January 25, 2001

Food Safety Rules Will Get Review.  A Bush administration review of last-minute regulatory changes by the Clinton administration will include some food safety actions. Regulations that would require food plants to implement Listeria control measures are among those delayed by a government-wide order that calls a halt to most non- emergency regulations. 

Fuel Prices Could Lead to $3.00 Corn, Economist Says.  Skyrocketing natural gas prices could hike nitrogen fertilizer prices enough to cause a big acreage shift from corn to soybeans, according to an Ohio State University economist quoted in BRIDGE NEWS. High prices and shortages of nitrogen could add to the attraction of soybeans, a nitrogen-fixing legume which also has a more generous federal support price. 

Low-Phytate Corn Raises Zinc Absorption.  A new kind of corn, developed by a researcher at USDA's Agricultural Research Service, may help ensure that people get more of the zinc they need for good health. The new corn has about 65 percent less phytic acid, also known as phytate, than conventional corn. That's a plus, USDA says, because phytate can interfere with the body's ability to absorb certain nutrients–including zinc, an essential mineral. 

Sheep Health Study Underway.  The U.S. sheep industry needs information on the occurrence of Johne's disease, ovine progressive pneumonia (OPP), intestinal parasites, and scrapie, and on management practices impacting these particular health problems.

News Summaries 

Political Staffers at USDA.  The Bush administration has assigned current and retired Congressional staffers to keep an eye on several of USDA's mission areas. Besides helping out in the office of the Secretary, the staffers – on temporary assignment – are located in offices that oversee critical responsibilities like farm programs and food safety. Meanwhile, no sub-Cabinet nominations have been announced for USDA, as speculation centers on who will get the department's number two post as deputy secretary. 

Pork Producers Optimistic.  Pork producers at the Iowa Pork Congress are sounding optimistic, SUCCESSFUL FARMING reports. Equipment exhibitors say they are doing a brisk business. 

Soy Chemical May Help Prevent Cancer.  Researchers have found a chemical derived from soybeans that can help prevent oral cancer, or cancer of the mouth, SUCCESSFUL FARMING reports. Scientists at the University of California say their study is believed to be one of the first findings, based on human research, showing that a soybean derivative called the Bowman-Birk inhibitor can play such a role. The study was published in the journal Clinical Cancer Research.
 

January 24, 2001

Export Bill Reintroduced.  A bill designed to reform the Export Administration Act has been reintroduced in the Senate. Senate Banking Committee Chairman Phil Gramm (R-TX) and Sens. Mike Enzi (R-WY), Paul Sarbanes (D- MD) and Tim Johnson (D-SD) introduced it. A similar bill gained strong bipartisan support in the last Congress, but a crowded Senate agenda prevented it from final passage. 

Death Tax Repeal Again Sought.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) has reintroduced a package of legislative alternatives to eliminate, phase-out or reduce the death tax. Lugar said he favors the first of his four bills, the outright repeal of the estate and gift taxes. 

USDA Revises Cheese Standards.  USDA has revised the U.S. Standards Grades of Swiss Cheese, Emmentaler Cheese. The changes lower the minimum eye size requirement for Grade A Swiss cheese and include provisions to clarify uniformity of eye size. The same eye size provisions are included for Grade B Swiss cheese. 

Farm Bureau Backs Dead Zone Rehabilitation Plan.  The American Farm Bureau Federation supports a task force recommendation that voluntary, incentive-based approaches be used to improve water quality protection in agriculture, such as in dealing with hypoxia in the Gulf of Mexico. "The use of regulatory mechanisms would impose excessive cost burdens on producers," said AFBF President Bob Stallman. "Properly funded assistance programs that work with farmers to retain productivity while improving water quality will be more efficient and effective." 

ACPA Scores EPA's Mistakes in Report.  The American Crop Protection Association says an Environmental Protection Agency report on children and the environment "makes misleading statements concerning potential exposure levels of pesticide residues in food. It is inaccurate to suppose that exposures could be great enough to cause harmful health effects."

News Summaries 

More StarLink Found by Japanese.  REUTERS reports that Japan's Health Ministry again has found traces of the unapproved biotech StarLink corn in one of five samples sent Jan.15 by the United States for food use. It's the third such discovery in about a month. The same sample had tested negative in the United States before shipment. In November, the ministry accepted a U.S. plan to test corn going to Japan for food use to make sure it did not contain the gene-spliced corn. A month later, the Agriculture Ministry agreed on a similar test plan for animal feed use. The article says the discovery of StarLink in corn samples has already raised concerns that the test plan would not be sufficient to comply with strict Japanese legislation to be implemented in April against unapproved genetically modified products. Japan imports 12 million tons of corn for animal feed use each year and another four million tonnes for food use, mostly from the United States. StarLink is not approved for either food or animal feed in Japan. 

No Fast Track Until June.  Senate Majority Leader Trent Lott (R-MS) says Congress won't get to work on granting the President Bush fast-track trade authority until June, according to BLOOMBERG NEWS. "The specifics of it, once again, will involve a lot of work and thought and preparation," Lott told reporters on Capitol Hill. He has met with Robert Zoellick, President Bush's nominee for U.S. Trade Representative. Fast track negotiating authority is approved by Congress and gives U.S. trade ambassadors latitude to negotiate trade agreements with foreign counterparts. Congress then votes up or down on the pact without amending it. Congressional approval is needed for conclusion of talks on free-trade accords with Chile and a hemispheric agreement on a Free Trade Area of the Americas. "It's something that I believe will have a high priority with the president this year," Lott said. "We hope we can move the fast track, legislation -- I'm not sure of the exact time -- but perhaps this summer or early fall," Lott said. 

Aventis Agrees to Pay Millions.  THE ASSOCIATED PRESS reports from Des Moines that Aventis CropScience has agreed to pay from $100 million up to $1 billion in compensation to farmers and grain elevators nationwide as a result of the StarLink episode. "We're talking about massive amounts of grain," Iowa Attorney General Tom Miller said Tuesday. "This is a significant agreement." Miller said the four-year agreement between Aventis and 17 states, mainly in the Midwest, calls for the company to pay farmers up to 25 cents per bushel for tainted corn, and reimburse them for other losses. The total amount of grain has not been determined. In a statement, the company said it is pleased with the agreement. The deal does not prevent farmers or other individuals from suing the company. Aventis had already agreed to compensate farmers and assist with marketing. The agreement now gives state officials the legal footing to intervene if the company does not live up to its promises. 

Bush Order Includes Agricultural Issues.  The American Meat Institute notes that when President Bush ordered heads and acting heads of executive branch departments and agencies not to send any proposed or final regulations to the Office of the Federal Register (OFR) and to withdraw any regulations that had been sent to OFR, several agricultural issues were involved.. The President also postponed for 60 days the effective date of regulations already published in the Federal Register but not yet in effect. The President's direction does exempt some regulations that are "emergency or other urgent situations relating to health and safety." The memorandum appears to have an impact on several regulations affecting AMI members, the institute said, including mandatory price reporting, mandatory nutrition labeling, moisture retention in raw meat and poultry and a proposal that FSIS had been working on regarding microbiological testing of ready-to-eat meat and poultry products. "This final proposal, contrary to news reports over the weekend, was never published by the Clinton Administration," AMI added.
 

January 23, 2001

Farm Bureau Protests Western Land Decision.  The American Farm Bureau Federation and four state Farm Bureaus have filed an administrative protest with the U.S. Forest Service and the Bureau of Land Management (BLM) regarding "a massive federal land-management scheme" in the Pacific Northwest. The Interior Columbia Basin Ecosystem Management Project, devised by the Forest Service and the BLM, would impose land-management standards and objectives on more than 63 million acres of Forest Service and BLM lands in Washington, Oregon, Idaho and Montana. State Farm Bureaus in those states joined AFBF in challenging the project. 

Corn Growers Should Insist on Verified Hybrids.  The National Corn Growers Association (NCGA) is urging farmers to insist that seed companies verify that the hybrids being sold have been tested for the presence of Cry9C, the StarLink Bt. "It isn't a typical question growers ask when buying seed, but it's an extremely important one this season. USDA has said that no Cry9C corn would be sold or grown in 2001," notes Fred Yoder. 

EPA, States Act on `Dead Zone' in Gulf.  The Environmental Protection Agency, nine other federal agencies, nine states along the Mississippi River, and two tribes have developed an action plan to reduce the size of the "dead zone," a large, oxygen-starved area of the Gulf of Mexico which officials say threatens the nation's most productive and valuable fishing grounds. The states and federal agencies have agreed to work together to cut the "dead zone" by about half its average size over the next 15 years. 

FDA Acts Against Unsafe Food Imports.  The Food and Drug Administration will prevent the distribution of unsafe imported food by requiring that shipments from "bad actor" importers be held in a secure storage facility at the importers' expense until released by the agency. FDA also established procedures to enhance interagency coordination and efficiently use Customs' civil monetary penalties procedures against importers who attempt to enter food into the United States by means of a material false statement, act or omission. Penalties can be issued in amounts up to the domestic value of merchandise so imported. 

Harkin Lobbies Bush on California Waiver.  Sen. Tom Harkin (D-IA) has urged President Bush to make sure that California does not get its requested waiver from the nation's reformulated gasoline program and that ethanol has "the role it deserves" in the California market. In a letter to the new President, Harkin, who is the ranking Democrat on the Senate Agriculture Committee, said, "I am concerned that in its review of California's waiver request, EPA (Environmental Protection Agency) may be influenced by arguments that are impermissible under the law," Harkin said. "The obvious solution to this problem is to replace MTBE with ethanol."

News Summaries 

U.S., Japan Search for StarLink.  REUTERS reports that a USDA team will travel to Japan to determine why Tokyo is finding traces of StarLink bio-corn in some American corn shipments after U.S. tests showed the cargoes to be free of it. On Saturday, the state-run Korea Food and Drug Administration detected StarLink corn in a shipment of 55,000 tonnes of U.S. corn that was imported for human consumption. The shipment had a certificate saying it had tested StarLink-free. South Korea put the corn in quarantine. USDA officials said they were investigating the incident. 

Exports May Have Spread Mad Cow Disease.  THE WALL STREET JOURNAL reports that British feed makers, legally able to export tons of potentially infected meat and bone meal made from pulverized cattle parts, may have spread the so-called mad cow disease to other countries. In July 1988, Britain banned the practice of feeding cattle with meal containing the ground-up remains of cows. The move was intended to halt the spread of so-called mad-cow disease, which scientists blamed on infected feed. But for the next eight years, British feed makers legally continued to export tons of potentially infected meat-and-bone meal despite concerns expressed by some government officials that such shipments risked spreading the disease abroad. Moreover, as mad-cow worries sharply reduced demand for the high-protein feed supplement in the European Union, and prices fell by more than half, British companies increased their exports of the product beyond the EU, especially to Asia, government records show. 

Veneman Early to the Office.  The nation's new Secretary of Agriculture Ann Veneman made her presence known at USDA Monday, her first official day as Secretary, by visiting the offices of USDA personnel and news agencies and bureaus at the department. Veneman, along with several aides who had come with her to Washington from California for the transition, went from office to office, talking with reporters and various personnel. She was among the first Cabinet officials confirmed by the Senate and sworn into office over the weekend. 

Sugar Cane Farmers Optimistic.  THE ASSOCIATED PRESS reports that sugar cane farmers "have reason to be optimistic that this year will bring in more money than the last." An early January freeze in Florida, where the sugar cane harvest lasts until March, and a decline in production in the just-finished Louisiana harvest have helped boost raw sugar prices above 21 cents a pound. That is good news for farmers who endured prices of 17 cents a pound last summer, the worst in 22 years, the AP article notes. But whether the spike in prices will last remains in doubt, the article adds. "The U.S. Department of Agriculture is predicting that the price may weaken again in the coming months due to several factors," said Mike Salassi, a sugar cane analyst at Louisiana State University. Damage from Florida's early January freeze hasn't been fully determined yet, but officials there said temperatures in the 20s on New Year's Eve and again on Jan. 5 were the worst dips in temperature in 10 years. 

Australia Looks Optimistically at the New Bush.   The Australian government believes the country's free trade interests may be better served under the new Bush administration, according to the AUSTRALIAN BROADCASTING CORPORATION. Prime Minister John Howard says he will meet President Bush when he travels to the United States, possibly around mid-year. Howard says he is willing to discuss forming new trade arrangements if discussions benefit the Australians. "I hope the new administration will be more open, and I have a very open willingness to explore deeper trade arrangements with the United States if there is a benefit, but that of course means movement by the Americans on agriculture," he said.
 

January 22, 2001

Veneman Confirmed by Senate.  Ann Veneman has been confirmed by the full Senate to be secretary of agriculture in the new Bush administration. The Senate Saturday confirmed Veneman along with six other Cabinet nominees. 

Listeria Testing Proposed.  USDA has proposed a requirement that meat and poultry processors conduct environmental testing for generic Listeria and establish food safety performance standards for illness-causing bacteria in all ready-to-eat and partially heat-treated meat and poultry products. It was one of several last-minute decisions handed down on the final day of the Clinton Administration. 

EPA Settlement `Mischief' by Clinton Administration.  The American Crop Protection Association calls it "11th hour political mischief by the Clinton" Environmental Protection Agency. The American Farm Bureau Federation calls it a "slap in the face to ranchers and farmers." They're referring to a last-minute settlement between the Clinton administration and an environmental group of a 1999 lawsuit challenging the EPA's implementation of the Food Quality Protection Act. 

Judge Halts Pork Checkoff Demise.  Pork producers have cleared the first hurdle in their legal battle to overturn USDA's decision to terminate the pork checkoff. In federal court in Michigan, a judge granted a temporary restraining order preserving the status quo and enjoining the termination of the pork checkoff program until a full and fair hearing has occurred. 

No Grading Imported Meat Proposed.  USDA has decided to discontinue official grading of imported beef, lamb, veal and calf carcasses. The proposed rule would mean the USDA grade shield would appear only on meat products from livestock slaughtered in the United States. In 1999, the National Cattleman's Beef Association and the American Sheep Industry Association requested that USDA end the official grading of imported meat products. USDA solicited comments on this issue in an "advanced notice of proposed rule-making" published last year.

News Summaries 

GMO Rice Undergoes Testing.  BLOOMBERG NEWS reports that researchers in the Philippines will begin testing genetically modified rice that contains beta carotene to combat Vitamin A deficiency which can cause irreversible blindness. Scientists with the International Rice Research Institute in the Philippines will test samples of the grain called "Golden Rice" after Syngenta AG, Bayer AG, Monsanto Co. and Orynova BV donated licensing rights to the rice, Syngenta said in a faxed statement. Vitamin A deficiency is responsible for 500,000 cases of irreversible blindness and 1 million to 2 million deaths each year, Syngenta said. "Vitamin A deficiency remains a very important health problem which no current remedy completely addresses," said Ingo Potrykus, one of the inventors of Golden Rice. 

Fischler Supports Germany's Organic Goal.  THE ASSOCIATED PRESS reports that European Union Agriculture Commissioner Franz Fischler supports Germany's goal to increase the nation's share of organic farm products to 20% by the end of the decade, daily Neue Osnabruecker Zeitung reported Monday. Fischler told the newspaper he views the target, set out by the German government in reaction to mad cow disease, as realistic. But the project can only work if large supermarket chains massively promote organic meat and produce, he said. "Instead of cheap food, why couldn't they advertise `We have organic products too'," Fischler told the daily. But he cautioned that conventional farming will remain dominant, underlining the need for better consumer protection to avoid future health scares. New German Agriculture Minister Renate Kuenast said Sunday that Germany needs more organic farming to restore consumer confidence shattered by the country's mad cow disease outbreak. 

Bush Blocks Clinton Orders.  REUTERS reports that President Bush Saturday issued an order that essentially blocked some of the last-minute executive orders and rules laid down by outgoing President Clinton. The order was believed to apply to such orders as new regulations for managed care programs under Medicare and new environmental rules on runoff from animal feeding operations. It would also apply to Clinton's declaration of the former military post of Governor's Island in New York Harbor as a national monument, a designation Clinton made Saturday. Bush's move did not apply to the 140 presidential pardons and 36 prison sentence commutations that Clinton issued less than two hours before his term expired Saturday. 

Conservation Easements Money Released.  USDA is making $30 million available to help communities purchase conservation easements to protect precious farmland. All of the funds were provided by provisions in the Agricultural Risk Protection Act of 2000. To participate in USDA's Farmland Protection Program, landowners agree to limit the use of their land for nonagricultural purposes and have pending offers for acquisition of agricultural conservation easements. Qualifying farmland must be included in a pending offer from a non-governmental organization, state, tribe, or local farmland protection program; privately owned; covered by a conservation plan; large enough to sustain agricultural production; accessible to markets for what the land produces; surrounded by parcels of land that can support long-term agricultural production. A request for proposals will be published in the Federal Register today and posted on the web at http://www.nrcs.usda.gov. 

Eight Proposals Selected for Lamb Marketing.  USDA will provide more than $1 million to fund eight proposals to market and promote lamb. The selections are in addition to the previously awarded 15 projects totaling $3.85 million announced Nov. 15. In 1999 the U.S. International Trade Commission ruled 6-0 that "lamb meat is being imported into the United States in such increased quantities as to be a substantial cause of the threat of serious injury to the domestic industry. USDA selected for funding Rancher's Lamb of Texas: $250,000 to develop a marketing campaign that combines new products and packaging; Utah Department of Agriculture: $44,000 to conduct an organic lamb pilot marketing program; Swissland Packing Company: $225,000 to promote Home Meal Replacement items; B. Rosen and Sons: $237,000 to conduct an American lamb promotion campaign; Heartland Lamb: $50,000 to conduct producer information meetings in conjunction with a grid marketing payment schedule on quality attributes that positively affect value added products; Dakota Lamb: $60,000 to conduct new product marketing using natural raising techniques; Lewis Ranch: $100,000 to develop new products and marketing of organic lamb including the use of Internet sales; Grove Meat Company: $35,000 to market Modified Atmosphere Packaged cuts into the retail sector. 

CREP Money Goes to California.   USDA will fund three-fourths of $24 million to support a partnership with the state of California to enhance water quality and improve wildlife habitat, under the Conservation Reserve Enhancement Program (CREP). CREP uses federal and state resources to help meet agriculture-related environmental challenges. The California CREP will fund voluntary agreements with farmers to convert crop land to native grasses, trees, and other vegetation. Specifically, this project aims to retire 12,000 acres of highly erodible and environmentally sensitive crop land and create wetlands and protect riparian areas in the North Central Valley. Most of the land likely to be enrolled is marginal agricultural land. Retiring environmentally sensitive crop land and planting it with wildlife-friendly vegetation is intended to reduce erosion and the amount of pollutants entering surface and ground water supplies. In addition, it is supposed to improve air quality and enhance the viability of agriculture through improved soil and water quality. Tree buffers and filter strips planted on the banks of streams and rivers filter runoff water and reduce the risk of pathogens entering public water supplies. They also provide vital habitat for wildlife and improve fish habitat. USDA will pay up to 75% of the estimated $24 million program costs. The state of California will pay the rest. Many private organizations will provide further assistance.
 

January 19, 2001

Veneman Calls for Market Opportunities.  Ann Veneman, facing little if any real challenge to her designation as Secretary of Agriculture, told the Senate Agriculture Committee Thursday that farmers must be assisted by government to "seize market opportunities" both domestically and in foreign markets. Veneman, known for her interest in trade issues, said trade must be expanded and barriers to access eliminated. 

Pork Producers Take Legal Action.  Pork producers have filed for legal action against the USDA in the recently announced termination of the pork checkoff program. The group, which includes independent pork producers, the Michigan Pork Producers Association and the National Pork Producers Council, filed for a temporary restraining order and a preliminary injunction preserving the status quo and enjoining the termination of the pork checkoff program until a full and fair hearing has occurred. 

Corn Growers Use IRM Plans.  A recent survey conducted by the National Corn Growers Association (NCGA) and biotechnology companies shows growers are exercising stewardship responsibilities by implementing insect resistance management (IRM) programs on their farms as required by the Environmental Protection Agency. This plan was designed to minimize the possibility of corn borers developing resistance to the Bt toxin. 

Cattle Producers Win One in Court.  Cattle producers have won a legal battle that challenged a radical environmental mission to end livestock grazing on federal lands, according to the Public Lands Council (PLC). New Mexico District Court Judge Edwin Mechem ruled earlier this week that the U.S. Forest Service erred when it agreed to give the Forest Guardians, an environmental group, access to federal lands ranchers' financial information.

News Summaries 

FDA Issues Juice Rule.  The Food and Drug Administration Thursday announced a final rule designed to improve the safety of fruit and vegetable juice and juice products. Under the rule, juice processors must use hazard analysis and critical control point (HACCP) principles for juice processing. Implementation of a HACCP system will increase the protection of consumers from illness-causing microbes and other hazards in juices, says FDA. The rule comes after an increase in the number of food-borne illness outbreaks and consumer illnesses associated with juice products during the past several years, including a 1996 E. coli O157:H7 outbreak associated with apple juice products and two citrus juice outbreaks attributed to Salmonella spp. in 1999 and 2000. The apple juice outbreak sickened 70 people in the western United States and Canada, including a child who died from hemolytic uremic syndrome caused by the infection. The Salmonella Enteritidis outbreak in 2000 was caused by unpasteurized orange juice and resulted in 88 illnesses in six western states. The Salmonella Muenchen outbreak in 1999 was caused by unpasteurized orange juice and resulted in 423 illness in 20 states and three Canadian provinces and contributed to one death. FDA estimates that there are between 16,000 to 48,000 cases of juice-related illnesses each year. It is estimated that the action taken due to the rule will prevent at least 6,000 illnesses per year. 

Food Safety Measure Proliferate.  REUTERS reports the Clinton administration laid out a smorgasbord of food safety measures on Thursday that warned consumers about the risks of deli meats and raw oysters, required juice manufacturers to tighten processing steps, and cracked down on importers of tainted foods. Still to come today is a final report from President Bill Clinton's council on food safety that will offer a broad plan for protecting the U.S. food supply against salmonella, E. coli and other disease-causing bacteria, the article says. Industry and consumer group sources said the president's report -- which is nonbinding for incoming President-elect George W. Bush -- stopped short of recommending the creation of a single food safety agency. Instead, it will simply urge USDA, the Food and Drug Administration and the Environmental Protection Agency to work more closely together to reduce food-borne illnesses. 

USTR Reviews WTO Negotiations.  The office of the United States Trade Representative said Thursday it is initiating an environmental review of the negotiations on agriculture and services currently underway in the World Trade Organization. The review will be conducted by an interagency team. USTR is requesting public comment on the scope of the review and the best time to conduct the analysis. "The WTO agriculture and services negotiations are vital to U.S. interests. It is critical that we understand the range of environmental implications as we go forward," said U.S. Trade Representative Charlene Barshefsky. "An environmental review will help trade negotiators craft an agreement that is both good for trade and good for the environment." USTR's notice that it is initiating the review and request for public comment were sent to the Federal Register Thursday and are being posted on the USTR Web site, www.ustr.gov. 

Brazil Finds, Destroys U.S. Sheep.  REUTERS reports that Brazil's government said Thursday it located and destroyed three sheep imported from the United States suffering from scrapie, a brain disorder related to "mad cow" disease, or BSE. The article says first suspicions of the presence of scrapie in Brazil were raised earlier this month but were confirmed by laboratory tests last week, according to a spokeswoman at the Agriculture Ministry's office in the southern state of Parana. "This was in the central region of Parana and there were three infected animals. But yesterday 290 animals were slaughtered as a hygiene measure," she told the news agency. "The disease was confirmed by laboratory tests. It took about a week to make sure after the disease was first suspected, and all the animals on the farm were slaughtered," she said.
 

January 18, 2001

FDA Issues Biotech Rule, No Mandatory Labeling.  The Food and Drug Administration Wednesday issued a proposed rule that would require food developers to notify FDA at least 120 days in advance of their intent to market a food or animal feed developed through biotechnology and to provide information to demonstrate that the product is as safe as its conventional counterpart. In a separate but related action, FDA is issuing a draft guidance document that would provide direction to manufacturers who wish to label their food products as being made with or without ingredients developed through biotechnology. 

Not Enough for a Beef Checkoff Referendum.  USDA's Agricultural Marketing Service announced Wednesday that not enough valid petitions were received to require a referendum on the beef checkoff. The Beef Promotion and Research Act provides for a referendum if requested by 10% of all cattle producers in the United States. USDA determined this number to be 107,883 producers. Price Waterhouse Coopers conducted a 100% hand-count of the actual petitions and determined that the Livestock Marketing Association submitted 127,927 petitions to USDA but no more than 83,464 petitions were valid. 

Milk Producers Consider Countering Protein Imports.  Heightened concerns about the economic problems caused by imported dairy proteins are prompting the National Milk Producers Federation to weigh its options for invoking U.S. trade laws to stem the flow of milk protein concentrate into the country, NMPF announced Wednesday.

News Summaries 

Swiss Study Says Organic Not Healthier.  BLOOMBERG NEWS reports from Zurich that Internutrition, a Swiss research group whose sponsors include Novartis AG, Nestle SA and Monsanto Co., says organic food is not healthier than conventionally produced or genetically modified food, Swiss daily newspaper Tages-Anzeiger reported. A study by Internutrition and Stiftung Gen Suisse says products grown by organic farmers may even present dangers not present in those farmed conventionally or genetically altered, the paper reported. On the basis of these findings and a need for further research, Gen Suisse said renouncing agriculture involving genetic engineering would be detrimental. A group of legal changes to regulate genetic technologies will be discussed in the Swiss parliament in the spring, the paper said. 

California Power Threatens Dairying.  California dairy farmers and milk processors look for financial difficulties for the industry and higher prices for consumers, if the state's power crisis continues, THE ASSOCIATED PRESS REPORTS. Residential customers in Northern and Central California dealt with rotating blackouts Wednesday. Agricultural leaders around the state met to draw up emergency plans in the face of the power problems. "We're at the critical stage right now," said Jim Gomes, vice president of corporate operations for California Dairies, Inc. "We're getting close to the dumping stage, where we have to call our farmers and have them dump their milk on the farm," he said Wednesday, shortly after meeting with high-volume customers in the San Joaquin Valley. The problem for California Dairies, which is the second-largest dairy cooperative in the nation, is that the power supply to its main customers - including Kraft Foods, Inc. - has been interrupted by Southern California Edison for the past three days. 

EPA Issues Rules on Biotech.  The Environmental Protection Agency has issued three final rules that explain the framework for federal oversight of plant incorporated protectants, which include plants engineered through biotechnology to express pesticidal properties. Plant-incorporated protectants are substances that act like pesticides which are produced and used by a plant to protect it from pests, such as insects, viruses, and fungi. These rules define the type of plant-incorporated protectants (PIPs) which are required to undergo scientific evaluation to ensure protection of human health and the environment. Protectants will be exempted from certain regulatory requirements if the agency determines that they pose little or no health or environmental risk. Plant-incorporated protectants developed through conventional breeding will remain exempt from all requirements under the Federal Insecticide, Fungicide, and Rodenticide Act and under the Federal Food, Drug, and Cosmetic Act, with the exception of adverse effects reporting requirements for manufacturers. In a supplemental notice, EPA is inviting public comments and data on the appropriate regulatory oversight of PIPs. EPA also is requesting public comments on the National Academy of Sciences report, published in April 2000, entitled "Genetically Modified Pest-Protected Plants: Science and Regulation," as it relates to plant-incorporated protectants derived through genetic engineering. The Federal Register notices are available at: www.epa.gov/scipoly/new.htm and will be published in the Federal Register shortly. For more information on EPA's biotechnology program, go to www.epa.gov/pesticides/biopesticides. 

Farm Income to Decline.  USDA has forecast net farm income at $41.3 billion in 2001. This would be $4.1 billion less than 2000's $45.4 billion in income in year 2000 and $4 billion below the 1990-2000 average of $45.3 billion, these reductions hinge on an assumption that government payments will be approximately $8 billion less in 2001 than in the previous year. Government payment assumptions are the main reason for a decline in the farm income forecast, as the value of commodity production is actually on an upward trend. Government payments were a record $22.1 billion in 2000, up $1.5 billion from 1999. Emergency assistance originating from special legislation comprised $8.9 billion of total government payments in 2000 and is forecast to be $3.6 billion in 2001. Higher crop prices will result in nearly $2 billion less in loan deficiency payments, which also were a significant component of total payments in 2000. 

China's WTO Entry Stalemated.  REUTERS reports from Geneva that a week of "end-game negotiations in China's 14-year bid to gain entry to the World Trade Oraganisation (WTO) has made little progress on key issues." Some diplomats said the apparent seriousness of the impasse on agriculture and access to the Chinese market for services suggested it could be many more months before Beijing could get into the body, which currently has 140 members. "I think it could take much longer than we thought," said one envoy emerging from a wrapup session of the WTO working party on Chinese accession. China's top negotiator, Long Yongtu, declined to predict how much longer the marathon negotiations might take. "I am always an optimist," he told reporters as he entered the Wednesday session. Diplomats said it had been agreed that the next meeting between the Chinese negotiators and WTO countries would be at the end of February or in early March.
 

January 17, 2001

Glickman Reviews His Record.  Agriculture Secretary Dan Glickman believes his six-year record of accomplishment at USDA is highlighted by improvements in the lives of all U.S. citizens, not only farmers and ranchers. In his last news conference before leaving office, Glickman cited food safety, promoting good nutrition, helping build rural economies and protecting natural resources. Still, he admits, "farm issues remain at the heart of this department." 

EU Commission Wants Pigs' Welfare Improved.  The European Commission has adopted a proposal to improve the welfare conditions for pigs through legislation. The commission also adopted a report on intensive pig farming that prohibits the confinement of pigs during most of their pregnancy to individual stalls where freedom of movement might be restricted. It also sets out rules to improve the living environment of pigs and piglets in general, setting requirements for living spaces, floor surfaces, and proper feeding systems. New requirements for training of pig handlers are also introduced. 

GIPSA Verifies Two StarLink Test Kits.  USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) has evaluated two rapid test kits to determine StarLink corn in corn grain. GIPSA performed its evaluations on Envirologix Inc. QuickStix kit and Strategic Diagnostics Inc. Trait Bt9 kit and concluded that the performance of both kits meets the manufacturer's claims of identification of one StarLink corn kernel in 800 corn kernels. GIPSA's verification of tests is performed on grain only as opposed to processed foods.

News Summaries 

New Zealand Not Happy with Chile.  Chile's decision to impose a 12% tax on some milk products was disappointing, New Zealand's Agriculture and Trade Negotiations Minister Jim Sutton said on Wednesday, according to REUTERS. Chile had imposed a 12% tariff on liquid ultra heat treated and powdered milk. That means total tariffs on New Zealand milk exports to Chile will be 21%, Sutton said. "This decision, while not entirely unexpected, is an unwelcome start to the New Year. It threatens an important market for New Zealand dairy exports," Sutton said in a statement. The new duty replaced a provisional measure of 16 percent imposed last July while Chile conducted an investigation into the effect of milk imports on its domestic industry. New Zealand dairy exports to Chile in the year to June 2000 were NZ$32.6 million ($14.5 million) out of total exports of NZ$58 million. 

Glickman Leaves Farm Payment Issue Unresolved.  Agriculture Secretary Dan Glickman said Tuesday he would leave to his successor the reporting of nearly $3 billion in 1998 U.S. farm aid payments to the World Trade Organization. In his final news conference, Glickman denied he was ducking the issue to avoid admitting the payments were "trade distorting" under WTO rules, REUTERS reports. Since world agricultural trade talks are pending, Glickman said he did not want to "bind the (incoming Bush) administration" with any decision. "We have a new round coming up and it is within the next administration's bailiwick to negotiate the next round," Glickman said. At this stage, it would be "imprudent for me" to decide how to report the payments, he said. The article says the department's decision on how to categorize the 1998 payments would set a precedent for disaster payments made by Congress for the 1999 and 2000 crops. Since 1998, Congress has approved additional aid of more than $24 billion for farmers. Critics argue the disaster aid payments have had an impact on production and trade by shielding U.S. farmers from the full effects of low prices. But USDA officials, according to this article, caused an uproar among farm state lawmakers in 1999, when they said there had been a tentative decision to classify the 1998 payments as "amber." That designation is reserved for farm payments that have the greatest potential effect on production and trade. The least trade-distorting farm payments are labeled "green." 

U.S., Chile Talks Progress.  REUTERS reports that the United States and Chile made progress last week in talks on a proposed bilateral free-trade agreement (FTA) and promised to meet again soon, a top U.S. official said on Tuesday. In a statement, outgoing U.S. Trade Representative Charlene Barshefsky said wide-ranging negotiations in Santiago should provide "a firm foundation" for the Bush administration to eventually strike a deal. "An FTA with Chile will create commercial opportunities for U.S. business, workers and farmers and complement the negotiations on the Free Trade Area of the Americas (FTAA) as we approach the Quebec summit in April," Barshefsky said. Chile has been waiting for six years for free-trade access to the United States, the market for one third of its exports. 

Agriculture Trips Up China, WTO.  THE ASSOCIATED PRESS reports from Geneva that China and members of the World Trade Organization held a final meeting in a week-long session Wednesday still unable to resolve one of the major issues blocking China's WTO membership: agriculture. China wants to be considered a developing country where its agricultural trade is concerned, and that has met strong opposition from the United States and countries in the 18-nation Cairns group which include Australia, Canada and Brazil. Under WTO rules, countries classes as "developed" have the right to subsidize up to 5% of their agricultural output. For "developing" countries, the figure is 10%. "China is still a big agricultural country - 900 million farmers still work in the fields. For the poor farmers, we have to reserve this right," China's chief negotiator, Long Yongtu, told reporters last week. The article says the European Union, which is a heavy user of agricultural subsidies itself, has expressed less concern about China's demand, according to trade officials. 

EU Toughens GMO Rules.  The London-based INDEPENDENT newspaper reports that the European Union is preparing to toughen rules on genetically modified foods. "And unless the American food biotechnology company Monsanto goes through a stringent EU process of licensing, labeling and traceability, Brussels will prevent its GM wheat being imported," the article adds. For at least two years there has been something of a moratorium on the licensing of any new genetically modified organisms (GMO) for release into the environment, leaving some 18 applications pending. This could change this spring when a revised directive should be in place, imposing tougher conditions and a new regime to continue monitoring GM foods once they come on to the market. Under this system new "risk assessment" rules will be introduced to monitor scientific evidence. All new GM plants and seeds approved for sale will have to apply for reapproval after 10 years, eliminating the permanent consent that now applies. Any company wanting to export to the EU will need to comply, even if they are based in the United States. The new directive will not be the end of the regulations that Monsanto will have to match to sell genetically modified wheat. One of these is a directive to ensure "traceability" or ensuring that any product deemed to be out of step with European rules could be withdrawn. It will also ensure that food made from GM products can be identified. 

Judge to Decide on Sheep Slaughter.  A federal judge may decide this month whether the U.S. government can slaughter two flocks of Vermont sheep suspected of carrying mad cow disease, according to a REUTERS report. Bovine spongiform encephalopathy, the scientific term for this brain disorder, can be transmitted in fatal form to humans. No cases of BSE have been conclusively identified in the United States. But the disease in cattle is sparking public fear and political turbulence in some European countries. USDA in July decided to seize and kill a total of 350 sheep after tests on four of the animals allegedly showed they were infected with a category of disease that includes BSE. But the flocks' owners contested the USDA's move in court, arguing that the tests were improperly conducted. The government has agreed not to seize the sheep until U.S. District Judge Garvan Murtha issues a ruling. He has been weighing evidence in the case since the summer. 

University Forecasts Less Corn, More Soybeans.  Farmers likely will reduce corn plantings and increase soybean seedings to a record level to capture more lucrative government subsidy benefits, a new forecast by the University of Missouri said. BLOOMBERG NEWS reports that the Missouri findings show farmers will plant about 78.1 million acres of corn this spring, 1.8% fewer than last year, according to the Food and Agricultural Policy Research Institute at the university. With normal weather, farmers may harvest a 9.7 billion-bushel crop this autumn, the institute said, down from last year's 9.96 billion- bushel harvest, which was the second-largest ever. Soybean farmers will plant about 75.5 million acres, up from 74.5 million a year ago, the institute predicted. That could translate to a 3 billion-bushel harvest, a record, and the fifth increase in the harvest in the last six years.
 

January 16, 2001

Corn Growers Try 11th Hour Assault on Waiver.  The National Corn Growers Association (NCGA) sent out a last-minute alert Monday, asking corn growers to call their Washington representatives and senators "immediately" to urge the Clinton administration to deny a waiver that would grant California an exemption from the federal reformulated gasoline oxygen (RFG) requirement. NCGA says the waiver still threatens ethanol even in the waning days of the Clinton Administration. 

Dairy E-Commerce Conference Scheduled.  The International Dairy Foods Association (IDFA) is sponsoring the dairy industry's first e-commerce conference on March 6-7 in Dallas. The conference will examine the Internet as a business-to-business (B2B) sales and marketing tool, and will help dairy professionals determine their role within the expanding Internet marketplace and provide information on how to use the web to sell more product, maximize exposure, more effectively buy ingredients and services, and increase competitiveness. 

FMI Appeals to Independents.  The Food Marketing Institute (FMI), usually considered a representative of the grocery chain stores, has formed an independent operators division that will work to both the interests of independent supermarket companies as well as better serve their specific needs. The announcement came at FMI's annual midwinter executive conference. 

Canada Patents Food Bacteria Fighting Tool.  A new scientific tool designed to help ensure food products are free of bacteria like E. coli and Salmonella has been patented in Canada. The "rotary thermocycler" was developed by researchers at Agriculture and Agri-Food Canada's (AAFC) Food Research Program in Guelph, Ont. Its uses include detecting and counting bacteria, testing for bacterial contaminants in water and counting microbes in soil.

News Summaries 

ASEAN Proposal Hailed.  KYODO NEWS reports that U.S. agricultural trade negotiators Tuesday hailed an Association of Southeast Asian Nations (ASEAN) proposal to the World Trade Organization (WTO) on special treatment for developing countries in agricultural trade. But the U.S. sources said significant differences remain on issues such as domestic supports. ''I'm very encouraged about the proposal,'' U.S. Foreign Agricultural Service (FAS) official Debra Henke told a news conference in Bangkok, alluding to an ASEAN paper on special and differential treatment for developing countries that was submitted to the WTO Nov. 10. ''While we don't agree with everything in the paper, I think there is beginning to develop a common understanding on the things we can negotiate,'' said Henke, who directs USDA's Multilateral Trade Negotiations Division. The article notes that talks on launching a new round of multilateral trade negotiations under the WTO remain stalled, partly due to differences of opinion between developed and developing countries over what should be on the agenda. 

Argentina Joins Against U.S. Proposal.  BLOOMBERG NEWS reports that Argentina will join the European Union, Japan and seven other countries in a challenge to a U.S. law at the World Trade Organization that would award American companies the proceeds of anti-dumping tariffs. The legislation, signed by President Bill Clinton Oct. 28, was designed to benefit steelmakers and other U.S. producers who complain of unfair competition from low-priced imports. Clinton opposed the measure but signed it because it was part of an agriculture appropriations bill he supported. Argentina "has a substantial trade interest" in this dispute, Argentina said in a document to the WTO. "At present, Argentina is subject to several anti-dumping measures and investigations by the U.S." Australia, Brazil, Chile, India, Indonesia, South Korea and Thailand joined the complaint last month which will lead to WTO consultations with the United States. Later, the WTO could order Washington to repeal the law or face sanctions. 

More StarLink Worries Japan Importers.  Another discovery of gene-spliced StarLink in samples of U.S. corn shipments to Japan has importers there "increasingly nervous" over just how effective a U.S. plan to avoid such discoveries and upon which that Japan had agreed, REUTERS reports. Japan's Health, Labour and Welfare Ministry said it found traces of the unapproved biotech StarLink corn in one of four samples sent Dec. 25 by the United States for food use. The same sample had tested negative before leaving the United States. The announcement came only a month after a similar incident raised concerns that the test plan would not be sufficient to comply with strict Japanese legislation to be implemented in April against unapproved genetically modified products. In November, the Health Ministry had accepted a U.S. plan to test corn for food use bound for Japan. The following month, the Agriculture Ministry agreed on a similar test plan. StarLink is not approved for use in food or feed in Japan.
 

January 15, 2001

Mandatory Meat Labeling Expanded.  USDA has proposed expanding nutrition labeling requirements for meat and poultry, providing consumers with more information about fat, calorie, and cholesterol content. Under the proposed rule, nutrition information for major cuts of single ingredient products such as steaks, pork tenderloin, and chicken and turkey meats will be required either on the label by the manufacturer or by the retailer at the point of purchase. 

California's Waiver Request Hurts Farmers, says FB.  The American Farm Bureau Federation and National Corn Growers Associaiton have added their voices to those asking the Clinton administration to deny the state of California's request for a waiver from the requirements of the federal Reformulated Gasoline program. In a joint letter to President Clinton, AFBF President Bob Stallman and National Corn Growers Association President Lee Klein said that California's need to remove the known water pollutant MTBE from gasoline should not exempt the state from having to use oxygenated fuels to curb air pollution. 

Cattlemen Concerned About EPA's CAFO Rule.  Brice Lee, chairman of the National Cattlemen's Beef Association Property Rights Committee, says cattle producers are concerned about the content of the Environmental Protection Agency's proposed concentrated animal feeding operation (CAFO) regulation published Friday in the Federal Register. The rule would make more cattle producers subject to permitting regulations by defining more animal feeding operations as CAFOs.

News Summaries 

E. Europe Suffers Dryness Again.  REUTERS reports that mild and dry winter weather is threatening grain crops in parts of eastern and central Europe after last year's drought reduced output in the region. Analysts said precipitaion declined sharply in Hungary, the Czech Republic, Slovakia, Romania, Yugoslavia and Bulgaria, and unusually warm weather hindered development of the crops. Daily air temperature in the region rose as high as 20 degrees Celsius last week. However, the weather turned sharply colder over the weekend, but only Bulgaria saw a major snowfall, the first of the winter. "We hardly had any rainfall in October and November. December was better but the soil is really dry," said Mihaly Guba, analyst with Hungary's Farmers Association. Hungary saw only a sharp drop in temperatures over the weekend but without snow. Guba said that if freezing cold came before snow covered the fields, crops would be severely damaged. 

China Balks on Income Supports for Farmers.  China won't sacrifice income support for farmers. The support is needed to close the income gap between its rural and urban workers, the Chinese say, according to BLOOMBERG NEWS. The statements came in talks this week for China to join the World Trade Organization, officials and analysts said. China's level of farm support is lower than in more developed countries such as the United States, said Ke Bingsheng, director-general of the Ministry of Agriculture's Research Center for Rural Economy. Meanwhile rural incomes in China grew just 2% in 2000, compared with 7 percent for city dwellers, according to the National Bureau of Statistics. "I don't understand the position of the U.S. and other trading partners insisting that China must further reduce its domestic supports," Ke said. "China will never be in a position to support its farmers at as high a level as developed countries because its does not have enough money." The article says China's only real farm supports are the above-market procurement prices paid to farmers for strategic grains such as corn, rice and wheat, and subsidies to cotton marketing agencies to hold reserves, according to Ke. 

Durbin Sees Need for StarLink-Related Legislation.  Sen. Dick Durbin (D-IL) says there is a need to take legislative action to "ban most split-use biotech foods." He says that belief is based on responses from three federal agencies to letters he wrote in November asking when and what those agencies knew about contamination in StarLink biotech corn trials in 1997. Durbin wrote the Environmental Protection Agency (EPA), the Food and Drug Administration and USDA. Split-use foods, such as StarLink corn, are foods that have different rules for different uses. "It makes no sense to have grain out there that animals can eat but not humans. The collection, storage and distribution systems are not built to segregate them, and the potential for problems is too great," Durbin said. "Split-use foods put all farmers and consumers at risk, and once their products are contaminated, the damage can't be undone." FDA also has been testing foods for StarLink and has found it in a corn meal product marketed to the brewing industry, according to Durbin. He said he will work on legislation to ban most split-use biotech foods. This ban would apply to products like Starlink that received approval for animal consumption but not for human consumption. 

Canadian Farmers Want Aid.  BLOOMBERG NEWS reports that group of Canadian farmers is demanding that the Canadian government offer it aid similar to that guaranteed to jet-maker Bombardier Inc. The National Post reported, citing officials of the group, that the farmers are arguing that Canada should invest equally in both industries. They also suggested agriculture and food are more important to Canada's economy that the aerospace industry, the paper said. Last week, Canada stepped up a trade battle with Brazil by offering Bombardier C$1.5 billion (US$1 billion) in loan guarantees so the Montreal-based company can compete with rival Embraer. Farmers in Canada also need help counteracting export subsidies in competing countries, said grain company Agricore and Keystone Agricultural Producers, Manitoba's biggest farm lobby group. 

Environmentalists Oppose Norton.  Major environmental groups have joined efforts to derail the designation by President-elect George W. Bush of Gale Norton as Interior secretary based on her environmental record, BLOOMBERG NEWS reports. They says they'll lobby senators to reject her nomination. "She would be asked to uphold a set of laws and regulations she does not believe in," said Carl Pope, executive director of the Sierra Club, one of 15 environmental groups at a press conference. Pope said the Sierra Club plans to spend at least $1 million on television and radio ads in seven states where senators should be receptive to arguments that Norton would be a poor steward of the nation's public lands: Arkansas, Florida, Rhode Island, Oregon, Vermont, New Hampshire and Maine. Norton, Colorado's former attorney general, has a record of environmental positions that businesses have supported. "It's (the nomination process) going to be tough, obviously because these are very sensitive issues," said Norm Ornstein, a congressional analyst with the American Enterprise Institute. "The land use issues are clearly ones that are quite divisive. There are a lot of groups mobilized against her looking for all that they can find." Still, Ornstein predicted Norton will be confirmed would still be able to push her proposals through provided she extends a conciliatory hand to environmental groups once in office.
 

January 12, 2001

Pork Vote Downs Promotion Order.  Pork producers voted last year to end 12 years of advertising and promoting pork products, Agriculture Secretary Dan Glickman said Thursday, announcing he would order the program terminated. Pork producers, however, said they would seek a court injunction against ending the program. 

Wheat Prices Increased.  USDA has increased the projected price of wheat for 2000-01 to $2.55-2.75 per bushel, a 5-cent increase at both the low and high ends of the range. U.S. 2000/01 ending stocks of wheat have been decreased in the latest report by 48 million bushels because of higher domestic use. Projected feed and residual use is up 50 million bushels because of lower- than-expected Dec. 1 stocks. 

Cloned Cow May Mean Mastitis Defense.  USDA's Agricultural Research Service and University of Vermont (UV) researchers have produced a clone of a pure-bred Jersey cow whose cells may offer a biotechnological defense against mastitis disease. Geneticist Kevin Wells of ARS said it will be at least another year before the cow, named "Annie" and born last March, begins producing milk and scientists can begin testing for mastitis resistance. Though not the first cow clone, Annie is the first to be genetically altered with a gene for an agricultural application. 

Fruits, Veggies Not As `A' Rich as Thought.  Carotene-rich fruits and vegetables -- such as carrots, sweet potatoes, and broccoli -- provide the body with half as much vitamin A as previously thought, says the latest report on Dietary Reference Intakes (DRIs) from the National Academies' Institute of Medicine. This means people need to make sure they eat enough of these fruits and vegetables to meet their daily requirement for vitamin A, especially if they do not eat animal-derived foods, which serve as abundant sources of the nutrient for most people.

News Summaries 

Another World Food Summit Coming.  REUTERS reports from Rome that the United Nations' world food body plans to stage another World Food Summit Nov. 5-9. The U.N. Food and Agriculture Organization (FAO) has called the summit in Rome to promote a goal set at a 1996 gathering to halve world hunger by 2015. "We are aiming for heads of state or government to attend," a spokesman told the news agency. The 1996 World Food Summit was attended by more than 100 heads of state and government, including then U.N. Secretary-General Boutros Boutros-Ghali and Cuban President Fidel Castro. 

Smallest Wheat Acreage in 30 Years.  Farmers are growing just 41 million acres of wheat this winter, the smallest acreage in three decades, THE ASSOCIATED PRESS reports. The article notes USDA says dry conditions hampered plantings on the southern Plains. But farmers already were switching from wheat to other crops, such as soybeans, that are more heavily subsidized by the federal government. About three-fourths of the wheat grown in the United States is a winter variety, which is planted in the fall and harvested in the spring. Plantings of this year's crop have declined 5% or 2 million acres from last year, the lowest acreage since 1971, when 38.1 million acres were seeded, according to USDA. The article also notes that report sent wheat prices slightly higher Thursday morning on the Chicago Board of Trade. Wheat for March delivery rose one-half cent to $2.89 1/2 a bushel. USDA estimates that farmers will earn an average of $2.65 a bushel on this year's wheat crop, up from $2.48 on last year's harvest. 

McGovern Will Continue at UN.  THE ASSOCIATED PRESS reports that George McGovern, the 1972 Democratic presidential nominee, has been asked by the Bush administration to remain as U.S. ambassador to Rome-based United Nations agencies. McGovern, 78, a former senator from South Dakota, was appointed by President Clinton in March 1998 and is one of four U.S. ambassadors based in Rome. "As far as I know, I am the only Clinton presidential nominee so far who has been asked to stay on, and I have accepted," McGovern told the news agency. Since his appointment, McGovern and former Sen. Robert Dole (R-KS), the 1996 Republican presidential nominee, worked together in Congress to expand the American school lunch program, food stamps and special nutrition help for pregnant women and poor children. For the past year, with Clinton's support and Dole's help, McGovern has been pushing U.N. agencies and member countries to provide a nutritious school lunch every day for every schoolchild in the world. 

Farm Subsidies Key in World Trade Talks.  The impact of farm subsidies on market prices and their implications for upcoming world trade talks will be key issues when the United States begins debating its next farm bill, a U.S. farm official said on Thursday. REUTERS reports that the United States, facing a downturn in its economy, "is sharpening its criteria for the allocation of direct aid to farmers," according to Joy Harwood, deputy director of USDA's economic research service. "Whether there's money to add to federal spending on agriculture and other sectors very much depends on projections for the budget surplus," she told a seminar organized by French grain trading firm Sigma in Paris. The House Agriculture Committee is to begin public hearings in February on a rewrite of 1996 farm legislation which expires in 2002.
 

January 11, 2001

Private Property Rights Threatened.  John A. Charles, the environmental policy director for the Cascade Policy Institute, told members at the American Farm Bureau Federation's annual meeting that environmental "elitism" combined with government controls, are a serious threat to private property rights across the United States. 

New Farm Bill Faces Challenges.  The farm bill Congress must write in 2002 will have to address numerous concerns -- from providing adequate support levels to farmers and meeting international trade obligations to enhancing the environment and justifying farm spending to an ever-skeptical public. 

School Meals Changes Announced.  Agriculture Secretary Dan Glickman Wednesday said that school meals now include more low or reduced fat foods, greater menu variety, and more fruits and vegetables, according to two new USDA studies. "School meals reach nearly 27 million children each day - sometimes providing the most nutritious meal a child receives," said Glickman. "Fortunately, more than ever before, these meals are hitting the mark in providing good nutrition and healthy selections." 

Some CRP Contracts Renewable.  Certain Conservation Reserve Program (CRP) participants whose contracts expire on Sept. 30 will be able to extend their contracts for one year. Contract extensions will also provide an opportunity for USDA to review the ongoing effect of CRP on buffer areas and critical watersheds such as the Chesapeake Bay in Maryland. 

Browner Decries Wetlands Decision, Acts on Dredging.  Environmental Protection Agency Administrator Carol M. Browner says this week's U.S. Supreme Court decision on isolated wetlands "weakens American's ability to protect" wetlands, a decision met with applause from the American Farm Bureau Federation. Browner turned around and issued a new regulation to tighten up on dredging operations related to wetlands.

News Summaries 

Canadian Farmers Agree to Reduce.  REUTERS reports that some 1,200 Canadian farmers have agreed to stop grain production for a year to try to increase sagging prices. The founder of a new agricultural lobby group, Ken Goudy, of the Focus on Sabbatical movement, admitted that tally was far short of the 30,000 western Canadian farmers he wants to join the organization. The farmers would agree to let their fields lie fallow for a year to curb stocks and breathe new life into the market. "Certainly, agriculture can't survive for a long period if grain prices continue to stay below the cost of production," Goudy told the news agency. Canadian farmers have long complained about declining revenues and tough financial conditions as commodity prices slumped to levels not seen since the Great Depression. The article says thousands are abandoning the land, with those remaining forced into a vicious cycle of producing even more. The resulting surplus pressures prices further, they say. Focus on Sabbatical aims to create a one-time 8 billion bushel shortfall, shrinking stocks of wheat, corn, barley and oilseeds by about 10%. 

Tyson's Challenge with Beef.  THE WALL STREET JOURNAL asks the rhetorical question, Can Tyson Foods Inc., which reinvented chicken, do the same with beef and pork? The article notes that the Springdale, AR, company "helped turn the bird into America's No. 1 meat in the early 1990s." Using factory-style farming methods, Tyson was one of the first to create fresh meat with consistent enough quality and size to carry a national brand name, the article continues. "Then, it took the basic grocery staple and peddled a variety of versions: breaded, battered, marinated, boneless, skinless, hormone-free and steroid-free. Today, it sells everything from microwavable entrees to a ready-to-eat dried chicken snack." Whether Tyson can fully capitalize on last week's $3.2 billion pact to buy IBP Inc., the nation's biggest red-meat processor, hinges largely on whether it can "Tyson-ize beef and pork." Says Jeffrey G. Kanter, an analyst at Prudential Securities in New York, "This is a very big bet by Tyson." 

Illinois Asks Monsanto to Withdraw Corn Seed.  THE WALL STREET JOURNAL reports that pressure is increasing for Monsanto Co. to withdraw from Illinois a genetically modified corn seed "it hopes will become a blockbuster product." Joe Hampton, director of the Illinois Department of Agriculture, sent a letter last week asking hundreds of seed dealers in the nation's No. 2 corn-producing state to stop selling "seed varieties that are not approved for all uses in all major markets." While the letter doesn't mention Roundup Ready corn by name, government, industry and Monsanto officials said Wednesday the Monsanto seed, which isn't approved for use in Europe, is clearly a target of the letter, according to this article. Hampton could not be reached by the WSJ for comment, but the article says he doesn't have the legal authority to prevent Illinois farmers from buying Roundup Ready corn seed. Some independent seed dealers, however, said the unusual request could have "a chilling effect" on the seed, which grows into a corn plant able to tolerate exposure to Monsanto's Roundup herbicide.
 

January 10, 2001

Cattle Outlook Good, Hogs 'Precarious.'  The next few years could be more profitable for cattle producers; the hog market is more "precarious," a market analyst predicted at the American Farm Bureau Federation annual meeting. The key is sow slaughter. "If it's much below last year, you'd better start planning for significantly lower prices," Jim Robb, of the Livestock Marketing Information Center in Denver, told hog producers. A second major factor could be packing plants and their slaughter capacity, he added, noting that a strike at a small plant in Canada helped create the disastrous hog prices of 1998. 

Wheat, Rice Find Biotech More Difficult.  Last year's StarLink biotech corn episode has become something of a "double-edged sword" for wheat and rice researchers who are working to bring new benefits to producers and consumers through genetic modification. 

DOI, USDA Release Positive Wetlands Reports.  Interior Secretary Bruce Babbitt and Agriculture Secretary Dan Glickman Tuesday jointly released two new reports that both indicate there has been a dramatic slowdown in the loss of wetlands over the past decade.

News Summaries 

Supreme Beef Appeal Months Away.  The American Meat Institute reports that USDA's appeal of an earlier ruling in favor of Supreme Beef Processors probably won't be heard until late this year with a decision coming in 2002. The United State's Court of Appeals for the 5th Circuit recently ruled against the federal government regarding the government's motion to dismiss the Supreme Beef Processors' case. USDA had filed motions to vacate and to dismiss as moot the trial court decision from last May in favor of Supreme Beef. The appellate court also denied USDA's request to expedite the appeal. The court's decision means the case will proceed as part of the court's regular order of business. Accordingly, the case likely will be heard by the court of appeals during the latter part of 2001, meaning a decision could come as late as 2002. USDA previously had attempted to suspend inspection in December 1999 at Supreme's grinding facility because of an alleged failure to comply with the Salmonella performance standard. 

Veneman Hearing is Jan. 18.  Sens. Tom Harkin (D-IA) and Dick Lugar (R-IN) have decided to hold a hearing Jan. 18 to confirm President-elect Bush's designation of Ann Vaneman as Secretary of Agriculture. The hearing will be chaired by Harkin who is committee chairman until Jan. 20. It will be held at 9 a.m. in room 538 of the Dirksen Senate Office Building. If approved Veneman would be the first woman to serve as Secretary of Agriculture. 

AFBF Calls for Automatic Farmer Payments.  The American Farm Bureau Federation has called for a program that would automatically send more money to growers when prices decline below a certain level, according to REUTERS. Partly to accommodate the automatic payments, delegates to the AFBF annual meeting also voted, as national policy, to ask that agriculture get a larger share of the federal budget in coming years. Although delegates did not suggest a funding level, AFBF president Bob Stallman said on Sunday that $18 billion a year was needed "based on the amount of dollars that have gone out in the past three years." On a voice vote, delegates approved language for a "counter-cyclical" payment to boost farm income when prices decline, larger funding for farm supports, agricultural research and trade promotion programs, retention of the planting freedoms now in place and more money for soil and water conservation. 

Veneman: No Hint on RFG Waiver.  REUTERS reports that USDA Secretary-designee Ann Veneman has given no hint on how the incoming Bush administration might rule on a contentious fuel issue. The issue, whether to grant California a waiver from the nation's federal oxygen content requirements for reformulated gasoline, puts Veneman and the administration in the cross fire between national farm groups and her home state of California, the article says. Corn growers and ethanol producers bitterly oppose the waiver, which would squash a potential huge new market in California and set a precedent for other states. "She held her cards close to the vest on that," Sen. Peter Fitzgerald (R-IL) told reporters after a meeting with Veneman. "She just noted that California was seeking the waiver and did not state a position." 

Land O'Lakes Annual Meeting Next Month.  The Land O'Lakes 2001 Annual Meeting is scheduled for Feb. 21-22 at the Minneapolis Convention Center. Some 2,800 delegates, members and visitors, representing farmers, ranchers and local cooperatives from nearly 40 states and Canada are expected to attend. This year's event focuses on the theme "Building On Our Best" as Land O'Lakes celebrates its 80th year. The program will include board, management and operations reports, as well as presentations by 60 Minutes co-editor and CBS News correspondent Lesley Stahl and National Council of Farmer Cooperatives Vice President and Chief Economist Terry Barr. An interactive special interest session will focus on how dairy producers and Land O'Lakes are using the Internet to provide the latest dairy-related services on the Web. 

Mixed Signals on USTR Status.  BLOOMBERG NEWS reports that the transition team of President-elect George W. Bush is sending mixed signals over whether it will confer the same high-ranking status on the U.S. trade representative as the Clinton administration granted. Some members of Congress say senior members of the incoming administration's transition team, whom they are unwilling to name, have assured them the trade job will remain within the president's cabinet, the top tier of officials. THE WASHINGTON POST carried a story yesterday suggesting the job's cabinet rank will remain intact. Yet Bush spokesman Ari Fleischer "hedged" Tuesday when asked about the issue, saying "no decisions have been made." Some government officials and business groups worry that reducing the trade representative's status would undercut American negotiating power in the upcoming international trade talks, the article notes. Willard Berry, president of the European-American Business Council, which represents more than 85 companies on both sides of the Atlantic, said downgrading USTR would "undermine the U.S.'s negotiating position, and the Europeans would have a conniption" because there would be no U.S. official of equal rank with whom European Trade Commissioner Pascal Lamy could negotiate.
 

January 9, 2001

USDA, ND Partner on Fragile Land.  USDA and the state of North Dakota have joined together in an effort to protect 160,000 acres of fragile farm land and improve water quality. The Conservation Reserve Enhancement Program, already established in 14 other states, will provide farmers with financial incentives to engage in conservation practices. 

Farmers Slowly Embrace E-Commerce.  David Lyons of the Iowa Farm Bureau says that as barriers are overcome, farmers are embracing the technology that allows them to buy and sell commodities and services through the Internet. One of the biggest practical barriers to farmers' use of e-commerce is change. Lyons said that agriculture has evolved and adapted to change over time and that the Internet marketplace requires farmers to adapt to new technology. 

Combest Announces Subcommittee Chairs.  House Agriculture Committee Chairman Larry Combest (R-TX) has designated five subcommittee chairmen with jurisdictions reflecting the committee's focus for the107th Congress. The full Committee will begin hearings in early February and March, hearing specific farm commodity program recommendations from producer groups. Combest's goal is to develop legislation meeting the need for permanence and consistency to address the low market prices financially pressuring producers and rural communities. 

Corn Growers Keep Up Waiver Pressure.  The National Corn Growers Association (NCGA) is continuing to press President Clinton to direct the Environmental Protection Agency to deny California's request for a waiver that would exempt the state from the oxygen requirement of the federal reformulated gasoline (RFG) program.

News Summaries 

Democrat May Get USTR Post.  PRO FARMER reports that President-elect George W. Bush may give the U.S. trade representative's office to a Democrat even though he is considering downgrading the position from the rank of cabinet. Richard Fisher, who is currently second to U.S. Trade Representative Charlene Barshefsky, is more than likely Bush's top pick for the position. Fisher, whose focus has been on Asian trade issues, knows what role the trade representative plays in making foreign policy, says this article. Robert Zoellick, a longtime aide of former Secretary of State James A. Baker, is also being considered. If Fisher receives the post, he will be the second Democrat to be added to the senior ranks of the Bush administration, sending a bipartisan signal to Congress, which is divided on expanding trade and can veto trade agreements. The article also notes that at a news conference, Bush spokesman Ari Fleischer said the president-elect plans to push for fast track trade negotiating authority. He acknowledged the issue was controversial, but Fleischer added that it is a "crucial piece" of Bush's economic agenda and is a "principle" he for which he will fight. The fast track plan would include creation of a pro-trade coalition of both Democrats and Republicans, Fleischer said. 

Japan Hosts WTO Conference.  KYODO NEWS reports that Japan will host a conference later this month in Germany to prepare for a new round of global trade liberalization talks. A senior Foreign Ministry official says the informal vice minister-level meeting will take place Jan. 24 in Frankfurt with the participation of at least eight countries -- Australia, Brazil, Egypt, India, Mexico, South Africa, South Korea and Switzerland. Some more countries may participate in the one-day meeting, other ministry officials said. The next ministerial conference reportedly is being scheduled for November this year in a yet undetermined location in the hope of launching the new round by the end of this year. 

New Farm Law Could be Trade Violation.  REUTERS reports that using billions of dollars to remedy the perceived shortcomings of the 1996 farm law with a new law could be considered a violation of international trade rules. Analyses given at the American Farm Bureau Federation (AFBF) convention was intended to illustrate the difficulties of developing useful domestic farm supports at the same time the United States wants to end unfair farm subsidies abroad. With low grain prices persisting for a fourth year, there is wide support in farm country to revise the "Freedom to Farm" law so that more money automatically would flow to farmers during price slumps. Under "Freedom to Farm," growers are guaranteed a few billion dollars in supports but no additional aid. Most proposals to create a "counter-cyclical" payment plan would be subject to world trade rules that limit the amount nations can spend on price supports, said Paul Drazek, a trade expert. If they spend very much money, they could breach the U.S. cap of $19.6 billion a year. "These types of programs have the potential to be very expensive," Drazek later told reporters, because the cost to the government can go up dramatically if prices plunge. 

USTR Will Remain in Cabinet.  Bush transition team officials say that the position of U.S. trade representative will remain a Cabinet-level post, an aide to a key U.S. lawmaker said on Monday, according to REUTERS. House Ways and Means Committee Chairman Bill Thomas spoke to the transition team over the weekend and was told the Cabinet rank of the chief U.S. trade negotiator would not be downgraded, said Trent Duffy, a spokesman for the panel. "His position is that any rumors to the contrary are just that, rumors," Duffy said. "He was given assurances it would not be downgraded." On Saturday, Bush appeared to confirm talk he might downgrade the post, which has held Cabinet rank since 1974. But he emphasized the job would still remain an important one.
 

January 8, 2001

Meat Rules Equalize Industry.  Meat inspection regulations released by USDA help ensure more equity "in the differences between meat and poultry processing and (provide) more information to consumers, the National Cattlemen's Beef Association says. USDA's final rule on added water bases inspection standards on science and reduces inequities between meat and poultry processing that have existed for more than 40 years, said George Hall, NCBA president and a cattle producer from Mustang, OK. 
Tax Reform Will Include Agriculture Issues.  The Family Business Estate Tax Coalition, which includes agriculture and small business interests, will lobby for legislation to eliminate the estate tax. The National Cotton Council says such agriculture tax coalitions are consolidating their efforts to ensure any tax reform measures that are debated will include provisions for agriculture. Last year, the House and Senate approved legislation eliminating the estate tax, but President Clinton vetoed it.

News Summaries 

Lugar Supports Committee Split.  The Senate leadership's decision to allow 50-50 splits in committee memberships and staff allowances is all right with Senate Agriculture Committee Chairman Richard Lugar (R-IN). "The compromise plan they have fashioned for the Senate will rely upon an abundance of good faith and trust," said Lugar. "I believe that a majority of senators, looking down into a deep chasm of potential failure occasioned by the 50-50 member party split, have displayed new reverence for our Constitution, renewed sensitivity to the constructive action our constituents want to see and patriotism which puts the country first. I will support our leaders' plan, and I will do my best to make it work by ... reaching across the aisle to build a strong consensus for vital change and progress in our nation." 

WTO Panel Publishes anti-U.S. Finding.  A WTO dispute settlement panel's finding that the United States violated international trade rules by imposing protective tariffs on Australian and New Zealand lamb under a so-called "safeguard action" has been published. The WTO panel upheld many of the complaints lodged by Australia and New Zealand, concluding that the U.S. International Trade Commission (USITC) incorrectly defined the "industry" by including growers and feeders of live lambs. Further, the panel found that the USITC did not have sufficient evidence to determine that increased imports of lamb caused a threat of serious injury to the domestic industry -- the theshold for granting temporary tariff protection. On the basis of the USITC findings and recommendations, President Clinton on July 22, 1999, imposed a 9% tariff on imports of lamb up to an annual quota of 31,851 tons; a 40% tariff on above-quota imports; a progressive reduction of the in-quota tariff to 6% in July 2000 and 3% in July 2001; and a progressive reduction of the above quota tariff to 32% in July 2000 and 24% in July 2001. The United States is expected to appeal the panel's findings to the WTO's Appellate Body. A final ruling on the appeal is likely by mid-2001. The WTO generally limits tariff protection afforded in safeguard actions to three years. The U.S. tariffs are scheduled to expire in mid-2002. The panel report can be viewed at http://www.wto.org/english/tratop_e/dispu_e/177r-178r_a_e.pdf. 

Stallman Believes $18 Billion Needed.  BLOOMBERG NEWS reports that American Farm Bureau Federation President Bob Stallman believes U.S. farmers will need as much as $18 billion in government subsidies this year to help producers through a fourth year of depressed prices. Agriculture struggled last year, and many of the nation's 1.9 million farmers, especially those growing corn and soybeans, will find "the going pretty tough" again in 2001, Stallman, a cattle and rice farmer from Texas, said. Congress earmarked at least $4 billion for farm program spending in the current federal budget, and the aid total likely will increase to $9 billion for the fiscal year ending Sept. 30. Stallman called that "woefully inadequate." Speaking at the organization's annual meeting in Orlando, FL, he said, "I think you're going to have to double it" to about $18 billion this year. Without it, "the farm economy will be devastated," he said. 

USTR Important but Not Cabinet Level.  REUTERS reports that President-elect George W. Bush says the job of U.S. trade representative will remain important in his administration, even if it is no longer a full Cabinet rank position. "Whether or not the person is called Cabinet or not, it will not in one way or another diminish the importance of the position," Bush told reporters before meeting with Republican governors at his Texas ranch. "The USTR position is going to be a really important position in my administration," said Bush, who takes office on Jan. 20. "It's going to be important because ours will be an administration of free trade." The news agency report says that, according to one prominent Republican, who spoke earlier on condition of anonymity, Bush wants to downgrade the U.S. trade representative position to give more clout to his longtime friend and commerce secretary nominee, Don Evans, a Texas oil industry executive. Charlene Barshefsky, the current U.S. trade representative, on Friday called the idea of downgrading the post an "absolute folly." She said, "I can't imagine a more harmful outcome to the U.S. prestige around the world in the trade area. Our trading partners would be dumbfounded -- dumbfounded -- if that were to occur." Congress gave the U.S. Trade Representative's office Cabinet-level status in the 1974 Trade Act. An executive order issued by President Jimmy Carter in 1980 gave the office authority to set and administer overall U.S. trade policy. 

Pork Vote Results Now Due This Week.  REUTERS reports that USDA plans to announce sometime this week the results of a vote on whether the pork industry's checkoff program should continue. "There is no announcement today (Friday)," said Billy Cox, spokesman for USDA's Agricultural Marketing Service. "We are expecting an announcement next week." USDA officials, who had expected an announcement last week, would not give a reason for the delay, according to the news agency. 

Less Corn, More Soybeans Coming.  BLOOMBERG NEWS reports that farmers probably will plant fewer acres of corn, but plant more acres of soybeans this year. It is projected that a record 75.3 million acres of soybeans will be planted to take advantage of the benefits of a government subsidy program. Commodity analysts told the American Farm Bureau Federation convention that corn plantings may decline 1.3% to 78.6 million acres this spring from 79.6 million acres a year earlier. With normal weather, that would mean a 10 billion-bushel corn crop this autumn, the third largest ever. Prices could average $2.00 a bushel in the year beginning Sept. 1, up 15 cents per bushel from this year's projections. A 1.1 percent increase in soybean acreage to 75.3 million from 74.5 million last year may mean a record autumn harvest of 2.99 billion bushels. That large a crop could depress prices to an average of $4.25 a bushel in the year that begins Sept. 1, down from $4.80 a bushel average expected this year. Crops in Brazil and Argentina also are forecast to be large, also weighing on prices. 

Senate Agriculture Panel Draws New Members.  DTN reports that Democratic Senators from Minnesota, Nebraska and Michigan have inquired about membership on the Senate Agriculture Committee, according to Sen. Tom Harkin (D-IA). The Democrats have one vacancy on the committee with the retirement of Sen. Bob Kerrey of Nebraska. Other committee members may want to switch to other committees. Harkin said he expects the committee to be evenly split between Republicans and Democrats, with Sen. Richard Lugar (R-IN) continuing to serve as chairman. A spokesman for Lugar said he didn't know if there were other Republicans interested in membership, but the three most junior Republican members of the committee, Sens. Charles Grassley (IA), Larry Craig (ID) and Rick Santorum (PA) are serving under waivers because agriculture is their third committee. If other Republican senators wish to join the committee, they could bump off those with waivers, the spokesman said.
 

January 5, 2001

Glickman Talks Policy for New Administration.  Outgoing Agriculture Secretary Dan Glickman Thursday laid down a gauntlet for the income Bush administration on farm policy: instead of focusing on transferring income from the federal government to farmers, he said, concentrate more on an "investment in rural America" designed to improve the quality of life for all rural residents. 

Animal Quality Identification Enhanced.  Agricultural Research Service scientists have completed a pilot project to decipher segments of cattle and swine genes, paving the way for technologies that will help livestock breeders quickly and accurately identify animals with superior qualities. The research also may advance biomedicine, according to ARS, a USDA agency. 

U.S. Cotton to Be Showcased in Germany.  For the first time, U.S. cotton home furnishings will be showcased under the COTTON USA banner at the world-class Heimtextil trade show in Frankfurt, Germany. Nine leading U.S. textile manufacturers will feature a wide range of products, from bath rugs to place mats, in the COTTON USA Pavilion sponsored by Cotton Council International (CCI) and Cotton Incorporated, Jan. 10-13.

News Summaries 

Areas Designated in USDA Program.  Agriculture Secretary Dan Glickman has designated 33 areas in 25 states as part of the U.S. Department of Agriculture's Resource Conservation and Development Program. The program is designed to help people in rural areas increase conservation of natural resources, promote economic development, and solve local problems. RC&D areas are locally led by councils comprised of volunteers, civic leaders, and locally elected officials. RC&D projects provide practical solutions for community development, land conservation, environmental enhancement, and water management. USDA's Natural Resources Conservation Service will provide each area a local coordinator to help access USDA programs and services. Other USDA agencies will also provide assistance. Projects currently underway in the 315 existing RC&D areas across America are reducing soil erosion, improving water quality, enhancing recreational and tourism facilities, developing and diversifying local business opportunities, assisting child and elder care, and improving sewage treatment. 

Wildfire Prevention Assistance Announced.  Agriculture Secretary Dan Glickman and Interior Secretary Bruce Babbitt have released a proposed list of communities eligible for enhanced federal wildfire prevention assistance. The preliminary list of over 4000 communities includes many that are near public lands managed by the federal government. Specific actions to reduce the threats of wildfires will vary. In some areas, for example, contracts may be offered to thin dense stands of trees or prescribed burns used to reduce excessive undergrowth. In other areas, actions may be taken to remove non-native plant species that increase fire danger. Communities included on the list were proposed by states, tribes and local governments. The list was compiled by the Departments of the Interior and Agriculture. The Western Governors Association, the National Association of State Foresters and others helped develop draft criteria to identify communities that may benefit from special attention to reduce wildland fire hazards. Accordingly, the list as well as the criteria will be refined as additional information and public comments are submitted to the federal agencies. The draft list, published in today's Federal Register and available on the web at www.nifc.gov, includes communities where hazardous fuels reduction treatments are already underway and those where treatments are slated for later this fiscal year. 

Canada Blames U.S., EU for Protectionism  Canada blames Europe and the United States for "dashing hopes of feeding the world's poor by sticking with protectionist policies and adopting an outdated attitude to GM foods," REUTERS reports. Agriculture Minister Lyle Vanclief said agriculture in Canada was being ruined slowly by other Western countries' policies. "One critical issue we are focusing on right now is the devastating effect other countries' agricultural policies are having on our farmers in Canada," he said at a conference. "The old ways of doing business clearly are not working in everyone's favour. So let's embrace the new century with a fresh resolve to look at new ways to make the world a better place -- for all of us. By drawing on our most up-to-date technology, such as biotechnology and other tools for breeding plants and animals, we can more effectively help feed those starving millions." He said Canada demands an end to export subsidies, domestic support and market access improvements for agriculture and food products. "These support levels distort production; they drive down world prices that are already low; and as a result, they hurt farmers -- farmers in Canada and farmers in a majority of other agricultural-producing countries," he said. 

Higher Wheat Sales to Italy Seen.  REUTERS reports from Rome that U.S. wheat growers see significantly larger sales to Italy in the 2000-01 marketing year. A decline in the quality of the European Union crop and an end to the import levy for non-EU high-quality grain are the reasons. "For the current marketing year 2000/01, we expect a substantial increase in U.S. wheat imports into Italy over the 1999-2000 marketing year," Goris van Lit, assistant regional director at the European offices of the U.S. Wheat Associates in Rotterdam, said. "The strong U.S. sales to Italy reflect a poorer quality in the wheat crop in the European Union, which means an increased need for blending wheats," he told Reuters in response to written questions. The article says Italian traders have voiced views similar to those around Europe that the quality of France's wheat crop in 2000, the biggest in the EU and a leading origin for European buyers, was poorer than the previous year because of damage from rains. 

Group Says No Reason Pork Vote Unannounced.  A Midwest farm organization says there is "no reason" why the results of the vote on the pork checkoff program have not been announced. REUTERS also reports The Campaign for Family Farms also criticized Agriculture Secretary Dan Glickman for allegedly refusing to announce the results of the referendum. The Campaign for Family Farmers, a coalition of seven Midwest farm groups opposed to the program, said USDA has known the results of the Sept.19-21 vote since late December. "There is absolutely no reason to delay the announcement of this vote," said Jim Joens, spokesman for the farm group. The farm group said it was expecting the USDA to announce the results sometime this week. "The secretary said he will announce this in January and we plan on doing it," a USDA spokesperson said.
 

January 4, 2001

Cargill Takes Second Recall.  On the heels of one massive recall of ready-to-eat poultry products, Cargill Turkey Products has recalled voluntarily about 195,000 pounds of "HoneySuckle White Hickory Smoked Turkey Ham" in addition to the 16.7 million pounds of poultry products pulled back Dec. 14. 

Cattlemen Look Cautiously at Tyson-IBP Deal.  The National Cattlemen's Beef Association is taking a somewhat wary approach to the announcement that Tyson Foods Inc. will buy giant beef processor IBP Inc. George Hall, NCBA president, says the organization is "intensely interested" in the deal. 

Commodity Classic Is Next Month.  The Commodity Classic scheduled for San Antonio, TX, Feb. 25-27, will include a trade show with more than 630 booths representing a wide variety of agriculture businesses and organizations, and related industries. This is the sixth such convention and trade show of the National Corn Growers Association (NCGA) and American Soybean Association (ASA). 

Banker Calls for New Farm Bill Approach.  Terry Jorde, president and CEO of CountryBank USA, a $35 million dollar bank in rural North Dakota, told President-elect George W. Bush to recommend a farm policy "sooner rather than later," that provides more income to farmers when prices decline and that provides greater stability and risk management tools "so that ag producers and rural communities can plan for a future."

News Summaries 

Rice Output Must Increase.  REUTERS reports from Rome that the United Nations' Food and Agriculture Organization believes world rice production must increase by 200 million tons a year to almost 800 million tons by 2025 to keep pace with population growth. The FAO said rice farmers need to use resources more efficiently to make sure production is sustainable. "We'll need to increase current rice production from nearly 600 million tonnes annually to almost 800 million by 2025 if we want to keep up with population growth," said Nguu Nguyen, agricultural officer in FAO's crop and grassland service. "And to make sure the growth is sustainable, we'll need to do it using less land, labour, water and pesticides," he added. FAO officials have said the world's population was expected to grow by 1.2% annually until 2015. Rice is the most important staple crop in the world, providing half the world's people with 80 percent of their diet. The growth in rice yields declined from about 2.5% a year in the 1970s and 1980s to 1% a year in the 1990s, FAO officials said. Experts first began to notice the decline in rice productivity in Thailand and India, and then confirmed it during long-term trials in the Philippines. 

Veneman Makes Senate Rounds.  Agriculture Secretary hopeful Ann Veneman today visits with members of the Senate Agriculture Committee who will have to vote on her nomination to head USDA. With an evenly split Senate, Sen. Tom Harkin (D-IA) says he will be acting as chairman for the next 17 days and meets with Veneman "on the many issues that are important to farm families, rural communities and consumers." Improving commodity prices and farm income, conservation, food safety, expanding ethanol production and use, rural economic revitalization and nutrition assistance are issues Harkin said he will discuss with Veneman. 

House Organization Begins; Senate Delayed.  The House Republican conference is to meet today to vote on committee chairmen who have been approved previously by the GOP Steering Committee. The Steering Committee is scheduled to act Friday on committee assignments. The full House will ratify chairmen and committee assignments Saturday during a session in which electoral votes are certified. However, Senate committee assignments are being delayed by the need for agreement between Sens. Trent Lott (R-MS) and Tom Daschle (D-SD). The issues include committee membership ratios and staff budgets. Some confirmation hearings will be held in the interim. There has been some confusion about who will chair any hearings: Democrats formally hold committee chairs until Jan. 20, but Sen. John McCain (R-AZ) will chair a hearing today for Commerce Secretary-designate Don Evans. In the House, the Banking Committee will be re-christened the Financial Services Committee and assume securities jurisdiction from the Energy and Commerce Committee. But futures regulation is to remain under the Agriculture Committee's jurisdiction. 

Canada Asks for Talks on Potatoes.  Canada has requested consultations with the United States under the North American Free Trade Agreement over U.S. restrictions on imports of potatoes from Prince Edward Island. "Canada believes that the restrictions have no scientific justification, constitute an unjustified barrier to trade and violate the U.S. international trade obligations," said International Trade Minister Pierre Pettigrew. USDA closed the border to potato imports from Prince Edward Island Oct. 31 after the Canadian Food Inspection Agency found potato wart disease in one field in Prince Edward Island. 

Stenholm Calls for More Farm Money.  Rep. Charles Stenholm (D-TX), the ranking Democrat on the House Agriculture Committee, believes more money should be allocated to agriculture, REUTERS reports. During an interview with the news agency, Stenholm said low grain prices for the fourth consecutive year show that additional aid is vital. Outlays on farm supports are supposed to decline to about $4 billion a year in fiscal 2002 and following years. The bailout bills of the past three years, however, have roughly doubled the spending that was forecast when farming was deregulated in 1996, the article notes. "That has to be the first item... It is so critical we have a baseline increase and we fight for it in the budget process, which will occur over the next 100 days," Stenholm said. "The top three issues are baseline, baseline and baseline."
 

January 3, 2001
 
President-Elect Bush Announces Members of Transition Advisory Teams.  The Bush-Cheney team named a slate of advisers for the transition to a Republican administration at USDA and other federal agencies. The advisers will "provide input and related outreach activities" for the transition, according to a press statement. 

Grain Group Urges Rail View Rejection.  The National Grain and Feed Association has urged the federal Surface Transportation Board to reject the viewpoint of rail carriers that the agency retain its existing "pro-merger" policy. In a statement filed with the agency, the NGFA contested statements submitted by Class I railroads that urged the STB to retain the same basic merger-approval standards that have existed for the past 20-plus years to govern future transactions. 

USDA Calls for Testing Seed Corn for Cry9C Protein.  USDA's Grain Inspection, Packers, and Stockyards Administration (GIPSA) has recommended that all seed corn to be sold for the 2001 planting season and parent lines to be used in 2001 seed production be tested for the presence of the Cry9C protein (StarLinkTM). This recommendation was prompted by the detection of Cry9C protein in non-StarLinkTM corn hybrid seed, GIPSA told seed companies in a letter. 

Farm Bureau Optimistic about New Year.  American Farm Bureau Federation members face the new year with "optimism and enthusiasm," says AFBF President Bob Stallman. "We have the opportunity to work with a new administration and a new Congress to implement our policies that will provide us with economic and social benefits," Stallman says.

News Summaries 

Monsanto Expects to Market in Brazil.  BLOOMBERG NEWS reports from Sao Paulo that Monsanto Co. believes a change in Brazil's agriculture regulations may allow the company to sell bio-engineered seeds in the world's No. 2 soybean producing country this year. In a ruling last week, the government agreed to give greater legal force to its National Biosafety Technical Commission. The government originally founded the commission in 1995 by decree, a status that left its decisions open to repeated legal challenges, this article says. That "make clear what are the commission's powers and diminish problems of a legal nature," said Leila Oda, president of the commission, known as CTNBio. Belmiro Ribeiro da Silva, Monsanto's communications director in Brazil, said the decision may make it easier for the Pharmacia Corp. unit to sell its bio-engineered soybeans in Brazil by October. "We see this as a very important step that will enable us to sell our product for the next harvest," said Ribeiro da Silva. 

USDA About Ready with Pork Vote Results  USDA is expected to publish the results this week of the voting results on the controversial multimillion-dollar pork checkoff program, reports REUTERS. The news agency quotes a Midwestern farm organization, the Campaign for Family Farms, a coalition of seven Midwest farm groups. The coalition predicted the majority of pork producers voted on Sept. 19-21 to terminate the industry's checkoff program. The pork checkoff program raises about $50 million annually for industry promotion activities and research. "We are definitely confident that the results will be positive," said Bryce Oates, spokesman for the farm group. "From the vast majority of counties that we observed, we came out on top." The article says the National Pork Producers Council, representing about 85,000 producers, said predicting the results of an election was difficult, if not impossible. 

Tyson Will Buy IBP.  Tyson Foods Inc., has agreed to buy IBP Inc., the beef processor in a $3.1 billion in cash and stock deal that makes Tyson the nation's dominant meat marketer, REUTERS reports. Shares of Tyson declined Tuesday. The stock decline also takes Tyson shares below the "collar" that had been set to provide IBP shareholders some price protection, knocking roughly $100 million off the initial value of the deal, according to this article. Tyson also agreed to assume $1.5 billion in IBP debt. REUTERS reports the stock decline comes while investors are waiting to be convinced that the $30-a-share deal will add 15% to Tyson's earnings as soon as the deal closes, an assertion Tyson made Monday. Tyson expects the deal to close by Valentine's Day. 

Farmers Watch EPA for New Directions.  THE ASSOCIATED PRESS reports from Toledo, OH, that farmers in that state will watch closely how the new Bush administration approaches pollution regulations for large farms. Supporters of the large livestock operations hope a new Environmental Protection Agency under the leadership of Christine Todd Whitman "will ease some of the proposals and allow each state to regulate its biggest farms," according to the article. But environmentalists and some small-scale farmers fear that making changes to please megafarm owners would cause trouble. "To do that would be to basically declare war on the environmental community," said Steve Fought, a spokesman for the Ohio Farmers Union. "It doesn't make sense to pick a fight that early in his administration." Another key issue the EPA will decide is whether to make Ohio's megafarm owners apply for federal water permits or allow the state to regulate the farms and the amounts of pollution they produce.