AgricultureLaw.com -- January 2000 News Archive

January 31, 2000

Clinton Scores EU Ag Policy, Promotes WTO Round. President Clinton, in an address to the World Economic Forum in Davos, Switzerland Saturday, said the European Union should be willing to negotiate reductions in its agricultural export subsidies. The President also called on international leaders not just to reform and strengthen the World Trade Organization but support the WTO even as reforms take place.

WTO Finds U.S. Section 301 Is 'Consistent.' The World Trade Organization Dispute Settlement Body has found Section 301 of the U.S. Trade Act of 1974 is consistent with U.S. obligations under the WTO. The European Union had filed a complaint, claiming Section 301 was inconsistent with the WTO.

Group Says USDA Idea Distorts Markets. The National Grain and Feed Association says USDA's proposal to subsidize the installation of grain-cleaning systems at wheat export facilities would create market distortions that would hurt farmers and reduce export market potential.

Dairy Leaders Schedule Two-Day Hearings. A "Dairy Producer Conclave," created by the National Milk Producers Federation, will hold a series of two-day sessions around the country this spring to determine producer views on various issues affecting dairy farmers.

Calendar:

The Senate Agriculture Committee will hold a hearing Tuesday to examine agriculture business concentration, focusing on the authority of USDA's Grain Inspection, Packers and Stockyards Administration, 9 a.m., in SR-328A. The committee will examine proposed loan guarantees to rural satellite and cable systems Thursday, 9 a.m., SR-328A.

Ag News Summaries

Biosafety Protocol Agreement Approved. Delegates from more than 130 counties along with 50 environmental ministers have agreed on a biosafety protocol to govern trade in genetically-modified commodities and seed. FARM JOURNAL reports a majority agreed to require labeling of shipments of crops that "may contain living modified organisms," to allow countries to refuse shipments of GM crops if they believe the scientific evidence on safety is incomplete and to put the protocol on an equal footing with the World Trade Organization. The United States, Canada, Argentina and Australia had objected to what they said would be a new layer of bureaucracy in agricultural trade.

SIP Will Cost $3.1 Billion. The Clinton Administration's proposed new supplemental income payment program would cost $3.1 billion this year and strengthen the farm safety net until Congress rewrites existing farm law in 2002, THE ASSOCIATED PRESS reports. "Payments will increase when times are the toughest and will taper off when prices rebound," said Agriculture Secretary Dan Glickman. Payments would depend on the average gross national income over the past five years for eight major crops – corn, wheat, cotton, rice, soybeans, sorghum, oats and barley – and limited to $30,000 per operation.

Administration sources told AgricultureLaw.com the $30,000 limit applies to combined payments under the new program and the existing "Freedom to Farm" law. However, the provision would not change the existing $40,000 limit on Freedom to Farm payments. In effect, a farm now subject to the $40,000 limit would be completely ineligible for the new payments, as would a farm now receiving $35,000 in Freedom to Farm payments (because that sum exceeds $30,000). A farm now receiving $20,000 in Freedom to Farm payments could get $10,000 under the new program, while a farm that now gets $10,000 in Freedom to Farm payments would be eligible for up to $20,000 in new payments.

Clinton Launches Drive to Change Farm Law. Speaking in Quincy, IL, President Clinton Friday called for $11 billion to prevent the freedom to farm law from becoming the "freedom to fail" law. The administration will ask Congress for $11 billion over two years to strengthen the so-called safety net for farmers, including the $3.1 billion Agriculture Secretary Dan Glickman called for in emergency payments after this year's harvest. Clinton also spoke of the need for additional help for producers to purchase crop insurance.

Court Won't Block Dietary Guidelines. A federal district court refused to block USDA's dietary guidelines. Groups representing vegetarians and racial minorities charged that the 11-member advisory committee working on revised guidelines should have included at least one representative of people who use federal nutrition programs and sought an injunction against the revisions. THE ASSOCIATED PRESS reports U.S. District Judge James Robertson noted that the committee's proposed revisions were unlikely to include any major changes from the current version.

January 28, 2000

Clinton Calls for Farm Recovery Measures. President Clinton used the State of the Union address to call on Congress to help farmers recover from two consecutive years of poor prices. "Please," Clinton said, "they need help. Let's do it together." He also called for normal trade relations with China but avoided international trade talks struggling to get underway this year.

Imports Lag 1998 Levels. USDA reports that January-November agricultural exports were 7% less than the 1998 total for the same period. Cumulative imports increased 2%. That meant the trade surplus declined to $9.4 billion from $13 billion last year, a 28% difference.

Justice Petitions for Mushroom Order Rehearing. The Justice Department has asked a federal appeals court to rehear a case involving the constitutionality of the mushroom promotion, research and information order. A circuit court ruled in November that payments for advertising violate the First Amendment.

WTO Rules Mexican Duties Illegal. The World Trade Organization has issued a final rule that finds Mexico's antidumping duties on high fructose corn syrup are illegal under the WTO antidumping agreement. The U.S. Corn Refiners Association says the Mexican sugar industry had tried to use the duties as a shelter from competition.

Ag News Summaries

Gephardt Wants China Vote by June. House Minority Leader Richard Gephardt (D-MO) wants Congress to vote on normal trade relations with China by June; any further delay could scuttle consideration for the year, he says. REUTERS reports congressional leaders have refused to take up the pact until China strikes similar agreements with the European Union and other WTO member nations.

Farmland Laying Off 320 Employees. Farmland Industries Inc., Kansas City, MO, will lay off about 320 administrative employees in a cost-cutting move prompted by the troubled farm economy, REUTERS reports. Spokeswoman Sherlyn Manson told REUTERS as activities are cut back and eliminated, "those jobs will go away. It's related to the depressed ag economy."

Academics Back 1996 Farm Law. Three academics threw "economic cold water" on changes in the 1996 farm law, REUTERS reports. Professors Don Paarlberg and David Orden told a federal commission that Congress "should hold a steady course." Ohio State University economist Luther Tweeten also urged retaining the 1996 reforms. The remarks were made to a hearing by the commission charged with recommending to Congress further farm policies beyond 2002 when the 1996 law expires. Commission member Leland Swenson, president of the National Farmers Union, said the academics were relying too much on free-market theory.

January 27, 2000

Beef Demand Increase Signals Stability. Beef demand in 1999 increased 3.5% over 1998, indicating that for the first time in 20 years, demand has stabilized. Industry officials say that demand is accompanied by increased consumer spending for beef and higher per capita consumption.

Soy Protein Helps Prevent Breast Cancer. Soy protein has been found to help prevent breast cancer with a 20-25% rate of success. Results were published this month in the journal Cancer, Epidemiology, Biomarkers and Prevention, the official publication of the American Association for Cancer Research.

Irish Farmers Halt Meat Plant Blockade. Irish farmers have decided to accede to a court order and halt the blockade of Irish meat plants that began Jan. 11. That decision led to the resignation of the national council of the Irish Farmers Association, including President Tom Parlon. A decision by the Department of Agriculture to impose additional veterinary fees led to the blockade.

Ag News Summaries

State of the Union Is Tonight. President Clinton addresses Congress and the nation tonight on the state of the union, the last of his administration. He is expected to outline a series of new policy proposals, including specific policies on education, health care, child care and possibly agriculture. In recent weeks, the administration has said it will propose expanded conservation programs for farmers and ranchers. THE ASSOCIATED PRESS notes that the Dow Jones industrial average was 3,242 when Clinton took office; now it's above the 11,000 mark. Clinton is expected to tout statistics that chart the national economic successes since 1993, a success which the White House counts as its most tangible accomplishment.

Daley Urges China Approval by July. Commerce Secretary William Daley has urged Congress to approve a trade agreement with China by July, since further delay could bog it down in election politics, REUTERS reports. "I see the window on this as mid-April until July," Daley told the U.S.-China Business Council. President Clinton is expected to use the State of the Union address tonight to highlight the benefits of the U.S.-China trade agreement.

Chamber To spend Millions on China Campaign. The U.S. Chamber of Commerce is expected to spend up to $8 million to support selected congressional candidates as part of a major campaign to win passage of the U.S.-China trade agreement and the related congressional approval of normal trade relations with China, REUTERS reports. Chamber President Thomas Donohue says the chamber will contribute close to $100,000 on as many as 40 House races and $200,000 more on nine to 11 Senate races to support candidates who back the China deal.

Mixed Decision on Corn Syrup. The Mexican government says its investigation of U.S. corn syrup imports got a green light from a World Trade Organization (WTO) panel, REUTERS reports, although the panel found fault with the how the nation justified damage to its sugar industry.

January 26, 2000

Crop Insurance Payments Record; Reform Expected. Risk Management Agency Administrator Ken Ackerman says record indemnity payments went to farmers from last year's losses, but the risk was shared by enough farmers to allow the federal crop insurance program to absorb the losses and still have a "very moderate" loss ratio. He expects Congress will resolve differences over crop insurance reform this year.

Clinton Pushes for China NTR. In a lengthy letter to House Speaker Dennis Hastert and Senate Majority Leader Trent Lott, President Clinton Monday said Congress must grant normal trade relations with China or lose out on an agreement that essentially calls for one-way trade reform. The United States gave up nothing in the agreement, said Clinton, but China agreed to "comprehensive market-opening concessions."

Biotech 'Huge Potential' for Public Good. Senate Agriculture Committee Chairman Richard Lugar (R-IN) says agricultural biotechnology "retains a huge potential for public good" and should be promoted and developed or the options will be far less palatable as the world tries to feed an ever-expanding population.

China May Be Dumping Two Ag Products. Sen. Charles Grassley (R-IA) wants a federal investigation into "possible illegal imports" of two agricultural products from China. U.S. processors have lost "major accounts and significant revenue" from a dramatic increase in imports of citric acid and sodium citrate from China, he says.

EPA Sidesteps Congress on Water Law. The Environmental Protection Agency has superceded its authority under the Clean Water Act with proposed water quality rules that target farmers, according to the American Farm Bureau Federation. Not only has EPA sidestepped Congress, but it also has supplanted the responsibility granted the states, says AFBF.

Farmers Urge Biotech Support in Montreal. Farmers from the United States and Canada Tuesday told delegates to the biosafety protocol in Montreal to "look beyond the fear mongering" and study the facts about biotechnology and the positive impact it has on farming and the environment.

Milk May Overcome Lactose Intolerance. Purdue University scientist Dennis A. Savaiano says the controlled consumption of milk can help people who suffer lactose intolerance to recondition their digestive systems to accept dairy foods without discomfort. The secret is to ease the body into accepting dairy foods over time, Savaiano says.

Ag News Summaries

EU Sees Bright Outlook for Cereals Trade. The European Commission expects total food grain production in the 15-member bloc to increase to 216.7 million tons in the 2006-07 season from the 1999 million tons in 1999-2000, REUTERS reports from Brussels. Total exports should begin increasing beyond the Uruguay Round limits on subsidized exports from 2003-04 and on. World market prices for soft wheat should increase beyond the EU intervention price level by then.

EU Mandatory Beef Labeling Closer. European Union agricultural ministers likely will approve mandatory labeling on all beef products sold throughout the EU from Sept. 1 in a bid to quash fears about meat safety, reports BLOOMBERG NEWS. The new law will force countries to label beef with the country in which the animal was born, raised and slaughtered, a European Commission spokesman said. Although Ireland, the United Kingdom and the Netherlands have favored less stringent labels, the bloc appears to have a sufficient majority to pass the stronger regulation.

Democratic Party Hearings Postponed. Democratic Party Hearings Postponed. The Senate Democratic Policy Committee was scheduled to begin a series of hearings today on farm policy proposals but postponed the hearing due to the inclement weather that hit Washington Tuesday. The hearing was scheduled for 10 a.m. in room 708 of the Hart Senate Office Building. For more information, go to the Internet site for the committee, at http://dpc.senate.gov.

Carl Curtis Dies. Carl Curtis, member of the House and Senate for 40 years, died at the age of 94 in Lincoln, NE. He was elected to Congress in 1939 as a Republican and served seven two-year House terms before being elected to the Senate where he served four six-year terms before he retired in 1979. REUTERS reports he arrived in Washington for the first time and looked at the capitol building, then reportedly remarked, "My, but it sure would hold a lot of hay." His congressional focus was agriculture, tax and society security issues. He switched parties in 1936, saying the Republicans better suited his political philosophy.

Stocks Need More Demand to Strengthen. Shares of IBP Inc. and Smithfield Foods Inc., the two largest U.S. pork processors, could extend a six-month slump as the increasing cost of livestock squeezes profits at their slaughterhouses, BLOOMBERG NEWS quotes analysts as saying. Smithfield has plunged 48% since late July; IBP has declined 41% to its lowest close Monday since July 1994. Analysts say demand will have to increase because the average cost of buying a hog could increase as much as 25% this year from a year earlier.

Minge Goes to Cuba. Rep. David Minge (D-MN) made a one-day trip to Cuba over the weekend and met with commerce and foreign ministries officials, THE ASSOCIATED PRESS reports. Minge plans to push for an agricultural trade mission to Cuba this year with the aim of lifting the U.S. trade embargo against the communist island. In an interview, Minge said the embargo is "counterproductive. The Cold War is over."

January 24, 2000

Former Congressman Heads Biotech Panel. Former Rep. Dennis Eckhart (D-OH) has been named chairman of an advisory committee on agricultural biotechnology. The committee will advise the Secretary of Agriculture on policy related to the creation, application, marketability, trade and use of agricultural biotechnology. In all, 38 members were named.

White House Announces Two Ag-Related Budget Provisions. The White House says President Clinton's 2001 budget will include an increase of more than $93 million to develop bio-based technologies with a separate $30 million dedicated to protecting and restoring wetlands.

New England Wetlands Restoration Partnership Unveiled. A new organization, the New England Corporate Wetlands Restoration Partnership, has been formed to restore the region's wetlands. It will combine private industry contributions with federal and state matching funds to finance the projects.

Physicians Group Seeks to Block Dietary Guidelines. The Physicians Committee for Responsible Medicine, a group that has come under fire numerous times from the food industry and other medical personnel, has requested a preliminary injunction in U.S. District Court against release of the revised Dietary Guidelines for Americans. For its stand on dairy products, the International Dairy Foods Association says the PCRM is "once again circulating misinformation."

AFBF Will Support Supplementing Farm Income. The new president of the American Farm Bureau Federation, Bob Stallman, says the group supports "some counter-cyclical income assistance," a concept embraced by the Clinton Administration and developed as legislation by Rep. Charles Stenholm (D-TX). AFBF also supports "the flexibility and market orientation" of the 1996 farm law, says Stallman.

January 21, 2000

Moore Holds Scant Hope for Round's Next Step. World Trade Organization Director-General Mike Moore holds out little hope that the agricultural round of international trade talks will get underway anytime soon. There are "strong feelings" among countries that are preventing anything more than a "chance" that the round will get underway this year, he says.

Kerrey Won't Run Again: Strong Ag Advocate. Sen. Bob Kerrey (D-NE) won't seek a third term this year, leaving Democrats on the Senate Agriculture Committee with an important seat to fill in the next Congress. Kerrey has been considered a strong advocate for farmers and is a co-sponsor of a crop insurance reform measure pending in the Senate.

Meat Firms May Use Additives Against Listeria. USDA's Food Safety and Inspection Service will allow meat companies to increase the use of several food ingredients used to inhibit pathogen growth or as flavor enhancers. It also means companies will have to reassess their hazard analysis and critical control point (HACCP) systems for those products.

USDA Settles South Dakota Wetlands Suit. USDA has agreed to conduct on-site wetland determinations when requested to ensure accurate wetlands determinations. The decision settles a lawsuit filed in South Dakota challenging the way wetland provisions were being implemented.

Ag News Summaries

Cancer Aid Eyed. Researchers have found that whey and soy protein may help prevent breast cancer. The research, funded by USDA, is featured in this month's "Cancer, Epidemiology, Biomarkers and Prevention," an official journal of the American Association for Cancer Research. Researchers compared the protective effects of soy protein and whey protein against chemically induced tumors in the milk producing glands of rats. They found that about 50% fewer rats had mammary tumors when fed a diet containing a processed whey protein as compared with rats eating a standard diet.

Glavany Warns Farm Talks Risk Failure. French Farm Minister Jean Glavany warns that international trade talks on agriculture and services will result in failure unless changes are made at the World Trade Organization, REUTERS reports from Paris. "The discussion will start up again in Geneva on agriculture and services," he said. "But without a written text, without a calendar and without specific objectives, one should not expect anything big."

National Organic Standards Detailed. USDA's National Organic Program chief Keith Jones says rules on organic products will require organic producers to go through a mandatory planning process, use materials off a restrictive list and get their farming practices verified by an authority, THE ASSOCIATED PRESS reports. Speaking at the Ecological Farming Conference in Pacific Grove, CA, Jones said enforcement will be handled by state, county and private agencies that now oversee the industry with a hodgepodge of rules and guidelines. The new rules should take effect this summer, he said.

CBOT to Split into Two Companies. The Chicago Board of Trade will replace its membership structure with two separate companies, one for open-outcry trading, the other for electronic trading, REUTERS reports. In a letter to members, board Chairman David Brennan said the CBOT directors have voted to establish a for-profit, closely held open outcry unit and an electronic trading entity. CBOT members would own equity in the e-commerce company, whose shares may be sold publicly. The move -- known as "demutualization" -- replaces the more than 150-year-old membership structure of the CBOT.

January 20, 2000

Possible Outlines of USDA Budget Surface. There are reports from the Washington agricultural community that the Clinton Administration will ask Congress for more money for USDA in fiscal 2001. Although $1.3 billion is expected to be added to conservation programs, one source says there will be additional money for other farm-related programs.

USDA Sending $125 Million More to Dairy Farmers. USDA is sending another $125 million in direct payments to dairy farmers who saw their milk prices decline last year. The money is in addition to $200 million distributed last summer.

New Funding Announced for Small Farmers. USDA will provide $500,000 to help small farmers develop new ways to market products, including direct sales to restaurants and institutions. Four universities will select and assist specific new marketing projects to benefit smaller farms.

Farmer Mac Announces Record Earnings. The Federal Agricultural Mortgage Corporation (Farmer Mac) ended 1999 with record diluted earnings per share of 62 cents, a 63% increase over 1998 diluted earnings per share of 38 cents. Net income for 1999 was $6.9 million, also 63% more than 1998 net income of $4.2 million.

Ag News Summaries

Alcohol May Be Included in Guidelines. Nutrition experts writing new dietary guidelines likely will specify for the first time who might benefit from moderate alcohol consumption: middle aged men and women, reports THE ASSOCIATED PRESS. The proposed guidelines should be made public soon and will tell Americans to reduce foods rich in saturated fats such as meat and dairy products, according to a working draft of the standards. REUTERS reports a final version is due to be sent to President Clinton in July.

Time Not right for Trade Round. U.S. Trade Representative Charlene Barshefsky says it is impossible to predict when a new trade round can be launched because World Trade Organization member nations remain deeply divided over the negotiating agenda, REUTERS reports. "Countries have not yet agreed to make the kinds of shifts in position or policy in order to achieve that outcome," she said after meeting in Washington with WTO Director-General Mike Moore. "Levels of inflexibility that we had previously seen have remained at the present time."

China Trade Deal Depends on Congress. Commerce Secretary William Daley warns the November elections could jeopardize the chance of passing legislation to grant China normal trade relations. REUTERS reports Daley says it is critical that Congress vote soon on the issue. "Everyone seems to want it (the vote) sooner rather than later," Daley said after a cabinet meeting with President Clinton on trade and other issues. "Every day that goes by and we get closer to a November election, it gets much more difficult, much more complicated."

January 19, 2000

Glickman Lays Out 1999 USDA Record, Future. Agriculture Secretary Dan Glickman provided little new information in a "January column" written for USDA's web site and posted Tuesday, but laid out USDA's record for 1999 and what is planned for 2000. Some of the $22.7 billion in direct payments to farmers last year was made necessary by a farm policy "that fails to provide the critical support" farmers need, he says.

Lugar Announces Ambitious February Committee Schedule. Six hearings in the first 10 days of February are planned by the Senate Agriculture Committee. Chairman Richard Lugar (R-IN) announced the schedule Tuesday.

California Proposes Methyl Bromide Restrictions. The California Department of Pesticide Regulation has proposed mandatory state rules on the use of methyl bromide. A San Francisco superior court judge last year ordered the department to adopt by June more specific regulations on the field fumigation use of methyl bromide.

60 Minutes Faulted for Ignoring Ethanol. Renewable Fuels Association President Eric Vaughn applauds the CBS news show 60 Minutes for investigating the potential health threat posed by the use of MTBE in reformulated gasoline but criticizes the program for dismissing the potential for ethanol to replace MTBE.

Ag News Summaries

China WTO Entry Tops U.S. Farm Trade Agenda. China's entry into the World Trade Organization has become the most important trade goal for many U.S. farm groups, reports REUTERS. Launching a new round of world trade talks also is a top priority, but the risk of the U.S. accession agreement with China slipping away worries farm lobbyists more than a further delay in trade talks.

New Zealand Official Says U.S. Hypocritical On Lamb Issue. New Zealand Deputy Prime Minister Jim Anderton accuses the United States of hypocrisy on trade liberalization after the U.S. announcement of an aid package to help U.S. lamb producers. "It is hypocritical for the American government to on the one hand champion the cause of free trade and then, on the other, to subsidize sectors of their own economy when they face real competition," said Anderton. Australian and New Zealand lamb account for about 95% of all U.S. lamb imports.

U.S. Economic Growth Dominates Davos Meetings. The pace of U.S. economic growth and its impact on the global economy will dominate next week's 30th annual meeting of the world Economic Forum in Davos, Switzerland. Political and financial leaders will attend. About 2,000 persons are expected to attend, including President Clinton, UK Prime Minister Tony Blair and Bank of France governor Jean-Claude Trichet. There is concern that the nine-year U.S. economic expansion could trigger a series of global interest rate increases.

January 18, 2000

Kyoto Could Cost Farmers $20 Billion. The Kyoto Protocol, a treaty designed to reduce global warming, could cost U.S. farmers up to $20 billion more in costs per year even though the premise of global warming may be faulty. The more scientists learn about the climate, the more they learn they can't predict it, says Joseph Base, president, The Heartland Institute.

Beta Carotene Rich Rice Helps Blindness. Researchers at a Swiss laboratory have developed a rice variety rich in beta carotene, a source of vitamin A. Some 124 million children worldwide are deficient in vitamin A, including 250,000 in Southeast Asia who go blind each year because of the deficiency.

Re-Exports to China Increase and Decline. Hong Kong's re-exports of U.S. agricultural products to China during the first half of 1999 increased in quantity over a year earlier but declined in value. Poultry meat re-exports helped increase the value and prevent a steeper decline, says USDA.

Ag News Summaries

Dairy Farmers Face Tough Times. East Coast dairy farmers say a precipitous decline in milk prices has left many of them facing financial ruin, according to an article from Annapolis, MD, by THE ASSOCIATED PRESS. Increased western production lowered the federal minimum price of milk to $9.63 per hundredweight last month, a decline of more than $6 since September. The article says the last time prices were this low was 1978, although prices have declined from abnormally high levels. One example cited in the article is George Donnon of Rising Sun who says he's losing $5,000 a month in income. "I am not sure how long I can survive at this pace," he says.

UK Agriculture May Lose 100,000 Farmers. More than 100,000 people could be forced out of British farming as it becomes more efficient, says a leading analyst quoted by REUTERS. The change would happen sooner than later, Sean Rickard of the Cranfield School of Management and a former National Farmers Union economist, sais in an interview with the BBC's Countryfile program. "Given that the industry's been subsidized for over 30 years, it would be amazing if it was not over-manned and if there were not great inefficiencies," he said.

Montreal Talks Could Affect GMOs. Negotiations in Montreal next week could be critical to the future of bioengineered agriculture, with European delegates pressing hard for labeling genetically modified commodities. REUTERS reports some optimism among Canadian officials, who have been allied with the United States and a few other countries against the Europeans. The meeting, aimed at concluding a long-delayed "biosafety protocol," starts Monday.

January 17, 2000

EPA Announces New Biotech Corn Rules. The Environmental Protection Agency has announced additional rules on farmers wanting to plant genetically altered corn this year. The agency's concern is protecting non-targeted insects, such as the monarch butterfly, and producers will have to expand field monitoring as an early warning system.

Government Main Cause of Threatened Farmland. The Reason Public Policy Institute says government more than sprawl is threatening farmland. "Numerous governmental policies contribute to the inefficient transition of farmland," says the study.

USDA Issues Recall Policy; NFPA Has Questions. USDA will issue news releases for all meat and poultry recalls regardless of whether the products pose any health risks. The National Food Processors Association says USDA is "overloading consumers with non-essential information" with the new policy and has "ignored its own advice."

Ag News Summaries

WTO Seeks U.S., EU Support on Poor Country Proposals. World Trade Organization Director General Mike Moore will seek U.S. and European Union support this week to speed negotiations on agriculture and salvage an initiative on helping the world's poorest countries, BLOOMBERG NEWS reports. He will meet with EU Trade Commissioner Pascal Lamy in Brussels today and with U.S. Trade Representative Charlene Barshefsky in Washington on Wednesday. Moore likely will outline proposals that would see the bulk of global talks on freer trade in farm products and services take place outside TWO committees in Geneva.

Canada Grain Provinces Unhappy with Farm Aid. Agriculture ministers from the key grain producing provinces of Manitoba and Saskatchewan walked out of a federal provincial meeting Friday in protest over Ottawa's farm aid programs, REUTERS reports. The government had announced it would give C$1 billion in additional farm aid over the next two years to help farmers weather a financial crisis. The two provinces say that is not enough.

Hog Producers Hope for Better Year. A USDA report showing hog inventories declined 4% has helped improve prices. Fewer hogs plus a strong economy and rejuvenated Asian export markets have contributed to the largest upswing in hog prices in at least 18 months, THE ASSOCIATED PRESS quotes Dillon Feuz, an agriculture economist with the University of Nebraska, saying. "It's looking like prices in 2000 will finally be above break even for most of Nebraska's producers," Feuz said. "Those prices probably won't be enough to recapture all the losses toward the end of 1998, but it will be positive."

January 14, 2000

Stallman Elected AFBF President Over Kleckner. The 14-year tenure of American Farm Bureau Federation President Dean Kleckner came to an end in Houston Thursday when delegates elected Bob Stallman, Texas rice farmer and president of the Texas Farm Bureau, to head the nation's 5 million-member farm group.

Clinton Will Ask for `Bioenergy' Funding in Budget. President Clinton will ask Congress to provide an additional $243 million in research and grants to produce "bioenergy" and other products such as plastic and chemicals from agricultural waste. Agriculture Secretary Dan Glickman said the program will "strengthen the farm and rural economy."

Consumer Group Calls for Mandatory Pathogen Testing. The Center for Science in the Public Interest wants mandatory "systematic testing" for listeria and other food borne pathogens that CSPI says are risks to pregnant women and fetuses. Grocery Manufacturers of America says the idea is well intentioned "but misguided." Education is a better approach, says GMA.

Sheep, Lamb Assistance Package Totals $100 million. Agriculture Secretary Dan Glickman says $100 million over three years will be spent to help sheep and lamb producers. The long-awaited program is aimed at shoring up an industry "threatened" by low-priced imported lamb meat.

Ag News Summaries

Chinese Inspectors to Visit Citrus States. A delegation of Chinese agricultural inspectors will arrive in the United States this month and spend two weeks touring citrus-producing areas in Arizona, California, Florida and Texas. USDA's Animal and Plant Health Inspection Service is coordinating the visit and will accompany the delegation on the U.S. tour. The Chinese will review U.S. pest mitigation measures and general conditions at groves and packing houses, then review the data collected and inform the United States when shipments can begin. Industry sources believe citrus exports to China could exceed $500 million a year by 2004.

U.S. Wants Injunction Lifted Against Texas Plant. The Justice Department filed a motion in U.S. district Court in Dallas asking the court to lift a Dec. 20 preliminary injunction that requires USDA to maintain inspections at Supreme Beef Processors Inc., BLOOMBERG NEWS reports. USDA wants to withdraw its meat inspectors from the plant, effectively shutting down the operation. Supreme recalled 180,243 pounds of ground beef Dec. 25 because of potential E. coli contamination. The recall is "highly significant new evidence" that the company isn't controlling potentially deadly bacteria, Acting Assistant Attorney General David W. Ogden said.

Poll Shows Decline in Biotech Crops. A REUTERS straw poll finds farmers plan to reduce sharply their plantings of genetically modified soybeans, corn and cotton this year, partly in response to the European backlash against bioengineered foods. REUTERS surveyed 400 farms during the annual meeting of the American Farm Bureau Federation in Houston. Planned reductions included 15% for RoundUp Ready soybeans, 22% for RoundUp Ready corn, 24% for Bt corn and 26% for Bt cotton.

January 13, 2000

Mandatory Labeling of Imports Has Costs. USDA issues a report speculating consumers may be willing to pay a premium for specially labeled imported beef and lamb, but regardless of consumers' reactions, there will be costs that either will be passed on to retail customers or passed back to producers in the form of lower prices.

Cargill Dow Plans Corn-to-Plastics Plant. Cargill Dow Polymers will build a commercial-scale plant to produce polylactic acid, a plastic made from corn. Corn growers think plastics demand nationwide could eventually use 500 million bushels of corn per year.

Hong Kong Retailers Nervous About GMO Foods. Faced with threats from Greenpeace and increased media attention, Hong Kong supermarket chains are being forced to address the concerns of certain interest groups that their foods may contain genetically modified ingredients. A USDA attache report cautions U.S. food exporters to be aware of the nervousness retailers are experiencing.

Ag News Summaries

Canada Could Host WTO Meeting. Major trading partners could meet in Canada to work on launching a new round of world trade negotiations after last month's collapse of talks in Seattle, reports REUTERS. Canadian International Trade Minister Pierre Pettigrew said that's "one of the ideas we've aired." At this point, the suggestion is just one of many for trying to get talks restarted, the report says.

Agriculture's Future Outlined. Widespread social and lifestyle changes coupled with unprecedented household wealth will allow 21st century farmers to use emerging technologies to deliver safer, healthier foods to consumers at premium prices, according to THE ASSOCIATED PRESS, quoting futurist Lowell Cattlett. A professor at the New Mexico State University, Cattlett spoke in Great Bend, KS, at the Agriculture Vision 2000 conference. Changes in the past century have created a spoiled society with the money to demand agricultural products that integrate the latest medicinal benefits and are produced on environmentally safe farms, he said. Technologies now are being developed to intertwine medicine and agriculture to produce foods that can vaccinate the world against diseases such as small pox.

January 12, 2000

Consumer Reactions to Farming Vary in Survey. Consumers are open-minded about biotechnology, especially if it delivers more taste, nutrition and product. But they're not sufficiently informed to have strong opinions on biotech, irradiation, use of animal antibiotics and hormones, according to a survey conducted for Philip Morris and the American Farm Bureau Federation.

Women Make `Giant Strides' in Agriculture. Women have made giant strides in agriculture and business during the past century with more being elected to Congress, statehouses and other branches of government, the American Farm Bureau Federation annual meeting was told.

AFBF Will Back Legislation to Mandate FQPA Implementation. The American Farm Bureau Federation will support legislation that directs the Environmental Protection Agency to implement the Food Quality Protection Act the way Congress intended. AFBF President Dean Kleckner said EPA appears to be shifting away from science-based risk assessments.

Revenue Insurance Expanded for 2000 Crop Year. The form of crop insurance known as "revenue assurance" is being expanded for the 2000 crop year. The action by USDA's Federal Crop Insurance Corporation follows an expanded program in 1999 as well.

Ag News Summaries

USDA Loosens Import Restrictions. USDA will allow imports of pork and pork products from the Mexican states of Yucatan and Sonora. "We have developed a number of import conditions to ensure that pork and pork products from both states will present a negligible risk of introducing classical swine fever into the United States," said Alfonso Torres, deputy administrator, Animal and Plant Health Inspection Service. Among the conditions are that pork or pork products must be from swine born and raised in Yucatan or Sonora and slaughtered at a federally inspected slaughtering plant in either state.

EU, Japan Want New World Trade Talks. The European Union and Japan have called for a speedy relaunch of a new round of global trade negotiations, BLOOMBERG NEWS reports from Brussels. The two "agreed to continue their close cooperation to get the process back on track as soon as possible," they said in a joint statement that sidestepped obstacles to an early revival of new trade talks.

Gore, Bradley Battle for Iowa Farm Vote. Democratic presidential hopefuls Al Gore and Bill Bradley are fighting over farm policy as they search for support in Iowa, BLOOMBERG NEWS reports. Caucus results in Iowa could help determine whether Gore can wrap up the nomination quickly. He has a 21% lead in polls ahead of the Jan. 24 caucuses and is betting that attacking Bradley for a 1993 vote against farm aid will keep the former senator a distant second. By contrast, Bradley is much more competitive with Gore in New Hampshire, where the next battle will be fought and where farm policy is usually not a major issue. Bradley has accused the Clinton Administration of doing little for farmers.

January 11, 2000

Clinton Will Offer Farm Income Booster. Agriculture Secretary Dan Glickman Monday said President Clinton will offer a farm income enhancing counter-cyclical assistance program when the fiscal 2001 budget is presented to Congress. He said the proposal could follow the outline of Rep. Charles Stenholm's supplemental income plan introduced last year.

Lugar Issues Busy Committee Schedule. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has planned a half dozen hearings for the first 10 days of February. The first will focus on concentration of business ownership in agriculture.

Merrigan Seeks to Clarify Pork Vote Status. Kathleen Merrigan, administrator, Agricultural Marketing Service, has issued a statement to clarify the process AMS is using to determine if a vote should be held on the future of the pork advertising, promotion and research program.

Ag News Summaries

Court Rejects `Got Milk?' Challenge. The U.S. Supreme Court, without comment, rejected 5-4 an appeal in which some dairy farmers challenged the government's authority to force them to finance the generic ads aimed at increasing fluid milk consumption. THE ASSOCIATED PRESS reports the ruling said being forced to pay for generic ads does not amount to unconstitutional "forced speech." A federal appeals court last March relied heavily on a 1997 ruling when it threw out the dairy farmers' challenge to the program that has required them to contribute to support of the program.

Checkoff Proposals Deadline Extended. USDA is extending to Feb. 1 the deadline for submitting proposals for a national sheep and lamb promotion, research and information order. The original deadline was Dec. 23. An order will provide for assessments on sales of sheep and lambs and for an industry board to carry out promotion, research and information programs designed to increase demand for sheep and lambs. The National Sheep Association and the National Lamb Feeders Association asked for the extension. Both believe more time is needed for discussion of draft proposals to allow more producers to have input.

Penny To Challenge Grams. Former Rep. Tim Penny (D-MN) plans to file by the end of the week a challenge to incumbent Sen. Rod Grams (R-MN), with a formal announcement coming in a few weeks, according to THE ASSOCIATED PRESS. Gov. Jesse Ventura wanted Penny to challenge Grams as a member of the Reform Party, but the former legislator instead chose to enter a crowded Democratic field.

Companies To Make "Natural Plastic." Cargill Inc. and Dow Chemical Co. will join to manufacture plastic made from plants such as corn and wheat, THE WALL STREET JOURNAL reports. The announcement marks an important move from the laboratory to the factory floor for a technology which could be a growing demand source in the future.

Bush Would End Farm Sanctions. Republican front-runner George W. Bush told the American Farm Bureau Federation he would end unilateral sanctions on farm exports if elected president, REUTERS reports. Proposals to exempt food and medicine from U.S. trade sanctions have failed for the past two years in Congress. Farmers in particular eye the potential $900 million market for food sales to Cuba.

January 10, 2000

Administration Wants $1.3 Billion for Conservation. In a dramatic election-year announcement, the Clinton Administration says it will ask Congress for $1.3 billion in the fiscal 2001 budget for conservation programs and for an increase in Conservation Reserve Program acreage. The announcement came a day before Vice President Al Gore and Democratic presidential candidate Bill Bradley squared off in Iowa for a debate that centered on agricultural issues.

New Ag Coalition Wants China in WTO. The Agriculture Coalition for U.S.-China Trade wants Congress to approve normal trade relations for China early this year. Congress must approve permanent NTR for U.S. interests to take advantage of concessions in the U.S.-China agreement.

Pork Producers Want Help on Russian Aid Package. The National Pork Producers Council wants Vice President Al Gore to break an apparent logjam over pork products to Russia. The importance of including pork in the still pending aid package, announced last August, "cannot be overstated," says NPPC President John McNutt.

Kleckner Sees No Big Farm Policy Changes. American Farm Bureau Federation President Dean Kleckner sees no major changes in farm policy coming from Congress this year. Regardless of policy directions, he adds, there will be no easy way to bring about economic improvement for farmers.

Ag News Summaries

Kerrey Reconsiders Third Term. Sen. Bob Kerrey (D-NE) may not seek a third term this year, report REUTERS and NATIONAL JOURNAL'S CONGRESSDAILY. He told the Omaha WORLD-HERALD he has "chosen to reopen" his decision to run again because of a career offer that is not related to money but "would just continue my public service in another way." THE NEW YORK DAILY NEWS reports Kerry is "being wooed" to become president of the New School University in New York City. He has until Feb. 15 to file for the 2000 election.

Democrats to Review Freedom to Farm. The Senate Democratic Policy Committee Jan. 25 will hold the first in a series of hearings on changing the 1996 farm law. NATIONAL JOURNAL'S CONGRESSDAILY reports committee Chairman Byron Dorgan (D-ND) said the so-called Freedom to Farm law has "failed miserably." House Agriculture Committee Chairman Larry Combest (R-TX) has said his committee plans to review the legislation as well and recommend policy changes in several areas that affect the farm economy.

`Wetland Mitigation' Bank to Be Established. An agricultural wetland mitigation bank for farming activities is being established in southeast Missouri. It is a pilot project of the American Farmland Trust's Agricultural Conservation Innovation Center with assistance from USDA. The purpose is to consolidate wetland restoration projects to serve as compensation for several small, scattered wetland losses. Through the bank, producers who want to convert farmed wetlands on their property to non-wetlands may purchase wetland credits. These producers do not mitigate on their own farms for the wetland conversion but on land that is part of the mitigation bank. Each acre of restored wetland is equal to one wetland credit.

January 7, 2000

House Ag Panel Retreat Scheduled. The House Agriculture Committee holds a retreat at the Wye River Plantation on Maryland's Eastern Shore late this month. The agenda appears to be wide open as the committee attempts to forge directions for legislation and policy issues in 2000.

Farm Economic Conditions Worsen; Bankers Responding. The American Bankers Association says rural banks are working with farmers to restructure debt, provide operating credit and financial services as farm conditions worsen. More are requiring farmers to manage risk with contracts, crop insurance and hedging.

ASA Guide Steers Farmers on Biotech Varieties. The American Soybean Association has published a guide for farmers thinking about planting genetically engineered soybean varieties this year. There are both costs and benefits that farmers need to consider, says ASA.

FDA Dietary Supplement Decision Moves in `Right Direction.' The Grocery Manufacturers of America believes the Food and Drug Administration's decision to allow health claims on dietary supplements "moves in the right direction." The regulations may apply to dietary supplements, says GMA, but they also apply to conventional foods.

Ag News Summaries

Payments Go to Livestock Producers. Payments from the livestock indemnity program and totaling $3 million are being issued by Farm Service Agency offices for livestock losses that occurred from natural disaster that occurred between May 2, 1998, and May 21, 1999. More will be made sometime in March. The livestock assistance program also will pay $200 million to producers who suffered grazing losses due to natural disaster during calendar 1999. The sign-up for that program began Nov. 1 and ends Jan. 21.

Moore Says WTO to Play Hardball This Year. There will be free trade action this year, says World Trade Organization Director-General Mike Moore. Moore told REUTERS, "Whatever happens, we will begin negotiations on agriculture and services this year. That's mandated already, that covers about 70% of the world economy." Moore says poorer nations lost the most in Seattle and have much to gain through freer trade, although he admits the fight is an uphill battle.

USDA Restricts Portugal Pork Imports. USDA Has restricted pork and pork product imports form Portugal because of an outbreak of African swine fever in that country, PRO FARMER reports. The disease, dangerous and destructive to swine, was detected in Portugal Nov. 5 and confirmed by laboratory tests later that month. Prior to the outbreak, Portugal was considered free of African swine fever.

Another Organic Rule to be Published. The Clinton Administration will publish a second and hopefully less controversial proposal on guidelines for the organic industry, REUTERS reports. USDA received a record 300,000 comments when it first proposed guidelines in late 1997. Talks with the Office of Management and Budget should be wrapped up soon, clearing the way for USDA to take another shot at pleasing organic farmers, consumers and storekeepers, officials say. Congress passed a bill nearly a decade ago that ordered USDA to create rules for organic food and clothing that would be enforced nationwide, replacing a patchwork of regulations that vary from state to state.

Monsanto Working to Iron Out GM Food Problems. Monsanto Co. says it is doing everything possible to gain public acceptance of genetically modified crops, REUTERS reports from San Antonio, TX. Barry Knight, manager for field environmental operations, told reporters, "Monsanto is doing all it can to enhance the acceptance of biotech (crops) all over the world." He says Monsanto is working with companies like Procter & Gamble to reassure consumers in Europe that GM crops are safe.

Farm Groups Want Early China Vote. A broad coalition of 74 agricultural and food groups asked Congress to vote soon on a bill to make China's normal trade status permanent. When it joins the World Trade Organization, China will be entitled to the same access to U.S. markets as other countries, without the annual Congressional vote that has become an annual political battle. Failure to grant permanent "normal trade relations" – what used to be called "most-favored nation" status – would mean that other countries would get the benefits of the recent U.S.-China deal on WTO membership, but the United States would not. Congressional sources close to the debate tell AgricultureLaw.com that free-trade Democrats are pressing for an early vote because they fear a split in their party if action is deferred until later in the year. However, most if not all past votes on normal trade relations for other countries have occurred only after the countries actually completed negotiations for WTO membership – something China has not yet done.

January 6, 2000

Schumacher Tells Europe It's 'Isolated' on Subsidies. On the issue of export subsidies, "Europe is clearly isolated," Under Secretary August Schumacher told the Oxford Farming Conference in Oxford, England, Wednesday. "The rest of the world" disagrees with Europe in its stand against eliminating export subsidies over time, he says.

AMS Attempts to Quiet Pork Vote Squabble. Agricultural Marketing Service officials met Wednesday with both sides in the dispute over a referendum to determine the future of the pork checkoff program that funds advertising, promotion and research. AMS sought to illustrate a complicated verification process the agency is using to validate the 18,600 signatures submitted in favor of a referendum.

Grain Interests Oppose Subsidizing Grain Cleaners. The National Grain and Feed Association strongly opposes a proposal by USDA to subsidize installation of grain-cleaning systems at wheat export facilities. NGFA says the proposal is based on a faulty premise that U.S. exporters will not invest in cleaning equipment where it's economically justified.

Ag News Summaries

Commodity Groups Wait for Food Aid Budget. The Clinton Administration has not set a budget for a major U.S. food aid program that helped fund donations of some 5 million tons of wheat last year. REUTERS reports that commodity groups are concerned that something is amiss with the program that allows the government to buy surplus commodities for donation in needy countries. "From our perspective, this is getting very worrisome," U.S. Wheat Associates spokesperson Dawn Forsythe told REUTERS. "The length of time that this has been going on seems to indicate a problem somewhere."

January 5, 2000

World's Hungry Number 800 Million. The United Nations estimates 800 million people in the developing world do not have enough to eat. If all the undernourished in the wold were gathered together, says the UN, their number would dwarf the populations of every continent except Asia.

Nearly Half of Food Expenses Are for Eating Out. Of total food expenses, consumers spent 47% in 1998 for eating out. Expenditures for eating out have increased at a faster rate than retail food expenditures, the same USDA report shows.

Fewer Food Products Introduced. New food product introductions declined for the third consecutive year in 1998, reversing the trend that prevailed during the previous three decades. Food introductions declined by 11% in 1998, the USDA report says.

Ag News Summaries

USDA Validating Pork Petitions. USDA is working to validate petitions favoring a referendum on the pork checkoff program. THE ASSOCIATED PRESS reports Kathleen Merrigan, Agricultural Marketing Service administrator, hopes to finish reviewing the petitions later this month. Many of the signatures were illegible, and some petitions were missing addresses and other information, she said. BLOOMBERG NEWS reports the coalition of independent farmers who want the referendum, believe Agriculture Secretary Dan Glickman should hold it by March 1. "The checkoff has failed, and it needs to be killed," says Mike Shan, an Iowa hog farmer. "It has been spent for the vested interest of large factory farms."

EU Reluctant to Offer Full Subsidies. The European Union is reluctant to allow eastern European countries the full benefits of its Common Agricultural Policy as those countries seek to join the EU bloc, REUTERS reports. "We have no intention of denying them the benefits of the CAP forever, but we do think there should be a transition period," says EU Commission spokesman Gregor Kreuzhuber. He said Poland, the Czech Republic, Hungary, Estonia, Slovenia and Cyprus are submitting proposals for negotiations on agriculture.

Mixed Ruling in Tyson, ConAgra Case. An Arkansas judge ruled Tuesday that ConAgra Inc. did not steal trade secrets from rival chicken producer Tyson Foods Inc., but two of the four employees named in the suit must wait a year to work for ConAgra. REUTERS reports from New York. ConAgra told REUTERS it plans to appeal the decision that also enjoins a third employee from contact with certain customers for one year. Tyson filed the suit in August, claiming four senior level management employees had left the company and went to work immediately for ConAgra. Tyson says the ruling finds that three former employees retained Tyson's trade secrets upon their departure.

January 4, 2000

U.S. Meat Consumption at Record; Choices Healthier. In 1999, total meat consumption (red meat, poultry and fish) should have reached 197 pounds (boneless, trimmed-weight equivalent) per person, 64 pounds more than consumption in the 1950s. However a combination of industry factors, such as producing leaner animals and marketing lower fat products, has lowered significantly the meat, poultry and fish groups' contribution to total fat in the food supply.

ARS Discovery May Control Strep, Staph Infections. USDA scientists searching for natural compounds to control fungi in plants may have stumbled onto new antibiotics that control streptococcus and staphylococcus bacteria. Agricultural Research Service scientists at Lane, OK, and College Station, TX, say the discovery is not related to penicillin.

USDA Develops Storage, Purchasing System for Cotton. A new system to improve service and delivery of information on the sale of cotton from USDA inventory has been developed. The system uses Internet technologies to expand access to USDA services while reducing costs.

Ag News Summaries

Yeltsin's Departure Won't Affect U.S. Food Aid. Boris Yeltsin's decision to step down as the head of Russia is not likely to have any effect on U.S. food aid to the country, a top USDA official told REUTERS. USDA General Sales Manager Richard Fritz said, "I don't think this is really going to affect things at all." The United States currently is finishing up shipments of 3 million tons in food aid negotiated in December 1998. Moscow has asked for 5 million tons more, and U.S. officials have agreed to donate another 500,000 tons and are considering meeting Russia's full request.

Monsanto Pays Delta & Pine Land $81 Million. Delta and Pine Land Co. says its would-be merger partner Monsanto Co. paid it an $81 million termination fee and lifted a restriction on the cotton seed company talking to potential suitors, REUTERS reports. The move, which came one day after Monsanto announced plans to merge with U.S.-Swedish drug group Pharmacia & Upjohn, effectively ended the deal with Delta and Pine Land, although Monsanto says it does not preclude further efforts with U.S. regulators. Analysts say there is little doubt the Monsanto deal is dead, and Delta likely will look elsewhere for a partner to help it compete in a rapidly consolidating industry. Delta is the nation's largest cotton seed breeder.

January 3, 2000

CRP Sign-Up Begins Later This Month. The 20th sign-up for the Conservation Reserve Program begins Jan. 18 and ends Feb. 11. This is the fourth general CRP sign-up since the 1996 farm law was enacted. All eligible offers will continue to be evaluated and ranked according to an environmental benefits index (EBI).

Trade Promises to Be Big Issue for Ag in 2000. Trade promises to dominate the agricultural agenda in 2000, says the American Farm Bureau Federation. However, in a report from Tokyo, KYODO NEWS SERVICE says an early launch of a new trade round this year may not be easy.

Environmental Group Pays Ranchers for Livestock Loss. In a new twist in the animal defenders versus rancher-farmer livestock losses, the Defenders of Wildlife says it has paid almost $50,000 to compensate ranchers for losses from wold and grizzly activity in 1999. The compensation program "continues to buy tolerance for wolves and grizzly bears," says the DOW.

Ag News Summaries

Perturbed Hog Farmers Critical of USDA Delays. Parties seeking a new vote on the mandatory pork checkoff have been "stymied" by delays at USDA getting signatures on petitions verified, reports the FARM JOURNAL. Referendum supporters initially announced in mid-April they had enough signatures to force a national vote on continuing the checkoff. Last summer about 19,000 signed petitions were delivered to USDA. "Months later, there has been no indication of how (or whether) USDA will proceed with a national referendum to reauthorize or reject the mandatory checkoff," Bob Coffman writes in the article.

U.S. Will Donate Food to Russia. The United States will donate 500,000 tons of wheat, soybeans, rice and other farm products to feed the needy in Russia, a senior Clinton Administration official says, REUTERS reports. The move ends weeks of speculation that Washington was balking at giving food to Russia while Moscow waged a military campaign rebel Chechnya. The 500,000 tons will supplement about 3 million tons being shipped to Russia under an agreement reached earlier. The official also says Washington still is considering Moscow's request for 5 million tons of additional aid.