AgricultureLaw.com -- July 1999 News Archive

July 30, 1999

Mandatory livestock price reporting bill approved. The Senate Agriculture Committee Thursday approved legislation to require mandatory price reporting for livestock packers. The legislation requires cattle processing plants that slaughter an average of 125,000 head a year to report purchases twice a day to USDA. Hog plants that slaughter 100,000 or more a year also would be required to submit purchases three times a day to USDA. That effectively captures 94% of the livestock markets by requiring 10% of all plants to report.

Lugar again fields argumen ts on farm income strength. Senate Agriculture Committee Chairman Richard Lugar (R-IN) again told senators projected net farm income for 1999 is comparable to last year and the 1990-97 average. He says he wants a financial assistance plan "based on the assessment of actual farm income needs."

FAPRI says Lugar bill increases income by almost $5 billion. The Food & Agricultural Policy Research Institute (FAPRI) says a risk management bill introduced by Senate Agriculture Committee Chairman Richard Lugar (R-IN) would increase net farm income by $4.71 billion between 2000-2004. Payments would go to farmers who receive transition payments if they use risk management strategies; those outside the payment program could get a discount up to 35% if they buy more expensive crop insurance.

Bill introduced to force EPA to use science. A bill has been introduced in the Senate to require the Environmental Protection Agency to use more scientific evaluation when issuing rules on pesticide use. EPA must meet the first deadline Aug. 3 to re-evaluate 3,000 uses of pesticides. Agricultural interests are concerned EPA will rely on arbitrary assumptions to meet the deadline.

Expanded biomass fuel use seen from MTBE ruling. The Senate Agriculture Committee has approved a bill that proponents believe will lead to more biomass fuel production to pull up the expected slack from the phase-out of MTBE. Conservation Reserve Program acreage also could be used for harvesting biomass products.

Ag News Summary

U.S. begins EU retaliation. The United States Thursday began retaliation against European Union imports valued at $117 million. The retaliation is against the EU's unwillingness to lift a ban on imports of beef produced from animals that received growth hormones. "It is unfortunate that the EU has brought us to this point by choosing to ignore the World Trade Organization rulings that U.S. beef should be afforded access to the EU market," said Agriculture Secretary Dan Glickman. "The EU is the only WTO member country not to abide by a WTO ruling."

USDA expands dairy options pilot program. USDA has expanded the dairy options pilot program to include selected counties in 32 states. The initial program covered selected counties in seven states. USDA supports participants with a cost-share program that pays 80% of the option premium and allows a $30 brokerage fee per transaction. Producers are encouraged to buy up to 425,000 pounds of milk options in the four months following training. Continued counseling and advice are available during the 12-month program.

EEP use would not improve prices, Glickman says. Agriculture Secretary Dan Glickman says using the Export Enhancement Program will not increase commodity prices and only spark a subsidy war with foreign competitors, REUTERS reports. "It would have very little if any impact on prices and would probably encourage the Europeans who have much more dollars than I do to further subsidize their agriculture," Glickman said on a C-SPAN call-in program. The funding available for EEP would account for one-half of 1% of U.S. farm exports, he said.

CFTC to change trade option rule. A top official at the Commodity Futures Trading Commission says regulators are ready to propose changes to a "failed experiment" using options to help farmers, food processors and merchants manage commodity price swings, BLOOMBERG NEWS reports. The CFTC will propose a new structure for a pilot program allowing agricultural trade options that hasn't worked. Nobody has applied to use the program since it began in April 1998.

U.S. to press environmental concerns at WTO talks. Environmental and labor policies will figure prominently in the U.S. agenda at the World Trade Organization negotiations in November, BLOOMBERG NEWS reports. The WTO should pursue "those areas of trade liberalization that hold particular promise for yielding direct environmental benefits," said Deputy U.S. Trade Representative Susan Esserman in Geneva where she presented the U.S. agenda. One example will be a U.S. push for the limitation of duties on goods and services that protect the environment. Another would be ending "fishery subsidies that contribute to over-capacity," she explained.

July 29, 1999

Lugar tries a high road in farm relief debate. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has staked out a position in the farmer financial assistance debate certain to bring harsh confrontation with Democrats determined to get at least $10 billion in emergency relief for farmers as quickly as possible. In a Dear Colleague letter signed only by Lugar, the chairman defended the status quo while not actually opposing further assistance. Click here for Dear Colleague letter.

Harkin takes swipe at Lugar's hearings idea. Things have gotten so bad for farmers, says Sen. Tom Harkin (D-IA), there's no time left for three days of hearings on the situation, an idea announced this week by Senate Agriculture Committee Chairman Richard Lugar (R-IN). Hearings "are fine" as along as they address the "failed" freedom to farm law but do not delay emergency assistance. Click here for Harkin's Press Release "Rural America Cannot Wait for Hearings".

Soybean growers weigh in with their money hopes. The American Soybean Association wants Congress to include11of its proposals in any 1999 farm relief plan. While not including a price tag on the proposals, ASA wants direct payments, the limit on loan deficiency payments extended, disaster assistance, crop insurance reform and funding for infrastructure improvements, among other things.

Butter prices much more settled this year. Compared to the wild price fluctuations of 1998, wholesale butter prices this year have been more moderate and predictable through the first seven months of the year, says the American butter Institute. One factor absent from this year's market is the influence of adverse weather that characterized 1998 production.

USDA issues peanut promotion order. USDA has issued an order establishing a promotion, research and information program for peanuts. In a referendum held recently, 66.56% of producers voting favored implementing the order. Assessments begin with the 1999 crop year.

Ag News Summary

Greenspan urges more exports. Federal Reserve Chairman Alan Greenspan Wednesday warned Congress not to return to farm programs that curtail production. In testimony to the Senate Banking Committee, Greenspan said the best remedy for farmers would be to rebuild U.S. farm exports, according to a REUTERS report. Exports usually account for 25 cents of each $1 in cash receipts to farmers but have declined due to economic problems in Asia and other countries. "We need to reinvigorate export markets," said Greenspan. "I do not believe that if we go back to the old practices that it is to the advantage of the American economy."

Group urges law on Japan's GMOs. A citizen's group has urged the Japanese government to draft legislation to regulate genetically modified food, according to a KYODO NEWS SERVICE report from Tokyo. According to a survey the group conducted of five corn snacks and one corn starch, more than one variety of genetically altered corn developed by a U.S. chemical company were detected in three corn snack products. All the varieties in question are not recognized as safe for consumption by the Health and Welfare Ministry. The group wants a total ban on genetically engineered food.

Ag News Summary

July 28, 1999
MTBE contaminates water, benefits don't offset. An Environmental Protection Agency panel says the clean air benefits of MTBE (methyl tertiary butyl ether) aren't sufficient to offset the dangers the gasoline additive poses for the nation's water supplies. MTBE in gasoline should be reduced or eliminated. That is good news for ethanol producers, but the panel did not pave a clear road to the increased use of ethanol to replace MTBE.

Congress urged to use policy against concentration. Concentration in agricultural production is driven by policy choices, the Senate Agriculture Committee was told yesterday, that can be changed to enhance the future for family sized farms and ranches. But there's a price tag that goes along with it.

Ag groups ask USDA to delay August milk vote deadline. More than a dozen national and regional farm organizations have asked USDA to delay the Aug. referendum deadline for voting on reforms to the federal milk marketing order system. Producers haven't had enough time to assess what they will be voting on, the groups say.

GMA says shrinking export markets to blame for low farm prices. The Grocery Manufacturers of America says a sharp decline in exports is to blame for much of the financial crisis facing U.S. farmers. GMA conducted a study into cereal prices and whether concentration in the industry had reached the point where competition is threatened.

Global carbon emissions decline for first time since 1993. Global emissions of carbon from the combustion of fossil fuels declined last year, the first decline since 1993, according to the Worldwatch Institute. Emissions declined 0.5% to 6.32 billion tons while the world economy expanded 2.5%.

GAO asked to step in where USDA hasn't led. The General Accounting Office has been asked to provide cost-benefit information on country of origin meat labeling. USDA is mandated legally to report on the issue, but three months have passed since the due date for the report.

For the Calendar

As with other farm and food organizations, the United Fresh Fruit & Vegetable Association will show off its wares for members of Congress, the executive branch and Washington insiders Sept. 9 at the Fresh Festival on Capitol Hill. More than 20 companies and associations will participate. The festival will be held in the caucus room of the Cannon House Office Building. Last year more than 700 attended the reception.

Ag News Summary

Cochran supports Step 2 cotton funding. Sen. Thad Cochran (R-MS) tells REUTERS he supports Step 2 funding for the cotton marketing program. But he declined to say if he will offer an amendment to the ag appropriations bill in the Senate to replenish the program. Late last year, all the $701 million appropriated by Congress for the Step 2 marketing program was used up. The money had been earmarked for fiscal years 1996-2002. Sen. Tom Harkin (D-IA) has proposed adding $300 million to the program through an emergency funding bill he's trying to get passed.

CBO says crop insurance bill $2 billion over budget. Figures given members of Congress yesterday show that a bill to expand the crop insurance program is $2.2 billion over budget, REUTERS reports. The package would cost $8.2 billion, according to the Congressional Budget Office. Congress has authorized up to $6 billion in additional spending through 2004 to strengthen the crop insurance program; any spending in fiscal 2000 was to be offset by reductions elsewhere in the budget. House Agriculture Committee Chairman Larry Combest (R-TX) wants a House vote on the bill before the August recess. Committee members yesterday considered CBO's estimate in a closed session but did not mark up legislation as earlier expected.

House won't stand in way of China's MFN. The House Tuesday beat back a noisy and boisterous attempt to turn back President Clinton's most favored nation status for China. Clinton notified Congress he would grant MFN, or normal trade status, to China for another year. Congress then had the chance to overturn that decision, but on a 170-260 vote on a motion to overturn the decision, the House failed to do so. THE ASSOCIATED PRESS says opponents to MFN for China argued that a nation that spies on the United States and persecutes its own citizens does not deserve trading advantages.

July 27,1999

Lugar wants to wait a month; Democrats balk. Something of a confrontation is shaping up over the process Congress will use to shore up sagging farm income and when congressional action should be taken. Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants to wait until September. Democrats say the process should not stand in the way of more immediate action.

Administration issues regulations for relaxed sanctions. The Clinton Administration has issued regulations that ease commercial sales of food, medicine and medical equipment to approved buyers in Iran, Libya and Sudan. Sanctions on those items, says Treasure Deputy Secretary Stuart Eizenstat, "do not generally advance our policy goals and may have adverse consequences…"

USTR admits WTO's adverse ruling on FSC provisions. The U.S. trade representative's office has confirmed that a World Trade Organization panel has ruled against the United States for allowing part of foreign-source income earned by Foreign Sales Corporations (FSCs) to be exempt from U.S. income taxes. The case was brought to the WTO by the European Union.

Ag News Summaries:

Judge overturns parts of South Dakota meat packing law. A federal court judge has overturned parts of a new South Dakota meat packing law that attempted to aid livestock producers but instead "sent shock waves through the state's meat packing industry" and prompted an investigation by USDA, REUTERS reports from Aberdeen, SD. The decision upheld price-reporting requirements but threw out price matching provisions meant to prevent price discrimination by meat packers. "It was almost impossible to comply with the price-matching component," said American Meat Institute general counsel Mark Dopp. "I'm very happy that we won on that component." AMI had brought suit against the law.

WTO okays U.S. sanctions against EU products. The World Trade Organization has approved the trade sanctions imposed by the United States and Canada on certain European Union food sales. Delicacies from France such as tangy, blue-veined Roquefort cheese, foie gras and truffles, tomatoes from Italy, Danish ham and soups from Germany are among products targeted by the United States and Canada, says a REUTERS report from Geneva. The duties total $117 million a year against the EU because the EU has failed to comply with a TWO ruling against its decade-old ban on imports of beef from animals treated with growth hormones.

July 26, 1999

Harkin introduces conservation payment program. Sen. Tom Harkin (D-IA) has introduced a bill to establish a "universal and voluntary" incentive payment program designed to encourage conservation activities by farmers. He says it will form "a key part of an improved system of farm income protection."

USDA, Dominican Republic sign marketing agreement. USDA and the Dominican Republic have agreed to a plan designed to develop and improve Dominican local markets and improve marketing and agribusiness opportunities there.

ERS study shows differences in gene-altered crop results. A new study from USDA's Economic Research Service shows increases in adopting herbicide-tolerantcotton are associated with significant increases in yields and variable profits but not with significant changes in herbicide use. Using herbicide-tolerant soybeans helped fuel small yield and variable profit increases and significant declines in herbicide use.

Study claims organic crops can be equally profitable. Organic cropping systems in the Midwest can be as profitable or even more profitable than most conventional rotations. The conclusion comes from a new report from the Henry A. Wallace Institute for Alternative Agriculture.

No stopping the livestock revolution, says IFPRI. There's no stopping the worldwide demand for products from food-producing animals, but policy makers will have to focus on four issues to benefit the poor, says a new study from the International Food Policy Research Institute.

Recourse loans likely for sugar program, says USDA. USDA says recourse loans are likely to sugar in fiscal 2000 given current supply and demand forecasts. But the Department has two new options for setting and managing the quota and is seeking comments on them.

For The Calendar:

The House Agriculture Committee will mark up a bill to reform crop insurance on Tuesday. The action follows subcommittee approval of the bill last week.

The Senate Agriculture Committee holds a hearing Tuesday at 9:30 a.m. in Senate Russell 328A on agricultural consolidation and antitrust. The first panel, composed of Justice and USDA officials, will focus on antitrust and concentration. The second panel will discuss agricultural price spread issues, focusing on cereal prices.

The Senate Agriculture Committee will mark up a mandatory price reporting bill for livestock on Thursday, also in SR 328A beginning at 9:30 a.m.

Ag News Summaries:

Republicans working on farm aid plan. Senate Republicans are working on a multi-billion farm bailout plan that could reach the floor for a vote in early August. REUTERS quotes Senate aides who say the plan is being put together to counter a proposal for almost $10 billion in aid from Democrats. Also, Senate Majority Leader Trent Lott (MS) has said the 2000 agricultural spending bill -- to which the aid may be attached -- will be debated before Congress goes home for the long August recess on Aug. 7.

Roth urges Clinton to push for fast track. Sen. William Roth (R-DE) says he's disappointed that President Clinton has not worked harder to secure fast-track negotiating authority from Congress for this fall's world trade negotiations. REUTERS quotes Roth saying, "Without this authority, it is unclear how seriously we will be taken by our negotiating partners." Roth is chairman of the Senate Finance Committee. Under fast track, Congress cannot amend any trade agreements negotiated by the administration but can reject any agreement it doesn't like. "The fact remains that the President should be working harder to get this authority from Congress," Roth said.

Tyson executive's conviction reinstated. A federal appeals court has reinstated the conviction of a Tyson Foods executive accused of providing illegal gifts to former agriculture Secretary Mike Espy. THE ASSOCIATED PRESS reports the ruling sends the case of Archie Schaffer III back to a lower court for sentencing on charges he violated the Meat Inspection Act. A lower court had overturned the jury's guilty verdict last June on two counts.

Plant closed after listeria found. North Carolina state and federal inspectors have shut down a meat packing plant in Williamston, NC, after tests detected listeria bacteria in luncheon meats for the second time in three months, THE ASSOCIATED PRESS reports. In May more than 16,000 pounds of ready-to-eat meat products from White Packing Co. were recalled because of the deadly bacteria. In the latest case, the meat that tested positive was held at the plant and destroyed so a recall was not necessary.

Checks on largest grain elevator were rare. Federal safety inspectors had not visited the nation's larges grain elevator for 15 years when explosions ripped through the half-mile long facility in Kansas last year, killing seven workers, THE ASSOCIATED PRESS reports. An investigation panel reports more such incidents among the nation's 14,000 elevators may be inevitable unless the federal government tightens its standards for handling grain and does a better job of enforcing existing regulations, the article continues. The Occupational Safety and Health Administration, which commissioned the study, has declined to release it, says the AP.

China defiant on WTO entry. China will meet conditions for World Trade Organization entry that are required of other developing countries, Chinese Foreign Minister Tang Jiaxuan said after meeting with U.S. Secretary of State Madeleine Albright. THE ASSOCIATED PRESS reports Tang told a news conference that "China would not swallow the bitter fruit in order to get into the WTO." The United States wants to see freer markets in China, especially for grains. State control of production and price-setting play too large a part in China's farming sector, agriculture Secretary Dan Glickman said in a visit to Beijing.

Russia will seek U.S. aid. Prime Minister Sergei Stepashin and other Russian officials will seek U.S. aid for Russian farms and airlines and discuss a steel trade dispute during a trip to the United States this week. THE ASSOCIATED PRESS reports from Moscow that Stepashin's visit is aimed at mending relations that reached a post Cold War low during NATO air strikes on Yugoslavia. Stepashin told reporters, "There is still hard work to do to...restore confidence undermined by NATO's military action against Yugoslavia. We need to get back to serious dialogue." INTERFAX reports that the Russians will talk with farm machine manufacturers John Deere and Co. and Case Corp. about proposed loans for $1 billion in agriculture equipment. More food aid will not be discussed during the visit.

WTO backs EU in US tax breaks case. A preliminary ruling by a World Trade Organization dispute settlement panel supports European Union complaints against a U.S. plan that grants tax breaks to exporters, REUTERS quotes an EU source as saying. The source said the interim report backed the EU's arguments in all significant respects. The case involves the Foreign Sales Corporation scheme that the EU says amounts to a $2 billion a year export subsidy to U.S. companies.

For The Calendar:

The House Agriculture Committee will mark up a bill to reform crop insurance on Tuesday. The action follows subcommittee approval of the bill last week.

The Senate Agriculture Committee will mark up a mandatory price reporting bill for livestock on Thursday, also in SR 328A beginning at 9:30 a.m.

Ag News Summaries:

July 23, 1999

Harkin doesn't wait for ag appropriations, offers $10 billion. Sen. Tom Harkin (D-IA) added another $3.5 billion or so to his proffered bailout of cash strapped farmers and said he'd try to amend the commerce, state, justice appropriations bill with some $10 billion in farm aid. By day's end, though, it appeared he would wait for the USDA appropriations bill, which now is expected before the August recess.

Massive tax cut bill has something for farmers. That $792 billion tax cut bill approved Thursday by the House has some provisions that should be welcomed by farmers. Taxes on freedom to farm contract payments would be paid in the tax year they are received; expensing office and farm equipment and supplies is increased form $19,000 to $30,000, and a 100% deduction for health insurance premiums would begin Jan. 1 for self-employed persons.

Canadian embassy official criticizes U.S. policies. D.G. Waddell, deputy head of mission at the Canadian Embassy in Washington told marketing officials that Canada has some complaints about U.S. trade policies, including U.S. "abuse" of anti-dumping and countervailing duty procedures. Lawyers are winning and taxpayers are losing, he says.

House panel looks at expanding CRP acreage. The House Agriculture Subcommittee on Resource Conservation looked at legislation to expand the Conservation Reserve Program Thursday. The 36.4 million acre limit could be reached in fiscal year 2003. Rep. Collin Peterson (D-MN) wants to increase that to 45 million acres.

Universities to help meat plants implement HACCP. USDA is giving grants to five universities that will be used to help small meat and poultry plants meet standards of the hazard analysis and critical control point (HACCP) systems. Technical training and information will be offered to plants with fewer than 10 employees and less than $2.5 million in annual sales.

Ag News Summaries:

LDPs could reach $7.8 billion. Parks Shackleford, Farm Service Agency official, says farmers could reap $7.8 billion through loan deficiency payments and marketing loan gains on this year's crops. REUTERS quotes Shackleford saying prices "are a little bit worse" than earlier projected by USDA. Earlier forecasts were about $5 billion.

Glickman says prices will be low for "a year or two." PRO FARMER says agriculture Secretary Dan Glickman believes commodity prices will be "flat or bleak for a year or two, depending on what happens in the world market." He added, "We are looking at very difficult times." Total payments to farmers this year from USDA will be $17.5 billion, but even then "there still will not be an adequate safety net." Glickman, in a speech to the Congressional Economic Leadership Institute, said any reform of the current farm law should not distort U.S. exports or return the United States to supply-management practices of the past.

WTO names Moore director-general. The World Trade Organization named former New Zealand Prime Minister Mike Moore to be director-general. BLOOMBERG NEWS reports from geneva that the WTO pledged to come up with new rules to avoid a repetition of the eight-month stalemate that ended with Moore's selection. Moore will serve three years, then be replaced by Supachai Panitchpakdi, Thailand's deputy prime minister, for another three years.

More food aid for Russia possible. The Commission for Economic and Technological Cooperation likely will discuss extending more food aid to Russia, PRO FARMER reports. The commission meets next week in Washington. Russia has prepared proposals on bilateral cooperation in agriculture. Proposals on food aid don't specify tonnage, but "it's important to decide in principle whether Russia can count on a new package of food aid," the article quotes a source in the Russian Ministry for Agriculture telling Interfax News. Meanwhile, REUTERS reports a U.S. mission to assess Russian food aid is likely in September.

To keep up with the emergency farm relief measures being proposed in Congress and by farm groups, check out two new sections: Emergency Farm Relief: What's Ahead? and Farm Relief Proposals: A Catalog. You'll find both sites at the top of this page under "Specials." Both articles also are included in the latest issue of The Agricultural Law Letter, also posted on this site.

July 22, 1999

Bill to extend payment limitations being considered. Rep. Bill Barrett (R-NE) is drafting a bill designed to double the payment limitation on marketing loan gains and loan deficiency payments for one year. Barrett says he's concerned that small and medium-sized farmers will exceed the limit with a few as 700 acres of corn and 500 acres of soybeans. If that happens, they'll have to forfeit the grain to USDA, forcing an increase in stocks.

Pork producers want another $600 million in relief. The National Pork Producers Council wants $600 million more in assistance for hog farmers. The emergency supplemental appropriations bill gave them $150 million but "it is clear that a higher funding level is needed," says NPPC.

House subcommittee passes crop insurance bill. The House agriculture risk management subcommittee has approved a crop insurance reform bill that goes to the full House Agriculture Committee on Tuesday. A livestock pilot program is included in the bill.

FARRM accounts authorized in Senate bill. The Senate Finance Committee's $792 billion tax cut proposal now includes farm and ranch risk management (FARRM) accounts for farmers. Sen. Charles Grassley (R-IA) proposed an amendment with the provision that would allow eligible farmers to contribute up to 20% of their taxable income for five years with taxes applying when the money was withdrawn.

What happens if 1A supercedes 1B. Milk producers probably will decide they are better off approving milk marketing order reforms in their respective orders. Although producers don't like the milk pricing option in the final order, the only other choice is no order at all. They'll probably chance it that Congress will approve a better pricing option that then will have to be approved in a second referendum.

Reasons offered why crop insurance participation isn't universal. In the wake of agriculture Secretary Dan Glickman's report on increased crop insurance participation this year, USDA economist Randy Schnepf reports that even with significant risk reduction and low cost, participation still isn't universal. One reason offered is that farmers still lack enough information on how the program works.

House subcommittee passes watershed rehab bill. The House Agriculture Subcommittee on Resource Conservation has approved a bill designed to improve the nation's water projects, mostly small flood prevention dams. The bill calls for federal support of 65% of total cost to local communities to make the improvements necessary.

USTR to table U.S. papers at WTO next week. The U.S. trade representative is expected to table four U.S. papers at the World Trade Organization next week. The papers will include U.S. proposals for market access, export subsidy commitments, domestic supports and biotechnology – all U.S. priorities for the new round of international trade talks this fall. A U.S. official who was involved in the Uruguay Round agreement says the papers are preliminary and probably very general in nature. "No one is ready to negotiate yet on hard issues," he says, and Congress still hasn't given the negotiators fast-track authority.

Rainer approved to chair CFTC. The Senate Agriculture committee yesterday approved William Rainer to be chairman of the Commodity futures Trading Commission. Rainer, 53, is a close friend of President Clinton and headed the U.S. Enrichment Corp. from 1994-98 when it was privatized. USEC was created by Congress to sell the government's uranium stockpile. The nomination now goes to the full Senate.

Ag News Summaries:

Another scandal threatens Europe's animal feed industry. REUTERS reports from Amsterdam that Europe's animal feed industry is fighting to head off another scandal after revelations that livestock rations have been tainted with impurities ranging from toxic chemicals to sewage. The discovery by Belgian officials in late May of high levels of cancer causing dioxins in animal feed sparked a food safety scare and jolted regulators into action. Companies are undertaking a hectic round the clock search for possible sources of other contaminants before they hit the headlines.

GOP hopefuls court the farm vote in Iowa. Republican presidential candidates, campaigning in the key battleground state of Iowa, are addressing the despair felt in farm country because of record low prices for corn, soybeans and pork. REUTERS reports that front-runner George W. Bush and others are taking turns talking about the crisis. Bush has called for at least $6 billion in farm aid this year; candidate Elizabeth Dole has said it would take more than $6 billion.

Farmland accused of illegal retaliation. BLOOMBERG NEWS reports Farmland Industries, the fourth largest U.S. meatpacker, has been accused by the federal government of illegal retaliation against a Kansas feedlot. USDA has filed an administrative complaint against Farmland's National Beef Packing subsidiary, saying it quit buying cattle from Callicrate Feedyard, St. Francis, KS, for 23 weeks beginning last December. The government says the action is aimed at ensuring large packing companies treat all suppliers fairly. Farmland denies the charges and says offers to buy cattle are based on packer needs, location of the feedlot and animal quality.

Organic rules should be released before 2000. USDA hopes to have its second proposal for national organic guidelines released by 2000. REUTERS says agriculture Secretary Dan Glickman told the Congressional Economic Leadership Institute he hoped it would be done by year's end. The organic industry sold more than $4 billion in products last year and should sell 20% more than that this year. USDA's first proposal brought 300,000 responses from the public, most of them opposing the regulations as drafted. So USDA will try again this year with a new comment period to follow publication of new guidelines.

CBOT will study change. Directors at the Chicago Board of Trade voted to study whether the exchange should convert to a for-profit structure, THE WALL STREET JOURNAL reported. Like most other futures exchanges, the Board of Trade is now owned by its members, a structure that some believe slows down decision-making.

July 21, 1999

Lugar pushes Clinton for sanctions action. Senate Agriculture Committee Chairman Richard Lugar (R-IN) reminded President Clinton yesterday that regulations to ease agricultural products and medicines sanctions against Iran, Sudan and Libya are long overdue. In May, Lugar's committee was told regulations on the new policy would be ready by the end of June.

Glickman almost gives flesh to the bone of new policy. Agriculture Secretary Dan Glickman yesterday provided a bit more of a glimpse into the Clinton Administration's thinking on new approaches to farm policy. A "counter-cyclical mechanism" is needed that kicks in when prices decline, he says. But it must target "those sectors that are struggling the most." Surpluses also must be addressed.

No joy for meat producers in EU retaliation. The U.S. meat industry is not rejoicing over the $117 million in retaliatory tariffs imposed on European Union products. It is "the least desirable conclusion to this trade dispute." The retaliation is in response to the EU's unwillingness to lift its ban on beef imports from animals treated with growth hormones.

USDA says premium discounts hiked protection policies. The total number of crop insurance policies in force this year totals about 1.3 million, and many previously insured policyholders have bought higher levels of coverage this year. Agriculture Secretary Dan Glickman says 170,000 farmers have increased the protection they have in place this year. And it's due mostly to a 30% premium discount, says Glickman.

U.S., EU sign veterinary eq uivalency agreement. The United States has signed a new agreement with the European Union that will lead to mutual recognition of animal health systems and easier resolution of related future disputes.

CRP participants get more time on tree thinning. Some Conservation Reserve Program participants will be eligible for an extension of time to thin existing tree stands or to both thin existing stands and create and maintain open areas for wildlife or terminate their CRP contracts.

Ag News Summaries:

U.S. halts hormone-free beef to EU. The United States has suspended exports of hormone-free beef to the European Union, REUTERS reports, saying it was concerned U.S. meat companies were not delivering what they promised. USDA's will suspend about 25 million pounds a year in U.S. sales out of a total 2.2 billion pounds of U.S. beef exports. USDA told meat companies last spring to improve efforts to certify meat labeled hormone-free after EU testing showed that 12% of the beef contained hormone residues. Tom Billy, food Safety and Inspection Service administrator, said the problem is one of accuracy in labeling not food safety.

NFU tops them all at $17 billion. The National Farmers Union says Congress needs to approve nearly $17 billion in farm assistance, about $12 billion in payments to crop and livestock farmers. REUTERS reports the NFU also wants a three-year land idling plan, a revival of the Farmer Owned Reserve to pay farmers to hold grain off the market for three years, more long-term idling of fragile lands and international pacts for exporter nations to take land out of production when global surpluses are large.

New WTO Head Finally Picked. The World Trade Organisation yesterday put an end to months of bitter wrangling and agreed to appoint Mike Moore, a former New Zealand prime minister, as its next director-general, the FINANCIAL TIMES of London reported. Trade envoys reluctantly agreed to a compromise, according to which Moore will serve from September 1 for three years, followed by a three-year term for Supachai Panitchpakdi, Thai deputy premier and rival in the long-running battle for the leadership, the FINANCIAL TIMES said. In other WTO news, REUTERS reports that Japan will insist on provisions in the next round of world trade talks to prevent the United States and other large agricultural exporters from restricting their shipments.

Carla Hills hired to lobby on biotech. Carla Hills, former U.S. trade representative, has been hired by the U.S. Grains council to lobby world leaders to accept the biotech revolution in agricultural production. A REUTERS report says the council will spend about $300,000 a year for Hills' lobbying efforts. "We cannot allow arbitrary and unsubstantiated health and safety claims to deny access to important markets," said Roger Pine, president of the National Corn Growers Association. Hills will lobby leaders in Asia, Latin America and elsewhere in an effort to keep consumer fears about genetically modified crops from spreading beyond the European Union.

News in Brief:

Cuba would welcome the chance to buy food from U.S. farmers if the 37-year-old trade embargo were ended, a Cuban Trade Ministry official told REUTERS Tuesday ... The European feed industry says the European Union should abandon its plan to phase out the use of antibiotics in animal feed because it lacks the scientific evidence to justify such a move, REUTERS reports ... Meat imports from France, the Netherlands and Spain were cleared of any link to dioxin contamination and can be sold to U.S. consumers, the U.S. Agriculture Department said Tuesday.

July 20, 1999

Payment limits can worsen an already bad situation. Farmers are limited to $75,000 in marketing assistance loan gains and loan deficiency payments, and that could cause additional problems this year. The National Cotton Council says the limitation hurts farmers more when prices are weak and can cause the next year's prices to decline even further as stocks build up.

House passes Africa trade bill without cotton provisions. The House has approved an Africa trade bill without provisions to protect U.S. cotton interests. An amendment would have limited textile trade preferences to apparel made in Africa from U.S.-made fabric and U.S. yarn.

Peanut growers approve promotion order. Peanut producers have approved a promotion, research and consumer information program. It is the first to be implemented under a 1996 law authorizing promotion programs. The referendum was conducted from May 24 through July 2.

Milk Processors take Farm Bureau to task on dairy policies. The International Dairy Foods Association has criticized the American Farm Bureau Federation for taking positions on dairy issues "that will take America's dairy industry in the wrong direction." IDFA points to data that show an increase in dairy farm net worth among large, mid-sized and small farms as evidence that higher mandated prices aren't needed.

Scientists say world can meet plant, animal food demand. A study from the Council for Agricultural Science and Technology (CAST) concludes that it will be challenging but feasible to meet projected human demand for plant and animal food in 2020. Animal agriculture will continue to be an important part of food-producing systems. But protecting the environment also must be part of the policy framework.

Ag People in the News:

Ag Secretary Dan Glickman appoints nine incumbents and four new members to the National Fluid Milk Processor Promotion Board. Newly appointed are Jeffrey W. Stephen, Chelsea, MA; G. Irwin Gordon, Dallas, TX; Ronald M. Foster, Modesto, CA, and Ann Puelz Ocana, Phoenix, AZ.

Ag News Summaries:

EU pork, truffles, chocolate on list for retaliation. U.S. officials will impose 100% duties worth $117 million a year on European Union pork, truffles, chocolate and other products in retaliation for the EU's import ban on hormone-treated beef. The tariffs go into effect July 29. BLOOMBERG NEWS reports that to heighten the impact, the annual duties are aimed mainly at gourmet imports from Germany, France, Italy and Denmark.

Pork industry disappointed with EU retaliation. U.S. pork producers say the $30 million in retaliation against pork imports from Denmark, Germany and other countries does not go far enough to punish the European Union. REUTERS reports that although the biggest chunk of the $117 million in tariffs is earmarked for EU hams, sausages and other pork products, the National Pork Producers Council said it was disappointed that the list did not include ribs. "While the NPPC recognizes the inclusion of pork on the USTR's retaliation list, it is not represented at the level of specificity necessary to significantly impact European Union trading practices," NPPCC said in a statement.

Grain group may hire Hills. The U.S. Grains Council may hire former U.S. Trade Representative Carla Hills to lobby world leaders to support genetically modified crops, REUTERS reports from Boston. The idea behind the plan is to try to reverse the tide of negative publicity in Latin America and Asia that threatens the future of genetically modified crops, the article quotes Richard Krajeck saying. A committee within the council recommends spending about $300,000 to hire Hills and her consulting firm over the next year. The full council board of directors is to vote on the proposal today.

USDA will buy wheat to aid farmers. USDA will buy 475,000 tons of wheat to help farmers plagued by large supplies and low prices, REUTERS reports. The wheat will be donated to aid the needy in Bangladesh, Indonesia, the Dominican Republic, Nicaragua and other countries.

U.S.-EU Meat Pact Approved. European Union agriculture ministers on Monday approved a long-awaited meat standards pact with the United States aimed at easing transatlantic tension and facilitating trade worth around $3 billion, REUTERS reported. The "veterinary equivalency" agreement will set up a framework for solving disputes and provide for the mutual recognition of animal health rules.

July 19, 1999

Drumbeat continues for more farm assistance. Democrats are keeping up the drumbeat for as much as $10 billion or more in additional assistance to cash-strapped farmers. Senate Democrats want immediate action. Senate Minority Leader Tom Daschle (D-SD) thinks the tab could soar to the $10 billion mark. Sen. Tom Harkin (D-IA) expects to offer his amendment for $6.5 billion when the Senate considers ag appropriations.

Wheat growers lay out relief agenda. The National Association of Wheat Growers has outlined "common sense" legislative efforts for farmer financial assistance that they say need to be addressed before the August recess. NAWG did not put a price tag on the agenda.

USDA seeks full food stamp eligibility. USDA is launching a food stamp public awareness campaign to make sure all who qualify know they can get the food assistance. One provision: make it easier for working families to own a car and still get food stamps.

NFPA applauds USDA, HHS opposition to single agency. The National Food Processors Association applauds a USDA-Health and Human Services Department decision to oppose a single food safety agency. Meanwhile, the Clinton Administration proposes yet another quasi-agency structure to coordinate federal food safety research.

Fee increase proposed for egg, poultry, rabbit grading. USDA is proposing to increase service fees for certain grading for eggs, poultry and rabbits. Current fees have been in effect since Oct. 1, 1998.

For the Calendar:

A House Agriculture subcommittee will mark up crop insurance reform legislation Wednesday ... Also on Wednesday, the Senate Agriculture Committee takes up the nomination of William Rainer to chair the Commodity Futures Trading Commission ... On Thursday, the Senate panel looks again at the Cargill-Continental merger, while a House subcommittee reviews the Conservation Reserve Program.

Ag People in the News:

Barbara Spangler has been named executive director of the Wheat Export Trade Education Committee. She has served as director of governmental relations with the American Farm Bureau Federation in Washington for nearly five years. Prior to that she served as manager, legislative and regulatory affairs, for the National Association of State Departments of Agriculture. She takes over from Karen Moore Fegley who resigned to move to Las Vegas with her family. Management of the National Ice Cream Mix Association, Inc., has been assumed by Tom Balmer, senior vice president, National Milk Producers Federation. Balmer is serving as NICMA executive director while retaining his position at NMPF. NICMA's former director, Austin Rhoads, retired in June. Other NMPF staff will provide professional services to NICMA on an as-needed basis for regulatory services, communications and economics.

Ag News Summaries:

USDA to study South Dakota law for antitrust violations. USDA will send a "rapid response team" to South Dakota to determine if meat packers are violating federal antitrust laws by refusing to buy cattle or hogs in the state, BLOOMBERG NEWS reports. Meat packers stopped buying livestock in South Dakota after a new law that requires packers to pay uniform prices took effect July 1. The law also permits farmers to sue meat packers if they don't pay South Dakota farmers the same price for cattle and hogs that are paid to farmers in neighboring states and Canada. The American Meat Institute has filed suit in federal court to have the law declared unconstitutional.

Hog farmers in line for another $100 million. Hog farmers can sign up beginning Aug. 9 for a new round of assistance totaling $100 million, THE ASSOCIATED PRESS reports. The assistance is aimed at producers who sold fewer than 2,500 hogs. Payments are limited to $5,000 per hog operation and are in addition to $50 million in assistance provided earlier this year. Hog farmers who received the earlier payments will get the new payment automatically and are not required to reapply or fill out additional paper work.

Texas firm recalls beef tips and gravy. Gorges/Quick-To-Fix Foods Inc. of Harlingen, TX, has recalled 600,000 pounds of beef tips and gravy because the food may have been undercooked, REUTERS reports. The products were produced between March 1 and July 15 and sold throughout the United States and in Canada. USDA says the recall grew out of a consumer complaint that a package of the beef tips contained undercooked meat.

USDA proposes to allow Mexico pork transshipments. REUTERS reports that USDA proposes to allow fresh pork and pork products from seven Mexican states to transit the United States en route to other countries. Transshipments from the seven states still would be subject to certain conditions, even though there has been no outbreak of hog cholera in any of the areas since 1993. The proposed rule is to be published in today's Federal Register, and public comments will be accepted until Sept. 17.

July 16, 1999

Conrad ups the ante in farm relief. In the latest proposal to give relief to farmers, Sen. Kent Conrad (D-ND) has upped the ante, outbidding his colleague, Sen. Tom Harkin (D-IA), with a $9 billion farmer relief package. Harkin is the only other member of Congress to propose an actual dollar amount ($6.5 billion). The Clinton Administration has been silent on a figure but has called for some relief for farmers again faced with low commodity prices this year. Click here for full text of Amendment.

Biotech revolution on the farm yields mixed results. A new USDA study shows that most of the time, differences in yields are statistically insignificant for herbicide-tolerant crops compared to traditional varieties. For the Bt crops, the results are more spectacular.

Milk producers face `bad and worse' options in vote. The National Milk Producers Federation says milk producers face the choice between "two very unpalatable options" when voting in early August to reform the federal milk marketing order system. For one thing, the vote will not influence what the want most: a pricing option most believe will yield higher milk prices.

Canada will appeal March WTO dairy decision. Canada has filed an appeal of a March World Trade Organization ruling that found the country's dairy pricing system included export subsidies. The United States brought the complain in the fall of 1997 and was joined some months later by New Zealand.

Three California dairies form new association. California Milk Producers, Danish Creamery Association and the San Joaquin Valley Dairymen have officially merged into California Dairies, Inc. The merger becomes effective Aug. 1, giving CDI 700 members who produce about 13 billion pounds of milk a year, making it the second largest dairy cooperative in the country.

Grange calls for compact extension, better pricing. The National Grange wants Congress to approve legislation that makes the Northeast Dairy Compact permanent and authorizes a new milk producer compact across the southern tier of states. The Grange also called for approval of the marketing order milk pricing reform option considered more favorable to farmers.

For the Calendar:

The 2000 Beltwide Cotton Conferences will be held Jan 4-8 in San Antonio, TX. "Strategies for Solutions" is the theme. More than 4,000 are expected to attend.

A House USDA oversight subcommittee will review the Food Quality Protection Act July 22, and the Food Stamp program August 5.

Ag News Summaries:

Combest plans crop insurance bill soon. House Ag Committee Chairman Larry Combest (R-TX) will file a crop insurance reform bill "soon," says REUTERS. A draft version was distributed to trade and farm groups late Wednesday. An aide says the bill probably will be filed in the next few days. Combest wants to have the bill debated on the House floor before the Aug. 7-Sept. 7 recess. A subcommittee chaired by Rep. Tom Ewing (R-IL) has scheduled a business meeting on the legislation for Wednesday, July 21.

Administration opposes single food agency. REUTERS reports both Agriculture Secretary Dan Glickman and Health and Human Services Secretary Donna Shalala criticized legislation to combine all food safety functions in a single agency. The bill, introduced last month by Sen. Dick Durbin (R-IL) and other Democrats, would be "disruptive," Glickman said. Shalala said better coordination rather than consolidation is the answer.

The President's Council on Food Safety has proposed a Joint Institute for Food Safety Research to coordinate federal food safety research. Ag Secretary Dan Glickman and Health and Human Services Secretary Donna Shalala will head the institute which will work closely with others in federal, state and local government as well as the private sector and academia.

Australia targets U.S. sugar program. Australia will seek major changes in the U.S. sugar program in the upcoming round of international trade talks that begin this fall, REUTERS reports. "Sugar will be a negotiating priority for Australia," said Mike Ford, first secretary for trade at the Australian embassy in Washington. The United States uses a tariff rate quota for sugar that restricts imports. Ford said "it would be more cost effective for the U.S. government to provide direct payments to U.S. sugar growers and to withdraw from the business of managing the sugar market."

Sugar TRQ may be at WTO minimum. The United States may set its sugar import quota at the minimum level required by the World Trade Organization. REUTERS says Steve Hammond, head of USDA's import quota team, also said public comment would be sought on whether to change the administration of the tariff-rate quota (TRQ) for 1999-2000, which begins Oct. 1. In the Uruguay Round trade agreement, the United States agreed to set its annual sugar TRQ at no less than 1.256 million short tons raw value. The final TRQ for 1998-99, at 1.28 million short tons raw value is as close as the United States has come to the WTO minimum.

Portugal to challenge EU beef export ban. Portugal plans to file a challenge in the European Court of Justice against the European Commission's ban on its beef exports, BLOOMBERG NEWS reports from Lisbon. The commission's one-year extension of the began last week was "unjust, inappropriate and disproportionate," says Ag Minister Luis Manuel Capoulas. The ban on Portuguese beef was imposed last October after an increase in incidents of "mad cow disease."

Meat irradiation rules due by year's end. USDA will wait at least until November to issue a final rule for meat packers' use of irradiation to kill harmful pathogens in ground beef, REUTERS reports. "We're looking at the end of the calendar year, somewhere in the November or December time frame," says Catherine Woteki, USDA under secretary. "There have been a number of substantive issues raised in the public comment letters we received on irradiation, and we are continuing to analyze them." Hundreds of comments were received on the issue, mostly demanding that irradiated meat be labeled clearly so consumers know what they are buying.

New Zealand dairy sector to deregulate. New Zealand will deregulate its dairy industry and permit formation of a single nationwide co-op, PRO FARMER reports.

July 15, 1999

Does Freedom to Farm have its own safety net? With both President Clinton and Agriculture Secretary Dan Glickman questioning the effectiveness of the1996 farm law and wondering out loud if it should be revised, the law's immediate fate may seem precarious at best. Despite its perceived "flaws," however, it appears highly unlikely any assault on the so-called Freedom to Farm law will be successful. Farmers like it, Republicans still control Congress, and Democrats haven't tabled an alternative.

Stenholm looks to crop insurance bill as vehicle for change. Rep. Charles Stenholm (D-TX) is thinking of trying to attach an amendment to the House crop insurance reform bill that would implement supplemental income payments for farmers when prices decline below a percentage of the five-year average price. He sees it as protection against volatile crop prices.

Farmer referendum scheduled for milk marketing order reform. Dairy farmers will begin voting Aug. 2 on USDA's plan to consolidate and revise the milk marketing order system. They will have until Aug. 6 to mail ballots to USDA. Two thirds of eligible voters in each order must approve the changes.

Ag News Summaries:

U.S. pledged not to use the `carousel' to retaliate. REUTERS reports that the United States pledged during a beef trade dispute hearing not to rotate punitive duties on European Union states in a "carousel" manner. The information comes from a report by the World Trade Organization. Farm and meat groups have urged the Clinton Administration to use the carousel approach which means the targeted products and countries would be changed periodically. The United States may impose punitive duties totaling $116.8 million a year. In discussions last month, the United States left WTO arbitrators with the impression it would not change its retaliation list once it was set, the article says.

U.S. will work against trade barriers. Clinton Administration officials pledged Wednesday to make elimination of foreign barriers to U.S. farm exports the centerpiece in the upcoming world trade talks, THE ASSOCIATED PRESS reports. David Aaron, under secretary of commerce for international trade, told a Senate Finance subcommittee, that Europe practices the "ABC strategy – anything but agriculture," hoping to include so many issues for negotiators to consider and discuss that nothing gets done in the talks. Deputy U.S. Trade Representative Richard Fisher said European farmers are the most protected in the world with European Union programs accounting for 85% of total world spending on farm subsidies. "We have to make agriculture the centerpiece for progress in the round," said Aaron.

EU favors compensating U.S. farmers in beef row. The European Union wants to compensate U.S. farmers for losses suffered during a long-running beef trade dispute and thereby avert U.S. sanctions, EU farm Commissioner Franz Fischler said. REUTERS reports from Brussels that Fischler told CNN, "We would prefer to negotiate about compensation, because we think this would be much more in favor of the cattlemen in the U.S. With retaliation, the cattlemen will be the losers." Planned U.S. retaliation would be to the advantage of hog producers, not cattlemen, Fischler said.

Gore talks farm policy in Iowa. Vice President Al Gore told Iowa farm leaders Wednesday that farmers need cash relief from the government as well as adjustments in federal farm programs. RETUERS reports from Cedar Rapids that Gore did not sketch how large or in what manner cash payments might be made, but he did suggest he would meet with congressional leaders and Agriculture Secretary Dan Glickman as an aid package is developed. "Right now, we're facing a situation where we have got to respond and respond quickly and give farmers the assistance that's needed not just to help the farmers but because all of the American people stand to lose if we allow the short-term crisis to drive thousands of small family farmers into bankruptcy and off the farm, leaving an industry that is even more dominated by the large corporate interests," Gore said.

British bring action against companies. British authorities are bringing an enforcement action against companies accused of fixing lysine prices, REUTERS reports.

EC allows renewed British beef exports. The European Commission will allow exports of British beef for the first time in three years beginning August 1, REUTERS said. European officials will allow only deboned beef from cattle born after August 1996, when the ban – a result of concern over mad-cow disease – was imposed by the EC.

Ways and Means approves tax cut. The big tax bill voted out by the House tax-writing committee will mostly be of interest to agriculture because of broad-based provisions on capital gains and estate taxes. However, it also contains a provision allowing farm payments to be taxed in the year they are received.

July 14, 1999

Meat interests urge `carousel' approach to EU retaliation. Three major agricultural organizations want U.S. retaliation against European imports to concentrate on a "carousel approach." Under a carousel concept, targeted EU products would be rotated periodically to ensure that "specific concessions are suspended for all EU member countries," they say. The retaliation is in response to the EU's unwillingness to allow beef imports from animals treated with growth hormones.

Pork producers want the whole ball of wax. The National Pork Producers Council has asked President Clinton to concentrate on pork when implementing retaliation against the European Union. "Not only do we want to stay on the list, we want to comprise the entire list," says NPPC President John McNutt. To that, beef and meat industry officials say, no way.

Glickman will ask for special review of biotech approval process. Agriculture Secretary Dan Glickman says he will ask for an independent scientific review of USDA's biotech approval process. Expert input also will be sought for pharmaceutical producing plants and genetically modified livestock,. Consumers, says Glickman, must be given an informed choice, and he implied that some form of labeling was inevitable, while acknowledging it raised trade policy questions.

Biotech study shows agriculture benefits. A 98-page study on biotechnology and crops finds greater effectiveness in pest control technology results from biotech, and "very competitive cuts in farmers' costs." The study was released by the Biotechnology Industry Organization in Washington.

Commission urges farmer relief this year. The Commission on 21st Century Production Agriculture believes there is an "urgent need" for Congress and the Clinton Administration to get together to provide supplemental financial assistance to farmers and ranchers this year.

For the Calendar:

The Senate Agriculture Committee will hold a hearing Thursday, July 22, on consolidation and antitrust issues in agriculture and agribusiness. The hearing will include an update from the Justice Department about the recent approval of a modified acquisition of Continental Grain Co. by Cargill Inc. The hearing will begin at 9 a.m. in SR 328A.

Ag News Summaries:

Howard says lamb ruling undermines open trade. Australian Prime Minister John Howard Tuesday said a U.S. decision to restrict lamb imports will hurt efforts to open up agriculture markets in Asia and Europe. REUTERS reports Howard said, "It is difficult to believe that agriculture ministries in countries like Japan and South Korea and in Europe will not raise the U.S. decision when we go to argue the case of open agricultural markets with them." Howard made the statements in a speech at Georgetown University in Washington, DC.

Rainer nomination to get hearing. The Senate Agriculture Committee has scheduled a hearing for next week on William J. Rainer's nomination to head the Commodity Futures Trading Commission. If approved, says BLOOMBERG NEWS, he would lead a commission that sparked public disputes during the tenure of former Chair Brooksley Born about the agency's role in regulating the over-the-counter derivatives markets. Born left the commission June 1 when her term expired. The hearing is scheduled for July 21 at 9 a.m.

EU reforms needed for trade talks' success. Peter Scher, U.S. trade representative agricultural trade negotiator, says the European Union must make substantial agricultural reforms for the upcoming world trade talks to stand any chance of success. Scher spoke to the Commodity Club, a group of Washington lobbyists. "If we don't have substantial reform of the CAP (the EU's Common Agricultural Policy), which frankly represents 85% of the world's export subsidies, we will not have accomplished very much," Scher said. CAP reforms approved this year "are tepid at best," he added. Scher said the EU is aware of the need for further reform and predicted the Europeans will ultimately agree to additional changes in policy. Senate sanctions vote may be timely. Farm-state Senators continued to mull whether to try and amend next year's USDA spending bill with a measure to exempt food from unilateral economic sanctions. Though the amendment would be controversial, some form of sanctions relief has become a priority for agricultural groups. USDA yesterday said Iran's wheat imports may reach 6 million tons in the coming year because of drought, but procedures for seeking permission to export U.S. commodities there still have not been issued as promised by the Clinton Administration. Meanwhile, REUTERS reports the head of the U.S. Chamber of Commerce is visiting Cuba to explore that nation's business potential.

July 13, 1999

U.S. interests disappointed in WTO beef battle total. It probably was a compromise somewhere between what the United States and the European Union each claimed was fair, so the World Trade Organization's decision that the United States lost $116.8 million in trade because of the EU's beef import ban should satisfy no one. It certainly doesn't satisfy U.S. interests, but they may be stuck with it.

Early harvest may be Clinton's bid for something from trade. The Clinton Administration's push for an early harvest approach in the upcoming international trade negotiations may seem a bit puzzling since it seems to go against sound negotiating practices until youconsider it's thePresident's last chance to get some bragging rights on trade before he leaves office.

USDA lowered its price outlook for corn, wheat and soybeans in its latest supply and demand report released Monday. Sen. Tom Harkin (D-IA), looking for at least $6.5 billion in farmer aid this year, says it confirms his worst fears about the economic crisis in rural areas.

Dairy groups take credit for broader DEIP. Two dairy organizations are claiming credit for a broader allocation of Dairy Export Incentive Program (DEIP) sales announced by USDA. The allocations are the first to allow DEIP sales of whole milk powder to Mexico and relax geographical constraints for skim milk powder exports.

USDA funds $210 million in safe drinking water projects. USDA will fund $210 million in safe drinking water projects in 40 states. Grants and loans announced Monday represent the largest such financial assistance ever distributed under the Clinton Administration. One hundred projects will be funded.

For the Calendar:

The Senate Agriculture committee will hold a hearing July 22 on consolidation and antitrust issues in agribusiness. The hearing will include an update from the Justice Department about the recent approval of a modified acquisition by Cargill, Inc., or Continental Grain Co. The hearing will begin at 9 a.m. in SR 328A.

A half-day seminar will be held Thursday by the U.S. Cane Sugar Refiners' Association and the Sweetener Users Association to discuss the U.S. sugar import quota. A discussion will be held on ways to improve the operation of the quota and of the fiscal year 2000 import quota as well as the supply-demand outlook. The seminar will be held at the U.W. Marriott Hotel, 1331 Pennsylvania Ave., NW, Washington, beginning at 9 a.m.

Ag News Summaries:

Glickman says farm law needs revision. Agriculture Secretary Dan Glickman says the 1996 farm law needs to be restructured to help farmers faced with large crops and low prices, according to REUTERS. Emergency aid for farmers will not be cheap, he adds. The remarks came Monday in Des Moines where Glickman spoke at a meeting on the upcoming World Trade Organization talks this fall. Agriculture is, in many parts of the country, in very deep trouble, Glickman said. There will be the need for short-term relief and it cannot be done on the cheap. Working with Congress and the administration on a bipartisan basis, I am confident that we will be able to get that done this year. Glickman said the 1996 farm law focused more on the United States and less on the world economy. There was no counter-cyclical relief built into the law when times are tough due to world conditions apart from U.S. conditions, he said. The law must be changed to take that into account, he added.

Iowa governor wants candidates' attention focused on farmers. Iowa Gov. Tom Vilsack says there is a crisis in U.S. agriculture, and he vowed to keep the pressure on two front-running presidential candidates and President Clinton to address the problem. A REUTERS report from Des Moines quotes Vilsack saying he would raise the issue with Vice President Al Gore, the likely Democratic candidate next year, and Republican Texas Gov. George W. Bush, leading the Republican pack for that nomination. I'm going to ask all of them (presidential candidates) to take a much more aggressive role, a much more active role in putting the national spotlight on the farm economy, Vilsack said.

Cuban trade meeting set. The U.S. Commerce Department said it would hold a public meeting on Thursday outlining how companies and organizations can apply for licenses to export medicines, food and agricultural items to Cuba.

Australian premier visits Washington. Australian Prime Minister John Howard says he was cranky and lambed out after his first day in Washington, THE ASSOCIATED PRESS reports. Buy he promised not to let new U.S. tariffs on lamb hamper good relations between the United States and Australia. We're very unhappy very, very unhappy , he said, telling reporters that he told President Clinton Monday that he would pursue remedies in the World Trade Organization and that Australia would compensate lamb producers for any lost income from the U.S. tariffs. Clinton announced new tariffs last week. They go into effect July 22. U.S. lamb producers had complained that current tariffs of less than 1% were too low to protect them from foreign lamb flooding the U.S. market. The new tariffs include a tax of 9% on the first 31,851 tons imported; imports greater than that carry a 40% tariff.

July 12, 1999

Ag groups petition Clinton on WTO talks "early harvest." A coalition of agricultural and agribusiness groups is asking the Clinton Administration not to go into the international trade talks this fall advocating the concept of "early harvest" that allows trade sectors to conclude negotiations independently of other sectors. They say "nothing could be more harmful to American agriculture."

Soybean growers want stop to Brazilian meal imports. The American Soybean Association and the North Carolina Soybean Association have asked officials to pressure companies to reconsider importing two shipments of Brazilian soybean meal. They say U.S. soybean and soybean meal prices are at their lowest levels in 23 years and supplies are the largest in more than a decade.

Cotton official wants Step 2 funding restored. National Cotton Council President Ron Rayner says an important part of any farmer relief program this year should be money for the Step 2 cotton program. It will help stop "the free fall in cotton producer income," he says.

Meat industry officials warn WTO future is at stake in beef ban. Officials of two meat organizations and the South Dakota Farm Bureau say the European Union's ban on beef imports from animals treated with growth hormones not only means lost U.S. trade but the "very being" of the World Trade Organization.

For the Calendar:

Secretary of Agriculture Dan Glickman is in Des Moines, IA, today to attend part of a day-long public listening session on the upcoming World Trade Organization negotiations. Glickman will attend the session from 8 a.m. until noon, then hold a brief news conference. USDA and the U.S. trade representative's office are holding 12 listening sessions around the country to solicit public comments on the trade priorities for the talks, set to begin in November in Seattle, WA.

Ag News Summaries:

Post scores food aid. A highly critical article in today's WASHINGTON POST says U.S. food aid to Russia is arriving late, undercutting local prices and ending up in areas that are not short of supplies. Agriculture Department officials rebut the charges, but the POST article could spur new scrutiny of the aid program on Capitol Hill, where Washington's hometown paper, and not the NEW YORK TIMES, is the real "newspaper of record."

Australia, China sign ag research pact.Australia and China have signed an agreement to research agricultural problems in wheat, wool and brassica vegetables. The projects will get substantial funding from the Australian Centre for International Agricultural Research, says Australian Foreign Minister Alexander Downer, according to a REUTERS article. The projects are aimed at increasing production and quality of wheat in China's southwestern province of Sichuan, improving yam-spinning in both China and India and upgrading pest management in brassica vegetables such as cabbage.

Clinton skewered over lamb imports. Australian newspapers were highly critical of President Clinton over his decision to impose quotas and tariffs on lamb imports. "Damn Ewe," said Sydney's tabloid Daily Telegraph. The paper accused Clinton of dumping trade liberalization and reverting to "his base, ignoble self," according to REUTERS. Australian Prime Minister John Howard will be in Washington to meet with Clinton. He has said he was appalled at the "hypocritical" decision.

DuPont seeks EU soybean approval. DuPont Co. has a genetically modified soybean for the European Union market. It must be approved, however, and that could delay the introduction process. DuPont "will be seeking EU approval for its importation," said Joe Zak, Western European director for the American Soybean Association, REUTERS reports. U.S. companies have not labeled foods with genetically modified materials as long as they are substantially equivalent to the traditional materials. But the new soybean is not substantially equivalent. Labeling "is indeed suggested," Zak said.

GOP tax plan has ag appeal. Among the provisions in the House Republican tax-cutting package is the repeal of estate taxes, a move that appeals to farmers. REUTERS reports that the plan calls for the phase-down and repeal of federal estate, gift and transfer taxes over 10 years. Another farmer friendly provision would reduce the top capital gains tax rate on investment profits to 15% from 20%, effective July 1, 1999.

Farmers protest low prices. Hundreds of angry U.S. farmers gathered at the Canadian border Friday to protest low commodity prices and the increasing concentration of the livestock and grain industries. "There has got to be a better farm policy," said Helen Waller, a Montana rancher and spokeswoman for the Northern Plains Resources Council. "The freedom to farm act that we have in place now is simply driving people off the land." REUTERS reports that organizers said the influence of big business on agriculture was killing traditional family farms and leading to new risks for the U.S. food supply.

Willie and friends for farmers. Tickets go on sale Saturday, July 17, for the 14th Farm Aid concert, featuring founder Willie Nelson and friends, FARM JOURNAL reports. Farm Aid '99 is scheduled for Sunday, Sept. 12, and will be telecast live on Country Music Television from 2-10 p.m. eastern time. The concert will be held in Bristow, VA, this year. Tickets range in price from $27.50 to sit on the lawn to $65 for the exclusive "Corn Belt" seating area. Proceeds go to help struggling family farmers and the organizations that represent them.

Cheese prices strengthen, product demand up. In a survey of dairy news, FARM JOURNAL notes cheese prices have strengthened, as have futures on the Basic Formula Price for milk. Marketings through April more than kept pace with production gains, and commercial disappearance exceeded year-ago levels. Meanwhile, a University of Wisconsin study of dairy compact proposals says producers in new and existing compact states would gain $495 million a year, but producers in other states would lose $340 million and consumers would spend $326 million more for fluid milk. The American Farm Bureau Federation last week lent its support to expanded regional compacts, as well as endorsing a bill to override USDA's marketing order reform proposals.

July 9, 1999

Farm Bureau uncharacteristically backs massive relief plan. The same organization that vigorously promoted the 1996 "freedom to farm" law now proposes $9 billion in new and previously authorized funds to help farmers through "a dire period of depressed prices." The American Farm Bureau Federation wants $4 billion of that in direct financial assistance.

Justice says Cargill must divest if it wants Continental. Cargill Inc. must divest grain and soybean facilities in various states if it wants to proceed with its acquisition of Continental Grain Company's Commodity Marketing Group. The Justice Department says to do otherwise would result in farmers getting less money for major crops.

Washington think tank condemns 1996 farm law. The Economic Policy Institute says a combination of export dependence and deregulation that grew out of the 1996 farm law has failed to increase farm incomes or reverse "relentless declines" in basic farm product prices. A net loss of $13 billion in the farm trade balance has occurred between 1996 and 1998.

Ag News Summaries:

Grasshoppers hit Texas in growing numbers. Grasshoppers have infested Texas crops, although damage so far appears to be minimal, according to THE ASSOCIATED PRESS, reporting from Fort Worth. Another month of hot weather is expected to bring out peak numbers that prefer hot and dry weather. Grasshopper infestations build over three to five year periods as adults lay increasingly more eggs, so this year's infestation is expected to be especially large.

UN agencies call for food aid to North Korea. The U.N. Food and Agriculture Organization and the World Food Program say North Korea's chronic food shortages are making it increasingly important that beans, oils and other foods be sent to the area in addition to cereals "to overcome long-lasting nutritional deficiencies that lead to stunting or chronic malnutrition," the KYODO NEWS SERVICE reports from Rome. North Korea needs 98,000 tons of cereals to make up minimum requirements of 4.8 million tons. "As it can take months to recover from even moderate malnutrition, chronic nutritional deficiencies can have long term and, possibly irreversible consequences," the report said.

Farmers plan protests today. U.S. farmers plan to gather along the Canadian border today to protest low commodity prices and growing concentration in the livestock and grain industries. REUTERS reports from Washington that the Campaign to Reclaim Rural America, a coalition of family farm, labor and church organizations, expects "thousands" to attend numerous rallies and activities planned in a dozen states. Protesters are demanding emergency price supports for all U.S. farm products, a federal law that requires meat packers to report prices paid to farmers and an investigation into antitrust concerns in the meat packing and grain industries. The demonstration is not planned to protest farm imports from Canada, organizers said.

Cargill buys stake in Lithuanian fertilizer firm. Cargill Inc. has bought 15% of Lifosa AB, a Lithuanian fertilizer producer, REUTERS reports from Chicago. Cargill will be the exclusive export distributor of Lifosa's phosphate products. Terms were not disclosed, but traders say a large block deal in Lifosa shares was the main feature in trading Thursday on the Lithuanian share market. Cargill has been buying and distributing about half Lifosa's phosphate production since 1996.

Kids eat badly but expected to live longer.Children in the United States eat worse than ever but are less likely to die young than in years past, a government report shows. As children age, they drink less milk and more soda and eat less fruit, decreasing the quality of their diets. But fewer are dying young. The decline in death rates is especially strong among black children and even more especially among black male teens, the report says. The report is published by the Federal Agency Forum on Child and Family Statistics.

Gene crop advantages questioned. U.S. farmers growing genetically modified crops are getting yields no better than those producing traditional varieties, and they are using just as much pesticides, according to research quoted in the magazine New Scientist. REUTERS reports from London that in seven of 12 combinations of crop and region examined by USDA to study pesticide use, "farmers using modified crop had to add the same quantities of pesticides to their fields as those growing non-modified crops," the magazine reports.

Diverted goods hurt traders, consumers. THE JOURNAL OF COMMERCE reports that more than $8 billion in cigarettes, alcohol and agricultural commodities are missing in Europe, "snatched from under the noses of customs agencies before tariffs and excise taxes were paid." The agricultural goods include beef, butter and milk.

July 8, 1999

Clinton imposes higher lamb tariffs. President Clinton imposed higher import duties for three years on lamb imports from Australia and New Zealand. Australia immediately promised to bring the issue to a dispute settlement panel of the World Trade Organization. Clinton also promised $100 million over three years for assistance to the U.S. lamb industry.

Drought policy commission schedules first meeting. The National Drought Policy Commission meets for the first time July 22 at USDA's headquarters in Washington. The commission will set priorities, schedule public hearing dates and review information on existing drought laws and programs. A public hearing will be held July 23 at Jefferson Auditorium in USDA's South Building.

Cotton insurance rates lowered in 10 states for 2000. >USDA will lower cotton insurance rates for many farmers in 10 southern states for the 2000 crop year. The reduced rates result from a study USDA conducted that justified farmers' complaints that premiums were too high.

Land O'Lakes' support for trade issues. Fast track trade negotiating authority and China's membership in the World Trade Organization hold the key to the future of U.S. agriculture's success, says Land O'Lakes. The company plans to focus on creating new markets for dairy and pork products through international trade.

For the Calendar:

Secretary of Agriculture Dan Glickman will present a major policy speech on biotechnology Tuesday, July 13, at 12:30 p.m. at the National Press Club. NPC members who wish to eat lunch at the event must call (202) 662-7501 for a reservation. The luncheon will be held in the ballroom.

Ag News Summaries:

U.S. envoy concedes there's reason for WTO action. REUTERS reports form Canberra that acting U.S. ambassador to Australia William Bellamy believes there may be some justification in Australia's World Trade Organization case against the Untied States over increased import tariffs on lamb imports. "Where I suppose a difference or a dispute might arise is over the specific remedies that have been proposed here. Are these remedies proportionate to the injury to the U.S. industry?" he said. "I wouldn't presume to say that Australia is wasting its time by going to the WTO." But it is the "strong belief" of the Clinton Administration that lamb import restrictions are WTO consistent, he added.

Australia urges Japan to open its markets. Australian Prime Minister John Howard has urged Japan to liberalize its market, especially in agriculture, KYODO NEWS SERVICE reports from Tokyo. "We would like to see more open access for agriculture in this country, which is the largest market for food," said Howard. He said he was "encouraged by signs of greater growth in the Japanese economy."

Johnson asks for USDA, Justice probe of meat packers. Sen. Tim Johnson (D-SD) wants USDA and the Justice Department to investigate allegations that meat packers have stopped buying some livestock in South Dakota because of a new state law that requires companies to pay uniform prices, REUTERS reports. Under the state law, farmers can sue packers if they believe they have not received the highest possible price. Johnson's request for an "emergency review" comes as Congress is struggling with legislation to require some type of mandatory price reporting for meat packing plants.

Tobacco Decision Potential Watershed. Though almost certain to be appealed, yesterday's jury decision finding major tobacco companies liable for selling a defective product could be a legal watershed, most observers agreed. The most sweeping court decision so far to go against the companies, yesterday's verdict will likely cause a selloff in tobacco stocks today, analysts were quoted as predicting. However, they also cautioned that the jury's decision will probably be appealed.

July 7, 1999

AFBF board to back relief measures. The American Farm Bureau Federation Board of Directors is expected to support a package of relief measures designed to shore up farm income and commodity prices. The board is to conduct a conference call late this afternoon to approve the package.

Agriculture on U.S., Egypt trade agenda. The United States and Egypt have signed a trade and investment framework agreement that includes agriculture. A council, established by the agreement, will meet regularly to discuss issues that may come up between the two countries.

NPPC named pork board contractor. The National Pork Producers Council again will manage and coordinate day-to-day programs and subcontractors for the National Pork Board. The board received proposals from three firms to manage the check-off programs.

Clinton will ask for $15 billion for poor rural areas. President Clinton will ask Congress for $15 billion over the next five years for economic investment in depressed rural and urban areas. Clinton was visiting rural Appalachia as part of a four-day tour of poverty stricken areas.

Food pyramid could bring complex adjustments. If U.S. consumers fully adopted the eating recommendations of the food guide pyramid, some complex adjustments would have to be made within production agriculture, says USDA's Economic Research Service. For example, lower values for some commodities would make them more attractive on the export market.

Ag News Summaries:

Conrad to introduce European-style farm bill. Sen. Kent Conrad Sen. Kent Conrad wants farmers to have the option of jumping from the current farm program to a new one with set-asides and subsidies as high as those in the European Union, the Fargo Forum reports. Conrad will introduce the Farm Income and Trade Equity Act," or FITE farm bill. The bill puts U.S. price supports at a level equal to the Union, three to 10 times the U.S. level, the Forum reports. Conrad estimates the bill would add $7 billion a year to the program expenditures, more than doubling the current $5 billion level. At $12 billion, the spending still will be less than the $19 billion allowed under world trade rules.

Russia's crops need insecticides quickly. Russian crops, already hit with a severe drought, could suffer further losses from pests if money to buy insecticides is not found quickly, the ministries of emergencies and food and agriculture said Tuesday. "If the state does not lend support the situation may become catastrophic and will lead to the loss of national security in foodstuffs," REUTERS quoted a statement from the emergencies ministry. Locusts have been found on more than 1,000 hectares of 1,620 hectares checked for signs of pests in different regions. "Locusts, unable to find enough food because of the hot weather, are migrating to cultivated fields and are covering vast areas, which may lead to the total loss of the crop," the ministry said.

Borlaug worries about biotech grain markets. Norman Borlaug, who won the 1970 Nobel Peace Prize for his part in the Green Revolution, worries that a bad year for U.S. farmers might get worse as Europeans step up efforts to oppose genetically engineered U.S. grains, according to THE ASSOCIATED PRESS. "I worry about what farmers will do with this year's harvest," he said at a global summit in St. Paul, MN. Borlaug was one of several participants at the summit of 69 countries affiliated with the University of Minnesota's Agricultural Student Trainee Program. Nestle and Unilever have announced they no longer will make food products from genetically modified farm commodities. Borlaug said he thinks Europe's fear of genetically manipulated agriculture will diminish when weather patterns change and food supplies again become tight around the world.

Goldthwait Confirmed. Chris Goldthwait, who for years served as USDA's General Sales Manager, was approved by the Senate last Friday to be U.S. Ambassador to Chad, Pro Farmer reports.

July 6, 1999

Clinton cracks down on bad food imports. President Clinton plans to crack down on unsafe food imports with a series of steps including stamping shipping containers with a label reading "Refused U.S." so shippers can't "port shop" to find a port that will accept the products. He also wants Congress to pass an equivalency bill for imported fruits and vegetables and another to give USDA authority to force recalls of unsafe meat and poultry and impose civil penalties.

Ways and Means approves trade with China. The House Ways and Means Committee has voted to recommend that Congress defeat legislation to deny China normal trade relations with the United States. President Clinton has announced NTRs with China for another year; Congress must approve the action.

DOC finds Canada dumped cattle in U.S. The Department of Commerce has ruled that Canada "dumped" cattle on the U.S. market below cost. A final ruling will be made this fall. After the final ruling, the International Trade Commission has 45 days to issue a final determination on the extent of injury to U.S. interests from the imports.

CFTC action on foreign trading worries House members. A group of House members are concerned that the Commodity Futures Trading Commission is considering a decision that will permit foreign exchanges to enjoy less regulation than U.S. exchanges. They say foreign futures exchanges may be allowed to install computer trading terminals in the United States and take orders from U.S. customers under conditions of less regulation than that given U.S. exchanges.

Ag News Summaries:

WTO's Hartridge comments on Seattle. David Hartridge, director in charge of the World Trade Organization, says some 50 proposals have been made by ministers regarding subjects for discussion in November when international trade talks get underway in Seattle, WA. The next phase, he adds, will be to draft a declaration for ministerial agreement; work on the draft will start in earnest in September. BLOOMBERG NEWS reported the comments from Geneva.

Argentina's beef barons upset over quota. </