February 28

Livestock, Tobacco Program Signups Announced.  Agriculture Secretary Ann M. Veneman says sign-up for the expanded Livestock Compensation Program will begin April 1. The Tobacco Payment Program benefit sign-up will begin March 17. Veneman said the implementation team is working on details regarding other program benefits and said information about these other sign-up dates will be announced in the near future. 

Beef for Summer Campaign Planned.  A campaign to move more beef during this summer will be conducted through the beef checkoff's "summer grilling" promotion. The intent of the promotion, aimed at increasing demand for all cuts of beef, including undervalued cuts from the chuck and round, is to convince current grill users to grill beef more often. 

Corn Congress Begins. National Corn Growers Association (NCGA) President Fred Yoder convened NCGA state delegates this week for an issues briefing and open forum on policy prior to the first session of Corn Congress which began Thursday. During the session Yoder and NCGA action team and committee chairs reviewed NCGA issues, as well as the organization's policy and resolution process. 

USDA Releases Marketing Contract Report.  USDA has published a study showing that 62,300 U.S. farms used more than 82,100 corn, soybean or wheat marketing contracts during 2001. The information comes from the Agricultural Resource Management Study, conducted by USDA's National Agricultural Statistics Service (NASS) during late winter and spring of last year. 

Ethanol Continues to Set Production Records.  In January the U.S. ethanol industry set an all-time monthly production record of 177,000 barrels per day, according to data released by the U.S. Energy Information Administration (EIA). This is the sixth all-time monthly record in a row for the industry. Production for the month was up 31 percent compared to last January when 135,000 b/d of ethanol were produced. The ethanol industry is expected to produce more than 2.5 billion gallons in 2003, up from a record annual production of 2.13 billion gallons in 2002. Currently, 68 ethanol plants have the capacity to produce over 2.7 billion gallons annually. Ten additional plants are under construction. 

Mushroom Assessment Decreased.  USDA has approved a decrease in the mandatory assessment under the Mushroom Promotion, Research and Consumer Information Program. Effective March 1, the mandatory assessment rate will be decreased from 0.0029 cents per pound to 0.0020 cents per pound of mushrooms marketed or imported for the fresh market in the United States. Producers and importers who produce or import an average of over 500,000 pounds of mushrooms annually for fresh use will be affected. Funds generated by this mandatory assessment will be used for non-promotional activities by the Mushroom Council. 

Pioneer Will Use Biodiesel. Pioneer Hi-Bred International, Inc. will use biodiesel in its farm and tractor equipment and over-the-road diesel vehicles as of April 2003, where available. The policy will affect Pioneer's U.S. and Canadian research and supply management operations and includes more than 300 diesel vehicles and pieces of farm equipment. 

Toast to Monsanto Signals Shift. REUTERS reports that when wheat industry leaders toasted Monsanto at a recent conference in New Mexico, the gesture signaled a major change in the industry's position on the divisive issue of genetically modified wheat. The article notes there has been widespread fear among farmers that Monsanto's efforts to promote its GM wheat would hurt sales, especially overseas such as in Europe where opposition to genetically engineered crops is strongest. But Monsanto officials may have calmed farmers' fears by promising not to market the new wheat until the industry is ready. Farmers want Monsanto to meet several objectives, including ensuring market acceptance. 

French Pig Farmers Struggle with Markets.  REUTERS reports pig breeders in France are struggling to avert a major crisis that could develop in lost export markets from low prices caused by the outbreak of foot-and-mouth disease (FMD) in 2001. French pigmeat prices have declined by almost half since early 2001 when Russia, Japan and South Korea imposed bans on British and French pork imports after the outbreak of highly contagious FMD. Prior to the crisis, Russia, Japan and South Korea were France's main export markets. 

Scientists Find Ozone Can Kill Insects.  The ASSOCIATED PRESS reports Purdue University scientists have found that ozone gas kills grain bin insects but doesn't damage the grain or cause the environmental harm linked to chemical fumigants. But they said the process won't add to the ground-level ozone that is a component of smog. Their conclusions could lead to portable, ozone-generating equipment that grain elevator operators or farmers could rent to rid their storage bins of insects. That would lead to a more environmentally friendly approach to controlling insects. Purdue researchers have been studying the potential of using ozone gas to control insects since 1994. 

Audit Funds Asked for Beef Packers Probe.  The ASSOCIATED PRESS reports the Bush administration wants $1 million for an audit of the top four beef packers as part of the President's budget proposal. JoAnn Waterfield, deputy administrator of the Grain Inspection, Packers and Stockyards Administration, said "it's important that we understand how a packer's finances move internally." GIPSA is concerned about the economic impact if one of the companies was in financial trouble, she said. "The impact would be enormous,'" Waterfield said. She said an audit would help the agency "anticipate that perhaps and assist the packer ahead of time." 

USDA May Close More Offices.  The ASSOCIATED PRESS reports USDA may close 200 offices or move the offices to other areas where farmers seek help in getting conservation money and subsidies, Agriculture Secretary Ann Veneman said Thursday. "It certainly gives farmers a better opportunity to have one-stop shopping," she told the House Appropriations Subcommittee on Agriculture. Veneman said USDA is helping farmers through the Internet more often by allowing them to file paperwork electronically. USDA has closed service offices before, but that has led top complaints by farmers who say they have to drive longer distances in order to complete paperwork for loans and subsidies. Rep. Jo Ann Emerson, R-Mo., said this time is no exception. "That's kind of counterintuitive," Emerson said. "If farmers have to drive farther to spend a day signing up for the farm program, that's very inconvenient." But Emerson said she supports combining offices to offer services at one location if it means greater efficiency. 

February 26

Loan Rates Announced.  USDA has announced 2003-crop corn, grain sorghum and soybean county loan rates; 2003-crop dry pea, lentil and small chickpea loan program provisions, including regional loan rates for dry peas; 2002- and 2003-crop crambe and sesame loan rates; and revised 2003-crop canola, flaxseed, mustard seed, rapeseed and safflower county loan rates. 

Veneman Outlines Nutrition Goals.  Agriculture Secretary Ann M. Veneman Tuesday outlined Bush administration principles for the reauthorization of the child nutrition programs, including providing financial support to schools that promote good nutrition and partnerships at the federal, state and local levels. More specific details will be provided in the coming months as the Congress begins to examine more closely the reauthorization of these programs. 

Farmers Urged to Apply for Crop Insurance.  The National Corn Growers Association (NCGA) is encouraging its members to meet the approaching March deadline to apply for crop insurance. "For the vast majority of the country, producers must have insurance policy applications for corn as well as soybeans completed and signed by the sales closing date of March 15," said NCGA Director of Public Policy Sam Willett. "Earlier deadlines are established for the Southeast region extending from the eastern half of Texas to Florida." 

COOL Warning Issued by Frozen Food Industry.  A white paper issued today by the American Frozen Food Institute (AFFI) describes specific scenarios under a country of origin labeling regulation that it says would dissuade frozen food makers from using domestic produce and seafood, and from housing product blending facilities within the United States. 

EPA Registers Monsanto's New Corn.  Monsanto Company says the Environmental Protection Agency (EPA) has issued a registration for the company's new YieldGard rootworm insect-protected corn technology -- allowing commercialization of the first biotech corn designed to control the corn rootworm pest for the 2003 planting season. 

U.S. Rice Group Retails in Japan.  REUTERS reports the USA Rice Federation is launching a retail network in Japan in an effort to raise consumer awareness and acceptance of U.S. rice. The federation represents producers, millers and marketers. Officials said 44 shops in the Tokyo and Osaka areas are part of the network, and the number is expected to reach 100. U.S. rice is imported into Japan through tenders conducted by Japan's Food Agency -- the state trading arm for rice, wheat and barley -- in line with a market access commitment made by Japan under the 1993 world trade agreement. However, many Japanese consumers don't know where they can buy U.S. rice or even when they are eating it, as distributors and restaurant operators often blend it with rice from other origins. 

Organic Not Good for Small Farmers.  The ASSOCIATED PRESS reports organic food may be increasing in popularity, but the expansion hasn't been very good for the small farmer. At one time, organic agriculture was the domain of the small farmer, who sold to local grocery stores and directly to customers who wanted organic food. But many of those same small farms no longer can compete with the larger organic farms that supply big grocery chains with all the organic products they need. The article says this has forced the smaller farmer to get more creative. Many are focusing on selling directly to the customer, at farmers markets or through delivery services. Some have diversified their crops, offering heirloom, ethnic or unusual products, and some are touting their status as members of the community. 

UN Official Calls for More Food Aid.  James T. Morris, executive director of the United Nations World Food Program told the Senate Foreign Relations Committee that the world is not doing enough to battle hunger. "While WFP funding has risen, global food aid has not," Morris said. "In fact, during the last three years it has actually dropped by a third from 15 million to 10 million metric tons (1999-2002). Emergency food aid needs are up and food aid is down. More funds are essential. All the major donors need to make a political commitment to a food aid system that works and is not dangerously reliant on surpluses, last minute appeals or a single donor. We have succeeded in averting famine and starvation in emergencies like those in Afghanistan, North Korea and Africa so far, but we still have a gigantic task there. Equally, much more needs to be done in the battle against the chronic hunger that bedevils the lives of hundreds of millions of people -- who are not the victims of war or natural disasters," he said. Among other things, he called for "stronger and more consistent funding for humanitarian aid." Morris will appear before the House International Relations Committee Thursday. 

The pork industry's 2003 annual conference will be held in Dallas, TX, at the Adams Mark Hotel, March 6-8.  In addition to speakers and key annual meetings of participating organizations - the National Pork Producers Council (NPPC) and National Pork Board - both educational and informational sessions will be held for attendees. The agenda includes producer update sessions held on Thursday, March 6. The sessions will feature lively discussions designed to educate pork producers in worldwide outputs, production and resource management. The first session will feature NPPC's International Trade Counsel Nick Giordano discussing pork trade policy. The second session will include an overview of the U.S. Environmental Protection Agency's (EPA) confined animal feeding operation (CAFO) final rule featuring EPA's Jeff Lape. 

February 25

Russians Impose TRQs on Meat.  Russia has imposed tariff rate quotas (TRQs) on beef and pork imports that will become effective April 1. The yearly TRQs were set at 450,000 tons for imports of pork and 420,000 tons for beef, although the pro-rated 2003 quota will equal 337,500 tons and 315,000 tons respectively, USDA reports. 

Scotland Records Brucellosis in Cattle.  Two cases of bovine brucellosis have been confirmed in a Scottish beef herd. The cases were found in imported animals from the Republic of Ireland (ROI). This is the first case of the disease to be identified on the United Kingdom mainland (Great Britain) since an October 1993 outbreak linked to imports of cattle from France, according to a USDA report. 

Pay Limit Commission Asks for Comment.  The newly established Commission on the Application of Payment Limitations for Agriculture is seeking written comments from the public as it studies the potential impacts of further payment limitations on agricultural producers and others. The commission was created by the new farm law to study the effects of limitations on the receipt of direct payments, counter-cyclical payments, loan deficiency payments and marketing loan gains by producers and other entities. 

U.S. Still Plans Food for North Korea.  REUTERS reports the United States still plans to give up to 100,000 tons of food to North Korea this year. The total is a reduction from the 157,000 tons of aid given last year, but officials say the aid is not related to North Korea's suspected nuclear program. Secretary of State Colin Powell announced the food donations at the close of a four-day visit to Asia. That visit was rife with concerns about Pyongyang's nuclear ambitions and disagreements, particularly with China, on how to reduce them. U.S. officials have said food aid will not be used as a political tool in an effort to change North Korea's behavior. The U.N. World Food Program (WFP) had asked for less aid, and other nations were expected to increase their donations. The U.S. State Department said it initially will give North Korea 40,000 tons and will offer some 60,000 more depending on whether Pyongyang allows distribution to be monitored and provides access to all needy groups in the country. 

Farm Groups Sue to Block California Law.  The ASSOCIATED PRESS reports farm organizations are suing to force a new California law from the books, claiming it would provide an illegal end to private contracting in agriculture. The law "unfairly singles out the agriculture industry for a labor relations process found nowhere else in the United States," said Tom Nassif, president of the Western Growers Association. The association and the 90,000-member California Farm Bureau Federation are leading a coalition that brought the suit. Western Growers said its 3,500 members represent for about half the nation's fresh produce. The suit was filed in Sacramento County by the Pacific Legal Foundation against the state Agricultural Labor Relations Board. The law requires farm workers and producers unable to reach a contract agreement in 90 days of a successful union election to meet with a mediator for 30 days. If that doesn't result in an agreement, the mediator would have three weeks to draft a labor contract, and the board would have 10 days to decide whether to adopt the contract. 

Japan Opposes Harbinson Proposal.  KYODO NEWS reports Japan wants considerable changes made to a draft proposal for opening world markets to more trade. Japan is a major importer of farm products. It says the draft lacks balance, and it cannot accept the draft in its entirety. Officials demanded that changes be made, including to the formula for tariff cuts. The proposal was offered earlier this month by World Trade Organization farm negotiations chairman Stuart Harbinson in an effort to provide a framework for agricultural trade negotiations. The United States and other large farm product exporters have expressed their opposition to the draft because it is not ambitious enough to liberalize farm trade. Harbinson is expected to draw up a second proposal by mid-March with the goal of reaching an agreement by the planned deadline of the end of March. 

WTO Members Split on Harbinson Proposal.  The ASSOCIATED PRESS reports members of the World Trade Organization are split in their views of a draft treaty to open markets in agricultural products. Some say it goes too far and others insist it falls short of what is needed. The document, drafted by the chairman of the WTO agriculture committee Stuart Harbinson, is to be a blueprint for negotiations in the international trade round. But there are huge differences among countries. The United States said the plan "doesn't provide the reform needed" and would leave in place a high level of protectionism. However, Norway said it was "surprised and disappointed" by the draft which, it said, went much further than was intended when ministers launched the trade round in Qatar in 2001. The Norwegian position is similar to that of the European Union which did not react immediately to the draft in a members' meeting but has said in the past the proposal is unbalanced. Harbinson's plan calls for a reduction of up to 60% in import tariffs on agricultural goods while at the same time cutting back on subsidies to farmers. 

February 24

Policy Changes Needed to Protect Water.  A new study, released by the Soil and Water Conservation Society, determines that policy and practice will need to change to protect water quality and soil resources under a changing climate. The report lists three steps to help ensure that water quality is protected and soil is preserved: 1) make correct climate projections; 2) get a handle on the actual damage due to climate change and why; and 3) transform the approach to conservation planning to risk-based management instead of planning for average climate occurrences. 

USDA Working Group to Implement Disaster Aid.  USDA is establishing a disaster assistance working group to ensure implementation of program benefits contained in the $3.1 billion disaster assistance package passed by the Congress. The working group will examine ways to expedite the process and cut red tape if possible to get program benefits in the hands of farmers and ranchers. 

China's Grain Production Reduced.  Recent changes in government policy have reduced overall Chinese grain production by nearly 50 million tons or more than 10% which, combined with below-cost corn exports, means that the government has been able to begin cutting huge stocks built up in the late 1990s, according to USDA.

Farmers Union Wants Concentration, Globalization Addressed.  National Farmers Union President Dave Frederickson says the United States must address the increased consolidation and globalization of agricultural markets if it is to compete in the 21st century. During a farm-group roundtable discussion entitled, "Competing in the 21st Century" at USDA's Outlook Forum, Frederickson outlined what he saw as the challenges brought about by growing market concentration and unfair trade policies. 

Brazil May Become Number One. REUTERS reports that Brazil soon could become the world's top soy exporter, displacing the United States. Brazil's farmers, enjoying plenty of farmland, sunshine and water, are ready to harvest another record soybean crop. Brazil's planted soybean acreage is increasing 10% each year. Large savannahs are being cleared and planted to soybeans to meet the large world demand for animal feed. "Mato Grosso could produce as much food as the whole of Brazil -- without cutting down a single tree," claimed Homero Alves Pereira, agriculture secretary of Mato Grosso state. 

Upgrading the Mississippi Could Backfire.  The ASSOCIATED PRESS reports a plan to improve locks and dams on the upper Mississippi River could invite more imports to the region. Midwestern farm organizations believe improvements are critical to increasing exports particularly for soybeans and corn. Improving the transportation system on the river would help Midwestern growers to send their crops more cheaply down river to New Orleans for export overseas. But other soybean-producing countries such as Brazil could find it economical to send their crops up the river, where they would compete with Midwestern farmers, analysts say. 

Conrad Finds Willing Market in Cuba.  The ASSOCIATED PRESS reports Sen. Kent Conrad (D-ND) met with Cuban officials last week and found them interested in buying tens of thousands of tons of dried and string beans from his home state in addition to pasta products, soybeans, wheat and corn. "We had a very fruitful discussion," Conrad said by telephone from his Havana hotel after the meeting with Foreign Commerce Minister Raul de la Nuez and Pedro Alvarez, head of Cuba's food export-import company Alimport. "We believe it would be constructive for both of our countries to build on this trade relationship," said Conrad. "It is in the national interest, our economic interest, our political interest to trade with Cuba." Cuba is interested in about 10,000 tons of dried beans, another 10,000 tons of fresh green beans, along with the pasta and other grains and oilseeds, Conrad said. 

White Zimbabwean Farmers May Get Land.  REUTERS reports the Zimbabwe government may accommodate elsewhere white farmers who lost their properties under the country's controversial land seizure program. Details of a letter appeared in the official Sunday Mail newspaper. The letter said that Agriculture Ministry Permanent Secretary Ngoni Masoka emphasized that resettled black farmers could not be evicted from the land they on which they had settled. But he added: "White farmers affected by the above cited position shall be accommodated elsewhere, where they may be allocated portions of land which are up to the relevant maximum farm size." 

Administration Still Uncommitted on EU Complaint.  REUTERS reports the Bush administration still has not decided if it will file a complaint against the European Union for refusing to approve new genetically modified foods. "No decision has been made one way or the other," said David Hegwood, special trade adviser at USDA. The Washington Post Friday cited a U.S. Embassy official in London saying there had been a decision "made at a high level of government" not to bring a World Trade Organization complaint against the European Union. The official, Peter Kurz, was interviewed by the British Broadcasting Corp. That contrasts with Agriculture Secretary Ann Veneman who said Thursday that the administration's was "growing very thin" with the EU. The United States, she added, needed to take "very strong action" against the EU's biotech policy. The mixed signals proved embarrassing to the Bush Administration, coming in the middle of USDA's high-profile annual outlook conference. 

Johnson Addresses Commodity Classic.  Chief Agriculture Negotiator for the Office of the U.S. Trade Representative Allen Johnson will be the keynote speaker at the Commodity Classic General Session Friday in Charlotte, NC. Commodity Classic is the eighth annual convention and trade show of the National Corn Growers Association (NCGA) and American Soybean Association (ASA). It offers a variety of educational seminars and learning sessions that provide producers with the latest industry information on topics such as trade, biotechnology, marketing, renewable fuels and the future of agriculture. A complete listing of the trade show exhibitors and educational seminars, as well as other event details, can be found on the Commodity Classic web site, www.commodityclassic.com. For more information, call 636-928-3700. 

February 21

Veneman Cites 'Critical Issues.'  Agriculture Secretary Ann Veneman, in the keynote address for USDA's Outlook Forum, outlined what she termed several "critical issues" that can help shape the future of U.S. agriculture. She said applying technology "to its fullest potential," strengthening the nation's food safety system, improving and expanding risk management tools fo farmers and continuing to expand and open new international markets were most crucial. 

Collins Sees Expanded Corn Production This Year.  USDA Chief Economist Keith Colllins sees a potential corn crop reaching 10.3 billion bushels this year, compared with 9 billion in 2002, assuming optimum weather for growing the crop. The record corn crop was 10.1 billion bushels in 1994. 

Small Plants Get FSIS Assistance.  Achievements in food safety outreach efforts to small and very small meat and poultry plants were made during fiscal year 2002, according to USDA's Food Safety and Inspection Service. The FSIS Small and Very Small Plant Outreach Program was designed to develop and provide technical guidance and assistance to meet the specific needs of small and very small meat, poultry and egg processing plants. 

Report Cites Beef's Attributes.  A report from the American Council on Science and Health (ACSH) has provided what the beef industry calls an independent, up-close and science-based look at how beef fits in the diets of U.S. consumers. "The Role of Beef in the American Diet" explores key nutrition and safety issues as they relate to the value of including beef in the diet. 

Afghan Drought Ending. REUTERS reports the worst drought in 30 years in Afghanistan appears to be ending in the north, and positive indications also are seen for the south after snow and extensive rain this winter. U.N. experts and officials say glacier-fed rivers in the north are filling up. Farmers planted wheat as early as December when the first rains fell in the agricultural areas of Kunduz, Baghlan and Takhar. The northern region had received some rain last year for the first time since the drought started in 1998 and a recovery began. This year's rains, which have continued through January and this month, have replenished key aquifers from Faizabad in the extreme north east down to Herat in the west. 

Chirac Wants Suspended Subsidies for Africa. REUTERS reports French President Jacques Chirac wants developed countries to suspend subsidies on farm exports to Africa. That would protect subsistence farmers threatened by cheap imports. Chirac's proposal came during the final day of a summit of 52 African nations in Paris. France is the European Union's largest grains exporter and a strong defender of the EU's Common Agricultural Policy (CAP). Still Chirac said farm subsidies in wealthy nations that skew prices in African domestic markets should be suspended during the latest round of World Trade Organization (WTO) negotiations. 

FCA Seeks Review.  THE WALL STREET JOURNAL reports the Farm Credit Administration may launch a governance review that would look at disclosure policies, audit committee rules and oversight of member institutions. FCA officials say the review would be held in the July-to-September quarter this year. The 2003 FCA agenda also includes a planned review of Farmer Mac supervision. That review began in October and should be completed next month. FCA is studying "what changes, if any, are needed to enhance the FCA regulatory and supervisory framework of Farmer Mac." 

Corn Database Coming.  The National Corn Growers Association (NCGA) Research and Business Development Action Team is launching a comprehensive database of products made from corn. Nearly 600 non-food and non-feed products made from corn can be accessed through the Corn-Based Products Guide. The guide will go live at www.ncga.com on Feb. 27 at the Commodity Classic, the joint trade show and convention of NCGA and the American Soybean Association, in Charlotte, NC, and is part of a larger initiative by the NCGA Research and Business Development Action Team of providing new markets for corn and corn-derived products. That initiative includes the Technology and Commercial Development Center (TCDC), an online resource to growers containing tools such as the Corn-Based Products Guide. 

February 20

Groups Want Russia Investigated.  Twenty-four agribusiness groups urged the Bush administration to investigate whether restrictions on U.S. meat and poultry imposed by Russia warrant trade action under Section 301 of the Trade Act of 1974. The coalition made their case in a letter asking that the office of the U.S. trade representative initiate the investigation rather than each affected industry filing individual petitions. 

Veneman Kicks Off Outlook Forum.  Agriculture Secretary Ann M. Veneman will deliver the keynote address at the 2003 Agricultural Outlook Forum in Arlington, VA, today. Other speakers include Agriculture Deputy Secretary James Moseley, Agriculture Under Secretary for Farm and Foreign Agricultural Services J.B. Penn, Treasury Under Secretary for International Affairs John Taylor, and Agriculture Chief Economist Keith Collins. 

Annan Urges Help for Africa.  REUTERS reports United Nations Secretary General Kofi Annan wants the international community to aid Africa with an agricultural revolution that could pull the continent out of poverty. He also said new farming techniques could counter the impact of HIV/AIDS on farm workers and on food production in Africa. Annan spoke to a U.N. conference and said the only way to reduce by half hunger and poverty by 2015 was to work with rural communities where three-quarters of the world's poorest people live. "The target of halving the number of people living in extreme poverty... will require us to work towards a green revolution in Africa's agricultural sector, so that Africa may move towards the self-sufficiency that we have seen achieved elsewhere," Annan said in a keynote speech. 

Japan Will Go for a Commitment on Rice.  KYODO NEWS reports Japan will get rid of its 30-year-old government control of rice production by fiscal 2008 but instead will leave a "commitment" to recognize rice production plans. The government commitment would recognize rice production plans by the Central Union of Agricultural Cooperatives (Zenchu) and other farming groups. The central and local governments also would provide advice on working out production plans. The decision comes in the wake of a request from Zenchu and other farming groups who oppose a new rice policy program that eliminates government control of rice production. 

China Trials Renew Concern.  THE WALL STREET JOURNAL reports China's Ministry of Agriculture will conduct additional field trials for imported genetically modified crops, a move that has renewed concern about possible disruption in China's annual $1 billion soybean trade with the U.S. Data from the new trials won't be available until after the September expiration of an interim agreement guaranteeing unimpeded trade, John L. Killmer, Greater China president of U.S. agricultural biotechnology company Monsanto Co., told Dow Jones Newswires. The United States brokered the interim agreement in an effort to protect trade while China conducted technical trials. The trials were said to be necessary for the issuance of safety certificates for imported genetically modified products including soybeans, canola and corn. "All (biotech) companies and even the MOA are certain that the tests can't be brought to completion far enough in advance of the Sept. 20 (deadline) to not become a further impediment to trade," Killmer said. 

February 19

Avian Flu Detection Test Developed.  A strain of avian influenza that has been endemic in live bird markets can now be detected quickly using a new laboratory test developed by an Agricultural Research Service scientist. ARS veterinary medical officer David Suarez developed the test to quickly identify birds infected with the avian influenza strain H7N2, which has been found among birds in northeastern U.S. markets since 1994. Live bird markets in New York City and other areas sell a broad variety of poultry. 

Biotechnology Passes Poor Countries By.  The promises and potential of biotechnology are not equally shared between developed and developing countries, the UN Food and Agricultural Organization Assistant Director-General Louise Fresco said in a statement. She warned of a "molecular divide", saying that "the gap between rich and poor farmers, between research priorities and needs, and between technology development and actual technology transfer, is widening." 

WTO Leader Worries About Bilateral Pacts.  REUTERS reports World Trade Organisation (WTO) Director-General Supachai Panitchpakdi is worried over the number of bilateral and regional trade agreements that he says could jeopardize the multilateral negotiations underway at the WTO. Supachai said the ever increasing number of countries seeking bilateral agreements could distort a broader approach by concentrating on narrow national interests pursued by countries with widely differing levels of economic development. "The some 270 (bilateral and regional) agreements that we have seen will probably rise to 300 in two years. No one has taken the time to see whether these accords are reached under the regulatory framework of the WTO," he told reporters after a speech in Bangkok. 

Poultry Quarantines Get Costly.  The ASSOCIATED PRESS reports more than $35 million has been spent so far by states imposing quarantines to stop the spread of exotic Newcastle disease in poultry. Since October, when the disease was discovered in backyard flocks in Los Angeles County, the federal government has spent $22 million and California $13 million to pay for operating the Los Alamitos-based task force dealing with the disease, said Larry Cooper of the California Department of Agriculture. In addition, the poultry and egg industries are absorbing new costs, according to a USDA study that include disinfection and biosecurity upgrades and losses in sales and exports. "Even simple things, like disinfecting, are beyond the reach of a lot of farmers," said Paul Bahan, owner of AAA Egg Farms in Riverside County's San Jacinto Valley. "We're pretty much running on empty and have been for a while." 

Cuba Says Get With It.  REUTERS reports Cuban importers and government officials are telling U.S. business executives they will miss out on a good thing if they fail to take advantage of opportunities in Cuba. The remarks came at a meeting this week in the resort town of Cancun, Mexico, where the second U.S.-Cuba Business Conference is being held. Cuban Trade Minister Raul de la Nuez said other countries are gaining a major share of the nation's business, particularly in the area of tourism. They said the point was illustrated by Europe and Canada that are by far the biggest international investors in Cuba with 26% and 15% respectively of market share in terms of foreign investment. 

Ethanol Production Again Sets Record.  The U.S. ethanol industry produced a record 2.13 billion gallons in 2002, according to the Renewable Fuels Association. Currently, 68 ethanol plants can produce 2.7 billion gallons annually. With 11 plants under construction, annual production capacity will expand to more than 3 billion gallons by the end of 2003. The RFA also said ethanol use consumed more than 800 million bushels of corn in 2002 and reduced CO2-equivalent greenhouse gas emissions by more than 4.3 million tons in 2002. The Ethanol Industry Outlook 2003 can be viewed at: www.ethanolRFA.org/outlook2003.shtml. 

Lange Leads Cotton.  The National Cotton Council Board of Directors elected Dr. Mark D. Lange president and chief executive officer. He succeeds Gaylon Booker, who retired after 41 years of service to the NCC and will serve as a consultant to the NCC in 2003. 

February 13

Pork Suffers With COOL.  An economic analysis of the mandatory country-of-origin labeling program, performed by economists for the U.S. pork industry and Iowa State University, concludes it will be very costly for the U.S. pork industry, according to the National Pork Producers Council (NPPC). The analysis, which was conducted by Dermot Hayes, an economist at Iowa State University and Steve Meyer, a U.S. pork industry economist, examined the potential impacts of country-of-origin labeling on several levels of the industry. 

Forward Contracting Reduces Milk Price Volatility.  Price volatility for milk is greatly diminished by the use of forward contracting, according to a report released recently by USDA on the use and effects of the forward contracting pilot program. Launched in August 2000, the voluntary pilot program allows milk handlers to contract with either farmers or cooperatives through December 31, 2004, for non-Class I (beverage) milk at prices different from the federally regulated prices. 

Producers Approve Milk Amendments.  Producers supplying milk for each of the 11 federal milk markets have approved amendments to the current Class III and IV milk order pricing formulas. USDA determined producer approval by polling the producer cooperative associations in nine of the markets, and by conducting referenda in the Northeast and middle east markets. The amended orders will become effective for milk marketed on or after April 1. 

Fire Ants Could Be Controlled by Bugs.  Recent findings from the Agricultural Research Service's fire ant research team in Florida could help find new, environmentally friendly ways to control these invasive pests that now infest millions of acres across the southern United States. 

Mediator Calls for End to Subsidies.  The ASSOCIATED PRESS reports a confidential proposal, that could be a setback for the European Union, calls for governments to stop paying farm subsidies and concentrate instead on exporting their products. The 26-page document, obtained by the AP, is from a mediator and calls for the World Trade Organization's 145 member states to eliminate all export subsidies over nine years. The proposal probably will increase tensions among WTO members in the key area of agriculture. It also quite likely will please countries like Australia and Brazil that have called for an end to export subsidies. The EU, however, which wants to retain farmer payments, will be infuriated. The 15-nation EU, which devotes around half its annual budget to farm subsidies, issued a statement calling the proposal "unbalanced." 

Japan Rejects Reducing Tariffs.  The ASSOCIATED PRESS reports Japan has rejected a proposal calling for a reduction in agricultural tariffs. The draft proposal is on the agenda for the World Trade Organization trade ministers' conference in Tokyo this week. Japanese Agriculture Minister Tadamori Oshima called the proposal "unacceptable overall." It was prepared by former Hong Kong Ambassador Stuart Harbinson, who chairs the WTO agriculture negotiations. The draft suggests WTO members lower tariffs to a level of 25% on some products over five years. 

Bill Retains Farm Aid but Targets It. Republicans are looking to push a $397.4 billion spending package through Congress yet this week with the House acting today and the Senate voting Friday. The bill is billions more costly than President Bush had wanted. The ASSOCIATED PRESS reports Republicans were including $3.1 billion for farmers, including those hurt by drought and floods. Leaders of Congress' agriculture committees tentatively agreed to shift more of the aid to growers injured by weather than the Senate originally approved, Senate officials said, to be financed by curtailing a farm conservation program. 

U.S. Soy Meal Production Declines.  Since 1998-99, world production of soybean meal increased by 23%, from 107.3 million tons to 131.8 million tons, forecast for 2002-03, according to USDA. With only a nominal increase in meal production, the U.S. share of world production has declined, from 31.8% to 26.7 percent , while Latin American and Asian shares have increased. Brazil, Argentina and Mexico's share of world production all increased over this period, while Asia's largest gainer was China, increasing from a 9.3% share to 13.8%. As expected, these changes in production patterns impacted soybean meal trade. The U.S. share of world exports declined from 16.5% in 1998/99 to a forecast 11.1% in 2002-03, whereas Brazil and Argentina's combined export share increased from 59.5% to 67%. Total world consumption of soybean meal increased 23% during this period, with China accounting for 5% of the consumption growth. In 2002-03, the European Union remained the largest importer of soybean meal, purchasing more than 19.1 million tons or 41% of the world imports. 

USDA Issues Interim Milk Order Amendment.  USDA has issued an interim order amending the current pooling provisions of the Central milk marketing order. The tentative final decision for the Central order, issued Nov. 8 was approved by dairy farmers. This interim order amends pooling standards to prevent the inappropriate pooling of milk on the Central order. The approved amendments eliminate the ability to simultaneously pool milk on the Central milk order and on a state-operated order that has market wide pooling. The interim order also will: establish lower but year-round supply plant performance standards; not consider the volume of milk shipments to distributing plants regulated by another Federal milk order as a qualifying shipment on the Central order; exclude from receipts diverted milk made by a pool plant to another pool plant in determining pool plant diversion limits; and, establish a "net shipments" provision for milk deliveries to distributing plants. The interim order was published in Wednesday's Federal Register and becomes effective on March 1. For additional information about the decision, contact: Donald R. Nicholson, USDA/AMS/Dairy Programs, P.O. Box 14650, Shawnee Mission, KS 66285-4650; Tel. (913) 495-9300; email: donald.nicholson@fmmacentral.com

February 12

Pork Suffers With COOL.  An economic analysis of the mandatory country-of-origin labeling program, performed by economists for the U.S. pork industry and Iowa State University, concludes it will be very costly for the U.S. pork industry, according to the National Pork Producers Council (NPPC). The analysis, which was conducted by Dermot Hayes, an economist at Iowa State University and Steve Meyer, a U.S. pork industry economist, examined the potential impacts of country-of-origin labeling on several levels of the industry. 

Forward Contracting Reduces Milk Price Volatility.  Price volatility for milk is greatly diminished by the use of forward contracting, according to a report released recently by USDA on the use and effects of the forward contracting pilot program. Launched in August 2000, the voluntary pilot program allows milk handlers to contract with either farmers or cooperatives through December 31, 2004, for non-Class I (beverage) milk at prices different from the federally regulated prices. 

Producers Approve Milk Amendments.  Producers supplying milk for each of the 11 federal milk markets have approved amendments to the current Class III and IV milk order pricing formulas. USDA determined producer approval by polling the producer cooperative associations in nine of the markets, and by conducting referenda in the Northeast and middle east markets. The amended orders will become effective for milk marketed on or after April 1. 

Fire Ants Could Be Controlled by Bugs.  Recent findings from the Agricultural Research Service's fire ant research team in Florida could help find new, environmentally friendly ways to control these invasive pests that now infest millions of acres across the southern United States. 

U.S. Soy Meal Production Declines.  Since 1998-99, world production of soybean meal increased by 23%, from 107.3 million tons to 131.8 million tons, forecast for 2002-03, according to USDA. With only a nominal increase in meal production, the U.S. share of world production has declined, from 31.8% to 26.7 percent , while Latin American and Asian shares have increased. Brazil, Argentina and Mexico's share of world production all increased over this period, while Asia's largest gainer was China, increasing from a 9.3% share to 13.8%. As expected, these changes in production patterns impacted soybean meal trade. The U.S. share of world exports declined from 16.5% in 1998/99 to a forecast 11.1% in 2002-03, whereas Brazil and Argentina's combined export share increased from 59.5% to 67%. Total world consumption of soybean meal increased 23% during this period, with China accounting for 5% of the consumption growth. In 2002-03, the European Union remained the largest importer of soybean meal, purchasing more than 19.1 million tons or 41% of the world imports. 

USDA Issues Interim Milk Order Amendment.  USDA has issued an interim order amending the current pooling provisions of the Central milk marketing order. The tentative final decision for the Central order, issued Nov. 8 was approved by dairy farmers. This interim order amends pooling standards to prevent the inappropriate pooling of milk on the Central order. The approved amendments eliminate the ability to simultaneously pool milk on the Central milk order and on a state-operated order that has market wide pooling. The interim order also will: establish lower but year-round supply plant performance standards; not consider the volume of milk shipments to distributing plants regulated by another Federal milk order as a qualifying shipment on the Central order; exclude from receipts diverted milk made by a pool plant to another pool plant in determining pool plant diversion limits; and, establish a "net shipments" provision for milk deliveries to distributing plants. The interim order was published in Wednesday's Federal Register and becomes effective on March 1. For additional information about the decision, contact: Donald R. Nicholson, USDA/AMS/Dairy Programs, P.O. Box 14650, Shawnee Mission, KS 66285-4650; Tel. (913) 495-9300; email: donald.nicholson@fmmacentral.com

February 11

Veneman Urged to Reconsider COOL Costs.  Nearly 40 members of Congress have told Agriculture Secretary Ann Veneman that USDA's projected $1.97 billion a year cost to implement the country of origin labeling (COOL) provision is "grossly over-inflated and neglects several mitigating factors." 

Cotton Demand Faces Serious Challenges.  The demand base for U.S. raw cotton continues to face very serious challenges, a National Cotton Council economist said here at the organization's annual meeting. With more than half of U.S. raw cotton moving into the world market, expanding access to international markets will be even more crucial to the industry's health. 

EU Farmers Increase Chicken Production.  European Union chicken production in 2002 is estimated higher than previously anticipated as farmers expected continued increases in consumption. However, EU chicken consumption actually declined in 2002 compared to the exceptionally high 2001 leve, which was induced by consumers rejecting beef as a result of the BSE scare, according to a USDA report. 

CSP Comments Sought. USDA's Natural Resources Conservation Service Chief Bruce Knight announced that the advance notice of proposed rulemaking and request for comments on the Conservation Security Program (CSP) will be released for publication to the Federal Register. This is a new program authorized in the 2002 farm law. The advance notice gives the public the opportunity to comment on key issues that have been raised regarding implementation of the program. The issues are presented in the advance notice. "Comments gathered during the 30-day comment period will help us develop a proposed rule," Knight said. "Then, the public will have another opportunity to provide input during the comment period for the proposed rule before a final rule is published. We want this to be the best program possible." CSP is a voluntary program that provides financial and technical assistance to conserve and improve soil, water, air, energy, plant and animal life on tribal and private working lands-cropland, grassland, prairie land, improved pasture and rangeland, as well as certain forested land that is an incidental part of an agriculture operation. 

Tobacco Growers Want Buyout.  The ASSOCIATED PRESS reports many Georgia farmers want the government to buy out their tobacco quotas so they can start producing other crops. Flue-cured tobacco has been a reliable income producing crop since the 1930, but in the last five years quotas have been reduced by nearly half as people smoked less and tobacco companies switched to cheaper imported tobacco. A quota is the amount of tobacco the government allows each farmer to grow for a guaranteed price. The farmers want the government to buy out their quotas and help them find alternate crops or continue growing tobacco under another system that allows them to compete globally. 

Farm Aid Clouding Appropriations Conference.  REUTERS reports a dispute over farm drought assistance continues to threaten an agreement by a House-Senate conference committee on a $396 billion spending bill that wraps up last year's unfinished federal budget. House of Representatives and Senate negotiators had worked through all but a dozen or so of their major disagreements over the mammoth 1,000-page bill by late on Monday night. Republican leaders said they hoped to finalize the package today and send it to President Bush by the end of the week. The $3.1 billion included by the Senate to help farmers recoup losses from last year's drought and other weather problems, remains up in the air. House and Senate lawmakers could not agree on how that aid should be paid for, or how it should be distributed between farmers in different regions. 

Food Security Booklet Published.  A publication released by USDA's Food Safety and Inspection Service details the agency's ongoing efforts to enhance food security, including work with Federal agency partners, state governments, industry and consumers. The booklet lists major achievements such as establishing the Office of Food Security and Emergency Preparedness and preparing and distributing Security Guidelines for Food Processors. To view the full publication, visit http://www.fsis.usda.gov/oa/topics/FoodSecReport.pdf.

U.S. Finds It Tough to Decide on EU Action.  REUTERS reports the Bush administration is finding it difficult to decide whether to initiate a trade dispute case against the European Union over the EU prohibition on gene-modified foods. A U.S. trade official said officials of the administration have threatened to take the EU to the World Trade Organization over the effective ban on genetically modified organisms (GMOs) but have not set a date for a decision. "People are genuinely wrestling with the question of what is the best way to deal with this situation," the U.S. trade official told reporters. Farm groups and members of Congress have urged the administration to seek a WTO ruling on the EU moratorium which they say costs U.S. farmers $300 million a year in sales. 

February 10

Cotton Council Sees 14.05 Million Acres.  Cotton producers intend to plant 14.05 million acres of cotton this spring, up 0.6% from 2002, according to the National Cotton Council's 20th annual early season planting intentions survey. Upland cotton intentions are 13.86 million acres, an increase of 1.1% from 2002 plantings of 13.72 million acres. Extra long staple (ELS) intentions of 184,000 acres represent a 24.7% decline from 2002. The results were announced at the NCC's 64th annual meeting in Tampa, FL. 

Plants Examined for HACCP Validity.  Dr. Garry L. McKee, administrator, Food Safety and Inspection Service, says about 130 beef slaughter plants are being examined to determine if their hazard analysis and critical control point (HACCP) plans are scientifically valid and being carried out conscientiously. 

RFA Applauds Bush on Hydrogen Fuels.  The Renewable Fuels Association (RFA) applauded President George Bush for highlighting ethanol as a domestic source of hydrogen to power fuel cells. Bush recently announced a $1.2 billion "hydrogen fuel initiative" to support research and commercialization of fuel cells for automobiles and stationary power generation. 

Two States Get Boll Weevil Funds.  USDA is providing $14 million in low-interest loans to help eliminate the boll weevil in Arkansas and Oklahoma. The Oklahoma Boll Weevil Eradication Organization (OBWEO) and Arkansas Boll Weevil Eradication Foundation are each receiving $7 million. 

Korea Supports EU Trade Stance. REUTERS reports South Korea supports the European Union and Japan in their position on reforming farm trade. The alliance that is building behind the EU position counters pressure from the United States and other countries for more aggressive liberalization. Seoul also has submitted its own proposals to protect its key staple crop sectors. "Our overall suggestions are similar to Europe and Japan," an agriculture ministry official told Reuters by telephone. "Yet we specified tariffs for developing countries and to protect key staple crops. South Korea's agriculture ministry said it supported the EU and Japan plan calling for an average of 36% reductions in total farm import tariffs over six years for developed economies.FMI Joins Food Summit Sponsor List. The Food Marketing Institute, the trade association of the food retail, supermarket, and food wholesalers industry, will join others as sponsors of The 5th Annual Food Safety Summit, the nation's largest food safety event that also emphasizes quality assurance, and food security. FMI conducts programs in research, education, industry relations and public affairs on behalf of its 2,300 member companies - food retailers and wholesalers - in the United States and around the world. The Food Safety Summit will be held March 18-20, 2003 at the Washington, DC, Convention Center. The other sponsors are The National Food Processors Association, The National Restaurant Association, and Food Safety Magazine. 

Witchweed Areas Amendment.  USDA's Animal and Plant Health Inspection Service announced it is amending the areas of North and South Carolina where witchweed has been declared eradicated. As part of this amendment, regulations and quarantines prohibiting the interstate movement of witchweed and host material will be removed in Bladen, Columbus, Cumberland, Pender and Robeson counties, NC, and Dillon, Horry and Marion counties, SC. However, USDA is adding six farms to the suppressive area list in Robeson County, NC, 11 farms in Horry County, SC, and six farms in Marion County, SC, where witchweed growth is known to occur. Witchweed is a parasitic plant that feeds off the roots of corn, sorghum and other grassy crops, and is found only in parts of the Carolina's. Witchweed deprives plants and crops of nutrients and moisture by tapping directly into their root system, limiting plant growth and productivity. Notice of this action is scheduled for publication in today's Federal Register and was effective Feb. 4. APHIS documents published in the Federal Register and related information, including the names of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. 

Swiss Don't Want Tariffs Cut.  REUTERS reports Switzerland, usually an ally of the European Union on farm issues, warned against trying to reduce tariffs too much in world trade negotiations. "We cannot just suddenly open our (farm) market, because it would be a total disaster, not just from the economic point of view but also from the social and political," chief Swiss negotiator Luzius Wasescha told journalists. He called EU proposals for a 36% reduction in tariffs and a 45% reduction in export subsidies "very ambitious," although farm exporting groups, including the United States, have slammed them as too conservative. 

Japan, However, Supports EU.  KYODO NEWS reports Japna has told the World Trade Organization (WTO) it favors farm market-opening targets proposed by the European Union (EU) to consider in multilateral trade negotiations. Toyoaki Ota, Japanese senior vice minister for agriculture, forestry and fisheries, met the WTO's agriculture committee chair Stuart Harbinson The United States and other exporters of agricultural products want a uniform limit of 25% on all farm tariffs under the so-called Swiss formula. 

Listeria Public Meeting Scheduled.  USDA's Food Safety and Inspection Service will hold a public meeting Feb. 26 to discuss the results of a draft risk assessment for Listeria.FSIS conducted an extensive, scientific risk assessment to examine how Listeria may contaminate meat and poultry products during the production and packaging processes. The risk assessment also addressed the effectiveness of testing food contact surfaces and the importance of sanitation standards. The draft risk assessment will be available to the public on the FSIS web site at http://www.fsis.usda.gov on or before Feb. 14. The public meeting will be held 9 a.m. to 4:30 p.m., Wednesday, Feb. 26, at the Washington Plaza Hotel, 10 Thomas Circle NW, Washington, DC. Written comments should be submitted to the FSIS Docket Room, Docket 03-005N, U.S. Department of Agriculture, Food Safety and Inspection Service, Room 102, Cotton Annex Building, 300 12thStreet SW, Washington DC, 20250-3700. 

February 7

Norton Calls for 'New Environmentalism.'  A "new environmentalism" is needed to help empower people "to take conservation into their own hands," U.S. Interior Secretary Gale Norton told cattlemen at a meeting of the National Cattlemen's Beef Association (NCBA). The meeting was held as part of the 2003 Cattle Industry Annual Convention & Trade Show in Nashville, TN. 

NGFA Urges Retention of Feed Regulations.  The National Grain and Feed Association this week urged the Food and Drug Administration to retain its existing animal feeding regulations that have contributed to keeping the United States free of bovine spongiform encephalopathy (BSE), commonly referred to as "mad cow disease." The NGFA said FDA's current animal feeding regulations designed to prevent the spread of the BSE agent if it ever enters the United States continue to reflect the best available science and prudent risk assessment, which the association said should continue to guide the agency's BSE-prevention efforts. 

Ethanol Reduces Carbon Dioxide.  The Renewable Fuels Association (RFA) says that according to the latest figures from Argonne National Laboratory the use of ethanol-blended fuels reduced carbon dioxide-equivalent greenhouse gas emissions by approximately 4.3 million tons in the United States during 2002. This reduction is equivalent to removing the annual greenhouse gas emissions of more than 636,000 cars from the roads. 

Agronomists to Help USDA with Programs.  USDA announced a cooperative partnership with the American Society of Agronomy (ASA) to identify technical service providers to help implement USDA conservation programs. The partnership will allow ASA to recommend certified members to USDA as technical service providers, as provided for by the 2002 farm law. The Bush administration has advocated expanding the availability of technical assistance to landowners by using third party technical service providers to assist USDA in delivering conservation technical assistance services. 

Pearl Millet May Benefit Poultry.  A new pearl millet hybrid that may become an important U.S. grain crop has been developed by Agricultural Research Service scientists. Pearl millet is an important grain crop in its native Africa, but there isn't an established market for it in the United States. 

NFPA Calls for Guaranteed Protection.  In comments filed with the Food and Drug Administration, the National Food Processors Association (NFPA) strongly urged that there be no use of food or feed crops to produce plant- made pharmaceuticals (PMPs) or industrial chemicals "without a 100% guarantee against any contamination of the food or feed supply." "In the absence of demonstrated effective controls and procedures to ensure against any contamination of the food or feed supply, NFPA vigorously opposes the use of food or feed crops to produce PMPs," noted Dr. Rhona Applebaum, NFPA's executive vice president and chief science officer. "Without such proven and effective controls, applications for this technology should be applied only in non-food and feed crops that are segregated from the food supply." 

Smaller Orange Crop Seen.  Florida's 2002-03 orange crop will be about 190 million to 192 million 90-pound boxes, smaller than previously forecast. But it has not been affected by a recent cold spell, the head of Florida's Department of Citrus told REUTERS. In its most recent monthly projection on Jan. 10, USDA put the figure at 197 million boxes. "I think it might be slightly less than that, more like around 190, 192 (million)," Bob Crawford, executive director of the state Department of Citrus, said in a telephone interview. "But generally, I think it'll be in the range of the estimate." Last year, Florida produced 230 million boxes of oranges. Crawford said this year's smaller crop was part of a natural cycle of fruit trees. 

Farm Aid May Be in Jeopardy.  THE WALL STREET JOURNAL reports the White House is taking a tough stand over new domestic spending that could jeopardize the $3.1 billion farmer aid proposal. In a letter to the House and Senate Appropriations Committees, Budget Director Mitchell Daniels Jr. said he will recommend that President Bush veto a $390 billion-plus budget bill should lawmakers try to get around spending limits the administration imposed for the fiscal year ending Sept. 30. "It is important that this limit be reached transparently," Daniels said, adding that any new assistance for drought-stricken farmers must be absorbed "within existing agriculture funding." 

Comments Sought on Imported Wheat.  USDA's Animal and Plant Health Inspection Service is soliciting comments on if and how regulations regarding the importation of wheat and related items should be modified. Under current regulations, importation of wheat and related items from a number of countries and localities is currently prohibited to prevent the introduction of foreign strains of flag smut into the United States. APHIS is considering easing restrictions on the importation of wheat and related articles from these countries and localities based on a recent risk assessment. The advanced notice of proposed rulemaking is scheduled for publication in today's Federal Register. APHIS documents published in the Federal Register and related information, including the names of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. Consideration will be given to comments received on or before April 8. Send an original and three copies of postal or commercial delivery comments to Docket No 02-058-1, Regulatory Analysis and Development, PPD, APHIS Station 3C71, 4700 River Road Unit 118, Riverdale, Md. 20737. If you use email, address your comments to regulation@aphis.usda.gov. Your comments must be contained in the body of the message; do not send attached files. Please include your name and address in the message and use "Docket No. 02-058-1" on the subject line. Comments may be reviewed online at http://comments.aphis.usda.gov. 

February 6

Farm Household Income Forecast Up.  USDA projects average farm operator household income for 2003 at $65,095, a 4% increase from last year. Increases in crop and livestock receipts and government payments are causing the farm income component of total household income to recover from the year-ago low. 

USDA Seeks to Protect Farmers in Warehousing.  USDA announced actions to increase producer protection in federally licensed grain warehouses under the U.S. Warehouse Act. The changes to the federal license requirements for grain warehouse operators result from collaborative efforts in recent months between USDA and various stakeholder groups. The changes are intended to improve producer protection requirements already in place for grain storage obligations and extend, for the first time ever, protection to producers who sell grain to federal licensees. 

National Grain and Feed Reacts to USDA Announcement.  The National Grain and Feed Association (NGFA) responded to USDA's changes to provide enhanced protection to producers doing business with federally licensed grain warehouses. The NGFA said it supported USDA's efforts to develop a stand-alone product under the federal warehouse program that addresses both storage and merchandising-related activities of federally licensed warehouse to further enhance producer protection, so long as it could be done in a way that keeps the program affordable for the industry that foots the bill. 

Food Terrorists Reasonable Expectation.  The ASSOCIATED PRESS reports an agriculture officials believes terrorist well could be lurking in fields and behind barns, ready to poison food-producing plants and animals. It's not an outlandish scenario, says Michael Harrington, executive director of the Western Association of Agricultural Experiment Station Directors. "Nobody thought anybody would crash a plane into the World Trade Center, either," Harrington said. "If someone were intent on attacking the agricultural and food system it could be done." Such forms of terrorism could damage the economy, kill people or make them sick, and cause the kind of upheaval the nation went through when anthrax was found circulating through the mail, he said. "You don't have to be a rocket scientist," said Harrington, who gave the keynote address at the 2003 International Chile Conference. "You don't have to have access to nuclear materials." 

Fischler Says U.S. Willing to Wait.  REUTERS reports European Union Farm Minister Franz Fischler has been told by senior U.S. State Department official that the United States is willing to wait a while longer before deciding whether to bring a trade case against the EU for its moratorium on biotech products. The biotech trade dispute comes at a delicate time in U.S.-EU relations as Washington tries to solicit support from European nations for a military strike against Iraq. Fischler told reporters that Under Secretary of State Alan Larson told him the Bush administration had decided against initiating a case for now. A State Department spokesman denied Larson had relayed such information to Fischler. "The under secretary did not address the timing of a WTO case," the spokesman said. 

U.S. Expects Allies on EU Biotech Position.  REUTERS reports U.S. officials expect other agriculture exporting nations to support a challenge to the European Union at the World Trade Organization (WTO) over biotech crops. Peter Allgeier, deputy U.S. Trade Representative, told reporters Washington was in consultations with potential allies on the timing of any WTO action against the EU's four-year-old moratorium on approval of genetically modified (GM) products. "I am very confident there will be others. I do not think we will be faced with a decision on whether to go it alone," Allgeier told a news conference late on Tuesday. 

New Baseline Coming Friday.  USDA will release new 10-year agricultural baseline projections on Friday. USDA provides long-term agricultural projections each year for use in preparing federal budget estimates. USDA has published the projections each year in late February at the Department's annual agricultural outlook forum. The publication schedule is being advanced this year to early February to more closely follow release of the President's budget. "USDA Agricultural Baseline Projections to 2012" will be released Friday in electronic form on the Office of the Chief Economist website, http://www.usda.gov/oce. The full report will be available in printed form Feb. 20 at the USDA Agricultural Outlook Forum. Copies can be ordered now from the National Technical Information Service at http://www.ntis.gov or 1-800-999-6779. Request document WAOB-2003-1. 

Cattlemen Approve Labeling Resolution.  The National Cattlemen's Beef Association Board of Directors approved a resolution on country of origin labeling that calls for increased communication between producers and government, more opportunities to provide input on the program, and additional educational information for producers. Passed last week, the resolution passed last week is based upon the growing concerns that have been expressed regarding the implementation of the law, NCBA said. NCBA said it historically has believed that the impacts of this program must be carefully evaluated and more information must be exchanged between policymakers and cattle producers prior to implementation of a mandatory country of origin program. This resolution will help achieve those objectives, the association added. 

February 5

Atrazine Deemed Safe with Caution.  The Environmental Protection Agency has decided that atrazine, a widely used herbicide in production agriculture, is safe, if used properly. EPA concluded that atrazine may continue to be used, provided all the precautions and the new specific measures are implemented to reduce risks to drinking water. 

Ultrasound May Be Used for Cotton Processing.  Ultrasound, the technology used to detect the progress of a woman's pregnancy, soon may be used by textile manufacturers to speed up cotton processing techniques. Work toward that end is being done by chemical engineer Val Yachmenev and his colleagues at the Agricultural Research Service. 

More to Join U.S. EU Challenge.  REUTERS reports other agricultural exporting nations should join the United States in its challenge to the European Union's biotechnology position on farm products. Peter Allgeier, deputy U.S. Trade Representative, told reporters Washington was talking with potential allies on the timing of any World Trade Organization action against the EU's four-year-old moratorium on approval of genetically modified (GM) products. "I am very confident there will be others. I do not think we will be faced with a decision on whether to go it alone," Allgeier told a news conference late on Tuesday. But he declined to name the countries or to say when a final decision might be taken. 

Mexican Farmers, Government Will Talk. REUTERS reports farmers in Mexico and government officials will talk about competition from imported products from the United States and Mexico that Mexican farmers say are hurting them financially. A joint statement from the government and various agricultural groups said a special commission to organize the talks would be announced Thursday, and the talks would begin on Monday. Last week up to 20,000 Mexican farmers marched on Mexico City to pressure the government to get rid of agricultural trade policies they say are ruining them, in particular, newly implemented provisions of the North Atlantic Free Trade Agreement (NAFTA) with the United States and Canada. As of Jan. 1, farm products like apples, sorghum and wheat began entering Mexico tariff-free under NAFTA, which came into effect in 1994. The government has refused to renegotiate the terms of NAFTA. 

Arizona Declares Chicken Emergency.  The ASSOCIATED PRESS reports Arizona Gov. Janet Napolitano declared a state of emergency Tuesday after Exotic Newcastle Disease was found in chickens at an Indian reservation in western Arizona. The state Department of Agriculture is expected to quarantine Yuma County, La Paz County and part of Mohave County south of the Grand Canyon today, according to Napolitano natural resources adviser Lori Faeth. "It's highly contagious," she said. The disease was discovered in Arizona after a farmer on the Colorado River Indian Tribes' reservation near the California border reported last week that about 30 chickens had died suddenly. 

Corn Growers, Divergence Work on Nematodes.  The National Corn Growers Association (NCGA) and Divergence, Inc. are collaborating in an effort to control parasitic nematodes (roundworms) that plague corn and many other crops. Divergence, a St. Louis-based research and development company, is developing nematicides, as well as nematode resistance plant genes that can be delivered as valuable traits in the seed. NCGA is a federation of state organizations, corn boards, councils and commissions that develops and implements policies and programs to help protect and advance corn producers' interests. This research is intended to provide a safe method to protect plants from nematode pests. Current nematode control is accomplished by using chemicals that can have serious consequences to human and environmental health. In fact, many of these compounds are scheduled to be removed from the market. Through this collaboration, Divergence and NCGA hope to offer growers new, safe approaches to control nematodes in their crops. 

Meat Plants Fail Safety Standards.  REUTERS reports more than half of U.S. meat plant don't meet federal food safety regulations that are designed to prevent E. coli bacteria from getting into their products. USDA said it will impose the "next generation of enforcement" on the U.S. meat industry as part of its "war against E. coli." The focus reflects proposed record level funding for its food safety programs in fiscal 2004. "We are doing everything possible to prevent outbreaks of E. coli in the summer, certainly to prevent these large recalls that we've had," USDA Undersecretary Elsa Murano told reporters. Last September, the department ordered all U.S. beef slaughter and grinding plants to re-examine their food safety systems when E. coli was discovered to be more prevalent in meat than previously thought. 

February 4

Veneman Spells Out Bush USDA Budget.  Agriculture Secretary Ann Veneman Monday released details of the Bush Administration's proposed fiscal year 2004 budget for USDA programs and services. The $74 billion request is 2% higher ($1.4 billion) than the previous year and $5.4 billion higher (or 8% growth) since fiscal 2001. 

Food Processors Balk at User Fees.  A proposal included in the 2004 federal budget for USDA to impose user fees on food processing facilities regulated by the department is opposed by the National Food Processors Association (NFPA) as "a tax on food production."

Holstein Semen, Embryos Preserved.  Semen and embryos sufficient to reintroduce Holstein dairy cattle in the United States have been acquired by the Agricultural Research Service. This genetic "insurance," available to protect the country's primary dairy cattle breed, is one ARS effort to preserve genetic material for plants and animals. 

Livestock Producers Will Face Labeling Challenge.  Cattle and hog producers who supply livestock to beef and pork packing plants should start preparing now for the new country-of-origin labeling law, according to the American Meat Institute's Senior Vice President of Regulatory Affairs and General Counsel Mark Dopp. 

DOE Has Ethanol Publication Available.  A recently completed technical compendium entitled "Fuel Specifications and Fuel Property Issues and Their Potential Impact on the Use of Ethanol As a Transportation Fuel" is now available on the U.S. Department of Energy (DOE) website at: www.afdc.doe.gov/pdfs/6968.pdf. The technical compendium was produced by Downstream Alternatives, Inc. (DAI), for the Oak Ridge National Laboratory's Analysis and Development of Ethanol Markets project, which is sponsored by DOE's Office of Energy Efficiency and Renewable Energy. This report is a general information reference tool for the ethanol industry, related industries, and those in local, state, and federal government who need to familiarize themselves with ethanol's technical features. A number of transportation fuel specifications and fuel property issues can impact the operational practicality and economics of using ethanol in various fuel applications. As with any fuel additive, ethanol's unique blending properties affect compliance with various fuel related parameters. While the majority of issues identified pertain to gasoline ethanol blends of 10 volume percent or less, developing issues with E diesel™, E-85, and ethanol in fuel cell applications are also discussed. 

USDA Won't Hold Butterfat Hearing. USDA will not grant the ice cream industry's request for an immediate hearing regarding the price volatility associated with the role of butterfat in Class II milk prices. The International Ice Cream Association petitioned USDA last April to examine these pricing fluctuations in order to obtain relief from the sharp increases in ingredient costs that the ice cream industry has struggled with over the past several years. In a letter to IICA, USDA said decisions on Class III/IV and the butter/nonfat dry milk price tilt have addressed Class II issues: "USDA has considered the impact of its November actions, with respect to the issues that you raised in your petition, concerning Class II milk prices and USDA has decided that those actions addressed the concerns that you have raised." 

Puerto Rico Chicken Processor Suspends Operation.  The ASSOCIATED PRESS reports Puerto Rico's largest chicken processing company has suspended operations indefinitely. The action leaves 500 employees without jobs. The company is working to restructure. Picu Cos. filed for Chapter 11 protection on Monday, said Samuel Reyes, chairman of the board of directors. "Picu has not closed, it has stopped processing chickens until we can resolve a cash flow problem," Reyes told a news conference. USDA halted operations at the company twice last year after inspectors found a rat in a chicken breeding farm as well as bacteria harmful to chickens but not to humans. 

Iowa May Continue Packer Ownership Ban.  REUTERS reports a federal judge will allow Iowa to continue prohibiting meat packers from owning, operating or controlling pork production as the state's attorney general appeals a decision that the practice was unconstitutional. The U.S. District Court in Iowa last week granted a temporary stay of the ban when the state announced it planned to appeal the court's ruling, said Bob Brammer, spokesman for the state attorney general's office. U.S. Judge Robert Pratt last month ruled that Iowa's packer ownership ban was protectionist and unconstitutionally discriminatory, handing a victory to agribusiness giant Smithfield Foods Inc. 

February 3

Former Agriculture Secretary Lyng Dies. Richard E. Lynn, who served as secretary of agriculture in the late 1980s, died at the age of 84. Secretary of Agriculture Ann Veneman called him a "friend, a mentor and person of great integrity whose insight, candor and wisdom will be sorely missed." 

Beef Demand Increases. Demand for beef has increased more than 3% since 2000 and nearly 10% since its low in 1998, officials announced at the 2003 Cattle Industry Annual Convention and Trade Show. Preliminary year-end demand data indicate that consumers' appetite for beef remained strong through, despite record-high beef supplies, softened exports to key international markets, and a struggling economy. 

Weather Service Should Continue, Says Report. The National Weather Service should continue to issue general forecasts and provide unrestricted access to observational data, even though weather forecasts are made by many private companies as well, says a new report from the National Academies' National Research Council. The committee that wrote the report also said, however, that the Weather Service should adopt procedures for discontinuing forecasts that are targeted to specific organizations or businesses. 

Food Industry Embracing Irradiation.  REUTERS reports the food industry is embracing the use of irradiation for meat as a protection against deadly baccteria. Only a small percentage of the 9 billion pounds of ground beef sold in the United States last year was irradiated, but the amount is growing rapidly, despite concerns voiced by some consumer groups about the unknown long-term effects on health. "I would estimate the total volume currently being irradiated under 5% (of beef production), but we are anticipating an exponential growth curve," said Janet Riley, spokeswoman for the American Meat Institute (AMI). Irradiation exposes products to ionizing radiation that kills insects, molds and bacteria. Irradiation of ground beef was approved in January 2000, and the first batch was processed in May of that year. 

Russia Blocks Meat Imports. REUTERS reports Russia has blocked all meat imports and told importers they need to apply for new licenses. Current licenses were declared void. "Importers, which plan shipments of beef and pork in February and March, and poultry meat in February to April, should urgently renew their licenses," a letter dated January 29 from Chief Veterinary Inspector Mikhail Kravchuk said. It appears to be part of series of agricultural trade spats with major partners, including the European Union which this month slapped import quotas on Russian grain. The letter said the order was connected to Moscow's establishment this week of annual import quotas for beef, pork and poultry imports, which had already alarmed major importers. Russian officials denied any link to the EU grain quotas. 

Mexican Farmers Protest NAFTA.  REUTERS reports Mexican peasants with burros marched alongside other more modern farmers on combines in Mexico City on Friday in an effort to get the government to get rid of agricultural trade policies they say are ruining them. Tens of thousands of growers, many bused in from remote areas, demonstrated peacefully against newly implemented provisions of the North American Free Trade Agreement they fear will swamp them with a wave of inexpensive U.S. and Canadian agricultural imports. They want government protection from U.S. and Canadian farm products such as apples, sorghum and wheat that began entering Mexico tariff-free on Jan. 1 under NAFTA. 

Zambia Offers Free Farmland.  REUTERS reports Zambia will offer thousands of hectares of free farmland in an effort to end food shortages that are embarrassing the government when the country enjoys a huge farming potential. A pilot project is to begin soon with 90,000 hectares of farmland being offered in Serenje, central Zambia, and 100,000 hectares in Kaoma, southern Zambian, Deputy Finance Minister Patrick Kalifungwa told REUTERS. Agriculture ministry officials said they were planning at first to give 1,000-hectare plots to commercial farmers with capital to start work immediately -- growing corn, fresh vegetables, fruit, flowers, coffee and tobacco. Only 2.7 million hectares of Zambia's 18.2 million hectares arable land now is utilized. 

Ukraine Exports Surge to Record.  REUTERS reports Ukraine's grain exports surged to a record 8.187 million tons in the first half of the 2002-03 (July-June) season compared with 5.052 million in the same period last season. The country's leading ProAgro agriculture consultancy said in a statement Ukraine exported 5.549 million tons of wheat, 1.977 million tons of barley, 295,400 tons of corn and 293,100 tons of rye and other cereals in July-December 2002. Ukraine produced 38.8 million tons of grain in 2002 and plans to increase grain exports to 11 million tons this season from 9.1 million in the previous season. 

Russian Meat Import Quotas to Undermine WTO Membership Bid? THE WALL STREET JOURNAL reports Russia's decision to set quotas on meat imports could harm its bid to join the World Trade Organization. The Russian Agricultural Ministry suspended all veterinary licenses for imports of beef, pork and poultry Friday, and required importers to reapply for the permits. That could take weeks. Officials said domestic producers had to be protected from foreign competition. "The nation's food security is at stake," said Agriculture Minister Alexei Gordeyev. He said more than a third of the meat sold in Russia was imported. Quotas would help boost domestic production of pork by 8%, beef by 5% and poultry by as much as 20%, he said. Analysts said the move was more of an effort to punish the European Union for imposing barriers to Russian wheat as Russia was trying to reassert itself as a major grain exporter. 
 

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