U.S. wheat exports destined for overseas food aid. Beginning with invitations to purchase issued on Feb. 5 and through the remainder of fiscal year 2002, the maximum acceptable dockage level for wheat made available by USDA's Commodity Credit Corporation for international food assistance will be 0.6%, down from 0.7%. Dockage includes all matter other than wheat that must be removed prior to milling the wheat into flour. USDA's Grain Inspection, Packers and Stockyards Administration measures and reports dockage on each export shipment. USDA launched a "Clean Wheat Initiative" in June 2000 that tightened the standards for wheat purchased by the CCC. USDA has been reviewing this issue and will seek public comment on the dockage levels for purchases in future years. A request for comments will be issued in the Federal Register no later than March 1.

February 5

Bush Proposes, Combest Cheers Ag Budget.  Agriculture Secretary Ann Veneman Monday issued the Bush Administration's fiscal year 2003 budget for USDA. It includes $73.5 billion over 10 years to fund the farm support programs that are included in the final version of a farm law. 

No Support for Federal Action on Species Protection. Current scientific evidence does not support the need to require higher water levels in Oregon's Upper Klamath Lake or higher flows on the nearby Klamath River, as proposed by two federal agencies to protect endangered and threatened species of fish, says a new interim report from the National Academies' National Research Council. The lower minimum water levels proposed by a third federal agency also lack sufficient scientific backing. 

Public Divided on GM Food and the Environment.  The American public is evenly divided over whether genetically modified food and other agricultural biotechnology products hurt or help the environment when given basic information on risks and benefits, according to a poll released today by the Pew Initiative on Food and Biotechnology. The poll, conducted by Zogby International, was released as part of a panel discussion hosted by the Initiative titled "Environmental Savior or Saboteur? Debating the Impacts of Genetic Engineering." 

Corn Growers Manage Biotech Hybrids Well, Survey Show.  Corn growers continue to show responsible management of the environment by practicing good stewardship of crops developed through biotechnology, says the National Corn Growers Association (NCGA). A recent survey of U.S. corn growers who grow biotech hybrids showed the majority of those farmers are implementing management practices that will help avoid the potential of insect resistance to Bt (Bacillus thuringiensis) corn. Results of the survey conducted during harvest 2001 were forwarded to the Environmental Protection Agency (EPA) on Jan. 31.

GM Sugar Beet Little Risk, Says French Report. REUTERS reports that genetically modified sugar beets pose little risk of contaminating other crops and are safe to grow on a wider basis, a French government advisory panel said in a report. The report said the same was not true for GM rapeseed. It recommended at least two more years of field trials to assess the risks of genetically modified (GM) rapeseed pollen spreading to other plants. The report came after France's food safety agency last year discovered traces of GM material in several conventional crops. French opponents of GMs destroyed more than 10 experimental fields last year. 

Canada's Farm Exports a Record.  REUTERS reports that Canada's agricultural exports reached record levels in the first 11 months of 2001. The record was helped by a surge in sales of slaughter cattle and red meats, the federal government said Monday. "The biggest increases were in red meats, beef and pork. And they were humongous," said Jim de Graaf, an economist with Agriculture and Agri-Food Canada (AAFC) in Ottawa. "A lot of it is supply. We have the supply and we can compete, and we continue to be very competitive," said de Graaf. Overall, Canada exported C$24.4 billion ($15.3 billion) worth of agricultural and agri-food products between January and November 2001, an increase of 13.4% over the same period in 2000, according to figures compiled by Statistics Canada and AAFC. Total agri-food exports to the United States were C$15.3 billion, up more than 17% due mainly to increased beef, slaughter cattle and pork exports, the report said. 

Rich Nations Must Sacrifice to Benefit Poor.  REUTERS reports that world leaders meeting in New York City say rich nations will have to slaughter a few sacred cows if they really want to eliminate the poverty that fosters terrorism. They will have to sacrifice subsidies of rice, cotton, sugar, wheat and other farm products that leaders of developing nations say deny them a fair shake in exporting agricultural products. "Instead of aid, we need greater market access," Ecuador's finance minister, Carlos Julio Emanuel, told REUTERS on the sidelines of the World Economic Forum in New York. "Will the industrialized countries pass from rhetoric to action and actually put into place those ideas of a free market?" he asked.

February 4

Farm Groups Urge Bush to Talk Biotech with the President of China.  Four agricultural organizations want President Bush to discuss China's new biotechnology regulations that these groups say are trade restrictive and could disrupt U.S. trade with China. They urged Bush to bring up the matter when he meets this month with Chinese President Jiang Zemin. 

NFU Lobbies Congress.  Farmers and ranchers from across the country are in Washington through Wednesday as members of the National Farmers Union lobby Congress in an effort to get quick approval of a new farm bill. They also will ask policymakers to address what they consider to be the continuing recession in rural America.

Budgets Released Today. Administration officials today release budgets for the various departments and agencies of the federal government, beginning the annual process by which Congress and the administration work to agree on spending parameters for fiscal year 2003 and beyond. At 2 p.m. Agriculture Secretary Ann Veneman and USDA budget officer Steve Dewhurst brief media at USDA's administration building, room 107-A, 12th Street and Jefferson Drive on what the aAdministration proposes for agriculture; Also at 2 p.m., Environmental Protection Agency Administrator Christie Whitman will announce the EPA budget at room 1153, ICC Building, 1201 Constitution Avenue, NW. At 11 a.m., Food and Drug Administration Acting Senior Associate Commissioner for Management and Systems Jeff Weber will provide a press briefing on the FDA proposed budget in Conference Room 1468, in the Parklawn Building., 5600 Fishers Lane, Rockville, MD 20857. 

Hong Kong Chick Slaughter Complete. Hong Kong health workers finished the slaughter of more than 100,000 chickens Sunday at a farm where thousands of birds had died, raising fears of a second outbreak of avian flu in less than a year. About 100 workers in gloves and protective white suits began killing the birds Saturday after 10,000 chickens died mysteriously there earlier last week. The government said all the birds had been slaughtered before nightfall, but that the removal of the carcasses would not be completed until Monday. The farm also will be thoroughly cleansed Monday, it said. The birds were dumped into large airtight bins and then gassed with carbon dioxide. They were later put into garbage bags for disposal. 

Moore Calls for More Open Markets. KYODO NEWS reports from New York that World Trade Organization (WTO) chief Mike Moore is urging industrial countries to open their markets to agriculture and other products from developing nations to bring a new round of global trade talks to a successful conclusion. ''This will be the 300-year round, not the 36-month round'' if industrialized countries fail to respond to demands from developing nations, Moore said at a panel discussion of the World Economic Forum. The new round, launched at the WTO ministerial meeting in Doha last November, is slated to last three years and will involve 144 WTO member countries. ''This round will not conclude if there isn't major movement in issues such as agriculture. Agriculture is a core development issue for so many countries,'' Moore later told a press conference. Developing countries have long complained that developed countries subsidize their farmers and impose stiff control on textile trade while preaching the benefits of free trade. ''Criticism about how the markets of the north are closed are totally correct. It is an injustice that has to be address,'' Moore said. 

U.S. Farmers Talk Trade with Cuba. REUTERS reports from Cancun, Mexico, that U.S. farm leaders are trying to build a coalition with Castro's government in Cuba to end the U.S. embargo of the island nation. Inspired by the recent breakthrough sale of more than $30 million of grain and meat to Cuba, more and more U.S. farmers now see Cuba as a strong potential market and are working to pressure the U.S. Congress to relax or scrap the embargo that was first imposed in 1963. They see a share of Cuba's $1 billion a year in agricultural imports, ranging from rice, wheat and soybeans to apples and wood products as the reward. Direct talks began with Castro's government began in the late 1990s and have accelerated in recent months. At a meeting in Mexico's Caribbean resort of Cancun last week, dozens of U.S. businessmen talked with senior Cuban officials to work out the practical details of trading with Cuba as well as learn their way through the maze of U.S. government regulations. 

Bumper Crops Worldwide Hit U.S. Rice Producers & Millers. THE ASSOCIATED PRESS reports that reverberations from bumper rice crops worldwide are being felt in the heart of Louisiana's rice belt.. The world has a glut of rice because of good weather the past few years in Thailand, Vietnam and India. For south Louisiana the consequence is the closure of a nearly 70-year-old rice mill, upgraded just a few years ago to turn out 1.7 million barrels of table-ready rice annually. Ninety-nine percent was sold overseas. "It's the third mill we've taken over in four years, and only one is still in business," said Bill Boudreaux, a state agriculture department employee who supervised the closing of Liberty Rice Mill. The ripple effect of low prices hits the mills hard. Unlike farmers, the mills do not get subsidies from the government. A mill buys the rice straight from the field and puts out a finished product. The price can fluctuate so much that the mill can wind up taking a substantial loss. 

USDA Budget Proposal Is Flat.  THE WALL STREET JOURNAL reports that President Bush will propose a budget today that would keep funding nearly flat for the departments of Agriculture, Commerce, Education, Interior and Justice, as well as the environmental-protection and space agencies, while sharply cutting the budgets of the Labor Department and Army Corps of Engineers. During the past few weeks, Bush and his aides have been trumpeting the big increases proposed for defense and homeland security for fiscal-year 2003, which begins Oct. 1. The budget books also attempt to focus attention on that theme; their covers are emblazoned with a waving American flag. 

China Holding Firm on Biotech Rules. THE WALL STREET JOURNAL reports that China won't change new regulations to tighten restrictions on imported, genetically modified crops, Minister of Agriculture Du Qinglin said Monday. Du says China is holding firm on a March 20 deadline for the introduction of a certification system for genetically modified organisms. The new rules, which are expected to affect imports of soybeans, rape seed, cotton seed and tomatoes, have been criticized by producers for providing too much discretionary power to individual quarantine inspectors. Traders have complained that the government has used the March deadline for the new certification process to delay imports of GMOs during the peak shipping season. They also said inspectors failed to provide the necessary paperwork to begin the certification process for the March 20 starting date. Du said the disputed policy will go ahead as planned in the interests of public safety. But he said negotiations remain possible with soybean exporters.

February 1

USDA Report Confirms River Needs, Say Corn Growers.  A recent USDA study validates many of the arguments posed by the National Corn Growers Association (NCGA) concerning the critical need for improvements to the transportation system of the Upper Mississippi and Illinois Rivers, according to NCGA. Paul Bertels, director of production and marketing for NCGA, said USDA's report, "Agriculture in Brazil and Argentina: Developments and Prospects for Major Field Crops" confirms the positions of the 32,000-member organization on remodeling locks and dams. 

Zoellick, Vaile Talk Free Trade.  U.S. Trade Representative Robert Zoellick and Australian Trade Minister Mark Vaile met in Washington this week and talked about the values of a U.S.-Australian free trade agreement. Absent from initial reports from Zoellick's office was any significant reference to changes in the farm bill that Vaile and the Bush administration want.

U.S., Hungary Agree on Tariff Reductions. The United States and Hungary have signed an agreement in Budapest in which Hungary agreed to reduce or suspend its tariffs on $180 million worth of U.S. agricultural and industrial exports annually starting in April. On the industrial side, the U.S. export products covered include steam and gas turbines, large engine autos and auto and tractor parts, automatic data processing machines, office machine parts, beauty products, various chemicals, plastics, medical instruments and equipment, laser disks, and telephone equipment. On the agricultural side, the U.S. export products include almonds and pecans, grapefruit, and bovine semen. The Hungarian government has also made a substantial increase to its 2002 tariff rate quota for baby chicks. The United States intends to continue its support for Hungary's participation in the U.S. trade preference program, known as the U.S. Generalized System of Preferences (GSP). 

Pesticide Data Available.  USDA's Agricultural Marketing Service has released the pesticide data program annual summary for calendar year 2000. Data are available via the Internet at http://www.ams.usda.gov/science/pdp/download.htm. The program provides statistically reliable data on pesticide residues detected in selected foods. In 2000, the program analyzed a total of 10,907 samples. These samples were collected as close to the point of consumption as possible. Foods analyzed in 2000 included 15 fresh fruits and vegetables, three processed fruits and vegetables, peanut butter, poultry and rice--food items that are highly consumed by children. These foods were monitored for insecticide, herbicide, fungicide and growth regulator residues. Also a special survey was conducted on single servings of peaches. The program has analyzed 51 different commodities through 2001, and is testing apples, apple juice, asparagus, bananas, broccoli, carrots, canned corn, canned peas, celery, mushrooms, onions, peaches, pineapples, potatoes, rice, barley and beef in 2002. Printed copies of the 2000 summary should be available by mid-February and can be obtained by writing to the Monitoring Programs Office, Science and Technology, Agricultural Marketing Service, USDA, 8609 Sudley Road, Suite 206, Manassas, VA 20110, by faxing (703) 369-0678, or by calling (703) 330-2300, extension 10. 

Snow Brand Raided by Japanese Cops. KYODO NEWS reports that the Hyogo prefectural police decided Friday to search some 30 locations related to Snow Brand Foods Co., including the Tokyo headquarters and the firm's Kansai Meat Center in Itami, Hyogo Prefecture, over the falsifying of beef-product labels to obtain mad cow disease subsidies from the government. The police have set up a joint investigative team with the Metropolitan Police Department and the Hokkaido and Saitama prefectural police to conduct the searches to gather evidence against the company. Snow Brand Foods officials have acknowledged that 13.8 tons of Australian beef was repackaged last October and November at the firm's Kansai Meat Center to pass it off as domestic beef, according to the police.