July 31

RFS in Jeopardy in Conference.  The House of Representatives and the Senate have passed a national energy bill that includes a renewable fuels standard (RFS), but the battle is far from won, according to the National Corn Growers Association. The bill is in conference and with the continual onslaught against ethanol in the media, there is a chance the RFS may die in conference. 

Veneman Assured China Will Be WTO Compliant.  Agriculture Secretary Ann Veneman received broad assurance from Chinese officials during her three-day visit that it will comply with World Trade Organization (WTO) rules and trade will not be disrupted. Veneman's meetings included officials from the Ministries of Agriculture, Trade, and Science and Technology, and with the State Planning Commission and AQSIQ, the quarantine and inspection agency. She was in China following attendance at the Quint Ministers' meeting in Japan last week. 

Idaho Beef Producers Talk with NCBA.  Nearly 300 Idaho beef producers had an open dialog late last week about industry concerns with National Cattlemen's Beef Association (NCBA) Chief Executive Officer Terry Stokes during a series of four local meetings. The town hall meetings were the first of a series of visits planned around the country by Stokes to "put a stethoscope on the heartbeat of members." The tour was hosted by the Idaho Cattle Association (ICA), which is a fully unified partner with NCBA. 

Milk Market Order Hearing Coming.  USDA will hold a public hearing to consider changes to the Northeast federal milk marketing order. The hearing will begin at 8:30 a.m. on Sept. 10 at the Embassy Suites Hotel Alexandria, 1900 Diagonal Road, Alexandria, Va. 22314. Proposals will include establishing marketwide service payments to offset the costs of balancing the market's Class I needs, establishing year-round shipping standards for supply plant pool qualification, establishing a standard that at least two-days' milk production of a dairy farmer be physically received at a pool plant before the balance of production is eligible for diversion, establishing limits on the amount of milk that a pool plant may divert, eliminating the "split plant" feature for pool supply plants, and making minor changes to reporting and payment dates. For additional information contact: Erik F. Rasmussen, Northeast Market Administrator; USDA/AMS/Dairy Programs; P. O. Box 1478 (Fort Point Station) Boston, MA 02205-1478; Tel. (617) 542-1478; e-mail: maboston@fedmilk1.com. 

AFBF Members Eligible for Weather Information . Through a new agreement between American Farm Bureau Inc. and ShareCom, American Farm Bureau Federation members can get early weather and civil defense warnings plus receive a discount by purchasing a personal Weather Radio receiver. The Commerce Department's National Oceanic & Atmospheric Administration (NOAA) provides national weather and emergency information to the public via NOAA Weather Radio 24-hours a day. The network includes more than 670 stations that cover more than 90 percent of the population in all 50 states plus adjacent coastal waters, Puerto Rico, the U.S. Virgin Islands and the U.S. Pacific Territories. With a personal Weather Radio receiver, users can pick up the signal and have immediate access to lifesaving information. 

Africa Debates GM Food Deliveries. REUTERS reports a debate is swirling in southern Africa where starvation is prevalent over the prospect of the United States delivering genetically modified food aid. The lives of 13 million people in six countries in the region are in desperate need of food. Aid agencies warn that without quick assistance, that situation will become a famine in the next few months. The United States, which is the biggest contributor of relief food to the world's biggest food agency, the World Food Program (WFP), said last week it could not guarantee its food aid would not be genetically modified (GM). Accepting U.S. aid will endanger the poor countries' markets in Europe where the European Union has banned new biotech crops from other parts of the world for the past three years. 

Twenty Groups Support Disaster Aid.  National Farmers Union says that 20 agriculture organizations support emergency disaster assistance legislation for crop and livestock producers suffering losses during 2001 and 2002 due to natural disasters. In letters to U.S. senators the groups urged passage of S. 2800, recently introduced by Montana Sens. Max Baucus (D) and Conrad Burns (R) and others providing comprehensive assistance for production or quality losses. "American agriculture groups stand united in support of emergency assistance to address the impact of adverse weather-related disasters facing approximately 40 percent of the nation," said National Farmers Union President Dave Frederickson. "Hopefully, our united approach will lead to quick passage of emergency disaster assistance legislation. 

Consumer Groups Want USDA Answers.  REUTERS reports consumer groups will meet with USDA officials Wednesday concerning questions about USDA's handling of the second-largest beef recall in history. Twenty-eight people in seven states have fallen ill in the past six weeks after eating ConAgra Foods Inc. ground beef contaminated with a Escherichia coli bacteria, according to the Centers for Disease Control and Prevention. Consumer advocates and some Democrats criticized USDA's response to the outbreak, which prompted ConAgra to recall nearly 19 million pounds of beef from its Greeley, Colorado plant earlier this month. The CDC last week warned the outbreak could widen, because consumers may have suspect beef products in refrigerators. 

July 30

Hass Avocado Producers and Importers Approve National Promotion Program.  Producers and importers of Hass avocados have voted to approve a national promotion program. The vote was taken in a referendum conducted by USDA's Agricultural Marketing Service form June 24 through July 12. 

Farmers Union Urges TPA Defeat.  National Farmers Union, long an opponent to trade promotion authority, now is urging senators to reject the TPA conference report passed by the House over the weekend. Just before leaving for its month-long recess, the House approved the conference report 215-212 vote. The Senate is expected to take up the conference report this week prior to departing for its August recess. 

Farm Bureau Expresses Opposite Reaction to TPA vote in the House.  The American Farm Bureau Federation praised the House for passing the conference agreement containing trade promotion authority. Calling the vote a victory for U.S. agriculture, the American Farm Bureau Federation called on the Senate quickly to follow suit. 

Narrowing Corn Rows Increases Yields.  Planting corn in rows spaced 15 inches apart rather than the traditional 30 inches increases yields and has other benefits as well, according to Agricultural Research Service scientists who are studying the benefits of narrower row spacing. 

Unify Terms, Producers Urged.  KYODO NEWS reports that a Japanese government advisory council's draft proposals urge the government to unify the terms employed for use-by dates for products. Now, food producers and packers may use different expressions, such as a ''use-by date'' and ''quality preservation period.'' Sources told KYODO the panel also is considering allowing food producers and packers to print the date of packing or date of manufacture on the labels. Currently, many food products do not include dates of packing or manufacture on labels. 

Italy Probing GM Labeling Allegations. REUTERS reports Italian police are investigating allegations of fraud in the labeling of genetically modified (GM) soy-based foods. "Samples will be analyzed for the presence of undeclared genetically modified organisms (GMOs)," the police spokesman, who asked not to be identified, told REUTERS. The investigation follows a survey by left-leaning newspaper La Repubblica over the weekend. The paper alleged some labels failed to inform consumers about the full extent of GMOs in foods. La Repubblica said that out of a sample of 31 products bought in Turin supermarkets, 10 were found to contain genetic material. Of these, four products had higher content of GM material than suggested on their labels, the newspaper said. 

Speedier Responses Needed to Terrorist Threats.  REUTERS repoprts that a government officials says speedier responses to threats and better communication at all levels of government are needed to protect the nation's farms and food supply from terrorism. "We need to make sure that our front line of defense is solid and cannot be penetrated," Jim Moseley, USDA deputy secretary, said at the start of a two-day "agricultural bioterrorism" summit in Omaha of governors and officials from 13 Midwest states. "The most important thing we have to do is to compress and shorten the response time we have," Moseley said. "Early detection, rapid detection technologies are very important," along with better communications among local, state and federal governments, he added. 

EU Says U.S. Would Hurt Poor More.  REUTERS reports from Bangkok, Thailand, that the European Union believes U.S. tariff cut proposals, put forth for the agricultural round of trade negotiations, would hurt poor countries more than the rich. The United States has suggested that all 144 World Trade Organization members reduce tariffs on farm goods to 25% to appeal to developing countries. But EU Farm Commissioner Franz Fischler said during a visit to Thailand the U.S. proposal would hurt developing agrarian countries, many of which charge higher average tariffs than rich countries. "The U.S. says we should introduce a new approach, which is not only complicated and technically difficult, but developing countries would have to reduce their tariffs more than most of the developed countries," Fischler told a news conference. 

Applicant Countries Make Progress with EU.  REUTERS reports that countries hoping to join the European Union have made progress in the accession talks. But the talks have steered away from the toughest question of how much aid they will receive once inside the EU bloc. The EU aims to conclude talks with up to 10 candidates in December, allowing them to become full-fledged members in 2004. Membership will come after ratification of their accession treaty by the 15 current members, the European Parliament and the candidates themselves. Denmark holds the EU's rotating presidency and wants to resolve all non-financial questions as soon as possible to allow both sides to focus on the cash issues from October onwards and to reach a deal in time for a December summit in Copenhagen. 

July 29

Conference Reports, House Votes, Senate Ready for TPA. House Ways and Means Committee Chairman Thomas (R-CA) and Senate Finance Committee Chairman Baucus (D-MT) ended several days of intense negotiations late Thursday when a House-Senate conference committee reached agreement on trade promotion authority (TPA) legislation. The TPA conference report was approved on a narrow vote in the House Saturday. The Senate should take it up this week. The House has adjourned for traditional August recess, and the Senate is expected to recess Aug. 2. 

USDA Amends Dairy Specification. USDA amended its "General Specifications for Dairy Plants Approved for USDA Inspection and Grading Service" document. USDA made the changes for all producer herd milk including both cow's and goat's milk. 

USDA Buys Texas Dairy. In an effort to "create a buffer zone" and prevent the introduction of bovine tuberculosis, USDA is authorizing the purchase of dairy cattle operations and a processing plant in the El Paso, Texas, area. An interim rule, published in Friday's Federal Register, allows USDA's Animal and Plant Health Inspection Service, in cooperation with the state of Texas, to purchase these El Paso area dairy operations over the next two years. 

Cattlemen Approve $66 Million Budget. A budget of $65,759,476 for fiscal year 2003 was approved by directors of the National Cattlemen's Beef Association (NCBA) at the organization's summer meeting in Reno earlier this month. Fiscal year 2003 begins Oct. 1. 

Kansas Facility Almost Doubles Ethanol Capacity.  U.S. Energy Partners LLC has completed a major expansion to their ethanol plant from 25 to 40 million gallons per year capacity. U.S. Energy Partners LLC, on the outskirts of Russell, KS, is co-located in an industrial park adjacent to an affiliated wheat gluten plant and the town's power plant. 

Japan Seeks Elderly to Farm Idle Land. KYODO NEWS reports Japan will construct a system that will bring together farmers with idle land and elderly people in cities who want to rent and cultivate such land. The Ministry of Agriculture, Forestry and Fisheries decision follows a recent increase of abandoned land by aging farmers and a declining population. The government wants to make use of such land and promote the health of urban retired people as well as provide them with some purpose in life after retirement, the sources said. It also is intended to promote revitalizing farming villages, whose populations are shrinking, by promoting exchanges between the farmers and those living in cities. 

Quint Doesn't Narrow Policy Gaps.  KYODO NEWS reports agriculture ministers from five major farm trading economies did not narrow their differences on tariffs and subsidies at their two-day meeting in the western Japan city of Nara. Ministers from Australia, Canada, Japan, the United States and the European Union (EU) did manage to agree to continue talking. ''There were some differences, but I think this meeting will help promote WTO farm negotiations with the participants deepening understanding of each other's views,'' Japanese Agriculture, Forestry and Fisheries Minister Tsutomu Takebe told a news conference. The ''quint'' ministers talked about proceeding with the World Trade Organization (WTO) farm negotiations. Those talks are scheduled to set overall targets and rules for members' farm policy reforms by March 2003 as part of a three-year trade round launched last November in Doha with the deadline set for Jan. 1, 2005. 

Democrats Want Answers on Alleged Delay. THE ASSOCIATED PRESS reports some congressional Democrats want USDA to explain why it took so long to order a recall of 19 million pounds of hamburger meat suspected of harboring E. coli bacteria. Rep. Henry Waxman (D-CA) said it was not until July 19 that USDA announced a full recall even though some of the meat had been contaminated in mid-April. "The long delay between contamination and recall is striking," Waxman and the three other Democratic lawmakers wrote Agriculture Secretary Ann Veneman. They asked the department to explain the delay. "It is a red flag for our nation's food safety system that more than three months passed between production of possibly contaminated meat and its eventual recall," they said. Steven Cohen, a spokesman for USDA's Food Safety and Inspection Service, said the agency "acted with deliberate speed in response" to the beef contamination threat. He said the agency will fully answer questions posed by the lawmakers. 

Correction Announced. In news release issued on July 24 and published on this web site July 25, USDA's Agricultural Marketing Service incorrectly reported when comments must be received. The release should have read: "Comments must be received on or before Aug. 26." The news release concerned a proposal to increase fees for certain grading services for eggs, poultry and rabbits. 

EU, Japan Take a Different Position.  REUTERS reports that the European Union and Japan have little good to say about a U.S. proposal to reduce agricultural tariffs worldwide. They say it goes against the core principles of global negotiations on farm liberalization. EU Farm Commissioner Franz Fischler sharply criticized the U.S. in a meeting with his Japanese counterpart, Tsutomu Takebe, before a meeting of ministers from top farm powers. "They are totally incompatible with the ministerial declaration adopted in Doha," Fischler was quoted as saying by a Japanese Farm Ministry official. 

July 25

Corn Growers Reflect Crop Pessimism.  An overwhelming majority of delegates attending the National Corn Growers Association (NCGA) Corn Congress in Washington this week indicated extremely dry weather conditions in many areas of the country will have a serious impact on their corn crops. A total of 116, or 98%, of the 118 delegates responded to the informal NCGA survey. 

Producers Told to Verify Acreage.  Agriculture Secretary Ann M. Veneman told commodity producers to verify and update records on planted and prevented planted acres filed with USDA's Farm Service Agency. This information, required by the farm law, must be correct in order to receive accurate direct and counter-cyclical payments in the near future. 

India Lowers Expected Wheat Harvest.  The government of India has revised the country's 2002 wheat production forecast down to 71.47 million tons from its previous projection of 73.53 million tons. Most of the decline was in Punjab and Haryana, reflected in the lower procurement of wheat from these states. 

Grassley Requests Haying, Grazing for Iowa. Sen. Chuck Grassley (R-IA) has asked USDA that Iowa be approved for Conservation Reserve Program emergency haying and grazing assistance. The letter he sent follows a personal request from Grassley to Agriculture Secretary Ann Veneman earlier in the week. "Iowa is feeling the effects of a drought. As I travel through Iowa as part of my annual trip to every county in the state, I'm seeing evidence of very little rain to help the crops during a very hot season," Grassley said. "Farming is a risky business. A business that relies on good weather for a good crop. This federal assistance is very much needed for Iowa's farmers." 

EU Criticizes U.S. Farm Position.  REUTERS reports that the tone has been set for a two-day meeting of leading agricultural countries by the European Union. EU farm commissioner Franz Fischler criticized the United States for increasing subsidies to its farmers. In a speech in Tokyo, Fischler outlined plans to reform the EU's Common Agricultural Policy by no longer linking subsidies to farmers to what they produce. That has been a major demand of developing countries and agricultural-exporting nations that say rich-country policies ban their produce. "This is all the more relevant today as the U.S. has unfortunately chosen the opposite way when adopting a new farm bill three months ago," Fischler told the Central Union of Japanese Agricultural Cooperatives. 

Oregon Farmers Ship Hay to Colorado.  THE ASSOCIATED PRESS reports that Oregon farmers are shipping hay to drought-stricken Colorado ranchers. The gesture is in response to Colorado's support during an irrigation cutoff last year in Oregon's Klamath Basin. Hay from Klamath-area farmers is going to ranchers in Colorado who face a severe feed shortage caused by drought and wildfires. "It's people saying 'thank you' for what's happened in the past," said Donnie Boyd, a Merrill farm equipment dealer. `"It's farmer helping farmer."

Veneman Touts U.S. Beef in Tokyo.  THE ASSOCIATED PRESS reports that U.S. Agriculture Secretary Ann Veneman visited Japanese school children for a meal of beef and zucchini in an effort to dispel fears about an outbreak of mad cow disease that has driven Japanese consumers away from beef. She joined the children, wearing aprons that read "American Beef. High Quality," Veneman, here for a major agriculture summit, stressed that U.S. beef hasn't been tainted by the disease. U.S. beef exports to Japan have been affected by last autumn's Japanese outbreak of mad cow disease. U.S. beef accounted for 31% of the Japanese market last year, but has seen its exports fall nearly 40% this year. 

Grading Fees Proposed for Increase.  USDA is proposing an increase in fees for certain grading services for eggs, poultry and rabbits. The proposal would raise the basic hourly rate for resident service, or work of a grader with a regular tour of duty at a plant, from the current $31.52 to $33.36. In addition, the proposal would raise the basic hourly rate for fee service, or work on an intermittent, as-needed basis, from the current $54.40 to $57.68 for regular hours and from $62.76 to 66.64 for weekend and holiday work. Additionally, for plants using resident service, the administrative fee for USDA supervision and for other overhead expenses will increase from 4.6 cents to 4.8 cents per case of shell eggs and from .036 cents to .037 cents per pound of poultry handled. For poultry and eggs, the minimum administrative fee will rise from $250 to $260 per monthly billing period, and the maximum fee will rise from $2,650 to $2,675. The minimum administrative fee for grading rabbits will remain unchanged at $260 per monthly billing period. These grading services are made available upon request and paid for by the users. Current fees have been in effect since Jan. 1, 2002. The proposed grading fee increases will be published in the Federal Register on Friday. Comments must be received in the office of David Bowden, Jr., Chief, Standardization Branch, Poultry Programs, AMS, USDA, STOP 0259, room 3944-S, 1400 Independence Avenue, SW, Washington, D.C. 20250, on or before Aug. 12. Comments may also be faxed to (202) 690-0941. The proposal may be viewed electronically at http://www.ams.usda.gov/poultry/regulations. 

Pork Assessment Should Be Decreased.  USDA is proposing to decrease the current rate of assessment of 0.45% of the market value of hogs to 0.40%, as recommended by the National Pork Producers Delegate Body. USDA also proposes to decrease assessments due on imported pork and pork products to reflect the combined effect of the increase in the 2001 average price for domestic barrows and gilts and the proposed 0.05% decrease in the assessment rate. The proposed decrease reflects the delegate body's desire to lessen the assessment burden on producers. This proposed change will also bring importer assessments more in line with those being paid by domestic producers. The assessment decrease would reduce annual funding of the promotion, research, and consumer information program by an estimated $5 million to $6 million annually with an estimated $290,000 decrease in importer assessments. The proposed changes appeared in the July 19 Federal Register. Comments, postmarked no later than Aug. 19, may be sent to Kenneth R. Payne, Chief; Marketing Programs Branch; AMS Livestock and Seed Program, USDA Stop 0251; 1400 Independence Avenue, SW; Washington, DC 20250-0251; telephone (202) 720-1115. Copies of the proposed rule and additional information are available from the same address. target="_blank">http://www3.rma.usda.gov/tools/agents/. 

Russia, U.S. Closer to Poultry Resolution.  REUTERS reports that Russia and the United States for the most part have settled differences over a new veterinary certificate. The certificate allows exports of U.S. poultry to resume, a Russian official told REUTERS on Wednesday. Sales were suspended earlier this month after the two countries failed to agree on how U.S. firms would comply with new Russian import standards that take effect Aug. 1. "Things were basically settled by phone yesterday, now we are waiting for the documents," said Sergei Kuznetsov, a spokesman for Russia's agriculture ministry. A spokeswoman for the U.S Embassy in Moscow said documents relating to the veterinary certificate would arrive in the Russian capital on Wednesday. 

South Africans Face Hunger Crisis.  REUTERS reports from Rome that the United Nations maintains millions of south Africans face a hunger crisis after spring crop failures. "The window of opportunity to avert a major humanitarian crisis is closing," said Judith Lewis, the World Food Program's director for east and southern Africa. "The situation is becoming more and more acute. More and more people are in need of assistance more quickly than we had anticipated," she said. The WFP, the U.N.'s food agency, said pledges and donations of assistance to six African states totaled only about 20% of the $507 million -- or one million tons of food -- for which it appealed in early July. The U.N. is trying to provide food aid for some six million people across the region, half of them in Zimbabwe where a political battle over land reform has aggravated the impact of drought. 

July 24

Milk Production Outpacing Demand.  Milk production continues to outpace dairy product demand, resulting in a significant increase in U.S. stocks. The dairy industry entered 2002 in a milk surplus situation, with production growing faster than demand. In January through June 2002, milk production continued to surpass 2001 figures, according to the International Dairy Foods Association. 

Phillips Offers MTBE-Free Gasoline.  Phillips Petroleum Company lays claim to being the first gasoline retailer in California to offer MTBE-free gasoline year-round at all of its retail outlets. Phillips owns 1,500 '76' gasoline stations throughout California. Phillips, which uses ethanol to replace MTBE, will also make the MTBE-free fuel available to its unbranded independent marketers in the state. The announcement comes a year-and-a-half before the official state deadline to remove MTBE from California gasoline. 

Nitrogen Decreasing Methods Outlined in Paper.  The Council for Agricultural Science and Technology (CAST) outlines the technologies and approaches that poultry and livestock producers can employ to decrease the amounts of nitrogen and phosphorus that enter the environment. By lowering the amounts of protein and phosphorus that are fed to poultry and livestock, producers can limit the animals' excretions of nitrogen and phosphorus that may contribute to water and air pollution. 

Penn Says Poultry Dispute Nearer Resolution.  USDA's Under Secretary for Farm and Foreign Agricultural Services J.B. Penn says considerable progress has been made to resolve the long-running poultry trade dispute and the development of a new veterinary certificate for U.S. poultry exports to Russia. "We addressed the few outstanding differences that remain between us and agreed to exchange final documents today related to the veterinary certificate," said Penn. "We should know in a day or so if we have reached final agreement on the certificate." Penn made the comments following discussions with his Russian counterpart, First Deputy Minister of Agriculture, Sergei Dankvert and a team of U.S. and Russian officials. "We are pleased with the very considerable progress that has been made during the course of these negotiations," said Penn. "We fully expect to conclude this matter so that U.S. poultry trade to Russia can resume." 

Insurance Program Expanded in Two States.  USDA will expand the adjusted gross revenue (AGR) crop insurance pilot program to eight counties each in California and Pennsylvania for the 2003 and following insurance years. The expansion is required by the new farm law. California counties included in the expansion are Fresno, Kern, Riverside, San Diego, San Joaquin, San Luis Obispo, Tulare, and Ventura. Pennsylvania counties included are Crawford, Columbia, Erie, Fayette, Lancaster, Schuylkill, Westmoreland, and York. The AGR pilot program, which was significantly changed by USDA's Federal Crop Insurance Corporation (FCIC) in 2001, will now be available in 18 states and 230 counties. Producers of agricultural commodities without individual multiple peril crop insurance (MPCI) or other revenue insurance programs have been a target market for the pilot AGR program since its inception in 1999. AGR provides insurance coverage for many producers who previously relied on the noninsured crop disaster assistance program (NAP) for protection against natural disasters. AGR protects the revenue derived from the sale of various agricultural commodities under one policy. AGR works in conjunction with other individual MPCI programs when these insured crops are produced on a farm that is also insured under AGR. Producers who need more information about sales closing dates or their insurance options should contact a crop insurance agent. A list of crop insurance agents is available at local Farm Service Agency offices or at http://www3.rma.usda.gov/tools/agents/. 

Veal Program Suffers Lack of Funds.  The checkoff-funded Veal Promotion Program suffers from limited funds and needs a narrower focus, fewer objectives and improved priorities to improve its effectiveness. Recommendations for improvement and recognized accomplishments were part of a report on the program presented to the Joint Evaluation and Advisory Committee meeting, part of the 2002 Cattle Industry Summer Conference attended by beef, veal and dairy producers last week. Mazerov Research & Consulting (MR&C), Denver, was hired by the Joint Evaluation Committee to audit the performance of the veal program and make suggestions and recommendations as to how future programs can be improved. In addition to their analysis, MR&C interviewed veal producers, packers and opinion leaders. The report stated "the program both succeeded and failed at the same time," citing limited funds and a need for a narrower focus, fewer objectives and improved priorities as areas for improvement. 

China Rice Imports Below WTO Target. REUTERS reports that China will import only a fraction of the 4 million tons of rice that were part of an agreement with the World Trade Organization. Concepcion Calpe, a senior official at the United Nations' Food and Agriculture Organisation (FAO), told REUTERS she had halved her original projection for Chinese rice imports this year to 500,000 tons because of government efforts to keep local prices low. "We believe it has been the policy of the government, in order to prevent imports to flow, they have released their stock to keep the price down," Calpe said in an interview. "With production volume down over the past two years, prices would have risen tremendously." 

Danish Chickens Will Be Destroyed.  REUTERS reports that Danish authorities won't wait for final tests on hens suspected of carrying an infectious disease before destroying the birds. The disease outbreak is spreading, authorites said. "Up to now, it is decided that hens from eight farms will be killed," the Danish Food Ministry said in a statement. More than 100 other farms received hens from the affected farms, and blood tests are being conducted on poultry there. The first signs the disease were found at one farm last week, leading to the destruction of 46,000 hens. Newcastle disease is dangerous for poultry and is highly infectious. Hens suffering from the disease lay fewer eggs and can die from the disease. The disease cannot spread to humans, and there is no risk from eating eggs or meat from infected poultry. 

July 23

Farm Bureau Seeks CWA Case Rehearing.  The American Farm Bureau Federation has filed a petition seeking a rehearing of a Clean Water Act (CWA) case that may significantly affect farmers and ranchers nationwide. A ruling by the U.S. Ninth Circuit Court of Appeals allows the Environmental Protection Agency "a breathtaking assertion of power" beyond what is authorized by federal law, according to the Farm Bureau petition. 

Veneman Goes To Japan, China Next Week.  Agriculture Secretary Ann M. Veneman will travel to Japan and China July 23-30 for multilateral and bilateral meetings on agricultural trade and expanded cooperation. Veneman discussed her trip to China and Japan during a press briefing with U.S. Trade Representative Robert Zoellick where they also discussed the need for Congress to complete work on trade promotion authority, progress in World Trade Organization (WTO) negotiations, and general trade issues. 

Faced with Drought, Farmers Rethink Crop Choices.  A continuing drought in parts of the Northern Plains is causing farmers in dry areas to rethink their crop choices. Some of these farmers used a new computer program this past winter to help plan their spring plantings. It contained the new "Crop Sequence Calculator" which showed that peas would be the best crop for drought, particularly when rotated with sunflowers. 

Group Calls for Passage of the 'Class Action Fairness Act.' Agricultural representatives were in Washington Monday to ask Congress to pass class action lawsuit reform. The group included hog farmers, tomato growers, food processors and a major grocery store chain. They gathered on the Mall to ask the U.S. Senate to pass S. 1712, the Class Action Fairness Act. 

Bush Uses Heavy Hand for TPA. REUTERS reports that President Bush and top aides are working to persuade Congress to approve trade promotion authority. One aspect of that push was an appearance by Agriculture Secretary Ann Veneman and U.S. Trade Representative Robert Zoellicki at a news conference with agricultural broadcasters and print media Monday. Bush wants a final TPA bill by the time Congress adjourns for the long August recess at the end of next week. "It's important for our economy that we get a trade promotion authority" bill, Bush told reporters during a trip to Illinois. "I met with the leaders of both the U.S. House of Representatives and the U.S. Senate, both parties, and urged them to reconcile any differences and get the bill to the floor of the House before they go on recess." White House spokesman Ari Fleischer, said Bush, Vice President Dick Cheney, Secretary of State Colin Powell and national security adviser Condoleezza Rice would all be lobbying lawmakers in phone calls this week. 

Feedlot Competition Affecting Cattle Prices.  REUTERS reports from Chicago that cattle producers surveyed at the National Cattlemen's Beef Association summer meeting in Reno, NV, that ended Friday blamed stiff competition among their own operations as a big reason for their current woes over cattle prices. Large feedlots in Kansas, Oklahoma and Texas have added capacity over the past decade. In the past year, especially, those big operations have had to compete harder for a shrinking supply of young feeder cattle. That has forced prices of feeder cattle higher and in turn elevated production costs for the feedlots. Cattle-Fax, a cattle industry research firm, estimates that feedlot capacity in the top-producing states of Texas, Oklahoma, Nebraska, Kansas and Colorado increased by 16% in the past 10 years. 

South Korea May Feed Rice. South Korea may dispose part of its mountain of rice stocks as animal feed, industry officials said on Monday. REUTERS reports the South Korean government and feed manufacturers were in discussions about the disposal of part of surplus rice as feed. "They (the government and local feed makers) are now in talks over price and amount of rice to be used for feed," an industry official told REUTERS. The government on Monday officially denied a media report at the weekend that surplus rice would be used for feed, adding it had not yet made any decision on rice stockpiles. South Korea has never before used rice for animal feed. 

Germany Isn't Banning Dutch Pork Imports. REUTERS reports that Germany denies reports in the Netherlands that Germany will stop imports of Dutch pork because of fears over a banned hormone. Italy has halted imports of Dutch pork. Half the pig farms in the Netherlands are thought to have received feed tainted with the banned hormone medroxyprogesterone-acetate (MPA). A spokeswoman for Germany's agriculture and consumer protection ministry said, "We are not planning any stop of Dutch pork (imports). It is unclear to us where this rather puzzling communication comes from." She added that German and Dutch officials met Monday and discussed strategies to handle the MPA problem. Details on an agreement may be released later today, she said. 

ConAgra Beef Illnesses Now at 26.  REUTERS reports that at leasts 26 people in five states have become ill from contaminated beef produced by ConAgra Foods Inc. ConAgra began the nation's second-largest recall of ground beef, almost 19 million pounds, after USDA said meat from the company's Colorado plant could be contaminated with the deadly bacteria E. coli O157:H7. The U.S. Centers for Disease Control (CDC) said it confirmed at least 25 illnesses linked to the ConAgra beef in Colorado, South Dakota, Michigan, Washington and Wyoming. The Colorado Department of Public Health and Environment added another sick person to CDC's total, bringing the number of cases in that state to 20. Three sick people were reported in South Dakota and one each in Michigan, Washington and Wyoming. 

China's Dual Approach to Biotechnology.  THE WALL STREET JOURNAL reports that China wants to be the world's biotech superpower, having developed more biotechnology products than any country outside North America including genetically modified food crops like rice, wheat, potatoes and peanuts. A University of California team found that Chinese research centers report developing 141 genetically modified plants. But China also is threatening to disrupt an annual $1 billion in genetically modified U.S. soybean shipments into China because officials claim they are worried about the safety of eating GM food. China also has prohibited all foreign investment in its potentially lucrative biotech sector. When U.S. Agricultural Secretary Ann Veneman visits China late this month, the country's confusing labeling laws on GM foods will be on her agenda for discussion. 

July 22

ConAgra Recalls 19 Million Pounds of Beef.  ConAgra Beef Company, Greeley, CO, is recalling approximately 19 million pounds of beef trim and fresh and frozen ground beef products that may be contaminated with E. coli O157:H7. The announcement came Friday from USDA's Food Safety and Inspection Service (FSIS). The recall is an expansion of the June 30 voluntary recall of 354,200 pounds of fresh and frozen ground beef products. 

Farmers Union Wants Hearing on Checkoffs.  National Farmers Union has asked Senate and House agriculture committee leaders to conduct hearings on agricultural checkoffs. NFU wants "a comprehensive examination of the function, operation and oversight of the national commodity research and promotion checkoff programs." 

Beef Checkoff Enjoys Strong Support.  Two-thirds of beef producers continue to support the Beef Checkoff Program, according to the results of an independent survey released at the 2002 Cattle Industry Summer Conference in Reno. The research indicates that 66% of producers approve of the checkoff, while 22% disapprove. The level of support was 68% in January. 

HSC Sends Security Bill to Full House.  Working with almost astonishing haste, the congressional wheels are working overtime in hopes of getting a Homeland Security Department bill to President Bush for his signature before the long August recess that begins at the end of next week. 

Flaxseed Growers Face Support Cut.  THE ASSOCIATED PRESS reports flaxseed producers are facing a change in federal policy and insurance rules that provide producers more benefit from a destroyed crop than from a healthy crop if market prices decline. Although price supports for flaxseed, an oilseed, were reduced by 25% in the new farm law, an unrelated increase in insurance levels provided the added benefit. Even then, acreage could begin to shrink unless the loan rate is increased. The new farm law lowered the national flaxseed rate from $5.21 per bushel to $3.91 per bushel. 

Little Rain Forces Calves to Market Early.  THE ASSOCIATED PRESS report that summer may be a slow time for cattle sales, but this summer, very little rain and day after day of searing heat have left about 70% of South Dakota's rangeland and pastures in poor condition. That is prompting a huge sell-off in herds, mainly to buyers in states where drought isn't a problem. So many cattle were brought to a recent sale at Fort Pierre, SD, that the auction began at 8 a.m. and didn't end until 7 a.m. the next day. More than 4,000 head were sold that day, compared with 600 normally sold this time of year. The usually weekly auction, which draws buyers and sellers from several states, is running twice a week these days. 

ND Governor Going to Havana. North Dakota Gov. John Hoeven goes to Cuba today with representatives of the North Dakota Farm Bureau and other agricultural groups. They're seeks sales to Cuba of North Dakota farm products. They will remain in Cuba through Thursday afternoon. "Agriculture is a cornerstone of our economy, and potential exports to Cuba exceed $37 million a year." Hoeven said earlier this month. "It is vital that we pursue all legitimate efforts to build bridges between North Dakota farmers and world markets everywhere to build our long-term prosperity." 

Corn Growers Hold Congress This Week.  The National Corn Growers Association will hold its semi-annual "Corn Congress" today and tomorrow in Washington, DC, with Candida Wolff, assistant to Vice President Dick Cheney for legislative affairs, and Allen Johnson, chief agriculture negotiator for the Office of the United States Trade Representative, as featured speakers. They will speak on the 2002 farm law, trade, and the renewable fuels standard (RFS) within the nation's energy bill. 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. 

July 19

Farm Bureaus Call for Trade Focus.  State Farm Bureau presidents have called for international trade talks to focus on export competition, market access and trade-distorting domestic support programs in the international trade forum of the World Trade Organization. The Farm Bureau officials met this week in Washington. 

U.S. Wants Freedom from Russian Trichinae Rules.  Even thought modern pork production practices have virtually eliminated trichinae from the U.S. hog population, pork currently exported to Russia - by Russian rules - either must be frozen according to a USDA Food Safety Inspection Service (FSIS) regulation, or every shipment must be tested and declared trichinae-free. Either step adds cost and potential for delays and other interruptions of the market. 

Beef Exports at Higher Value than U.S. Sales.  USDA estimates that about 9% of U.S. beef production is exported, and a new study indicates that 55% of beef variety meats are exported at incrementally much higher values than if sold in the United States. In addition, higher international prices paid for beef cuts underutilized in this country contributed more than half of the added value resulting from access to international markets. 

Cattle Officials Discuss Disease Outbreak.  More than 60 cattle producers, veterinarians, government agency representatives and staffs from state and national cattle organizations addressed the handling of possible animal disease outbreaks during a special session at the 2002 Cattle Industry Summer Conference. The meeting was chaired by Gary Wilson, an Ohio cattle producer and chair of the National Cattlemen's Beef Association (NCBA) Cattle Health and Well-Being Committee. 

Food Safety 'Abominable' in Japan.  KYODO NEWS reports Japan's farm ministry called its record on food safety policies "abominable" considering the mad cow disease and false labeling scandals. In an annual self-assessment review, the Ministry of Agriculture, Forestry and Fisheries assigns ratings of A, B or C to its achievements for each of 123 goals in 70 major policy fields. It said it does not even deserve a C on ensuring food safety.' The ministry earlier decided it wanted more than 70% of consumers to recognize' a new system under which food makers must label products about ingredients and production dates. 

Heat Fuels Grain Prices.  REUTERS reports that farmers are getting more help from grain prices being fueled to the high side by heat and dryness. Much of the Midwest and Great Plains have been hit by higher-than-normal temperatures and below-usual rainfall, wilting corn, soybean and wheat crops. "Farmers who are holding old-crop supplies (from last year) stand to make windfall gains," said agricultural economist Darrel Good of Illinois State University, alluding to the recent price rally in soybeans from tight supplies. He said prices for this year's crop likely will weaken as the fall harvest draws near but that any shortfall in production could change that scenario. 

German Farms Banned from Sales Total 2,100.  REUTERS reports from Hamburg that German farms prohibited from selling their meat and milk now totals around 2,100 compared to 300 earlier. The farms had received animal feed tainted with a banned hormone. However, farmers in the Netherlands, the world's third largest pork exporting nation, were preparing to resume normal slaughter of pigs after a ban on exports imposed because of the spread of feed contaminated with the medroxyprogesterone-acetate (MPA) hormone was lifted. Thousands of farmers in the European Union were being prevented from selling animals or milk as investigators trace feed made with MPA-contaminated ingredients from a Belgian firm. German authorities said on Thursday an additional 1,800 farms were ordered to suspend sales of their products. 

Italy to Spend Way Out of Drought.  REUTERS reports that Italy will spend millions to counter the effects of a southern drought that has withered crops, damaged industry and caused strong public reaction. Agriculture Minister Giovanni Alemanno told a news conference the government will spend 670 million euros ($674 million) and has introduced three measures to ease a crisis, which has prompted a state of emergency in four regions. However, experts said the government's plans would not address the real problem: Italy's reservoir system. Italy has the highest water consumption per capita in Europe, and the third highest in the world, partly because of a leaky reservoir and pipeline system in which up to 40% of water is lost before it reaches the user. Alemanno said the money would be available to people and businesses seeking compensation for damage caused by the drought, the worst on the island of Sicily alone for 30 years. 

July 18

River Improvements Backed in Congress.  Six senators and 23 members of the House have signed letters supporting lock modernization on the Upper Mississippi and Illinois Rivers. The letters, sent to Sen. James Jeffords (I-VT), chairman of the Senate Environmental and Public Works Committee, and Rep. John Duncan (R-TN), chairman of the House Transportation and Infrastructure Subcommittee on Water Resources and the Environment, call for authorization of lock and dam modernization in a draft Water Resources Development Act (WRDA) for 2002. 

FAO Concerned About Rice Supplies.  The UN Food and Agriculture Organization (FAO) warns there is an increasing concern about whether current rice production practices can meet demands, contribute effectively to rural poverty alleviation and minimize environmental degradation. The warning came in advance of the 20th session of the International Rice Commission (IRC) to be held in Bangkok, Thailand, next week. 

USDA Converting Alfalfa to Biofuel.  USDA bioenergy funds are being used to convert alfalfa into the first dual-use biofuel plant. The leaf serves as a factory for raw, biodegradable plastic beads, other industrial products or better livestock feed, while the stem goes to ethanol production. 

Israel on USDA's BSE List.  Israel is on the USDA list of regions where bovine spongiform encephalopathy exists, because the disease has been detected in native born animals there. USDA's Animal and Plant Health Inspection Service in cooperation with USDA's Food Safety and Inspection Service and other federal agencies, has taken measures in BSE surveillance, prevention, education and preparation for response. Since 1989, APHIS has prohibited the importation of live ruminants from all countries where BSE is known to exist in native cattle. Other products derived from ruminants also are restricted entry into the United States except under special conditions or under permit for scientific or research purposes. 

U.S. Optimistic on Trade Talks. REUTERS reports that U.S. officials are optimistic that talks at the World Trade Organization will provide the needed momentum to overcome barriers to international trade talks. Progress so far has been slow, and senior officials and diplomats from the 144 member states were meeting at the round's steering body, the Trade Negotiations Committee (TNC), hoping to overcome some of the obstacles. "It has been clear to us that people are taking very seriously the tight time frame we have," Deputy U.S. Trade Representative Peter Allgeier told journalists ahead of the meeting. "It is very optimistic just how seriously countries are taking these (Doha) negotiations," added Allgeier, who held a series of preparatory meetings and bilateral talks in Geneva ahead of Thursday's session. That view, however, contrasted sharply with senior European Union officials and diplomats from a number of developing countries. Developing countries complain that promises from the big powers -- particularly the United States and the EU -- that they should get special trade treatment were not materializing and they have signaled they are not prepared to rush to meet deadlines. 

Australian Dairy Farmers Face Dry Winter. Dairy farmers in the Shoalhaven on the New South Wales coast are feeling the effects of a drier than expected winter. THE AUSTRALIAN BROADCASTING CORPORATION reports that while the problems are not as severe as in western New South Wales, the state's drought areas have forced an increase in the price of feed. NSW Agriculture district agronomist Jenene Kidston says good rainfall during autumn has kept most Shoalhaven farmers out of any major problems at this stage. "It's drier here than we would like to see - people that are able to irrigate are irrigating which is unusual for winter, most people will be feeding so we'd like to see rain," she said. 

West Ravaged by Grasshoppers.  THE ASSOCIATD PRESS reports that grasshoppers and Mormon crickets are devouring crops and pastures in western states. The numbers of the insects are increased by the drought also plaguing the region. Officials believe it could be the biggest such infestation since World War II. "They're even eating the paint off some of the houses," said Nebraska farmer Robert Larsen, who raises alfalfa, corn, soybeans and cattle on 1,600 acres. The infestation threatens the financial situations of farmers and ranchers already suffering because of drought. Agriculture officials haven't estimated the damage so far this year. But last year, grasshoppers and Mormon crickets - a black, wingless cousin of the grasshopper - caused $25 million in crop damage in Utah alone. Near Steamboat Springs, CO, about 200 grasshoppers per square yard invaded rangeland in June, reaching about 1 million grasshoppers per acre. Nebraska, New Mexico, Idaho, Oregon and South Dakota are among the states hit hardest, but outbreaks have been reported in parts of most states west of the Mississippi River. 

Drought Hits Third of States.  THE ASSOCIATED PRESS reports that more than a third of the 48 contiguous states face severe or extreme drought. The National Climatic Data Center reported warmer than usual temperature and dry conditions spread drought to 36% of the 48 contiguous states by the end of June. The center said the average temperature for the country in June was 71.6 degrees Fahrenheit, 2.3 degrees higher than the average in records going back to 1895. That made it the fifth warmest June on record. The climate center is part of the National Oceanic and Atmospheric Administration. It reports that abnormally warm temperatures occurred in the Southwest and northern Plains. Colorado and Nebraska had their second-warmest June since statewide records began, while New Mexico and Nevada had their fifth-warmest June. 

July 17

Farmers Union Calls for Concentration Curbs.  Farmers Union member Nolan Jungclaus, Lake Lillian, MN, told the Senate Agriculture Committee Tuesday that concentration in the livestock industry, especially meatpackers who own and feed their own livestock, is "sucking the lifeblood out of rural communities." 

RFA Focuses on Ethanol's Benefits.  Testifying at a House Transportation and Infrastructure Highways and Transit Subcommittee hearing, Renewable Fuels Association (RFA) president Bob Dinneen this week highlighted the ethanol industry's commitment to addressing concerns raised by highway and transportation groups regarding the increased use of renewable fuels like ethanol. 

Veneman Boasts 'Bold, Historic' Homeland Effort.  Agriculture Secretary Ann M. Veneman Tuesday testified before the House Select Committee on Homeland Security and called President Bush's proposed plan for homeland security "bold and historic," a proposal that will "better protect, better prepare and better coordinate" the critical responsibilities of homeland protection. 

Errors Allowed Hormone to Taint Feed. REUTERS reports that Ireland's Environmental Protection Agency believes "serious errors" at an Irish plant allowed a banned growth hormone to taint hog feed in Europe's latest food scare. The EPA said waste water containing the MPA hormone had been labeled incorrectly as "green" before being shipped to a Belgian reprocessing plant. The shipment was from a plant owned by U.S. drugmaker Wyeth. Scientists believe feed tainted with MPA can cause infertility in humans. It has been uncovered at thousands of farms across Europe, particularly in the Netherlands, Belgium and Germany. 

Countries Jeopardize WTO Talks.  THE ASSOCIATED PRESS reports a European Union trade official charges that several countries are jeopardizing international trade talks by refusing to start negotiations in certain sectors. "Our main message to our colleagues is that this is not the season for cherry picking. We have to be ready - all of us - to move ahead across the broad front of issues," Peter Carl, director general for trade at the European Union Commission, told reporters. Members of the 144-nation World Trade Organization meet this week to review progress in the negotiations that are supposed to conclude by Jan. 1, 2005. However, the EU also has come under fire from agriculture-oriented countries for failing to cut its huge farm subsidies program, and from developing countries for continuing to maintain barriers to imports of textiles and clothing. 

Haying, Grazing Authorized for Dakotas.  Emergency haying and limited grazing for Water Bank Program (WBP) contract holders in drought-stricken North Dakota and South Dakota has been authorized. In addition, the Natural Resources Conservation Service (NRCS) will consider requests to amend producers' conservation plans to allow for limited grazing where consistent with program purposes. These relief efforts will apply statewide to WBP contracts consistent with the Secretary's recent decision on Conservation Reserve Program (CRP) acreage. The NRCS state conservationists for North Dakota and South Dakota, in consultation with the State Technical Committee in these states, will establish guidelines for emergency haying and approved grazing on WBP contracts. Haying is authorized until Aug. 31 or until disaster conditions no longer exist, whichever comes first. WBP contract payments will be reduced 25% to account for the areas hayed unless the hay is donated. Grazing requests will require a revision of the WBP contract. Payment reductions and other limitations may also apply. Livestock operators should submit applications to their local NRCS office. Additional information on emergency farm loans is available from local USDA offices or online at http://www.fsa.usda.gov/pas/disaster/assistance1.htm. In addition, on June 28 Veneman announced the availability of $1.9 million to South Dakota in Emergency Conservation Program funds and authorized emergency haying and grazing of Conservation Reserve Program acreage in 28 South Dakota counties. 

Senate TPA Conferees Named.  Appointments have been made of Senate conferees for the trade promotion authority conference committee: Sens. Max Baucus (D-MT), John (Jay) Rockefeller (D-WV), John Breaux (D-LA), Charles Grassley (R-IA) and Orrin Hatch (R-UT). The conference must resolve the differences between the House and Senate versions of TPA. Most agricultural interests believe that as the federal government negotiates trade agreements that benefit agriculture by increasing market access, or reducing tariffs that our products face when entering foreign countries, Congress needs to pass these trade agreements with a vote on the entire trade package with no authority for amendments. Changes in the elements of the agreements could put the entire agreement at risk. Foreign countries need to know that when they negotiate with the United States that the resulting trade agreement will come to a vote in Congress as an entire package, supporters say. 

Georgia Signs Up for Cuban Food Bash.  The Georgia Department of Agriculture lays claim to being the only state agriculture agency signed up for the first U.S. Food & Agribusiness Exhibition in Havana, Cuba, set for September. "We were among the first exhibitors to sign up for the show," said Agriculture Commissioner Tommy Irvin. "We have been the first in line to try and open up the Cuban market. We want our Georgia companies and others to be able to sell their food to the Cuban people. We're signing up Georgia companies now to exhibit in our pavilion at this first food marketing show in Cuba." The U.S. Food and Agribusiness Exhibition is the first and only exhibition specifically licensed by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury for representatives of U.S. companies and organizations to visit the Republic of Cuba to market food and other agricultural products. 

July 16

Grassley Plans Livestock Marketing Bill.  Sen. Chuck Grassley (R-IA) is preparing legislation he says would increase competition in the livestock market. Grassley said his proposal would give independent producers a guaranteed share in the marketplace by making improvements to the mandatory price reporting system. 

Sow Feeding System Allows Animals More Space. An automated feeding system that eliminates the need for crating sows during their four-month pregnancies will be tested as part of a joint project involving the Agricultural Research Service, Texas Tech University in Lubbock and Automated Production Systems, Inc., of Huntingdon Valley, PA. 

Economics Not Favorable to Argentine Farmers. Argentine producers face difficult planting decisions in 2002-03 because of economic uncertainty, according to a new USDA report. Since the 2001-02 planting season, the government defaulted on it's international loans and the country has undergone a severe national economic crisis. 

U.S. Still Wants End to Subsidies. REUTERS reports from Geneva that a senior U.S. official has insisted that the Bush administration still wants an early end to all agricultural export subsidies despite worldwide criticism of the new U.S. farm law. Deputy Trade Representative Peter Allgeier, also told a news conference at the start of a key week of meetings at the World Trade Organization (WTO) that the United States would continue "to assert leadership" within the body. "We are fully committed to achieve an ambitious outcome on agriculture in the Doha negotiations," said Allgeier. The reference was to the new round of trade talks launched after last October's WTO conference in the Qatar capital. 

Japan Lobby Will Propose Rice-Buying Scheme.  KYODO NEWS reports that Japan's Central Union of Agricultural Co-operatives (JA Zenchu) will propose that a government-supported entity be created to buy surplus rice. The purchases would use both government subsidies and annual contributions from all rice farmers. The group came up with the proposal to create what it calls a ''stockpile organization for rice processing,'' union officials said. JA Zenchu plans to formally adopt the proposal at a meeting of directors Sept. 5 before pressing the government to implement it, the union officials said. The proposal was designed to counter a proposal in an interim report in June by a Food Agency panel headed by University of Tokyo Professor Shinichi Shogenji. 

FSIS Team Goes to ConAgra Plant.  Linda Swacina, acting administrator of USDA's Food Safety And Inspection Service, said the agency is responding to a number of Colorado residents who became ill from eating tainted meat by sending an investigation team to the ConAgra plant in Colorado and implementing a new policy to more quickly trace back tainted meat. An FSIS inspector took a sample June 14 at a facility that further processes coarse ground beef, said Swacina. On June 19, following the minimum five-day period required to confirm the presence or absence of E. coli O157:H7, the sample tested positive. Production had been held at the plant from the date of the sample was taken, resulting in no tainted product reaching consumers from that facility. Besides testing at the grinding plant, an FSIS investigation was launched to determine all possible sources of the pathogen. At that time, there had been no reported cases of E. coli infections in Colorado. Swacina said analysis resulted in ConAgra being identified as the source of the contamination, which triggered the recall. 

U.S., EU on Different Policy Tracks. REUTERS reports from Brussels that the United States and Europe appear to be on opposite sides of the farm policy fence. The new U.S. farm law will increase subsidies to domestic farmers and depress world markets, and plans to reform Europe's farm policy would have the opposite effect, the OECD said on Tuesday. Stefan Tangerman, head of the OECD's agriculture unit, said the world's two major farm exporters seemed to be moving in opposite directions when it comes to subsidies to farmers. "With the farm bill we could expect some price depression on international markets, while the opposite would be true if the EU's mid-term review proposals were adopted," he said. Implementing higher loan rates, as the U.S. law would do, is an incentive to expand production, the OECD claims. Other elements of the legislation such as counter cyclical payments would mean support was more directly coupled to output. "It's exactly the opposite of the EU proposals," he said. 

White House Steps Up Homeland Lobbying.  THE ASSOCIATED PRESS reports the White House is sending several Cabinet secretaries to Capitol Hill today to lobby Congress and unveil a new strategy to confront terrorism through the Homeland Security Department. The Select House Committee on Homeland Security today is to hear from Health and Human Services Secretary Tommy Thompson, Agriculture Secretary Ann Veneman, Transportation Secretary Norman Mineta and Energy Secretary Spencer Abraham. The panel will put together a bill to create the new Department of Homeland Security out of recommendations made by other House committees, many of which conflict with Bush's own proposals. The administration is urging lawmakers to stick with Bush's proposal. 

July 15

USDA Settles Discrimination Lawsuit.  USDA and black farmers have agreed to settle a discrimination lawsuit. At a closed-door meeting Friday, the farmers and Agriculture Secretary Ann Veneman also talked about processing farm loan requests more efficiently and creating a civil rights office in the USDA. "I'm pleased with the meeting,'" Gary Grant, president of the Black Farmers and Agriculturalists Association told THE WASHINGTON POST. 

Farmers May Get LDPs for 2001 Production.  Some commodity farmers now may be eligible to receive loan deficiency payments (LDPs) for the 2001-crop year even though they did not enroll in the production flexibility contract program under the 1996 farm law. 

More EQIP Funds Announced.  Agriculture Secretary Ann M. Veneman announced the availability of an additional $275 million in funds for the Environmental Quality Incentives Program (EQIP). EQIP is a voluntary conservation program that promotes environmental quality. Farmers and ranchers may receive financial and technical assistance for certain conservation practices, such as nutrient management, integrated pest management and wildlife habitat management on eligible agricultural land. 

Senate Panel Holds River Hearing.  A hearing was held last week by the Senate Energy and Natural Resources Subcommittee on Water and Power to examine federal plans to manage the Missouri River. Sen. Byron Dorgan (D-ND) chaired the hearing, focusing on the ongoing debate between the upper and lower basin states and the informal consultation process between the Army Corps of Engineers and Fish and Wildlife Service (FWS). 

Australia Spends Millions to Revive Japanese Market.  KYODO NEWS reports that Australia's beef industry will spend A$16 million in an effort to revive sales in Japan over the next year. Meat and Livestock Australia (MLA) said the campaign will feature in-store cooking demonstrations, point-of-sale materials and restaurant promotions and will be jointly funded by beef producers and exporters and also benefit from a A$5 million boost from the Australian government announced last Thursday by Agriculture Minister Warren Truss. Beef consumption in Japan declined by up to 70% following the detection of Japan's first case of mad cow disease, or bovine spongiform encephalopathy (BSE), last September. Although consumption has recovered to a level where it is now down just 10-20% from pre-BSE levels, Australian beef exports to Japan are still down 44% for the year to date, according to the MLA. 

EU Members Look at Farm Proposals.  THE ASSOCIATED PRESS reports that member governments of the European Union get their first look today at proposals to revise EU farm subsidies. Farmers have branded the proposals as unfair and too modest by governments anxious to reduce the large share of farm spending in the EU's overall budget. Reform is needed as Cyprus, Malta and eight East European nations are set to join in 2004, raising EU membership to 25 countries and making reforms even harder to achieve. Entry negotiations with Poland, Hungary, the Czech Republic, Slovakia, Slovenia, Latvia, Lithuania, Estonia, Malta and Cyprus are to be concluded in December, but there are major differences among current members on how to reform agricultural spending. The EU's 2002 farm budget is about half of the EU's total outlays this year of EUR98.6 billion. 

Germans Warned on Tainted Feed.  REUTERS reports that Germany has received warnings that animal feed tainted by a banned hormone and originating in the Netherlands was shipped in large quantities to Germany, Belgium, Denmark, Sweden and France. The German Agriculture Ministry said it had received notification from a European early warning system and passed it onto a number of German federal states whose authorities were checking on the destinations. The German Agriculture Ministry said in a statement that under an agreement between the federal and regional governments reached last week, animal feed firms that may have processed tainted molasses would be closed down pending checks. 

July 12

Panel Okays USDA's Security Contribution.  The House Committee on Agriculture Thursday recommended using a specialized group of USDA inspectors for homeland security at U.S. ports of entry, maintaining protection for rural agriculture against imported animal and plant diseases. USDA research facilities at Plum Island Animal Disease Center also are transferred to the new Department of Homeland Security under the committee's bill. 

USDA Appropriations Approved. The House Appropriations Committee approved USDA funding for fiscal year 2003 that begins Oct. 1, appropriating $56.7 billion in total mandatory funding compared to the $56.64 billion requested by President Bush. 

States Approved for CRP Haying, Grazing.  USDA has approved 18 states for Conservation Reserve Program emergency haying and grazing statewide, making all CRP participants in these states basically eligible. Agriculture Secretary Ann Veneman also said USDA will waive rental reduction fees to encourage donation of hay to farmers and ranchers in immediate need. 

House Panel Sends ESA Changes to Floor.  The House Resources Committee has passed the Sound Science for Endangered Species Act Planning Act of 2002 (H.R.4840), by a vote of 22-18. The legislation would amend the act and require the use of sound science for Endangered Species Act (ESA) listings. 

Twelve Farm Groups Urge Disaster Aid Support.  Twelve farm groups have sent a letter to Agriculture Secretary Ann M. Veneman urging the Bush administration's support of and active engagement in securing emergency disaster assistance for farmers and ranchers. 

Philippines Won't Import Danish Milk.  REUTERS reports that the Philippines has banned importing a brand of powdered milk produced in a plant in Denmark where samples allegedly were found contaminated by lubricating oil and steel flakes. The order by the Department of Agriculture followed the announcement by the Bureau of Food and Drugs on Thursday of the immediate recall of four batches of the products. The products were distributed by the Philippine unit of Abbott Laboratories Inc., which had agreed to stop selling and retrieve all potentially affected products. 

Kaptur Backs Off Limiting Payments. THE ASSOCIATED PRESS reports that Rep. Marcy Kaptur (D-OH) has backed off an effort to limit farm payments. Kaptur said top lawmakers had threatened to kill projects she supports. "I may be block-headed sometimes, but I'm not stupid," said Kaptur as House Appropriations Committee worked on a farm spending bill for fiscal 2003. She said her priorities in the spending measure had been "threatened," so she withdrew her amendment lowering the cap on annual federal payments to farmers to $275,000. That limit was reduced to $360,000 in the farm bill enacted this spring from the previous $460,000. Kaptur later told reporters that the threats had been conveyed by top Republicans on the Appropriations Committee and bipartisan leaders of the House Agriculture Committee, although she mentioned no names. She said she was told that many Democratic-sponsored projects would have been dropped from the bill had she pursued her amendment. 

Canada Cautiously Welcomes EU Policy Reforms.  REUTERS reports that Canada has welcomed the plans from the European Union to reform it farm subsidy program but cautiously. The EU's executive commission unveiled plans on Wednesday for a sweeping reform of the $40-billion-a-year Common Agriculture Policy. The proposals would end the link between aid to farmers and what they produce. "Our initial reaction is positive, primarily because they're moving away from product-specific support and in a sense trying to decouple the payments to farm producers," said an official at Canada's agriculture ministry. "While they're still providing very substantial support to their agriculture sector, they are moving the support away from some areas that are specifically trade-distorting," the official told REUTERS. 

Australia Wants U.S. Congress to Approve TPA.  Australia is urging the U.S. Congress to approve trade promotion authority for the Bush administration Australia and the United States can start serious talks on a free trade agreement, REUTERS reports. "We very much hope that those people up on Capitol Hill will see the wisdom of agreeing to trade promotion authority and that we can get into a negotiation on a free trade agreement with the United States," Foreign Minister Alexander Downer said after talks with Secretary of State Colin Powell. "It will be another very exciting new dimension to what of course is a long and historic and very close bilateral relationship," he told reporters. 

Cuba Converting Sugar Lands to Rice.  REUTERS reports that Cuba plans to grow rice instead of sugar on some plantations. The acreage shift is aimed at increasing production and reducing imports of rice. "We are studying with the Sugar Ministry what land would be most apt for rice production," Luis Aleman, head of the Agriculture Ministry's popular rice program, told REUTERS. The Sugar Ministry recently announced a restructuring that calls for shifting more than 2.5 million acres from cane growing to other agricultural uses. Aleman said a significant amount of land could be moved from cane to rice cultivation. "It is too early to say how much of the land is good for rice, but there is quite a bit," Aleman said during an international rice conference underway in Havana. "Some sugar plantations used to be dedicated to rice and could be again."

July 11

Weather Not Factored into USDA Report. In the latest crop report issued by USDA, higher corn acreage is expected this growing season, but that does not take into account the heat wave currently pounding the Midwest, said National Corn Growers Association (NCGA) Director of Production and Marketing Paul Bertels. 

Allergen Bill Hearing Scheduled.  A hearing will be held next week on legislation that could impose regulations for food allergen labeling. The Senate Health, Education, Labor and Pensions Committee, chaired by bill co-sponsor Senator Ted Kennedy (D-MA) will hold the hearing July 17. 

News Sources Publish GAO HACCP Report.  The New York Times and other news sources have written about a draft General Accounting Office (GAO) report critiquing USDA's HACCP-based meat inspection program with claims it is poorly designed and supervised and riddled with problems. 

Court Stays Beef Promotion Decision.  The U.S. Court of Appeals for the 8th Circuit granted a request for stay which allows the beef promotion program to continue without interruption while the appeal is pending. A June 21 decision by a District Court in South Dakota ruled that the Beef Promotion and Research Act is unconstitutional and directed that the collection of assessments cease on July 15. However, the stay postpones implementation of the South Dakota decision and the beef promotion and research program will continue to operate and conduct operations as normal during the appeal process. This stay was requested by the Department of Justice on behalf of USDA. In accordance with this court order, the beef promotion and research program will remain in effect and beef producers and importers must continue to pay beef checkoff assessments. Producers and importers who fail to pay the assessment may be subject to late payment charges and civil penalties of not more than $5,500 per violation. 

Japanese Consumers Frustrated Over Labels. KYODO NEWS reports that nearly two-thirds of Japanese consumers express frustration with food product labels. A Cabinet Office survey polled 5,300 people nationwide in its annual consumer survey, choosing food labeling as the main theme. There have been several false labeling cases by some food companies discovered earlier this year. On ways to improve food labeling, the survey said 82% of respondents recommended that words on labels be made easier to understand, and 62% said exaggerated catch phrases should be not used. Consumers specifically pointed to a proliferation of words and phrases with the same meaning, such as eat-by date, use-by date and quality preservation period. Such terms are confusing, they said. 

July 10

Cattlemen Support Stay Request. The National Cattlemen's Beef Association (NCBA) says it is pleased with the announcement by the U.S. Department of Justice that it has asked for a stay on the injunction prohibiting the collection of checkoff assessments after July 15. The stay, if granted, would allow collections to continue while the Department of Justice appeals Judge Charles Kornmann's June 21 ruling finding the beef checkoff unconstitutional. 

Tyson Foods Creates New VP Position. Tyson Foods, Inc. has announced the appointment of a new senior-level position within the company, that of senior vice president, commodity and trading risk management, and named Jean Mrha Beach to the position. She will report to Tyson CEO, John Tyson. 

Groups Ask that Funding Protect Farm Law.  Twenty-two commodity and general farm organizations have asked that Congress reject efforts to include provisions in the fiscal year 2003 appropriations measure that substantially would alter policies in the new farm law. A letter was sent to Rep. C.W. "Bill" Young (D-FL), chairman of the House Committee on Appropriations, and Rep. Henry Bonilla (R-TX), chairman of that committee's Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies. They noted that the new farm law, which fully complies with the budget resolution, also 1) thwarts the need for future economic emergency assistance programs; 2) provides an adequate safety net for producers; 3) more sufficiently funds conservation programs; and 4) provides additional funding for rural development and research. "The new farm bill provides an enhanced, predictable financial safety net in times of low prices, but the addition of a counter-cyclical provision ensures federal funds are only made available when low market prices trigger financial assistance," the letter stated. "Any change in the levels and schedule of financial assistance will be detrimental to farm income and would surely undermine the confidence of lenders and suppliers. Farmers and ranchers must be given the opportunity to regain their footing and must be provided with a reliable safety net." 

Consumers Heed Warnings About Food.  More Americans are changing their cooking habits in response to warnings about pathogens in undercooked meats , according to USDA. After analyzing 10 years of annual food survey results, USDA said that 80% of American households now report cooking their homemade burgers until they are brown or well done--up from 76% in 1991. USDA also reports a decline in the number of families who cook their burgers medium-rare, down from more than 20% in 1991 to less than 15% in 1996. Two to 5% of consumers persistently ignore warnings about undercooked meat and continue to eat their hamburgers rare or pink. 

Patent Granted for 'Molecular Pharming."   THE ASSOCIATED PRESS reports that a patent has been granted for growing corn spliced with a herpes-fighting human gene. The patent grants commercial rights to "molecular pharming" technology. Several biotechnology companies and research labs are racing to develop ways to grow drugs in crops such as corn, tobacco and rice by splicing human genes that produce disease-fighting proteins in the plants' DNA. The U.S. Patent and Trademark Office granted The Scripps Research Institute a patent that appears to give the La Jolla research lab exclusive control to some of the most promising proteins, antibodies, grown in all plants. "It appears to be a very broad patent for all antibodies grown in all plants," said Lisa Haile, a San Diego patent attorney. "It's pretty amazing." 

China Shields with GM Import Barriers.  THE ASSOCIATED PRESS reports that China is using regulatory import barriers for genetically modified farm products to shield its farm sector from the potential difficulties of World Trade Organization membership. When China entered the WTO late last year the country was supposed to open its agricultural market to greater competition. But regulating genetically modified products appears to give China a loophole to keep protecting local farmers. Jikun Huang, director of the Center for Chinese Agricultural Policy, said recent regulatory barriers to genetically modified agricultural imports are partially an attempt to shield China's farm sector from the impact of WTO entry. He said the government was concerned that increasing foreign imports would lower the value of soybeans, wheat and maize produced in northeastern China. 

Declining Australian Sheep Numbers Worry Industry.  The sheep industry in Western Australia and the Department of Agriculture are working together to stop a decline in sheep numbers, according to the AUSTRALIAN BROADCASTING CORPORATION. The national flock has declined by 28% since 1990, but numbers in Western Australian have declined by nearly half during the same period. The department's Renata Paliskis-Bessell, says a marketing strategy to promote sheep production might stop a desperate situation from becoming even worse. "Numbers are desperately short for both the processing sector and the live sector, and we need sheep. I would actually say the situation at the moment is really quite desperate. If we have a concerted effort now, I can't see numbers turning around and heading north for the next five years, so we really need to start now with the view that in, say 2006, hopefully we are looking at having numbers increasing from their current levels." 

July 9

New Peanut Program To Be Implemented. USDA is working on the implementation of a new peanut program mandated by the new farm law. Under the Farm Security and Rural Investment Act of 2002, all peanuts marketed in the United States must be officially inspected and graded by federal inspectors or federally licensed state inspectors. Imported peanuts will be subject to the same quality and handling standards as domestically produced peanuts. 

Farm Bureau Insurance Firms Merge.  The Farm Bureau property-casualty affiliates in Kansas (Farm Bureau Mutual InsuranceCompany, Inc.) and Nebraska (Farm Bureau Insurance Company of Nebraska) will merge into Farm Bureau Mutual Insurance Company. The Farm Bureau Mutual property-casualty pool currently operates predominantly in Iowa, Minnesota, South Dakota, Utah, Arizona and New Mexico. 

Ace First in Wisconsin.  Ace Ethanol has completed plant construction and is producing ethanol. Ace Ethanol is the first dry mill ethanol plant to operate in Wisconsin. Ace Ethanol, located outside of Stanley, WI, will process more than 6 million bushels of corn per year into 15 million gallons of ethanol and 44,000 tons of distillers dry and wet grains. The plant will also capture and market 40,000 tons of carbon dioxide per year. Ace Ethanol is expected to employ 30 people at the plant. While Ace Ethanol acted as its own general contractor, Delta-T, of Williamsburg, VA, served as the design-build firm and provided the technology, engineering and procurement of the equipment. The plant was constructed to be easy to expand in the future. There are 63 ethanol plants operating in the United States and 13 plants under construction. 

Pay Limit Commission Members Sought.  USDA is accepting applications from individuals interested in serving on the Commission on the Application of Payment Limitations, established by the Farm Security and Rural Investment Act of 2002. The 2002 farm law provision requires that a total of 10 members will be appointed as follows: three members appointed by the Secretary of Agriculture; three members appointed by the Senate Agriculture, Nutrition, and Forestry Committee; and three members appointed by the House Agriculture Committee. USDA's Chief Economist will also serve on the Commission. Secretary Veneman will appoint one of the 10 members to serve as chairperson. Individuals interested in being considered for appointment to the commission by the Secretary of Agriculture can obtain form AD-755 located at: http://www.fsa.usda.gov and fax it to Dann Stuart at (202) 720-2979. The deadline for submitting applications is July 12. Applications are being solicited through press release and Internet notice. 

Compost Studied as Pest Control.  THE ASSOCIATED PRESS reports from Attapulgus, GA, that horticulturists Darby Granberry and Juan Carlos Diaz-Perez are researching whether compost can be used to control pests. They want to find a product that could help replace methyl bromide -- a cheap, lethal and effective soil additive that farmers used for half a century to control insects, nematodes, weeds and pathogens in more than 100 crops. But methyl bromide also depletes the ozone, and farmers in industrialized nations won't be able to use it after 2005. So scientists around the world, including Granberry and Diaz-Perez, are searching desperately for replacements for the soon-to-be-banned fumigant. Compost might be able to do some of methyl bromide's jobs. Scientists have been working on alternatives since the Environmental Protection Agency announced the phase-out in 1994. Most think it will be impossible to find one product that replaces methyl bromide. 

Stay Asked in Beef Promotion Case.  The U.S. Department of Justice, on behalf of USDA, has filed a request with the U.S. Court of Appeals for the 8th Circuit asking that court to stay the decision issued by the U.S. District Court in South Dakota that the Beef Promotion and Research Act is unconstitutional. The June 21 decision directed that the collection of assessments cease on July 15. The request for stay, if granted, will allow the Beef Promotion and Research Program to continue without interruption while the Department of Agriculture and the Department of Justice pursue an appeal in the 8th Circuit. 

Dairy Farmers Get Temporary Workers.  THE ASSOCIATED PRESS reports that Vermont dairy farmers are finding temporary workers to milk their cows and do other chores, but the workers often are not experienced in dairying. The Vermont Farm Labor Service Cooperative assessed dairy farmers' labor needs and the pool of workers interested in farm jobs. So far it has referred temporary workers for 18 jobs around the state. The program has found that farmers want workers with experience, which many of the temporary workers do not have, and full-time jobs are hard to fill. "The greatest need is for milkers, for people with experience with milking," said Beverly Bishop, the program's labor service coordinator. "There are more people that are interested than have experience." Many of the workers want only part-time work even though they're interested in working on farms. 

July 8

EU Labeling Decision Blasted by Farm Bureau.  Action by the European Parliament to impose strict labeling requirements on food products that contain or are derived from genetically modified (GM) ingredients, even in tiny amounts, "represents a slap in the face to American agriculture," according to the American Farm Bureau Federation. 

Italy's Po Valley Looks to Large Production.  Crop growth was substantial in June in the major corn and soybean producing region of Italy, the Po River Valley. Most of the Po River Valley is irrigated, and the corn and soybean harvest will take place between September and November. 

Bt Protein and Ethanol Processing.  What happens to the protein in Bt-modified corn when processed into ethanol has been the focus of Agricultural Research Service (ARS) chemical engineer Bruce Dien and colleagues. They designed small-scale experiments with wet- and dry-milled Bt corn hybrids that enabled them to monitor the protein during all stages of ethanol production. 

France, Germany Must Reconcile. REUTERS reports from Paris that France believes its rift with Germany must be healed as the European Union prepares to enlarge with new members from East Europe. "There have been some differences of view, and it is true that right now the French and the Germans have a different vision of Europe's future," European Affairs Minister Noelle Lenoir told Europe 1 radio. "We must start the Franco-German motor up again." The comments indicated an unusual public admission that a disagreement exists. France and Germany feuded openly last month over the new French government's desire to delay balancing its budget to deliver promised tax cuts and the embattled German cabinet's determination to avoid any EU spending commitment before it faces voters in a general election Sept. 22. 

India May Become Second Rice Banana. REUTERTS reports that India could become the world's second largest rice exporter behind Thailand if infrastructure problems are solved. India is facing large grain stocks. Traders and analysts said India was considering aggressive rice sales this year, as global prices turned competitive, to redeuce grain stocks that reached 62 million tons May 1. "It could be touch and go and we may share the honors with Vietnam or edge it out in the rice export market provided infrastructure concerns are addressed," said a Bombay-based commodities analyst. "Overall shipments in April-June, the first quarter of the financial year, have touched one million tonnes and our rice is cheaper than that of similar origin from Thailand or Vietnam," said Sudip Basu of ITC Ltd, a leading rice trading firm. 

Fire Prevention Tool Banned.  THE WALL STREET JOURNAL reports that one of the federal government's most promising fire prevention tools, an herbicide called Oust, has been ruled out of the fight against wildfires raging across the West. Some of the herbicide sprayed two years ago by Bureau of Land Management officials to suppress cheat grass in Idaho drifted onto nearby farms, wiping out sugar beets, corn, barley and other crops. More than 100 farmers in Idaho claim damages of more than $100 million as a result, saying their fields have been rendered virtually infertile by the herbicide, made by DuPont Co. Federal officials hoped their use of the herbicide Oust would prevent wildfires such as a 1996 cheat grass blaze near Adrian, OR. The Idaho farmers recently filed a lawsuit in state court in Idaho against DuPont for alleged negligence in allowing its product to harm their crops. DuPont, of Wilmington, Del., denies any wrongdoing, saying in a statement that any farm damages resulted when Oust was sprayed under improper conditions. 

Comments Extended for FMD Provisions.  USDA has extended the comment period on a proposed rule that would amend indemnity provisions for foot-and-mouth disease and other serious diseases. The comment period was extended 30 days to allow interested persons additional time to prepare and submit comments until July 31. The proposal would amend regulations to give the Animal and Plant Health Inspection Service authority to pay 100% of the costs for purchase, destruction and disposition of animals should they become affected with FMD as well as for materials contaminated with FMD and cleaning and disinfecting of affected premises. The proposal would also amend provisions regarding the valuation of animals and materials (hay, farm equipment, barns and other structures, etc.). Notice of this extension of the comment period was published in the June 28 Federal Register. APHIS documents published in the Federal Register and related information, including the names of organizations and individuals who have commented on APHIS dockets, are available on the Internet at http://www.aphis.usda.gov/ppd/rad/webrepor.html. Consideration will be given to comments received on or before July 31. Send an original and three copies of postal or commercial delivery comments to Docket No. 01-069-1, Regulatory Analysis and Development, PPD, APHIS, Station 3C71, 4700 River Road, Unit 118, Riverdale, Md. 20737-1238. If using e-mail, address comments to regulations@aphis.usda.gov. Comments must be contained in the body of the message; do not send attached files. Please include your name and address in the message and use "Docket No. 01-069-1" on the subject line. 

Black Farmers End Sit-In.  THE ASSOCIATED PRESS reports black farmers in Tennessee ended a sit-in at a USDA office after federal officials agreed to meet with them this week to discuss discrimination allegations. The 15 protesters said USDA field offices unjustifiably denied crop loans to black farmers. The sit-in began last following a rally by 150 farmers and their supporters from 11 states. Protest leader Gary Grant said demonstrators would start meeting with Agriculture Secretary Ann Veneman's representatives on Tuesday and meet with her on Friday. 

Japan, Korea Meet to Talk FTA.  KYODO NEWS reports that Japan and South Korea will meet for the first time to discuss the feasibility of a bilateral free trade agreement . The meeting will take place Tuesday. For two days, panel members will discuss sectors to be included in an FTA and how discussions should be held in the future, a ministry official said. The study panel will include 10 Japanese and 14 South Korean representatives from the government, business and academic sectors, the official said. The Japanese side will include senior officials at the Foreign Ministry, the Finance Ministry, the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Economy, Trade and Industry, the official said. 

July 3

Farm Groups Meet with Homeland's Ridge. Representatives from nearly 40 different agriculture groups met at the White House this week with Homeland Security Director Tom Ridge and USDA officials to discuss the proposal to move one of USDA's agencies to a new Homeland Security Department. 

Veneman Announces CRP Haying.  Agriculture Secretary Ann Veneman has announced the authorization of emergency haying of Conservation Reserve Program acreage in several states. Last week it was announced that 28 South Dakota and 33 Montana counties were approved for emergency haying. There are 137 additional counties approved in the latest announcement. 

Milk Producers Start Newsletter.  The National Milk Producers Federation (NMPF) will begin publishing a quarterly newsletter designed to analyze the flow of imported dairy products into the United States. NMPF's ImportWatch will follow changes in the levels of dairy imports affecting the domestic market. NMPF believes that the price that America's dairy farmers receive increasingly is affected by imported products displacing their own production. 

No South Korean Rice to the North. REUTERS reports that South Korea is unlikely to ship 300,000 tons of surplus rice to North Korea. The decision comes after a fatal weekend naval battle. "We are internally considering (other ways of disposing of the rice)," an agriculture ministry official told REUTERS by telephone. He was referring to huge stockpiles of the staple which Seoul had been considering sending to hungry North Korea. On Saturday four South Korean sailors died and 19 were wounded in a gun battle between naval ships of South and North Korea. Some 30 North Koreans are also thought to have died. South Korea has an oversupply of rice with resulting low farm prices. In April, South Korea said it was planning to reduce the country's rice stockpile by offering 576,000 tons to North Korea on credit. 

Black Farmers Claim Discrimination. More than 150 black farmers staged a peaceful sit-in Monday in Brownsville, TN, claiming discrimination in federal crop loans, according to THE ASSOCIATED PRESS. The demonstration shut down a USDA office. The farmers first held a rally outside the small USDA office in this town 55 miles northeast of Memphis, and then rushed inside, sitting in the lobby, at desks and taking over a conference room. Most of the staff went home. Protest organizer Thomas Burrell accused the government of conspiring "to force black farmers off the land." He said, "We all know they've committed evil against us. The question is, how long are we going to let it happen?" Carey Johnson, who directs farm subsidy programs for 12 Tennessee counties, said all crop loans in the district are handled the same way, regardless of an applicant's race.

Japanese Firm Ordered to Study Labeling Charges.  KYODO NEWS reports that a regional office of the Japanese farm ministry ordered the president of Nippon Shokuhin Co. to probe and disclose the results of that study concerning the company's admission that it covered up its labeling of imported beef as domestic beef. The Kyushu Agricultural Administration Office of the Agriculture, Forestry and Fisheries Ministry summoned Shigehito Atoyama, president of the Fukuoka firm, to its office and ordered the probe. The ministry found the firm swindled an industry body last December out of some 136 million yen under a government-run beef-buyback program devised after the outbreak of mad cow disease in Japan last year by falsely labeling some 122 tons of meat. Atoyama earlier admitted to the cover-up. 

Russia Imposes Duty on Chicken Imports.  THE ASSOCIATED PRESS reports Russia will impose a protective duty on chicken imports. The duty comes during an investigation into losses suffered by Russian poultry producers because of foreign competition, the economics and trade minister said Monday. The size of the tariff will be determined at a meeting of the Russian government commission on protective trade measures in four weeks, economics and trade minister German Gref was quoted by the Interfax news agency as saying. Feelings remain sensitive from a Russian ban on U.S. chicken in March that strained relations. USDA Under Secretary J.B. Penn, arrived in Moscow on Monday for talks with Russian veterinary officials about the poultry imports, Interfax reported. 

July 2

More Information on Acrylamide Sought.  The World Health Organization (WHO) and the United Nations Food and Agriculture Organization (FAO) will host a meeting to establish a network for research on acrylamide. The goal is to achieve a better understanding of human exposure and its possible health effects. Acrylamide will be added as a priority item to the agenda of the forthcoming meeting of the Joint FAO/WHO Expert Committee on Food Additives for a more detailed evaluation. 

Roundworms and Flies Don't Mix.  Flies that pester cattle in feedlots could be controlled by tiny parasitic roundworms now being tested as biological control agents by a pair of Agricultural Research Service and University of Nebraska-Lincoln scientists. 

Cuba Host Country for U.S. Food Show.  A U.S. food and agribusiness exhibition will be held in Havana, Cuba, Sept. 26-30 at the Palacio de Convenciones de la Habana (Pabexpo). According to the government of Cuba, approximately 15,000 to 20,000 visitors are expected to attend the exhibition, and Sunday will be open at no charge to all Cuban citizens. 

Record Justifies TPA Approval.  U.S. meat exports during the past 25 years have increased from only $500,000 to nearly $5 billion, mostly because of trade and marketing policies, according to the U.S. Meat Export Federation. USMEF CEO Philip Seng said the extraordinary growth has been the result of gaining trade access and then following through with focused marketing programs. He added that's why it's so important for the president to have trade promotion authority. The U.S. Meat Export Federation is the trade association responsible for developing international markets for the U.S. meat industry and is funded by USDA, exporting companies, and the beef, pork, corn, sorghum and soybean checkoff programs. 

FDA Needs More Information on Acrylamides.Deputy Commissioner Lester Crawford says the Food and Drug Administration does not have sufficient data to make a determination on the health impact of acrylamides. FDA scientists with expertise in food safety and cancer risk assessment last week were at the World Health Organization's meeting on the public health impact of acrylamide in foods. "FDA will carefully analyze the report" expected from the meeting, Crawford said. "At present the data on acrylamide are not sufficient for FDA to make a final determination regarding the public health impact of these preliminary findings. FDA is unaware of any present data regarding acrylamide that would cause FDA to alter its current dietary recommendations for consumers. As further data are received, FDA's recommendations could change. For now, FDA continues to advise consumers to follow established dietary guidelines and eat a healthy, balanced diet consisting of a wide variety of foods from a variety of sources," said Crawford. 

No Impact from U.S. Farm Law.  REUTERS reports that the U.S. farm law that provides billions of dollars in crop and conservation subsidies will not hamper world trade talks, says WTO Director-General designate Supachai Panitchpakdi. Supachai told reporters the farm law was introduced for domestic reasons ahead of the November congressional elections. "The U.S. is one of the countries that really wants to see success on trade liberalization, so they must show their efforts to pull down the subsidy," said Supachai, who will succeed Mike Moore as WTO head in September. "When they finally have to take positions, the U.S. will be in this round and when there is a need to cut subsidies both the U.S. and EU (European Union) will abide by that," he said. 

Cattlemen Sue Meat Packers.  THE ASSOCIATED PRESS reports that cattle ranchers from three states have sued the four largest meat packers, accusing them of insider trading. The suit alleges the packers didn't correct a USDA mistake on the reported price of boxed beef in the spring of 2001. That allowed the packers to reduce the prices they paid ranchers for cattle over a 29-day period, according to the lawsuit. Named in the suit are Excel Corp., ConAgra Beef Co., Farmland National Beef Packing Co. and IBP. James O'Connor, a lawyer for the plaintiffs, estimates meat packers made an extra $40 million because of the incorrect numbers. "We can tell you we are disturbed by the claims apparently made in the suit," said Gary Mickelson, a spokesman for IBP, which was recently acquired by Tyson Foods. "We depend upon independent cattle producers to supply our plants and have no reason to hurt them." 

Angolans Desperate for Food.  THE ASSOCIATED PRESS reports more than one million Angolans desperately need food as a result of the nation's decades-long civil war. The Rome-based World Food Program pledged to help 1.24 million people but said about 160,000 more people must be helped by other agencies. The WFP and Food and Agriculture Organization report also said some two million Angolans who had relied on food aid no longer are dependent. But about two million others who were driven from their homes by more than a quarter-century of fighting continue to rely on aid. The civil war in the southwestern African nation erupted after its 1975 independence from Portugal. The government and UNITA rebels signed a cease-fire in April.

Lamb Promotion Collections Begin.  The collection of assessments for the Lamb Promotion, Research and Information Program began Monday. Domestic lamb producers, feeders, seed stock producers and exporters will pay one-half cent ($.005) per pound of live lambs sold. In addition, first handlers - primarily packers - will be assessed 30-cents-per-head for lambs purchased for slaughter. Beginning July 1, producers, feeders, seed stock producers and exporters must pay the assessment for each lamb, ewe and ram sold. Importers of lamb will not be assessed. First handlers will collect the assessments from producers, feeders and seed stock producers and remit the applicable form and assessments to the Secretary of Agriculture, at the following address: Lamb Promotion, Research and Information Program, c/o U.S. Secretary of Agriculture, 23029 Network Place, Chicago, Ill., 60673-1230. The program is designed to develop, maintain and expand domestic and international markets. USDA's Agricultural Marketing Service administers the program. For additional information contact: Kenneth Payne, Marketing Programs Branch Chief, AMS Livestock and Seed Program, USDA Stop 0251, 1400 Independence Ave. SW, Washington DC 20250-0251; telephone number (202) 720-1115. Forms are also available on the Internet at http://www.ams.usda.gov/lsg/mpb/rp-lamb.htm

July 1

Abraham Reaffirms RFS Support.  U.S. Energy Secretary Spencer Abraham has reaffirmed the Bush administration's support for the renewable fuels standard (RFS) in national energy legislation. Abraham supported the RFS in a letter written to House-Senate Energy Conference Committee Chairman Billy Tauzin (R-LA) to provide the administration's views on the legislation that is now before the conference committee. 

WTO Upholds U.S. Antidumping Laws.  The U.S. Trade Representative reports that the World Trade Organization (WTO) has upheld key sections of the U.S. antidumping and countervailing duty laws. The WTO found that certain U.S. laws used in AD/CVD cases - the "facts available" provisions - do not breach WTO rules. 

Canada Decides U.S. Tomatoes Not Injurious. The United States has been told that the Canadian International Trade Tribunal has determined that imports of U.S. tomatoes were not injuring Canadian tomato producers. The report comes from a dumping investigation initiated last year at the request of Canadian tomato producers. This ends the dumping investigation against U.S. tomatoes. 

Veneman, Zoellick Troubled by EU Grains Access Action.  Agriculture Secretary Ann Veneman and U.S. Trade Representative Robert Zoellick say they are "deeply troubled" over Europe's proposal to restrict market access of grains and rice. "We are deeply troubled by the European Commission's recent public statement that it will seek to restrict access by the United States and other nations to European markets for grain and rice," they said. 

StarLink's Impact Dwindles. REUTERS reports that increased plantings of genetically modified crops by farmers show the effects of the StarLink corn episode of two years ago have waned. That discovery led to massive food recalls and hurt U.S. exports. The claim came from Monsanto Co. But Greenpeace genetic-engineering specialist Charles Margulis said the increased plantings of biotech soybeans and corn this spring did not mean consumers were losing the battle against food produced from gene-altered crops. USDA said in its annual acreage report that 75% of the soybeans planted by U.S. farmers this year were GM varieties compared with 68% last year. 

Russia May Ban U.S. Poultry Again.  REUTERS reports that Russia again may ban U.S. poultry meat imports on Aug. 1 unless Washington updates veterinary certificates to meet Russian safety standards, an Agriculture Ministry spokesman said. "No Russian port will accept U.S. poultry shipments from Aug. 1 without the new certificate," the spokesman quoted deputy chief veterinarian Alexander Ponomaryov as saying. "Lamentably, the U.S. side has not yet prepared a specimen of such a certificate." U.S. officials at the Moscow Embassy were not immediately available for comment.

New E. Coli Detector Being Developed. THE ASSOCIATED PRESS reports that scientists are working on a handheld sensor they claim could help save lives by quickly discovering the E. coli strain and other harmful germs in food and drinks, in some cases within minutes. The device has been in development for the past decade, during which time several fatal E. coli outbreaks have occurred throughout the country. "This device may help prevent people from getting sick and save money as far as medical treatment goes but the ultimate concern is consumer safety," said Cornell University chemist Richard Durst, who helped developed the test. Field testing of the device, which takes eight minutes to detect E. coli, is scheduled to begin this month. 

EU Seeks to Stop Production.  THE WALL STREET JOURNAL reports that the European Union is trying to reform its agriculture programs by stopping farmers from producing so much milk, grain and beef. The EU proposal is to change most agricultural subsidies into lump-sum welfare payments to farmers. That would eliminate the production-linked system that rewards farmers for producing more products than the market can bear. But it wouldn't reduce the EU aid program, which at $43 billion a year is bigger than the $30 billion under the latest U.S. farm laws. Still, economists say the proposed changes to the EU program would benefit the world economy, especially poor farmers in the developing world who can't compete with subsidized farmers from rich countries. "It should lead to less dumping of artificially cheap products on third world markets," says Duncan Green, adviser for the Catholic Agency for Overseas Development in London.