July 31, 2001

Corn Growers, Refiners Seek HFCS Help.  The National Corn Growers and the Corn Refiners Associations have asked Senate Minority Leader Trent Lott (R-MS) for help on a trade issue they say threatens to destroy the $90 million market in Mexico for U.S. exports of high fructose corn syrup. 

Waxman-Cox Amendment Worries Ethanol Supporters.  Ethanol industry officials are on the alert for an amendment to the energy bill that could come before the full House for action this week. The amendment seeks to waive the oxygen requirement in reformulated gasoline sold in California, and that would threaten an ethanol industry on the verge of dramatic expansion to meet California's needs. 

Germplasm Research Receives $5 Million Increase. The Senate Appropriations Committee has included an increase of $5 million for USDA's National Plant Germplasm System (NPGS) in its version of the fiscal 2002 agricultural appropriations bill. The NPGS collects, preserves, evaluates, and distributes germplasm that is essential for the development of new corn hybrids and other plant varieties. The NPGS collection of corn stocks has increased dramatically as a result of the plant genome program, and additional funding is needed to ensure that these essential breeding tools are accessible to all public and private plant breeders, noted Vic Miller, a farmer from Oelwein, IA, and chair of the National Corn Growers Association (NCGA) Customer & Business Development Action Team. The NPGS sites at Ames, IA, and Urbana, IL, play key roles in the development of new corn hybrids, says NCGA. The bill is expected to be approved by the full Senate before the August congressional recess. 

White House Officially Threatens Veto on Aid. The White House Monday issued an official statement threatening a veto of the Senate's version of farmer assistance unless senators settled for almost $2 billion less than the bill includes. The Senate could consider the aid bill today. The administration "strongly opposes S. 1246 as reported by the Committee on Agriculture, Nutrition, and Forestry, because spending authorized by the bill would exceed $ 5.5 billion, the amount provided in the budget resolution and the amount adopted by the House. If S. 1246 is presented to the President at a level higher than $5.5 billion, the President's senior advisers will recommend that he veto the bill," the statement said. The $5.5 billion is more than adequate, and improvements in agricultural markets and stronger livestock and crop prices "mean that the need for additional federal assistance continues to diminish." An additional $5.5 billion in federal assistance "will boost expected real U.S. farm net-cash income to $53.6 billion (1996 dollars), a level of income significantly above the previous two years. With the need for additional assistance well within the $5.5 billion provided, the expenditure of funds allocated for 2002 in crop-year 2001 would be premature. In addition, the bill provides funding for a number of programs that have nothing to do with farmers' 2001 incomes. Funding for these programs should not be included as part of a 2001 farm income assistance bill," the White House added. 

Breakthrough on Salt Resistance Reported.  REUTERS reports a "breakthrough that could boost food production in many parts of the world." Scientists say they have inserted a single gene from a relative of the cabbage into a tomato plant to create the first crop able to grow in salty water and soil. Researchers introduced into a tomato plant a gene from the plant Arabidopsis that controls a protein able to corral excess salt before it inflicts damage on a plant. The genetically engineered tomato imprisons the salt in compartments within its cells, and also removes salt from the soil, the scientists said in the journal Nature Biotechnology. The leaves of the genetically engineered tomato plants contained very high concentrations of sodium, but the fruit produced by the plants was not tainted by salt. 

North Dakota Wheat Tour Begins.  Wheat experts from across the country met in Fargo, ND, Monday to determine if this year's spring wheat and durum crops in that state will yield what analysts have predicted. REUTERS reports that traveling in car caravans, more than 50 producers, agronomists and grain and milling industry officials will spend the next four days traversing the U.S. Northern Plains wheat growing region to assess this year's crop as part of the annual spring wheat tour. The tour, which began on Monday, will include stops at as many as 600 farms and wheat fields in North Dakota, South Dakota and northern Minnesota, according to Dave Green of ADM Milling Co., one of the tour leaders. Most of this year's wheat crop in North Dakota has yet to be harvested, as wet weather postponed planting until late spring in many areas. 

July 30, 2001

Farm Bill Passes House Committee. The House Agriculture Committee Friday approved its version of a new farm bill to replace the 1996 law that expires next year. With time short before Congress recesses this coming Friday until after Labor Day, it was doubtful the full House could consider the measure before fall. The Senate Agriculture Committee still has not put together its own farm bill, indicating a new law probably won't be in place before 2002. 

Farm Bureau Pleased with House Bill. The American Farm Bureau Federation praised the farm bill approved by the House Agriculture Committee and urged that the bill remain intact after a vote on the House floor. The panel's 10-year, $73.5 billion farm bill proposal was called "balanced and equitable" by AFBF President Bob Stallman. 

Dairy Section Termed ‘Crucial.' The House Agriculture Committee's approval of several policy items was termed "crucial" by the National Milk Producers Federation. The key element, in NMPF's estimation, was extension of the dairy price support program through 2011 at the current price level of $9.90 per hundredweight. 

Cattlemen Find Reason to Cheer.  The National Cattlemen's Beef Association (NCBA) said it was pleased that the House Agriculture Committee approved a farm bill that includes many of the priorities for, and recommendations from, cattle producers. "The bill is a winner for cattle ranchers across the country," said Jay Truitt, NCBA executive director for legislative affairs. 

Farmers Union Is Not Pleased.  The National Farmers Union (NFU) expressed its disappointment with a bill approved by the House Agriculture Committee. The 10-year plan is an aggressive start in creating a new, urgently needed farm law, said the organization, but it fails to provide farmers and ranchers with the tools necessary to survive in today's struggling farm and rural economies. 

Convincing California.  In letters submitted to the California Air Resources Board (CARB) Phase III gasoline workshop, operators of barges, U.S. flag oceangoing vessels, railroads, and California gasoline terminals gave their assurance that ample shipping and storage capacity exists to move ethanol from the Midwest to California markets. 

ACPA Differs with Producers on Canada Chemicals. Jay Vroom, president of the American Crop Protection Association, told a congressional subcommittee last week his organization supports greater trade access and regulatory harmonization for crop technology products between the United States and Canada. However, Vroom told members of the Senate Commerce Subcommittee on Consumer Affairs, Foreign Commerce and Tourism, that a bill introduced by Sen. Byron Dorgan, which would allow states and others to register Canadian products, while well-intentioned, would exacerbate some of the problems it seeks to address. 

Panel Does Not Support StarLink in Food. An independent Scientific Advisory Panel (SAP), convened to evaluate new data regarding potential allergenicity and exposure to StarLink corn, has completed its assessment and has provided its final report to the Environmental Protection Agency, telling the agency it does not support StarLink corn in food products. 

North Korea Crop Shortfall Seen. KYODO NEWS reports from Rome that North Korea's food grain production will suffer a shortfall of 564,000 tons until this fall due to a drought that hit the country last spring. The information comes from a joint special report by two U.N. agencies. The World Food Program and the Food and Agriculture Organization said the aggregate production of the spring and winter crops of wheat, barley and potatoes was about 172,000 tons, far below the expected 493,000 tons. The report -- based on field studies undertaken from June 23-July 3 -- also said 10% of farmland is being abandoned. North Korea is considering significant reductions in cereal rations, reflecting the gravity of the country's situation, it said. It added that the "consequent production shortfall would have dire consequences for the food security of the population'' and ''aggravate the already precarious food situation caused by successive natural hazards in recent years and persistent economic problems facing the country." 

Indonesia Needs Soybeans.  REUTERS reports that Indonesia's Agriculture Ministry says the country needs to import 1.5 million tons of soybeans this year, an increase from the 1.3 million tons imported last year. Director-General of Food Crop Production Farid Bahar said domestic production was expected to stay flat at 1.3 million tons this year, while consumption is expected to increase to 2.8 million tons from 2.6 million in 2000. "We need to import at least 1.5 million tonnes of soybeans this year to meet local demand," Bahar told reporters. "Farmers are more and more reluctant to plant soybeans because locally-produced soybeans cannot compete with cheaper imports," Bahar said. "In fact, imports are rising every year," he said, noting high local production costs. Trade sources said Indonesia's soybean production fell to 1.05 million tonnes in 2000 from 1.38 million in 1999. 

Philippines Will Reduce Import Duties. THE WALL STREET JOURNAL reports that Philippine President Gloria Macapagal-Arroyo will seek bilateral negotiations to reduce import duties on the country's tropical fruit exports. Arroyo said the reduction of import duties on the country's agricultural exports is one of the policy reforms that the government will be pushing to spur growth in the sector. Luis Lorenzo, chairman and chief executive order of Lapanday Holdings Corp., one of the largest fruit exporters in the country, said the move to lower import duties on farm products could in turn generate employment in the countryside. He said that if the government can open up the market to destinations with strict import requirements, such as Australia and the U.S., it would be easy to create new jobs. Arroyo earlier vowed to generate 1 million jobs in the agriculture sector within three years. 

House Bill Insufficiently ‘Green.' The House Agriculture Committee's farm bill did not create the type of "green" programs that environmentalists wanted. REUTERS reports that a showdown over conservation funding was likely when the bill was called for House debate, possibly as early as September. Agriculture Committee Chairman Larry Combest wants the 10-year bill passed quickly in hopes it can take effect with next year's crops -- a year earlier than scheduled. The Senate Agriculture Committee is weeks away from drafting a "farm bill." Its chairman, Sen. Tom Harkin (D-IA) is a strong proponent of paying farmers for making soil, water and wildlife conservation an everyday part of their work. Rep Ron Kind (D-WI) was expected to spearhead the drive for a vastly larger commitment to "green" programs. Kind sponsored a "working lands" stewardship plan that could spend up to several billion dollars a year to preserve fragile land, reduce runoff from feedlots and fields, and pay farmers who practice soil, water and wildlife conservation. The REUTERS article noted that prospects for green payments remained bright in the Senate's version of the bill. Harkin was a longtime sponsor of a bill to pay farmers up to $50,000 a year for integrating conservation into their operations. Environmentalists say large sums of money were needed to meet conservation shortfalls in the countryside and to meet the expectations of urban and suburban voters for lasting benefits from the subsidies lavished on farm country. 

Senators Seek WTO Poultry Challenge. A group of senators from poultry-producing states has asked the Bush administration to challenge in the World Trade Organization South Africa's tariffs on chicken leg quarters, REUTERS reports. Late last year, South Africa accused the U.S. poultry industry of "dumping" the meat product and imposed tariffs ranging from 13 cents to 40 cents per pound on imports. This was on top of a 12-cent-per-pound duty normally applied to chicken leg quarters. Besides challenging the legality of the South African tariffs, 20 U.S. senators, led by Sen. Thad Cochran (R-MS) said "a WTO decision is needed to discourage other nations from copying the South African action." The senators' complaint against the duties was registered in a letter sent Wednesday to U.S. Trade Representative Robert Zoellick. The U.S. industry exported more than 18% of broiler production last year, according to the National Chicken Council. 

Importers Won't Welcome Biotech Products.  REUTERS reports that an industry official believes the United States cannot expect foreign countries to approve minimal amounts of unapproved biotech crops in their imports if Washington continues its zero tolerance of StarLink gene-spliced corn. Rick Tolman, executive vice president of the National Corn Growers Association, told REUTERS a science advisory panel's recommendation on Friday to maintain a ban on StarLink corn would only reinforce overseas fears of biotechnology. The Environmental Protection Agency approved StarLink in 1998 for livestock feed and ethanol but banned it in human food because of concerns it may trigger allergic reactions. Traces of StarLink have turned up in food products in Japan and South Korea since late last year, prompting the two top Asian corn buyers to sharply cut U.S. purchases. Both have turned to South America, South Africa and Eastern Europe to replace U.S. corn purchases. 

EPA Documents Will be Released. THE ASSOCIATED PRESS reports the Bush administration has agreed to allow a Senate committee access to documents involving decisions to roll back several major environmental regulations, avoiding a potential legal confrontation with Congress. Sen. Joe Lieberman (D-CT), chairman of the Senate Governmental Affairs Committee, said Friday that the White House had agreed to give his committee's staff free access to the documents although, for now, they cannot be copied or the contends made public. The documents sought by Lieberman involved a decision by the administration to reconsider regulations on the amount of arsenic allowed in drinking water, toxic chemical pollution by mining companies and a requirement barring development of nearly 60 million acres of federal forests. "We don't know and the public doesn't know who they consulted or relied on in making those decisions," Lieberman said at a news conference announcing the agreement. "The basic question is who did the Bush administration talk to when they decided to block these regulations," said Lieberman, adding he fears there was consultation with only one side. Environmentalists have charged they were kept generally out of the process and that industry had too much access. 

July 27, 2001

House Committee Moves Toward Farm Bill Passage. The House Agriculture Committee moved toward passage of a new 10-year farm bill Thursday night, keeping mostly intact the hybrid farm program structure devised by Chairman Larry Combest (R-TX) and Ranking Minority Member Charles Stenholm (D-TX). Following the lead of this year's budget, the bill will add more than $70 billion over the next decade onto already-expected levels of farm spending. 

Farm Bureau Supports Access to Canada's Chemicals.  The American Farm Bureau Federation is supporting legislation that would allow farmers, cooperatives and farm supply stores access to lower-priced Canadian agricultural chemicals that are identical or "substantially similar" to those sold in the United States. Testifying before a Senate Commerce, Science and Transportation subcommittee, Montana Farm Bureau President Dave McClure said, "There is a price disparity among some agricultural chemicals in the U.S. and Canada that impedes our competitiveness and profitability. We believe this legislation will remove that disparity." 

USDA Modifies NAP Disaster Provision. USDA has modified the Noninsured Crop Disaster Assistance Program for the 2001 crop year. Due to statutory changes for the 2001 and subsequent crop years, NAP assistance will be based only on individual producer crop losses, rather than on geographic area crop losses for multiple producers. This will speed up program delivery and give producers a better chance of obtaining NAP coverage, thereby, making the program more accessible, the department said. 

Corn Growers Doubt EU Labels Workable. National Corn Growers Association (NCGA) Biotech Working Group Chairman and Plain City, OH, corn grower Fred Yoder says he understands the reasoning behind the European Union's proposal to label biotech foods, but he remains skeptical. "We understand the consumer's need for traceability," he said, "but the problem is we're not certain the solution proposed is workable." 

Japan's Pork Imports Trigger Duties. REUTERS reports from Tokyo that Japanese pork imports has reached a level high enough for the government to limit purchases with higher import duties. Japan's Agriculture, Forestry and Fisheries Ministry -- one of the world's biggest buyers of pork -- said it would impose emergency tariffs on pork imports from August 1 to March 31 next year after imports exceeded the government's limit of 183,850 tons between April and June. Under World Trade Organization rules, Japan is allowed to raise import tariffs in the case of a sudden surge in imports of an item. The tariffs will be imposed to protect domestic hog farmers after April-June pork imports surpassed the government limit of 183,850 tons, more than 19 percent higher than average quarterly imports over the past three years, a ministry official said. 

House Backs Vietnam Credits.  The House Thursday voted 324-91 to support President George W. Bush's decision to allow Vietnam to have continued access to U.S. government credit programs. The House vote was to reject a measure to overturn Bush's decision. REUTERS reports the action came on the same day the House Ways and Means Committee was to consider a landmark agreement to establish normal trade relations with Vietnam. That agreement was signed last year in Hanoi and has the support of the Bush administration. The Senate Finance Committee approved the pact last week. Until that agreement is in place, the 1974 Trade Act requires the president to make an annual decision on Vietnam's eligibility for U.S. government credits, credit guarantees and insurance guarantees, such as those administered by the U.S. Agriculture Department, the U.S. Export-Import Bank and the Overseas Private Investment Corp. 

Round Needed to Solve Differences. Chief U.S. agriculture negotiator Allen Johnson said Thursday differences between and among developed and developing countries on ways to resolve trade barriers to agricultural goods could be solved only through a full new trade round. Johnson, just confirmed in his post at the office of the U.S. Trade Representative, also told reporters that Washington firmly backed demands that the European Union end its export subsidy programme in agriculture, according to a REUTERS report. "As a practical matter, it is in the interests of all of us to get a round launched," said Johnson. He was speaking after delegations from most of the 141 countries in the World Trade Organization (WTO) wrapped up the latest session in talks on farm trade reform that started early last year but are still far from the negotiating stage. Over the past week, a range of developing countries and the 18-nation Cairns Group which links richer farm powers like Australia and New Zealand with emerging actors like Argentina, Brazil and Thailand, have set out tough positions on the issue. They want commitments in advance from the European Union to end export subsidies to farmers and from the United States to eliminate export credits for agricultural produce before they will accept a fresh round covering other trade areas. 

U.S., Chile Trade Talks Move Forward.  THE WALL STREET JOURNAL reports that U.S. and Chilean negotiators believe they can have a trade agreement wrapped up by year's end. Osvaldo Rosales, Chile's lead negotiator for free-trade talks with the United States said Thursday that the sixth round of trade talks have kept the two countries on track for an agreement. Both President George W. Bush and Chile's President Ricardo Lagos have said they hope the talks, which were launched last December, are concluded in 2001. The United States and Chile will conclude this latest series of trade talks today in Santiago, having exchanged preliminary proposals to dismantle tariffs on goods and services. Speaking at a press conference Thursday, Rosales said Chile's offer recommends tariffs on "most products" be eliminated immediately. The U.S. proposal included a short list of "sensitive" products, such as some agricultural and forestry-sector goods, Rosales said, adding that these qualifications were preliminary and would be better defined in future talks. 
 

July 26, 2001

Lugar Tries to Hold the Line.  As Senate Agricultural Committee Democrats moved forward with their $7.4 billion farmer bailout bill, almost $2 billion more than the House passed and President Bush has said he'll accept, the panel's ranking Republican, Sen. Richard Lugar (R-IN) led the attempt to hold the package to the lower level. The Senate version could reach the floor for action there yet this week. 

U.S. Agricultural Trade Surplus Up Again. U.S. exports of high-value produces now total $24 billion so far this year, $1.8 billion more than a year earlier, and are driving the U.S. farm trade surplus to the upside, according to USDA. U.S. agricultural trade now is $2.1 billion more than the first eight months of fiscal 2000, a gain due almost entirely to non-bulk products, mostly livestock, feeds and fodders, and horticulture. 

Illinois Now Bans MTBE. Illinois Governor George Ryan helped the ethanol industry Wednesday by signing a bill banning MTBE in the state. Ryan said the bill should be seen as a boost to the nation's corn growers as well as the environment, since MTBE has been known to pollute groundwater in several states. 

Leahy Leads the Fight for Compacts. Sen. Patrick Leahy (D-VT), now chairman of the Senate Judiciary Committee, is leading a fight to extend the Northeast Dairy Compact and extend compact authority to other regions of the country. He held a hearing Wednesday on the Dairy Consumers And Producers Protection Act of 2001 and declared that the spread between what farmers get paid for their labor and what consumers pay for the product "is huge and increasing throughout the nation." That's not due to the compact, he added, but to concentration of the dairy industry. 

July 25, 2001

Freer Relations with Cuba Sought.  The American Farm Bureau Federation asked Congress Tuesday to repeal several provisions in law that presently limit trade with Cuba. "We believe it is imperative to repeal these onerous provisions that impede our ability to make meaningful commercial sales of agricultural commodities to Cuba," said AFBF President Bob Stallman. 

Artificial Income Props Worry Cattlemen.  The National Cattlemen's Beef Association is concerned that Congress may increase farm income by raising prices on commodities cattlemen use to feed their livestock. Farm bill programs must account for the market factors which influence America's cattle producers, NCBA told the Senate Agriculture Committee. 

Grassley Seeks Tax Break For Manure-Electricity Projects.  Sen. Charles Grassley (R-IA) has introduced legislation to create a production tax credit and start-up incentive for electricity generated from hog and cattle manure in an effort to provide new opportunities for energy production, environmental clean-up and increased farm income. 

Agriculture for Energy Touted.  U.S. farmers and ranchers can and must be an integral part of the nation's renewable energy industry, and legislation that would promote agriculture's role in generating valuable energy should become law, the American Farm Bureau Federation Tuesday told a House Small Business panel. "The potential for our farmers, our consumers, our environment, our economy and our national security is staggering," Pennsylvania Farm Bureau President Guy Donaldson told the panel. "We are close to realizing this potential. We simply cannot miss this opportunity." 

Australia's Sheep Endangered. An Australian Senate committee has warned the country's sheep industry will be devastated unless immediate action is taken to combat the sheep wasting disease, ovine Johne's, the AUSTRALIAN BROADCASTING CORPORATION reports. The Senate's Rural and Regional Affairs Committee unanimously recommended a series of measures to help manage and eradicate the disease, including a national compensation fund for sheep farmers. Labor committee member Kerry O'Brien says the disease is endemic in parts of the country and is unlikely to be wiped out in the short-term. O'Brien says the federal government has done little to deal with the problem. "We are reaching the stage where unless there is a change of approach, that a lot of producers will be forced off the land, a great amount of agricultural property will be devalued and our industry will suffer," he said. 

Better China Numbers Used. REUTERS reports from Shanghai that the latest revision of U.S. estimates of China's corn output and stocks for 2001 are much closer to the true picture and incorporates damage from a severe drought, according to analysts and traders. USDA said in a report published on Tuesday that China's 2001 corn production would be 105 million tons, down 10 million tons from earlier estimates, due to drought damage. "That is closer to what we had estimated all along since the severe drought earlier this year," said a trader with a foreign grains firm in Beijing. But Chinese analysts also warned of early frost which may prompt another small downward revision of estimates. Chinese traders and analysts had expected the country's corn crop to fall slightly below last year's 106 million tons despite recent rains because there was still insufficient moisture to replenish parched lands. 

EPA Holds Bt Corn Meeting. The Environmental Protection Agency (EPA) conducted a public meeting Tuesday in Arlington, VA, on the reassessment of Bacillus thuringiensis (Bt) corn, focusing on its risks and benefits. During the meeting, EPA officials announced their plan to publish a paper in the near future discussing potential draft risk mitigation and regulatory options for public comment. The EPA has also requested that other industry groups submit proposals for regulatory options for consideration. The meeting resulted from an earlier EPA announcement, saying the agency was not satisfied with the existing level of insect resistance management (IRM) in Bt corn and other crops. This process could heavily influence future EPA decisions concerning upcoming registration of Bt corn, said National Corn Growers Association (NCGA) Director of Production and Stewardship Paul Bertels. "We are currently working with the EPA and industry representatives to develop a better process for improving compliance," said Bertels. 

EPA Says Little Risk to Monarchs.  THE ASSOCIATED PRESS, reporting on the same EPA meeting said the agency believes that corn genetically engineered to make its own pesticide poses little risk to monarch butterflies. While there is a small chance that one in 100,000 monarch caterpillars could be affected by toxic corn pollen, research suggests even those larvae will mature into healthy butterflies, the agency reported. "The weight of evidence from the reviewed data indicate that there is no unreasonable hazard" to Monarchs or other wildlife, said Zig Vaituzis, an EPA scientist who led a review of the crop's environmental impact. One possible exception is the karner blue butterfly, an endangered species that feeds on lupine plants that could show up near corn crops in northern Wisconsin. Agency officials said they don't know how significant the issue is but were consulting with the Fish and Wildlife Service on whether to take action to protect the butterflies. Bt varieties account for nearly 20% of this year's corn crop. Jane Rissler of the Union of Concerned Scientists said that the two types of Bt corn that are up for renewal - known in the industry as Bt 11 and Mon 810 - don't appear to produce enough toxin to kill monarchs at pollen levels found in corn fields. "That's good news for Monarchs," she said. But she said the agency was not justified in allowing the continued planting of a third, more toxic type of Bt corn, developed by Syngenta. Syngenta voluntarily dropped the product but has been given until 2003 to phase out its use. 

Senate Panel to Act on Aid.  The Senate Agriculture Committee is expected to act this week - probably today - on a $5.5 billion supplemental economic aid package for the current fiscal year, which ends Sept. 30. Congress must disburse the funds before the conclusion of the current fiscal year, and following the month-long August recess, there will be only four weeks in September for USDA to cut the checks. National Corn Growers Association President Lee Klein sent a letter to committee Chairman Tom Harkin (D-IA) in which he urged the committee to allocate market loss payments at the fiscal year 1999 production flexibility contract payment level for program crops, including corn. "We feel strongly that Congress should support the growers getting hit hardest by increasing input costs," the Battle Creek, NE, grower wrote. 

Canada Moving to Beef Checkoff. Canada's federal cabinet is expected to announce a National Beef Checkoff Agency in the next few weeks, the U.S. Embassy in Ottawa reports. Canadian cattlemen last year formally petitioned for the establishment of the agency. Following public hearings, the National Farm Products Council earlier this year recommended to the Minister of Agriculture the establishment of a research, market development and promotion agency for beef. The program would be funded through a national check-off on marketings of domestic and imported cattle and beef. Since most provinces already have a C$1 check-off in place, the net increase in collections would come from a new assessment on imported cattle and beef. The levy would be about the same as the existing U.S. check-off on cattle and beef imported into the U.S. The national program would add about C$800,000 per year. U.S. shippers of cattle and beef would pay about $480,000 of that, according to the American Meat Institute. The target date for proclamation of the new beef check-off agency is Aug.1. The check-off on imports will not take effect until the plan is fully functional, but ultimately U.S. shippers of cattle and beef to Canada will be affected. 

EU GM Labeling Due. REUTERS reports that the European Commission is due to unveil long-awaited proposals for labeling foods containing genetically modified organisms (GMOs) today as part of a campaign to make the entire food chain more transparent. The GMO proposals also are expected to include strict requirements on traceability through the production process but have been held up for months -- delayed by wrangling inside the Commission among its agriculture, trade and environment units. The news agency said there have been a series of high level meetings designed to iron out the remaining difficulties but officials admit the proposal could undergo further changes when the full 20-member Commission meets today. 

July 24, 2001

NPPC Asks for Court Ruling on Checkoff.  The National Pork Producers Council (NPPC) and the Michigan Pork Producers Association (MPPA) have requested that a federal district judge determine the constitutionality of the pork checkoff in addition to ruling on the legality of the settlement agreement between NPPC and USDA. The supplemental complaint was filed Friday in the United States District Court, Western District of Michigan. 

Corn-Related Program Underway to Treat Diabetes.  Efforts are underway to see if plants can be engineered to produce a human enzyme to treat Type 2 diabetes. The program is part of the National Science Foundation's (NSF) plant genome program created and supported by the National Corn Growers Association (NCGA). 

Japan's Safeguard on Pork Imports May Trigger.  USDA's Foreign Agricultural Service reports there is growing concern that Japan's safeguard measure on pork imports will be triggered when June 2001 import data is compiled, as stepped-up imports in April and May left little volume remaining in the April-June quarter. The safeguard, last triggered following the April-June quarter of 1996, was negotiated under the Uruguay Round Agreement to protect Japan's domestic pork industry from import surges. The safeguard, if triggered, will raise the price of imported pork to end users, distort trade flows, and likely will affect U.S. pork exports. 

The Growing Price of an Ice Cream Cone. THE ASSOCIATED PRESS reports that the cost of milk fat, the principal ingredient in ice cream, has increased 71% over the past six months to $2.22 at the end of June. The industry blames a new government pricing system, while USDA officials point to a seasonal slowdown in milk production, the article says. Either way, it has meant that retail prices for ice cream are up 4% from last year, manufacturers say. And ice cream consumption is down 3%. The report notes that for years, you could buy an ice cream cone for 99 cents at Jilly's Ice Cream Factory on Ocean City's (NJ) Boardwalk. It was a point of pride for co-owner Jody Levchuk, who held steady on the price while his competitors went to $2.75 or more. But when milk fat prices soared, pride had to give way: A Jilly's cone is now $1.75. "We caught a little grief from our regulars, because they were so used to the old price. We definitely lost part of our customer count," Levchuk said. 

Compromise Reduces Warming Costs.  REUTERS reports that the fight against global warming is notoriously hard to cost, but experts said Monday's compromise deal that salvaged the Kyoto Protocol will reduce the bill considerably, but it will be for a scaled down attack on the problem. The news agency says economists cannot agree on the costs of climate control, and this prompted President George W. Bush to pull the United States out of the 1997 accord because of the damage he feared would be done to U.S. jobs and growth. But the compromise struck in the former Bonn will maintain the pressure to limit industrial pollution and includes measures that appear more favorable to business. "With this deal, in which flexible mechanisms and sinks will play a major role, it would seem that the costs will be less than 1% of GDP... between now and 2010," said Ajay Mathur, head of the World Bank's team on climate change. He was referring to the costs for the 39 industrialized nations that the pact requires to reduce emissions by 5.2% of 1990 levels by 2008-2012. 
 

July 23, 2001

OMB Asked to Approve USDA 3/60 Changes.  Sen. Mike Enzi (R-WY) has asked Office of Management and Budget Director Mitch Daniels to approve USDA's proposed solution to problems with the confidentiality part of the mandatory livestock price reporting program. "The market is not transparent to our producers because the 3/60 rule has stepped beyond providing confidentiality and into obscuring the market," Enzi said in a letter to Daniels, and "dammed the flow of information." 

ARS Cleanup Technology Chosen.  The attorney general of North Carolina and Smithfield Foods, Inc. have selected technology adapted by Agricultural Research Service scientists in Florence, SC, to clean up and dispose of manure from swine-production wastewater at a 4,360-pig farm in North Carolina's Duplin County, according to an article by ARS' Jennifer Arnold. 

Seed Testing Standards Finalized.  USDA has finalized standards to allow non-government facilities to become accredited to perform laboratory seed health testing and seed crop phytosanitary inspection services. The inspection or testing will serve as the basis for the issuance of a federal phytosanitary certificate, export certificate for processed plant products, or phytosanitary certificate for re-export. Federal phytosanitary certificates are frequently required by a country accepting U.S. agricultural commodities. 

LMA Now Seeks Unconstitutionality Ruling on Beef.  The Livestock Marketing Association will amend its initial complaint seeking a beef checkoff referendum and ask for a judicial decision on whether the checkoff is unconstitutional. LMA said it took the action in response to a request from the South Dakota federal district court. 

ACPA Approves of EPA's PIP Rule. The American Crop Protection Association has welcomed announcement of the final plant-incorporated protectant rule. PIPs are plants that are genetically engineered to resist pests. "We're pleased that this rule has been finalized and that industry and others were able to work closely with EPA to clarify the additional criteria that have been identified since the rule was originally conceived. While this lengthened the process, the end result is one that we can all support," said ACPA president Jay Vroom. ACPA has worked since 1994 with industry, the scientific community and consumer groups to finalize regulations specifically for PIPs under the Federal Insecticide, Fungicide and Rodenticide Act and the Federal Food, Drug and Cosmetic Act. The rule appropriately characterizes the risks and benefits of PIPs based on previous registration evaluations and the evolving nature of this technology. "Industry will continue to work with all stakeholders to implement this rule," Vroom added. "We are confident that agency decisions pertaining to plant biotechnology will continue to be based on sound science." 

EPA Convenes SAP on StarLink. For the third time in 17 months the Environmental Protection Agency convened a Scientific Advisory Panel (SAP) to consider the potential allergenicity of food products made with StarLink corn. This time the SAP met to assess the latest scientific information, including the extensive StarLink containment program and the extremely low levels of Cry9C protein in foods made from StarLink corn. Don Hutchens, executive director of the Nebraska Corn Board commenting on behalf of the NCGA and the Nebraska Corn Board, told the panel that, "No other issue has put corn merchandising under so much duress and scrutiny as StarLink. ... The failure to resolve this issue has affected U.S. corn exports and has caused uncertainty for the domestic food industry. ... It appears that the scientific evidence supports a tolerance level and production agriculture can ill-afford further delay on this issue." The SAP is expected to report to EPA within two weeks, but it is not clear how soon the EPA will act on the Aventis petition for a food tolerance. 

Corps May Consider Alternatives to F&WS Plan.  An amendment by Sens. Kit Bond (R-MO), Jean Carnahan (D-MO), Charles Grassley (R-IA) and Tom Harkin (D-IA) to the fiscal year 2002 energy and water development appropriations bill was adopted to include language specifying that the U.S. Army Corps of Engineers could take other plans into consideration to mitigate endangered species claims and not just the Fish and Wildlife Service plan that mandates a spring rise. The Senate agreed to the language unanimously. The provision is intended to provide protection against an immediate implementation of the spring rise, as demanded by the U.S. Fish and Wildlife Service, while accommodating the concerns of other members of Congress. 

House Rejects Move to Suspend China's Trade Status. The House has defeated, by a vote of 259 to 169, an effort to suspend China's normal trade relations (NTR). The proposed bill, if it had been enacted, would have blocked President Bush from extending NTR for China for one year and would have raised temporarily U.S. duties on most goods imported from China. A broad coalition of U.S. agricultural and agribusiness interest groups had urged House members to defeat this measure which was supported by an unusual alliance of conservative Republicans and liberal Democrats. A congressional vote last fall granting China permanent normal trade staus (PNTR) was supposed to have ended the annual review of China's trade status. However, PNTR does not take effect until China enters the WTO. With China's accession to the WTO several months away and the annual NTR expiring, it was necessary for the President to renew China's NTR for another year. Under existing law, the Congress has the opportunity to overturn the President's decision. 

Comments Sought on Poultry Plan Changes. USDA seeks comments on a proposed change that would provide new or modified sampling and testing procedures for participants in the National Poultry Improvement Plan. The proposed change would keep the provisions of the plan current with changes in the poultry industry and provide for the use of new sampling and testing procedures including new laboratory protocol for the isolation and identification of Salmonella from poultry and poultry environments. The National Poultry Improvement Plan is a cooperative federal-state-industry mechanism for controlling certain poultry diseases. The plan consists of a variety of programs intended to prevent and control egg-transmitted, hatchery-disseminated poultry diseases. This proposed change was published in Friday's Federal Register and is available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. Consideration will be given to comments received on or before Sept. 18. Send an original and three copies to Docket No. 00-075-1, Regulatory Analysis and Development, PPD, APHIS, Suite 3C03, 4700 River Road, Unit 118, Riverdale, MD 20737-1238. 

Groups Try to Block Origin Labeling. More than 20 organizations have written members of the Senate urging them to block efforts to add mandatory country-of-origin labeling to the pending agriculture appropriations bill. The letter points out that the American Meat Institute, the National Cattlemen's Beef Association, National Meat Association, Food Marketing Institute and the American Farm Bureau have asked USDA to establish a "Beef: Made in the U.S.A." label. Beef from cattle raised and fed for at least 100 days in the United States would be eligible for this label. 

Brazil Requres GM Label, if Needed.  REUTERS reports that Brazil will require all foods with 4% or more genetically modified material to carry a consumer label, should the domestic sale of GM goods be legalized, the Agriculture Ministry said. Brazil is one of the few countries that still bans the sale of foods that have had their genetic code altered, but, the news agency points out it is not yet clear how and when the government's complicated legal battles with consumer and environmental rights groups will pan out. "The executive decree requiring GM labels is set to take effect on Dec. 31, but this wont matter until the sale of GM foods is allowed. This issue is still locked up in courts," said a spokeswoman for the ministry's deliberative body on GM technology and safety, the CTNBio. Some of the country's important agricultural exports such as soybeans and corn have won special premiums from health conscious consumers in Europe and Japan who have been resistant to GM technologies. But this report says southern soy farmers -- in an attempt to reduce costs and increase productivity -- have been smuggling in GM seeds from Argentina for more than three years. In Rio Grande do Sul the seed producers association, Abrasem, estimated that 30% of the yearly soy crop was GM. 

Subsidies Still in the Billions. World agricultural export subsidies have declined below levels permitted under the 1994 World Trade Organization (WTO) Agreement on Agriculture but still amounted to billions of dollars, an Australian study said. REUTERS reports that the government's Australian Bureau of Agricultural and Resource Economics (ABARE) said in a Current Issues study released today that by 1998, two-thirds through the WTO implementation period, total agricultural export subsidies amounted to US$6.6 billion - well below the final agreed level of $12.3 billion. "At first glance, the export subsidy commitments appear to have been the most successful of the reduction commitments under the present Agreement on Agriculture," the ABARE study said. However, this encouraging outcome may be more illusory than real, it said. Instead of reducing the harmful effects of agricultural protectionism, controls on export subsidies may have encouraged countries to shift to other support measures, both internal and external, it said. 

Asian Drought May Not Produce Imports.  Asia, where three-fifths of the world's population live, probably won't significantly increase grain imports despite erratic weather, REUTERS reports. Stock levels remain high, a United Nations food official said. Although grain production in China, Pakistan, Australia and North Korea due to drought conditions is expected to be lower, carryover stocks with some nations from last year would help countries weather the crisis to a large extent, said R.B. Singh, assistant director-general of the Food and Agriculture Organization (FAO). "I don't really see a sharp rise in grain imports by Asia. Imports will be there but they will mainly be to replenish the buffer stocks and not for immediate consumption," Singh, who is also the FAO's Asia-Pacific regional representative, told Reuters in a telephone interview from Bangkok. 

EU Accepts Less-than-Ideal Protocol. THE WALL STREET JOURNAL reports from Bonn that the European Union made a last-ditch bid to save the Kyoto Protocol on global warming, accepting a watered-down version of the treaty much easier for wavering countries, especially Japan, to accept. The EU's concessions would lessen the reductions in greenhouse-gas emissions required to comply with the protocol. The offer was considered a major concession for the EU but as environment ministers from 170 countries prepared for talks late into Sunday night, it wasn't clear which way the balance would swing. Japan, Canada, Australia and other countries, which could ally with the EU, feared the costs of meeting the treaty's tough targets for cutting emissions of greenhouse gases. And they want to leave the door open for a deal that involves the United States, the world's biggest polluter. The EU went all out to win support from Japan, a key player as it accounts for about 8% of total emissions. But while Japan says it supports the treaty, Japanese Prime Minister Junichiro Koizumi insisted that he wouldn't ratify the deal without the United States. "It should come into 2002 and all countries should play by the same rules," Koizumi said at a meeting of the Group of Eight industrial nations in Genoa, Italy, on Sunday. 
 

July 20, 2001

Harkin Finds Cause to Change Course.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) has released a General Accounting Office report on federal farm payments he says illustrates the failures of the 1996 farm law. The report revealed that Freedom to Farm has caused what Harkin terms "an ever-widening gulf" in federal agricultural payments between small farms and large farms. 

Trade Compensation Bill Reintroduced. Sen. Charles Grassley (R-IA) is urging the Senate to pass a bipartisan bill he has co-sponsored that would make farmers eligible for assistance through a federal trade law that compensates workers when they are hurt by international trade. Last month, Grassley and Sen. Kent Conrad (D-ND) reintroduced their bill, the Trade Adjustment Assistance for Farmers Act (S. 1100) to amend the Trade Act of 1974 to improve assistance for farmers. Grassley urged his colleagues to make the bill part of the federal trade adjustment assistance program. 

EPA's TMDL Stay Praised.  The American Farm Bureau Federation believes the Environmental Protection Agency did the right thing in litigation over water quality regulations affecting farms and ranches and reviewing those rules. "We agree with the 18-month stay of the litigation and look forward to working with EPA to revise the regulations," said AFBF President Bob Stallman. 

EPA Issues Rules on Biotech Plants.  Environmental Protection Agency Administrator Christie Whitman has signed three final rules that clarify and strengthen the framework for EPA to oversee "plant-incorporated protectants." Plant-incorporated protectants are materials that enable a plant to protect itself from pests, such as insects, viruses and fungi, because the plant produces its own pesticide. 

China Loosens Control on Cotton.  THE WALL STREET JOURNAL reports that China will loosen state control over domestic cotton trade and make it easier for textile firms to buy cotton more cheaply. China also will make it easier for textile firms to buy cotton from other countries, but market watchers say it is highly unlikely China will allow significant cotton imports ahead of World Trade Organization entry, when it would have to open its markets anyway. China ended its state monopoly on cotton in late 1999, but the All-China Federation of Supply and Marketing Cooperatives still buys and sells nearly all the cotton produced in China. Textile firms have complained that the cooperatives' near-monopoly is part of the reason why Chinese cotton is more expensive than internationally-traded cotton. This price gap hurts the export competitiveness of Chinese textiles. Chinese Vice Premier Wen Jiabao said in a speech that the cooperatives will be broken up into smaller companies, according to a report in Tuesday's Farmer's Daily newspaper, which is published by the Ministry of Agriculture. 

UN Launches Food Fund.  The United Nations world food body has launched a fund with an initial target of $500 million to battle world hunger and will lobby this weekend's Group of Eight summit to back it, its chief Jacques Diouf said on Thursday. REUTERS reports that Diouf, director-general of the U.N. Food and Agriculture Organisation (FAO), said he would go to Genoa in northern Italy today to seek pledges from G8 leaders meeting there to back the fund and act decisively to eradicate hunger and poverty. "This is a specific trust fund to accelerate the fight against hunger and achieve the goal that the heads of state and government of the world set in 1996," Diouf told the news agency in an interview. "The initial objective of $500 million is fundamental if we are to re-accelerate the process towards the goal of the World Food Summit by the year 2015," he added. Diouf said the world had fallen behind a target set at the 1996 World Food Summit in Rome to halve world hunger by 2015 and estimated that 800 million people currently go to bed hungry. 

Consumer Groups Question Mad Cow Monitoring.  REUTERS reports that two U.S. consumer groups have questioned the reliability of the federal government's monitoring program for spotting an outbreak of the deadly mad cow disease, which has never been reported in the United States. Public Citizen and the Government Accountability Project said the number of USDA tests for mad cow disease -- also known as bovine spongiform encephalopathy (BSE) -- varied widely for cattle slaughtered in the 20 largest beef-producing states. "USDA's claim that the U.S. is free from this disease would be more credible if the testing program was not in such disarray," said Felicia Nestor, food safety director at the Government Accountability Project. Scientists believe mad cow disease spreads to other cattle when the bones, spinal cord and other remains of diseased livestock are ground up for use in animal feed. The United States has banned such livestock feed since 1997. More than 100 people, primarily in Britain, have died from mad cow's human version, variant Creutzfeldt-Jakob disease (vCJD), after consuming infected meat. Between August 1997 and December 2000, mad cow testing rates ranged from 1,004 brains per million cattle slaughtered in New York to 0.5 brains per million cattle in Kansas, the consumer groups said. The average testing rate for the top 20 beef-producing states, accounting for 98% of all cattle slaughtered, was 21 brains per million cattle. 

Midwest Hit with ‘Abnormal' Dryness. U.S. government weather forecasters said Thursday that parts of the Midwest and Great Lakes states had "abnormal dryness" that was beginning to hurt crops, REUTERS reports. The National Oceanic and Atmospheric Administration, in its weekly drought report, added most of Iowa, northern Illinois and southern Wisconsin to its ranking of "abnormally dry" areas. The report is based on weather data collected through Tuesday. "Topsoil moisture has diminished rapidly in these areas, and dryness is beginning to adversely affect pastures and summer crops," NOAA said. The forecasters noted that LaCrosse, WI, had logged 25 consecutive days without measurable rainfall until scattered showers occurred on Tuesday. The NOAA report also said a "severe drought" was expanding in Texas and had crept north into Oklahoma. 

Groups Call for Conservation Spending Restoration.  The Senate needs to restore funding for three agriculture conservation programs that were zero-funded in the president's budget and the House of Representatives' 2002 agriculture appropriation bill, according to a television ad campaign launched by Defenders of Wildlife, the National Wildlife Federation, and other farm and conservation groups around the country. The ads will air in Iowa, Wisconsin, Florida, North Dakota, South Dakota, and Illinois. "With help from three very popular programs, America's farmers have been protecting wildlife, by protecting wildlife habitat," according to the commercial. "But now President Bush is proposing the government spend... Nothing for the Wetlands Reserve Program... Nothing for Wildlife Habitat Incentives... Nothing for Farmland Protection. Will Congress turn that around?" The Wetlands Reserve Program (WRP), Wildlife Habitat Improvement Program (WHIP) and the Farmland Protection Program (FPP) have proven extremely popular with farmers, offering them a means to improve conservation performance on their farms with projects of their own design. The groups say the programs have faced chronic under-funding, which culminated in zero-funding in the president's budget and the House appropriation for 2002, despite a backlog of thousands of farmer proposals for each of the programs, representing more than a million acres and habitat for a host of wildlife species. 

StarLink Has No Effect on Pigs. KYODO NEWS reports that test results showed no genetic problems in the meat of pigs raised on feed containing a StarLink corn, the Japanese farm ministry said Thursday. The Agriculture, Forestry and Fisheries Ministry has been conducting safety tests on animal feed containing StarLink. The corn has a gene to create a germ-killing substance said to cause allergic reactions in some humans. Under the tests, ministry researchers fed 20 pigs, each weighing some 30 kilograms, with feed composed of 70% StarLink for 11 to 13 weeks until their weight increased to 110 kilograms, and examined their meat, organs and blood. There was no evidence that a gene and protein specific to StarLink were carried over to the pig samples, the ministry said. Also, the growth of the samples showed no difference from that of pigs raised on StarLink-free feed. StarLink is approved for use as animal feed in the United States, the sole producer, but is currently banned in Japan. Japan's farm ministry researchers are examining the safety of StarLink as animal feed. They have already conducted similar tests on chickens and milk cows and found no problems. 

July 19, 2001

Dollar's Strength Agriculture's Concern.  The strength of the dollar has caused "economic hemorrhaging," the American Farm Bureau Federation and the National Association of Manufacturers say, and both groups have urged President Bush to make currency realignment a top priority at the G-8 Economic Summit that starts later this week in Italy. 

AFBF Urges Congress Keep Oxygen Standard.  The American Farm Bureau Federation is urging Congress to reject an effort to waive the oxygenate standard in reformulated gasoline. An amendment to legislation on energy policy is expected to be offered in the House Energy and Commerce Committee by Reps. Christopher Cox (R-CA) and Henry Waxman (D-CA). It would require the Environmental Protection Agency to waive the oxygenate content requirement when petitioned by any governor. 

Cotton Finds ‘Credible Foundation' in Draft Bill.  The National Cotton Council told House Agriculture Committee members Wednesday that the farm policies outlined in that panel's concept paper establish a very credible foundation from which to build new farm programs that will contain an effective safety net for farmers and enhance their competitiveness. 

Grain, Feed Firms Want No CRP Increase.  The National Grain and Feed Association urged the House Agriculture Committee to rescind its proposal to increase the size of the Conservation Reserve Program to 40 million acres and instead invest funds earmarked for that purpose into conservation programs that permit continued use of farmland under sound land stewardship programs. 

U.S., EU Try Cooperation on Trade Round.  The United States and the European Union are cooperating to help launch a new round of global trade negotiations this November. "Continued trade liberalization is essential to promoting global economic growth and alleviating poverty – two themes of the G-7 Summit that the President will attend in Genoa this weekend," U.S. Trade Representative Robert B. Zoellick said. 

ACPA Claims Pesticides Safe for School Kids.  Jay Vroom, president of the American Crop Protection Association, speaking for a coalition of pest management associations representing about 10,000 companies, Wednesday told members of the House Agriculture Subcommittee on Department Operations, Oversight, Nutrition and Forestry that pesticides have a long history of safe use in schools to protect children's health. But, because of repeated activists attacks to create political perception that pesticides are harmful to children, industry sought to reach a reasonable compromise regarding school pest management plans. 

No Progress on Beef Dispute.  REUTERS reports that U.S. and European Union officials have held yet another meeting of trade ministers without any progress on their beef hormone dispute. The two trading partners are trying to end one of their longest-running disputes before a meeting of the World Trade Organization convenes in November aimed at launching a new round of global trade negotiations. The WTO has ruled as illegal the EU's long-running ban on beef containing growth hormones. In response, the United States, since 1999, has annually slapped sanctions against $117 million worth of EU goods. "I'm not aware of any specific movement on that," said Agricullture Secretary Ann Veneman on Wednesday when asked by REUTERS about EU Trade Commissioner Pascal Lamy's meetings here Monday and Tuesday with U.S. officials. Veneman added that she had not yet been briefed by U.S. Trade Representative Robert Zoellick, who held wide-ranging trade talks with Lamy. But Veneman also met separately with Lamy briefly on Tuesday, according to European officials. Chuck Lambert, an economist for the National Cattlemen's Beef Association, said Zoellick and Lamy touched lightly on the beef hormone dispute. "They both said they need to get it resolved...that was about the depth of it." 

Bush Says No to Dollar Intervention. THE WALL STREET JOURNAL reports that President Bush has defended the strong dollar, saying its value is determined by the foreign-exchange market and the U.S. wouldn't intervene to weaken it. Concern about the strong dollar's impact on U.S. exports has the National Association of Manufacturers and American Farm Bureau Federation joining forces in an effort to reduce the impact. The two groups, often at odds over economic policy, wrote Bush this week urging that currency realignment be a top priority at this weekend's summit of the Group of Eight major industrialized nations. The dollar is up 8.4% against the yen this year, while the euro is down 7.3% against the U.S. currency. Bush concedes that the situation is a mixed blessing. "A strong dollar has got, obviously, benefits and problems for us," he told a round table of foreign journalists Tuesday. "One, it's harder to export, but it also helps attract capital. And much of our economy relies upon investors investing in the U.S. because of the dollar. And so we understand the pluses and minuses and, therefore, let the market determine the float of the dollar." 

Liberal Democrats Call for EU Subsidy End. REUTERS reports that the European Parliament's third largest political group, the Liberal Democrats (ELDR), said Wednesday the European Union should gradually phase out direct agricultural production support and export subsidies. Such a reform of the 15-member West European bloc's common agricultural policy (CAP) would reduce from two-thirds to 75% from agricultural program expenditure, which at an annual 40 billion euros ($34.6 billion) accounts for roughly half of the EU budget, an ELDR member of the European Parliament (MEP) told a news conference. The Common Agriculture Program is scheduled for reform in 2006 when the EU's current farm policy program, Agenda 2000, expires. "The final objective of the reform should be to eliminate all support directly linked to production and to make European agriculture competitive by supporting quality, and environment and animal friendly production," the ELDR said in a report. "Export subsidies should be abolished," it added. 
 

July 18, 2001

Sugar Coalition Tells of Sugar Program Opposition.  Art Jaeger of the Consumer Federation of America, testifying on behalf of the Coalition for Sugar Reform Tuesday told the Senate Agriculture Committee the coalition's members oppose the federal sugar program because it harms not only the coalition organizations but producers as well. 

Sugar Producers, Processors Call for Border ‘Control.'  A representative of the domestic sugar producers and processors told the Senate Agriculture Committee Tuesday that sugar farmers seek four policy elements in the upcoming farm bill, but the elements will work only if the United States "regains control of its borders, through resolution of the stuffed molasses and Mexican access problems." One of the main policy elements would be to adopt a form of "inventory management" similar to that in place in the 1990 farm law. 

Cotton Makes Its Pitch to Senate Panel.  The National Cotton Council Tuesday told the Senate Agriculture Committee to continue a nonrecourse marketing loan program with redemption provisions keyed to the world market prices. NCC Chairman James Echols also urged continuation of the three-step competitiveness program for cotton with elimination of the 1.25-cent threshold for Step 2 and continuation of the issuance of marketing certificates. 

Cattlemen Tell House Committee Their Concerns. The National Cattlemen's Beef Association Tuesday told the House Agriculture Committee that the next farm bill must remain a market-centered document. NCBA Vice-President of Public Policy G. Chandler Keys said, "The cattle industry has always depended on the market to determine prices. We have a long standing position that any government program should not adversely influence the market." 

Pork Producers Like Conservation Part of House Farm Bill Draft.  National Pork Producers Council (NPPC) President Barb Determan, in testimony before the House Agriculture Committee Tuesday, said the organization supported efforts reflected in a farm bill draft document to raise the visibility of conservation programs in the next farm bill. Determan, a pork producer and grain farmer from Early, IA, said the proposal to increase conservation spending by $15 billion over 10 years, "…has the potential to make your farm bill one of the important milestones in federal conservation policy." 

Cattlemen Support Fresh Meat Labeling.  The National Cattlemen's Beef Association Tuesday said today it supports the federal government's proposed fresh meat nutrition labeling rule. Comments are due to the government today. The proposed rule would require nutrition facts panels on all ground meat and poultry products and nutrition information posters, brochures or labels for whole muscle cuts such as steaks, roasts, pork chops and chicken breasts. 

EPA Releases Bt Risks and Benefits Amid Controversy.  The Environmental Protection Agency has released a revised assessment of risks and benefits of a class of genetically-modified products, which include Bacillus thuringiensis (Bt) corn, cotton and potato plant-incorporated protectants, for public review. EPA is inviting public comment on whether changes are needed in the regulatory terms and conditions for these products based on the revised assessment. 

Argentine Meat Ban Lifting Expected.  The United States is expected to reopen its borders in two years to some Argentine meat products banned because of the highly contagious foot-and-mouth disease, an agriculture trade official told REUTERS. "Within the next two years, I would be surprised if Argentina could not regain its status of free of foot-and-mouth disease with vaccination," Philip Shull, USDA's attache in Buenos Aires, Argentina, said in a wide-ranging interview. The designation by the Paris-based International Epizootic Office (OIE) would allow the United States to import Argentine uncooked boneless beef. Last month, Argentina's agriculture secretary said his country would not be able to eliminate foot-and-mouth disease until the end of 2002 or the beginning of 2003, although the number of outbreaks should begin to decline between July and September. 

Argentina Doubles Asian Exports. Argentina has more than doubled corn exports to Asia and hopes to gain further ground in the region, sector sources said, according to REUTERS. Argentina's corn exports to Asia during the current harvest total nearly 2 million tons compared with 700,000 tons at the same point last year, according to Argentina's Agriculture Department. China's 2000-2001 corn production fell to 106 million tons compared with 128 million tons in the previous harvest, leading to a decline in its exports that has Argentine producers looking to step in. "China's corn exports this year fell to 10 million tonnes from 4 million tonnes. It's logical that Argentina would capture a part of that difference," said a trader for a top grains company in Argentina. A severe drought has dampened hopes that China's corn production could rebound strongly in the 2001-2002 harvest. USDA recently lowered its estimate for China's corn production during that cycle to 115 million tonnes from 125 million tonnes. 

West Nile Virus Found in Georgia. West Nile virus, a mosquito-borne illness that has killed nine people and infected dozens in the Northeastern United States in recent years, has been found in a dead crow in southern Georgia, REUTERS reports. The Georgia Department of Agriculture said in a news release late Monday the virus was found in a dead crow in Lowndes County near the Florida border. State health officials had been expecting the virus to appear in the state this summer, the department said. Earlier this month, Florida officials found a dead crow infected with West Nile just east of Tallahassee in Jefferson County, which borders Georgia's Lowndes County. West Nile virus, believed to have originated in Africa, is spread by mosquitoes that pass it to humans or other mammals after taking in the blood of infected birds. The virus causes inflammation of the brain that can be fatal. It cannot be passed between humans. 

Growers Urged to Use Bt Corn with Discretion.  The ROOSTER NEWS NETWORK reports that a new study by university entomologists encourages corn growers to use Bt corn with restraint until more comprehensive research is completed. "The take-home message is that there are certainly times when use of the product is warranted; however, we know there are some potential risks with using it as well," says John Losey, an entomologist for Cornell University. Losey has conducted research on Bt corn since 1999. His latest report was published recently in BioScience Magazine (volume 51, number 5). The report was co-authored by John Obrycki, Iowa State University (ISU) entomologist; Orley Taylor, University of Kansas and ISU graduate student Laura Jesse. Losey says one commonly referenced risk with Bt corn is the impact it has on the Monarch butterfly. When pollen from the Bt corn drifts onto plants where the butterfly feeds, the result is an increased mortality rate for butterfly larvae. Independent research studies by both Losey and Obrycki have confirmed such results, which were widely reported, and that have become very controversial. The entomologists' report, however, that there are greater economic and environmental concerns associated with the use of Bt corn. For instance, they determined that the use of Bt corn does not reduce farmers' pesticide use in those fields where such hybrids are planted. Instead, Bt corn typically is used as a preventive measure, or as insurance, in conjunction with pesticides. Notes the report: "Bt plantings are not being used as a replacement for insecticides, but in addition to them." As a result, the researchers express concern about the possibility of resistance problems or the development of other environmental issues. They encourage growers to use Bt corn only in those areas where European corn borer numbers are known to be consistently high. 
 

July 16, 2001

Congress Steps Up Farm Activity.  It's a busy week for farm legislation, as both the House and Senate agriculture panels hold hearings on commodity program proposals. Meanwhile, a Senate subcommittee will write its version of USDA's 2002 spending bill. 

NFU Backs Peterson Farm Bill.  The National Farmers Union (NFU) says a farm bill introduced by Rep. Collin Peterson (D-MN) is "a comprehensive and visionary farm bill that will provide farmers the opportunity to receive more income from the marketplace and less from the government, stem the economic crisis in agriculture, and fix the inequities that have been created by the Freedom to Farm law." 

EPA Posts Pesticides for Comments.  The public has 60 days to comment on the Environmental Protection Agency's preliminary determination that two classes of pesticides should be assessed for potential cumulative exposure risks. The two pesticide groups are chemicals known as N-methyl carbamates and certain members of the group of chemicals known as chloroacetanilides (acetochlor, alachlor, and butachlor). Both classes of chemicals are widely used in home gardens and in agriculture. 

Washington Fruit Heavily Damaged. FARM JOURNAL'S agweb.com reports that some 6,500 acres of apples were damaged by a fierce wind, rain and hail storm that blew through Washington's Lower Yakima Valley in late June. Dana Faubion, a tree fruit agent with the Washington State University Cooperative Extension Service in Yakima, says numerous early and late varieties of apples were in the storm's path as it tore through one of the state's prime apple production regions with 100 mile per hour winds, torrential rains and golf-ball size hail. "It's almost a religious experience to go and witness the devastation in the area that was hit," Faubion says. "Fruit trees and grapevines look like they're in the dead of winter. There's not a stitch of green left on many of them." In addition to apples, some 1,000 acres of pear trees were torn up in the storm. Cherries, however, suffered the most devastation in terms of a percentage of the total crop, Faubion says. 

Manure Now Is Solid Waste and Worrisome. The Environmental Protection Agency last month ordered a major Oklahoma hog producer to obey the same law that governs industrial and municipal pollution, THE ASSOCIATED PRESS reports, and the consequences may be more than just a change in terms. The hog industry fears the order could affect every hog pen, chicken coop and cow pasture in rural America. "It's a suggestion that manure is a toxic waste," said Al Tank, head of the National Pork Producers Council, which opposes using laws regulating hazardous and solid waste against hog farmers. The EPA took action after discovering excessive nitrates in the private water well of Ana Rangel, who was 8 1/2 months pregnant at the time. High levels of nitrates can cause illness or death, particularly in infants. Monitoring wells at hog waste lagoons in the area were found to have nitrate levels 10 times the acceptable level. The EPA feared waste had leaked from lagoons into the groundwater flow. Using the Resource Conservation and Recovery Act, the EPA declared that the leaking effluent was, in essence, solid waste. The act typically applies to hazardous and solid wastes from industry or municipal water treatment plants. EPA ordered Seaboard Farms Inc. and former owner PIC International to investigate and clean up any contamination - acknowledging it doesn't know for sure if the lagoons are to blame. "The whole idea is to protect public health," said Tim Jones, an EPA lawyer. "Whether we know conclusively if it's coming from a lagoon is not as important as protecting health." 

NCGA Prepares for Corn Congress.  Officials of the National Corn Growers Association (NCGA) are ready for their annual Corn Congress today and Tuesday in Washington. NCGA members from 26 states will be represented at the two-day event. The purpose of Corn Congress is to ratify the election of the incoming president-elect and elect new members of the NCGA Corn Board; and to discuss issues and make decisions affecting the corn growers, the grain industry and agriculture overall. NCGA CEO and Executive Vice President Rick Tolman said, "The U.S. corn industry is an $18 billion business just at the farmgate level," said Tolman. "This is a meeting of the people who have the power and influence and responsibility to set the future direction of this industry. The three biggest issues on our plate for this meeting are the 2002 farm bill, presidential trade promotion authority and renewable energy legislation that includes ethanol," he continued. "We will be reaffirming our direction and strategy on these issues and then use our time in Washington to communicate this to our government and elected officials in order to help set national policy on these and other issues" 

‘Complex Trade-Offs' with Ethanol.  REUTERS reports that supporters of ethanol "like to describe it as a cleaner-burning fuel additive that helps keep the air clearer, but critics say its environmental drawbacks may outweigh some of the benefits." Ethanol made from corn increases the incomes of American farmers, but, the article adds, the alternative fuel poses "complex trade-offs for U.S. oil refiners, environmental groups and federal regulators trying to find cleaner gasoline to curb pollution." "The short answer is ethanol is both good and bad for the environment," said Daniel Becker, director of the Sierra Club's global warming and energy program. Ethanol is in the spotlight because Congress and the administration of President George W. Bush are grappling with U.S. energy problems, and supporters of ethanol tout the fuel as one of the solutions. Unlike other fuel additives, ethanol does not contaminate ground water supplies, but it produces more smog in some circumstances and tiny amounts of sulfur result when it is blended into gasoline. "The benefits are that ethanol does reduce carbon monoxide when used in the winter time, but it increases smog when used in the summer," Becker said. That's because a key drawback to ethanol is that it evaporates more quickly in certain conditions, which results in higher emissions of smog-forming compounds, according to the U.S. Energy Information Administration. 

Harkin May Back $6.5 Billion.  THE ASSOCIATED PRESS reports that Senate Agriculture Committee Chairman Tom Harkin (D-IA) may oppose President Bush and support giving farmers as much as $6.5 billion in supplemental assistance this year, $1 billion more than the White House wants. The House passed a $5.5 billion package last month after the White House warned Bush might veto the larger amount. Harkin is considering adding money for conservation, nutrition and other programs that could add as much as $1 billion to the House package, spokesman Seth Boffeli said Friday. "Nothing has been set in stone yet. We're still in the process of figuring out what the final package is going to look like," Boffeli said. Harkin also might recommend increasing the direct payments to farmers. The additional money would come out of funds Congress has allocated for farm programs in 2002, Boffeli said. The Senate committee is expected to take up the measure in the next two weeks. 
 

July 13, 2001

Combest Proposes Target Prices. Chairman Larry Combest (R-TX) wants the House Agriculture Committee to bring back target prices for producers of eligible crops. Payments would be made when the price of a crop, adjusted for a fixed payment, is below the target price. A draft of the bill Combest has proposed also would increase the Conservation Reserve Program to 40 million acres with an increase in "biomass pilot acreage" and spend $1.4 billion over 10 years. Combest wants the bill reported from the committee in time for the August recess. 

USDA Signals Support for Promotion Programs in Publishing Hass Avocado Order.   Today, in publishing a proposed rule on the Hass Avocado Promotion Program, USDA took the opportunity to signal its continuing support for commodity promotion programs despite the recent U.S. Supreme Court decision on mushrooms. 

Grain, Soybean Producers Talk Policy.  The National Corn Growers and American Soybean Associations were among the organizations testifying Thursday before the Senate Agriculture Committee on farm policy. The NCGA called for a counter cyclical payment program while the ASA wants "balanced" programs that do not favor one crop over another.

California Officials Don't Get It. Some California officials have their facts wrong about ethanol, according to the National Corn Growers Association. "California officials seem to be manufacturing so-called facts about ethanol availability, transportation and pricing," said John McClelland, NCGA director of energy and analysis. 

Farmer Donations Benefit by Legislation.  A bill approved Wednesday by a House committee would result in more food for millions of hungry and needy Americans, in part by providing farmers who donate food to charities the same tax treatment as corporate donors, according to the American Farm Bureau Federation. In a letter earlier this week to the House Ways and Means Committee, AFBF and a coalition of farm and hunger groups urged support for a provision of the Community Solutions Act of 2001 (H.R. 7). 

WTO Rules Canada's Dairy Scheme Won't Fly. The United States has won an important agriculture case before the World Trade Organization (WTO) that challenged Canadian dairy export subsidies as a violation of WTO rules. In a ruling released Wednesday, a WTO dispute settlement panel found that the steps Canada took to address an earlier adverse ruling regarding its dairy export practices were insufficient. The panel ruled that Canada's dairy export subsidies are inconsistent with its WTO commitments. The United States estimates that Canadian dairy export subsidies result in lost sales by American farmers and dairy processors of up to $35 million per year. Canada is expected to exercise the one last appeal available. 

Cuba Export Rules Published.  REUTERS reports that the Bush administration has published regulations clearing the way for U.S. sales to Cuba of food, soft drinks, tobacco, cotton and other agricultural commodities. The regulations carry out a law enacted by Congress last October to loosen Washington's nearly 40-year-old economic sanctions against Havana. The news agency reports that agribusinesses like Archer Daniels Midland Co. and U.S. farm groups have been particularly active in recent years in trying to get permission for exports of grains and other commodities to Cuba. But even with the new regulations spelling out how companies can go about selling food and medicine to Cuba, it remained unclear how much business will actually be generated. The article says obstacles include a continued prohibition on U.S. financing that would facilitate sales, as well as Cuban President Fidel Castro's vow that trade cannot occur until the United States lifts all of its economic sanctions. The Commerce Department's regulations, which take effect July 26, had been anticipated since February. 

Vietnam Credits Approved.  The House Ways and Means Committee has supported President George W. Bush's decision to allow Vietnam to have continued access to U.S. government credit programs. The committee, on a voice vote, rejected a measure to overturn Bush's decision. The issue now goes to the full House, which last year voted overwhelmingly in favor of extending the credits. The 1974 Trade Act requires the president to make an annual decision on Vietnam's eligibility for U.S. government credits, credit guarantees and insurance guarantees, such as those administered by USDA, the U.S. Export-Import Bank and the Overseas Private Investment Corp. Continuing a practice initiated by former President Bill Clinton, Bush informed Congress last month he intended to waive "Jackson-Vanik" provisions of the 1974 Trade Act so Vietnam could have access to the programs. The Jackson-Vanik amendment prohibits certain commercial relations with a country that engages in practices prohibiting or severely restricting free emigration of its citizens. Bush also has asked Congress to approve an bilateral agreement establishing normal trade relations with Vietnam. That pact was signed last year in Hanoi. 
 

July 12, 2001

U.S. Wins WTO Case Challenging New Canadian Dairy Export Subsidies.  Yesterday, the World Trade Organization (WTO) ruled that Canada's dairy export subsidies are inconsistent with its WTO commitments. The WTO dispute settlement panel found that the steps Canada took to address an earlier adverse ruling on its dairy export practices were insufficient. 

Voters Like Farms for Conservation. U.S. farms and ranches are important to the nation's voters and not just for the food grown on those farms or the livestock raised on those ranches, according to a new poll that shows that voters value farms and ranches for the conservation benefits they provide, such as cleaner air and water and wildlife habitat. And not only do voters want the federal government to support programs that secure those values by linking conservation practices with farm payments, but voters are willing to pay to ensure conservation benefits from farms and ranches. 

Immigration Bill Important to Farmers. An immigration reform bill introduced this week by Sen. Larry Craig (R-ID) could be valuable in providing legal workers for farmers and ranchers who need an additional labor force, according to the American Farm Bureau Federation. The Agricultural Jobs, Opportunities and Benefits Security Act II (S. 1161) closely parallels a bill Sen. Craig introduced in the 106th Congress as well as compromise reform legislation. The compromise attracted broad bipartisan support but narrowly failed late in the congressional session in December. 

U.N. Report Recognizes Biotech Can Feed the World.  A recently released report by the United Nations advises the world's richer countries to put aside some of the baseless fears of biotechnology and focus on feeding poorer, developing nations. "Biotechnology offers the only, or the best, 'tool of choice' for marginal ecological zones left behind by the green revolution, but home to more than half the world's poorest people," claimed the U.N.'s 2001 Human Development Report. 

China's Corn Buy Agitates Asia Markets.  China's unexpected purchase of U.S. corn "has sent a tremor among Asian importers, leaving them more vulnerable to volatile physical and futures prices due to uncertainty over its next move," according to REUTERS in a report quoting traders. USDA said Wednesday that private U.S. exporters reported the sale of 165,000 tons of U.S. corn to China for delivery during the 2001-02 marketing year. U.S. exporters also reported the sale of 120,000 tons of U.S. corn to unknown destinations and 100,000 tonnes of soft red winter wheat to Spain for the same year, USDA said. Some Beijing sources were dubious about the sales, because China has not issued a corn import quota and has yet to set detailed guidances for new and stricter regulations against imports containing genetically modified (GM) products. In China, the domestic market has been puzzled about the implementation of the new GM rules, announced in June and effective immediately, which ranged from research and production to food processing and labelling. "I am very suspicious of the corn sales to China," said a foreign trade source in Beijing. "Even the two authorised corn exporters, the Jilin Grain Corp (JGG) and China National Maize Export Co Ltd (COFCO), didn't know about the purchase." 

USDA Appropriations Bill Approved. The House has approved a $74.2 billion appropriations bill for USDA spending in fiscal year 2002 that begins Oct. 1, 2001. Environmental Quality Incentive Program (EQIP) spending was increased from $174 million to $179 million for 2002, and $150 million was included for financial relief for apple producers. A more comprehensive farm relief bill of $5.5 billion is included in separate legislation. The Public Law 480 Food for Peace Program was reduced from $1 billion in 2001 to $980 million for the coming year, while export credit guarantees were increased from $3.8 billion in fiscal 2001 to $4 billion. 

EU-Brazil Deal to Drive New Trade Round. REUTERS reports that European Union Trade Commissioner Pascal Lamy said Wednesday that an EU-Brazil partnership would be the driving force behind the launch of a new round of global free trade talks after the latest round collapsed. Lamy, on the final day of a three-day visit to Brazil, said the 15-nation EU bloc and Brazil had agreed that their close relationship was the key to bridging the void between industrialized and developing nations. Lamy said World Trade Organization members failed to bridge that gap during the previous attempt to launch global trade liberalization talks at a disastrous meeting in Seattle in 1999. "Our discussions have shown that the narrowest point is the relationship between the EU and Brazil. Engineering shows that it is important to build the bridge at the narrowest point," Lamy said at a news conference with Brazilian Foreign Minister Celso Lafer. 

Republicans Say No Worry on Tax Cut.  Two Senate Republicans Wednesday defended President Bush's tax cut calling Democratic statements that it will force the government to dip into Social Security and Medicare funds "distortions and lies." REUTERS reports Sens. Pete Domenici (NM) and Charles Grassley (IA), the top Republicans on the Senate Budget and Finance Committees respectively, said the $1.35 trillion tax cut signed by Bush last month would help spur the sluggish U.S. economy and not affect Medicare trust fund balances. "If you really want to drive the country into an economic ditch, raise taxes during an economic slowdown," Domenici told reporters. Democrats, who control the Senate, have been voicing concerns about the size of the Bush tax cut, arguing that lower than expected budget surpluses will push the government into a "deficit ditch" and force the government to dip into reserves for the Medicare elderly health-care program this year, and to tap both Medicare and Social Security retirement funds next year. 

Fischler Promises Targeted Support. Europe's Farm Commissioner Franz Fischler said on Wednesday his agricultural reform proposals due next year would be targeted at sectors facing difficulties and leave the general policy direction intact. Fischler, working to build broad backing for his proposals, is holding a series of talks with not only with farmers, but also food processors, environmental lobbies and consumer groups in every European capital. "We are in listening mode," he told a news conference prior to the latest round table discussion on food quality held in Paris. "But where it is necessary, we will present proposals," he said, referring to the so-called "mid-term review" of the Common Agricultural Policy, scheduled for next year under the Agenda 2000 deal reached at the EU's Berlin summit in 1999. He added, "We are not starting a new reform because the objectives of Agenda 2000 are still valid. But there are sectors, beef for example, where we must come back to more balanced market." Fischler's comments coincided with the publication of the European Commission's latest agricultural market projections to be used as a basis for the reform proposals. 
 

July 11, 2001

Veneman Signals Bush Dilemma.  The Bush administration finds itself somewhat boxed in by a desire to get trade promotion authority (TPA), or fast track, in place by the time a new round of World Trade Organization talks begin in November. The time is becoming crucial, because without TPA, U.S. negotiators will be hampered in their abilities to do much but just talk. Firm agreements are out of the question, since without the authority to negotiate freely, Congress would be able to amend agreements and carve them up at will. 

Ethanol Production's Future Outlined. Renewable Fuels Association (RFA) Vice President Bob Dinneen Tuesday detailed the success of the federal ethanol program and outlined three recommendations to increase the production and use of ethanol in the future. He testified before a Senate Finance Committee hearing on the role of tax incentives in energy policy. 

Grant Establishes Marketing Center.  USDA has announced a $5 million multi-state grant to establish the Agricultural Marketing Resource Center (AMRC), a collaboration of university research and outreach specialists focused on collecting and interpreting information and creating new research to support value-added agricultural activities. The center involves four universities: Iowa State University, Kansas State University, the University of California and Oklahoma State University. Each has networks capable of directing resources, research and experience to value-added agriculture issues. 

Farm Bureau Urges NTR for China.  Renewal of normal trade relations with China will help improve the trade ledger for America's farmers and ranchers now and in the future, according to the American Farm Bureau Federation. Speaking before the House Ways and Means Committee, AFBF President Bob Stallman said trade has been the key factor in improving overall U.S.-China relations during the past two decades. "At this critical juncture, when U.S.-China relations are under strain, it is vital that America maintains a stable economic relationship with China and forges ahead in completing China's accession to the WTO (World Trade Organization)," Stallman said. "A WTO agreement is overwhelmingly in America's interest and U.S. farmers and ranchers stand to realize huge improvements in access to China's expanding markets." 

Pork Plant Fire Probed.  REUTERS reports from Kansas City, MO, that fire officials were combing through the smoldering ruins of a Farmland Foods bacon and ham plant in Albert Lea, MN, trying to determine what caused a blaze that began Sunday and was not contained until Tuesday morning. "There is quite a bit of it destroyed," said Fire Chief Rich Sydnes. "We're still trying to figure out what caused it." The fire began about 5 p.m. CDT (6 p.m. EDT) Sunday on the first floor of the multistory facility and spread to other areas quickly. The plant, which employs 500 people, was unoccupied and no injuries were reported. It was not known how long the plant would be closed. "We know we're going to be out but we don't know how long," said Farmland spokeswoman Sherlyn Manson. "It won't be a short-term thing, we know that." 

EPA, Companies Agree on Hog Waste. The Environmental Protection Agency (EPA) said Tuesday an agreement has been reached with Murphy Farms and D.M. Farms of Rose Hill to take specific measures to prevent future discharges of swine waste at five hog farms in Magnolia, North Carolina, and to pay a fine of $72,000 to the United States Treasury. This agreement represents a settlement of a civil judicial action for violations of the Clean Water Act filed by the Department of Justice on behalf of EPA's Atlanta Regional Office and by three citizens organizations: the American Canoe Association, the Professional Paddlesports Association and the Conservation Council of North Carolina. The terms of the settlement are embodied in a proposed Consent Decree and Consent Order and Protocol lodged this week with the United States District Court in Wilmington, North Carolina. The lodged documents will now be subject to public review and comment for 30 days. 

Philadelphia Site for Trade Mission. USDA's Foreign Agricultural Service in cooperation with four regional trade groups (Food Export USA, Mid-America International Agri-Trade Council, Southern United States Trade Association, and Western United States Agricultural Trade Association) will welcome 48 importers from Latin American and Caribbean Basin countries at a buyers' trade mission in Philadelphia today through Friday. The trade mission is designed to provide an opportunity for U.S. companies to showcase their products to Latin American importers and highlight growing export markets in Latin American and Caribbean Basin countries for U.S. consumer products. Importers will participate in a full day of educational seminars presented at St. Joseph's University, two days of one-on-one meetings with U.S. suppliers, and supermarket visits to see the latest U.S. food trends. In addition, receptions hosted by FAS, in cooperation with the Pennsylvania Department of Agriculture, associations, and U.S. suppliers will provide additional venues for buyers and sellers to meet. Currently, 58 U.S. suppliers have signed up to meet with the Latin American buyers. The 47 importers from Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico, Peru, Uruguay, Paraguay, and Caribbean Basin countries have been identified as key buyers by FAS overseas offices. Products of interest include beverages, cheese, health products, meats, sauces, seafood, snack foods and wine. 

Byrd Offers Humane Slaughter Amendment.  Sen. Robert Byrd (D-WV) successfully attached an amendment to the Senate's fiscal 2001 supplemental appropriations bill to enforce the Animal Welfare and Humane Slaughter Acts. The $3 million in the amendment was agreed to by unanimous consent; the spending is offset by a $3 million reduction in the Food Stamp Program. Byrd requested that $1 million be used to help enforce the Animal Welfare Act, $1 million be used to enhance humane slaughter practices under the Federal Meat Inspection Act and $500,000 be available to the under secretary of research, education and economics for development and demonstration of technologies to promote the humane treatment of animals. 
 

July 9, 2001

EPA Makes Ethanol an Easier Blend.  Environmental Protection Agency Administrator Christine Whitman has signed a final rule to help reduce costs for blending ethanol into gasoline, an action that formalizes the agency's March 15 decision. The rule makes it easier for oil refiners to use ethanol in cleaner-burning gasoline supplied to the Chicago and Milwaukee areas while continuing to achieve air quality benefits in the reformulated gasoline (RFG) program. 

Norton Speaks at Wetlands Symposium.  Secretary of the Interior Gale Norton will speak to wildlife experts and conservationists from around the world at the Ducks Unlimited International Waterfowl and Wetlands Symposium in Washington, DC, July 20th at 1 p.m. The symposium will cover a wide range of issues affecting waterfowl and wetlands, with a special emphasis on the increasing value of water. 

Carbon Sinks Won't Do the Job. Forests and farmlands cannot soak up environmentally damaging greenhouse gases. Reductions in emissions are the only long-term solution to global warming, scientists said on Monday, according to REUTERS. A new report by Britain's Royal Society said too little is known about how much farmlands and forests, so-called carbon sinks, can absorb carbon dioxide (CO2), the main greenhouse gas, from the atmosphere. Carbon sinks will be a major issue in Bonn next week when environmentalists and policy-makers resume international climate talks, which have been jeopardized by the withdrawal of the United States from the Kyoto agreement on global warming. In its report, the independent body of top scientists said better methods are needed to verify the impact of carbon sinks on global warming. Reducing the amount of CO2 from burning fossil fuels should be the main way to reduce global warming, they assert. Some U.S. farm groups, however, would like more emphasis on carbon sinks, and the topic may be addressed in the new U.S. farm bill. 

Danish Calves Test Negative.  THE WALL STREET JOURNAL reports that calves from a Danish herd suspected of being infected with foot-and-mouth disease have tested negative for the disease. The Danish Agriculture Minitry's Food and Veterinary Administration said the calves showed possible symptoms of the disease on Wednesday last week, but a preliminary test on the calves Thursday showed no signs of the disease. Following Monday's final test results, all restrictions on the herd and neighboring herds have been lifted, the administration said. This was the seventh suspected case of foot-and-mouth disease in Denmark this year, but all have been false alarms. Denmark, the world's largest exporter of pork, hasn't recorded an outbreak of the disease since 1983. 

USDA Adopts ` Disabilities' Software.  Crunchy Technologies, a provider of accessible software products and custom applications, has announced the adoption of their PageScreamer accessibility products by USDA. PageScreamer reduces the time required to update Web pages for compliance with Section 508 of the Rehabilitation Act Amendments of 1998. This law mandates that all federal Web sites and intranet sites be accessible to people with disabilities. PageScreamer enables a user with minimal technical background to quickly scroll through the Web server root directory, identifying non-compliant images, objects and applets. The user can view non-compliant items and make immediate edits to the HTML or Java script or populate edits to multiple images from a control directory. 

Busy Times Ahead for Farm Policy.  House Agriculture Committee members may get a first look at their chairman's new farm bill draft as early as tomorrow, staff sources say. The full House of Representatives will continue debate on the 2002 funding bill for the Agriculture Department later in the week, following a long-anticipated discussion of campaign finance reform. Meanwhile, the appropriations bill's Senate counterpart may be unveiled for committee-level consideration next week, Congressional staff say, while the Senate Agriculture Committee is poised to step up its pace of hearings, as Democrats continue mulling how quickly to move forward on new omnibus farm legislation. 

Wise Tests for StarLink. Wise Foods Inc. is testing samples of its white corn tortilla chips for possible contamination with StarLink, a genetically-altered yellow corn variety that is not approved for human use, according to REUTERS. Traces of StarLink were found in a bag of white corn tortilla chips made by Wise for the supermarket chain Kash n' Karry. Kash n' Karry and its sister retailer, Food Lion, both units of Delhaize America Inc., recently recalled 11-ounce packages of white corn tortilla chips after a Florida optometrist complained to the Food and Drug Administration (FDA) about an allergic reaction after eating chips from a bag with a code date of May 23. The chips were made by Wise for the two retailers' private brands. Wise said in a statement that it hired an independent testing lab to analyze samples of its white corn tortilla chips that are currently on store shelves. The FDA is also investigating how the StarLink contamination occurred with the Wise tortilla chips. 

USDA Denies Burger King Allegations. USDA denies allegations by Burger King Corp. that government inspectors are failing to enforce humane-handling standards in slaughterhouses, THE ASSOCIATED PRESS reports. "We are fully enforcing the law," spokesman Kevin Herglotz said. In a recent letter to Agriculture Secretary Ann Veneman, Burger King chief executive John Dasburg said the department's enforcement of the Humane Slaughter Act was unacceptable. The law requires that animals be treated humanely and rendered unconscious before being slaughtered. Animals welfare experts say that conditions in packing plants have improved significantly over the last two years primarily because of plant inspection programs undertaken by two of Burger King's competitors, McDonald's and Wendy's. Burger King, which had been the target of protests by animal rights activists, announced June 28 that it would also start an inspection program but simultaneously petitioned USDA to improve its own enforcement in the plants. 

GIPSA Fees Increased.  USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) is increasing fees by approximately 6.1% for official inspection and weighing services performed in the United States under the United States Grain Standards Act (USGSA) as amended. The increase applies to contract and non-contract hourly rates, certain unit rates, and the administrative tonnage fee. According to GIPSA acting Administrator David R. Shipman, the increase is needed to cover cost-of-living increases and revenue declines due to decreased exports. Under the USGSA, GIPSA fees collected must cover, as nearly as practicable, the agency's costs for performing inspection and weighing services, including related administrative and supervisory costs. The fee increase becomes effective on Aug. 8. For information contact: David Orr, director, Field Management Division, via e-mail to Dorr@gipsadc.usda.gov, or telephone (202) 720-0228. 

Losing Funds Prompts Early Farm Law.  REUTERS reports that a slowing U.S. economy is prompting lawmakers from farm states to push Congress to pass a new farm bill this year for fear of losing tens of billions of dollars earmarked for subsidies. Rather than wait until next year as initially planned, farm-state lawmakers are launching an ambitious bid to have the scheduled rewriting of long-term farm policy completed before the end of the year in case shrinking tax revenues force Congress to make budget cuts. "If you wait around too long, there won't be any money left," said Tom Buis of the National Farmers Union. Under the budget blueprint approved by Congress this spring, farm outlays would rise by $73.5 billion, or 78%, for fiscal 2002-11. But there is concern that might be revised in light of the economic slowdown. 

Karnal Bunt Claimed Isolated. Federal officials claim to have isolated Karnal bunt in four quarantined counties in Texas. But they were still working to completely eradicate the wheat-attacking fungus, said a coalition of state farm departments on Friday, according to REUTERS. The National Association of State Departments of Agriculture (NASDA) said USDA told Oklahoma officials this week that Karnal bunt had not spread beyond Texas into their state. "For us in Oklahoma, the good news is that it appears the disease has been isolated," said Republican Rep. Frank Lucas of Oklahoma. "We're not out of the woods yet, and USDA officials have assured me that their folks in the field will continue to test for the disease and track down any potential problems." Last month, the USDA put the Texas counties of Archer, Throckmorton, Young and Baylor under quarantine for Karnal bunt. Oklahoma officials have requested the USDA compensate farmers affected by the quarantine. 
 

July 6, 2001

FTAA Draft Published.  The draft text of the nine chapters of the Free Trade Area of the Americas Agreement (FTAA) has been published, and officials say it will make the trade negotiation process more transparent and accessible. U.S. Trade Representative Robert B. Zoellick called the publication of the FTAA draft text an "unprecedented effort to make international trade and its economic and social benefits more understandable to the public." 

Corn Growers Plow toward 2020, 2050. The National Corn Growers Association (NCGA), in cooperation with the Department of Energy (DOE), continues to focus on the plant/crop-based Renewable Resources Vision 2020. Ag Vision 2020, funded in part by farmers who contribute to 20 nation-wide checkoff funds, is a partnership of agricultural, forestry and chemical industry experts working to create plant-based, renewable products that would replace petroleum-based consumer products as fossil-fuel supplies dwindle. 

FAO, WHO Want Better Food Safety. The United Nations Food and Agriculture Organization (FAO) and the World Health Organization (WHO) have called upon countries to apply international food safety and quality standards to protect health and trade in food. Clear, science-based and universally known standards also will assist in restoring consumer confidence, the groups said. 

Referendum on Pregnant Pigs Sought. REUTERS reports that Florida's Supreme Court was asked Thursday to decide whether a proposed constitutional amendment protecting pregnant pigs from cramped quarters should go before Florida voters next year. Supporters of the amendment say that expectant sows are tethered and housed in cages so small they cannot move about. The prisoners suffer myriad maladies because of their confinement, they say. Floridians for Humane Farms, a Pompano Beach-based organization, want pigs protected by the state constitution, the same document that protects such inalienable human rights as life, liberty and the pursuit of happiness. The group claims to have collected more than 132,000 signatures, about a quarter of the nearly 500,000 needed to have a petition placed on the ballot. 

Korea Resumes Take Poultry from China. REUTERS reports South Korea's Agriculture Ministry said on Thursday it would resume importing frozen Chinese poultry if it is free of a bird flu virus. Korea banned imports of all frozen poultry from China in early June after it detected the avian influenza virus in imported Chinese ducks. While the virus can decimate flocks of domestic birds, it does not affect humans. "The ministry decided to lift the preventive ban on imports and distribution of some of virus-free Chinese poultry from July 5," the ministry said in a statement. China has so far denied that the virus exists. Poultry from two Chinese farms will be allowed into Korea after they were tested free of the virus after a month-long inspection, it said. Seoul would maintain an import ban on two others which failed to pass the test. Another seven are still under review, but the ministry said it would also allow imports from them if tests show they are free of the virus. 

Abnormalities Found in Cloned Animals. FARM JOURNAL's agweb.com reports researchers have found serious abnormalities in cloned animals and warn that technique used to clone Dolly the sheep should not be used on humans. Scientists from the Whitehead Institute for Biomedical Research and the Massachusetts Institute of Technology have based their assessment on the use of embryonic stem cells in cloning. The research will appear in the upcoming issue of the journal Science. The researchers found that although cloned animals' biological blueprint was intact, the way that the blueprint was read and interpreted was flawed. This could result in abnormal tissues and organs. Researcher David Humphery cited evidence that while many mice in cloning experiments appeared to be normal, there is evidence that genes did not work properly during embryonic and fetal development. In cloned humans, researchers say these gene expression flaws could affect personality, intelligence and other human traits. The researchers note that a number of scientists doing cloning experiments with mice, pigs, sheep and cattle have reported that even apparently normal animals develop disorders later in life. They noted that extreme obesity has developed in many cloned animals, including Dolly the sheep. 

July 5, 2001

EU Likes U.S. Banana Decision.  The European Union welcomed the United States' decision earlier this week to suspend the increased customs duties it imposed on certain EU exports in 1999 as a result of a long-running dispute over bananas. The decision means that increased (100% ad valorem) duties now have been reduced to the level of ordinary customs duties on imports of EU products including bath oils, car batteries, bed linen, handbags and wallets. 

Rural Business Grant Finalists. USDA says 48 applications totaling $5.7 million have been selected as finalists for rural business grant funding consideration. The funds will be used to facilitate the development of small and emerging private business enterprises and provide technical assistance, training, and planning activities for economic development in 24 states. 

NPPC Concentrates on Lobbying.  The National Pork Producers Council (NPPC), following the separation as mandated by the settlement agreement between USDA and pork producers, will concentrate on a legislative and regulatory agenda that includes trade policy, the environment, food safety, animal health, biosecurity issues and the upcoming farm bill debate. 

Japan to End Farmland Plan. KYODO NEWS reports that Japan's agriculture ministry will end its farmland improvement plan in fiscal 2002 four years ahead of schedule. It will be replaced with another program that pays more attention to consumer needs, a senior ministry official said Thursday. The fourth land improvement plan for fiscal 1993 to 2006 will be abandoned in fiscal 2002 in line with the government's decision to review its long-term public works plan, Hideaki Kumazawa, vice minister for agriculture, forestry and fisheries, said at a news conference. A new long-term farmland improvement plan, which will be put into effect in fiscal 2003, will emphasize improving Japan's self-sufficiency in food, promoting agricultural production that is more responsive to consumer needs, and contributing to environmental protection, Kumazawa said. The farmland improvement plans have been aimed primarily at land readjustment to expand the scale of farming operations. 

China Will Allow GM Products.  REUTERS reports that China will allow imports of genetically modified products as long as they conform to new rules announced in early June, a senior Agriculture Ministry official said. "The government holds a cautious attitude on application of genetically-modified products .. .but we did not say it could not be imported," Tang Zhengping, director-general of the international cooperation department, told REUTERS late Wednesday. He declined to comment on whether the new regulations would limit imports, but said firms would be allowed to import as long as they conformed with the regulations. "The only difference is the need for importers to label whether the products are GMO or not," Tang said. 

China-Japan Trade Spat Continues. THE WALL STREET JOURNAL reports that China and Japan failed to resolve their three-month-old trade dispute as two days of talks ended without resolution even though the two Asian giants indicate they want to limit damage to their relationship. After a second day of meetings Wednesday, both sides acknowledged they weren't much closer to compromise, although they agreed to hold talks at a later date. The meetings were the first since China two weeks ago imposed 100% tariffs on Japanese automobiles, air conditioners and mobile phone imports. That move came in response to Tokyo's decision in April to block Chinese exports of mushrooms, green onions and straw for tatami mats. 

Brazil Claims Open Borders. REUTERS reports that Brazil continues to claim its borders are open to imports of North American livestock despite claims by the United States and Canada that Brazil has banned their cattle over mad cow disease concerns. But Canada's Food Inspection Agency maintained that permits to ship livestock -- especially cattle embryos and semen -- to Brazil would not resume until Brazil provided proper documentation authorizing Canada to issue the permits. The chief veterinary officer of the CFIA was informed by his Brazilian counterpart that Brazil was evaluating Canada's risk assessment for bovine spongiform encephalopathy, commonly know as mad cow disease, said Frederique Moulin at the CFIA. And during the evaluation period, Brazil said it would suspend authorization for Canada to issue permits to ship livestock to Brazil, according to Moulin. 

China Hair's Breadth from WTO Membership. THE ASSOCIATED PRESS reports that China is on the verge of entering the World Trade Organization after 15 years of effort. Officials said Wednesday that after six days of talks at WTO headquarters, just about every aspect of terms of membership was settled, clearing the way for China to join the Geneva-based body soon. "This meeting has resulted in a major breakthrough in all the issues regarding China's accession," said Pierre-Louis Girard, the Swiss diplomat chairing the talks. "As a result of this development I think we can with some confidence envisage a wrapping up of this process, which has lasted now for 15 years, in what I hope will be the very near future," he said. Chinese chief negotiator Long Yongtu said he would stay in Geneva until the next round of talks, scheduled July 16, to speed things along. The hope is that China's entry into the WTO can be endorsed at November's ministerial meeting in Doha, Qatar, to add a success to what are otherwise likely to be tricky discussions on whether to launch a new round of trade talks following the collapse of the Seattle conference in 1999. Under this scenario, China would become a full member early next year. 
 

July 3, 2001

Pricing Program Fix Announced. USDA has announced a series of improvements to be made in Livestock Mandatory Price Reporting Program to ensure more accurate and complete collecting, disseminating and reporting of market data by the Agricultural Marketing Service (AMS). The National Cattlemen's Beef Association said the improvements will increase the amount of price reporting information disseminated and is expected to improve the reporting program overall. 

USDA Has New Food Safety Web Site. USDA has begun a new Internet site (http://www.nal.usda.gov/fsrio) designed to provide a database of food safety research projects to the research community and the general public. The site provides detailed information on food safety research projects, spending, and accomplishments by U.S. agencies, along with links to other important food safety research information. 

Congress in Recess; Corn Growers in Overdrive.  With Congress out of town this week for the July 4th recess, corn growers are being urged to "rise to the challenge of the busiest - and most portentous - legislative agenda they may ever face." The National Corn Growers Association says for the next three weeks beginning July 9, Congress and the Bush administration have scheduled an aggressive agenda that includes several issues that will affect the future of corn growers. 

Grassley Opens Next Round Against Concentration.  Sen. Chuck Grassley (R-IA) reiterated concerns about the merger of Tyson Foods, Inc. and IBP Inc. in a letter to the government's top antitrust official. Grassley sent his letter to the Justice Department's new assistant attorney general even though the department has indicated that it won't reopen its anti-trust review in this case following the recent court ruling which prompted merger talks between Tyson and IBP to continue. 

Leslie Retires End of July. REUTERS reports from Chicago that veteran crop forecaster and grain market analyst Conrad Leslie will retire at the end of July and end production of his popular elevator surveys of U.S. corn and soybean production. Leslie, 78, issued his first survey of U.S. crop production in 1961. He contacted more than 1,000 grain elevator managers in the Corn Belt each month from August through November to produce estimates that grain traders used as a benchmark to compare with USDA data. "It's been completed and is a matter of history now," Leslie said of the 40-year-old survey. Leslie has issued the crop surveys for the last 11 years in association with ADM Investor Services in Chicago. 

China's WTO Involvement Could Mean Tension. China's entry to the World Trade Organization (WTO) could raise domestic political tensions if Beijing seeks to keep protecting weaker sectors of its economy, a leading Western think-tank has warned, according to a REUTERS report. A study by a Canadian expert for the Organization for Economic Cooperation and Development (OECD), also says Chinese admission to the WTO would complicate decision-making for the WTO's 141 existing members. The warnings, leavened by a review of the potential benefits of Chinese WTO membership -- and the opening of markets this should bring -- came in a report by the Paris-based OECD on a workshop on the issue held late last year. "Trade integration can produce many benefits to the extent that the Chinese economy, including the agro-food sector, is able to adjust to exploit new comparative advantages under trade liberalization," said an OECD summary of the debate. "However, if China adopts defensive or conflicting policies rather than embracing new opportunities, adjustment will be longer and more painful, and may bring strong inter-regional distortions that could exacerbate existing political tensions." Attended by experts and officials from China and key trading partners, the workshop focused on the impact of the WTO open trading rules, especially on Chinese farming. 

Eight Cloned Angus Calves Introduced.  University of Georgia researchers introduced eight cloned Angus beef calves to the public last week. UGA animal scientist Steve Stice and his research team cloned the calves from a prized cow that had produced many offspring with excellent breeding characteristics but was too old to reproduce. Researchers named the calves Beth, Lucy, Maddy, Full Deck, Near Perfect, Fat River Dumpling, Bond and L.C. The cloned calves all have the same genetic information which is contained in the DNA of a cell's nucleus. The first cloning of an adult mammal took place in 1997 when British researchers produced a lamb named Dolly using DNA from an adult sheep. More recently, Texas A&M researchers cloned a disease-resistant bull they named Bull 86. 
 

July 2, 2001

System Errors Produce Millions in Losses. The National Cattlemen's Association says errors in USDA's price reporting system cost cattle producers $42-54 million, but it's not known just when the injury actually occurred. The errors resulting in the loss occurred when prices were inaccurately calculated, under the USDA mandatory price reporting system that went into effect on April 2.

Wetlands Program Needs Reform. A government program that allows developers to fill in wetlands in exchange for restoring or creating others nearby needs to be improved to meet the goal of "no net loss" in size and function of wetlands, says a new report from the National Academies' National Research Council. Before granting permits to fill natural wetlands, regulators should give greater consideration to how restored or newly created wetlands can replicate the ecological functions of naturally occurring wetlands and become a sustainable part of the larger watershed, said the committee that wrote the report. 

Sara Lee Pays for Adulterated Meat.  USDA's Office of Inspector General says that Sara Lee Foods, Inc., of Chicago was sentenced to pay more than $4.4 million on June 22 for selling adulterated meat that appears to have led to a 1998 listeriosis outbreak that resulted in 15 deaths and more than 100 illnesses nationwide. In December 1998, Sara Lee's Bil Mar Plant in Zeeland, MI, recalled 15 million pounds of meat and poultry products at a reported cost of $76 million. 

Court Rules in Landowner Compensation Case. The American Farm Bureau Federation has hailed a Supreme Court decision that landowners are entitled to seek compensation when they are forbidden by government from realizing their property's full economic potential. AFBF and the Rhode Island Farm Bureau filed an amicus brief supporting landowner Anthony Palazzolo who was prevented from developing land by the state's Coastal Resources Management Council. Palazzolo bought 18 acres in 1959, with the long-term plan to build 74 homes. In 1978, Palazzolo changed title of his land from his single shareholder corporation to himself individually. 

Washington State Regulates Organic Farms.  Conventional farms that are converting to organic production will be required to be inspected and certified for two years before obtaining organic certification under a proposal by the Organic Food Program at the state Department of Agriculture. Public comments on the proposal will be heard at July 11, and written comments will be accepted until 5 p.m. July 11. "To qualify as an organic farm, farmers must not use any synthetic pesticides or fertilizers for at least three years," said Miles McEvoy, manager of the Organic Food Program at the Department of Agriculture. "To ensure that farms converting from conventional to organic farming meet this requirement, our proposal requires them to be inspected during this transitional period." The proposed organic certification rules include the sampling and inspection requirements, certification and decertification criteria, record keeping requirements, application criteria and procedures, and fees for certification. 

UK Co-op Bans Pesticides. REUTERS reports from London that the Co-operative Group, a major UK farmer and retailer, will prohibit more than 20 pesticides used to produce food worldwide, fearing an impact on health and the environment. The Co-op urged the UK government to follow its lead, saying little was known about the effect of new and current pesticides, there were shortcomings in regulations and consumers already had voted with their shopping bags against such chemicals. "It is clear that there are serious gaps in our knowledge about the long-term effects of pesticides on human health and we believe there are flaws in the approval and policing process which urgently need to be addressed," Wendy Wrigley, general manager of retail brands for the Co-operative Group, said. "The government admits there is uncertainty about a large number of chemicals currently legally used to produce food sold in this country and many are under review. Now the government, which has accepted the need to block some chemicals, needs to go much further," she said in a statement. 

Fischler's Anger Expected in Meetings. THE WALL STREET JOURNAL reports that Franz Fischler, the European Union's farm commissioner, is expected to express anger today over increased U.S. government aid to farmers in a meeting with members of the Congress, led by House Minority Leader Richard A. Gephardt (D-MO). Although EU agriculture officials said the talks would be used to "remove U.S. misunderstandings over EU farm policy" and discuss agriculture liberalization within World Trade Organization talks, the decision by the U.S. government to bolster short- and long-term aid to U.S. farmers is expected to dominate the meeting. "The U.S. is heading toward emergency and deficiency payments (for U.S. farmers)," said an EU agriculture official. "They're increasing their agriculture budget, while the E.U. has frozen its (farm budget)." The EU has sharply criticized the U.S. decision to provide $23 billion in direct and production-linked subsidies to U.S. farmers in 2001, warning this would have "serious potential consequences for world markets." 

Crop Diversity Agreement Reached.  REUTERS reports from Rome that the United Nations world food organization has agreed on efforts to try to save world's diversity of agricultural crops. The debate pitted many poor countries and environmentalists against multinational corporations and wealthier nations. Delegates said the United States agreed for the first time in a public forum to mandatory payments by plant breeders and geneticists developing new crop varieties in return for access to public seed banks. The seed banks lend out crop seeds at no charge, enabling research into new varieties of plants to increase resistance to disease and ameliorate some of the impact of global warming. "This international undertaking is a milestone -- it will allow the conservation of genetic resources for future generations," Jose Esquinas-Alcazar, secretary of the Commission on Genetic Resources for Food and Agriculture, part of the U.N. Food and Agriculture Organization (FAO), told Reuters. 

ND Farmers Sue USDA. THE ASSOCIATED PRESS reports that dozens of farmers have sued USDA, saying bills seeking money from deals struck during the 1980s federal farm bailout has raised new fear of foreclosure. The lawsuit, filed in U.S. District Court in Bismarck, ND, lists 108 farmers. It could include as many as 20,000 if class-action status is approved, said Sarah Vogel, attorney for the farmers. The dispute dates to a 1987 law that restructured or wrote off billions of dollars in farm loans. It has been credited with saving 23,000 farmers from foreclosure during the 1980s. The lawsuit says the federal Farm Service Agency is now asking for $4.3 million from farmers. The agency has asked each farmer for half the amount of money their land has increased in value from 1989 - the year it agreed to write off loans above the actual value of the land. The highest individual amount sought is $270,000 from a Montana farmer. The agency contends that splitting the amount of land appreciation was part of the deal, court documents say. Vogel said her clients believe they only had to share appreciation money if they sold their land within 10 years; those who kept their property would owe nothing.