July 31, 2000

Republican Platform Defends Freedom to Farm. As the Republican Party gathers in Philadelphia to nominate George W. Bush and Richard Cheney as their standard bearers for the presidential race, the party faithful will be called on to approve a platform that defends the 1996 farm act. The so-called Freedom to Farm law "ends the command-and-control policies that have choked the entrepreneurial spirit of rural America." 

USDA Has New Rules on Livestock Competition. USDA's Grain Inspection, Packers, and Stockyards Administration (GIPSA) will issue new rules to designed to ensure fair competition in the livestock, poultry, and meat packing industries. "Our goal is to ensure there is fair competition in the marketplace and to help small farmers and ranchers compete more effectively," Agriculture Secretary Dan Glickman said. 

Hypoxic Zone Decrease Possible with Management. Scientific information released last week shows that managing the Mississippi River's flow as it empties into the Gulf of Mexico may be an effective tool to decrease the size of the Gulf of Mexico's hypoxic zone, according to the American Farm Bureau Federation. After the scientific review of the low-oxygen hypoxic zone, it has been reported that the area has shrunk to just 1,700 square miles. 

Burger King Features Bacon on Two New Sandwiches. The Burger King Corporation has begun offering two chicken, club-style sandwiches featuring bacon on menus nationwide. Bacon consumption has increased 21 percent over the last three years and is one of consumers' favorite sandwich toppings, according to research conducted by Technomics, Inc. 

Venture Formed for Food Developments. Archer Daniels Midland (ADM), Aventis CropScience (Aventis), SKW Trostberg AG (SKW) and Burrill & Company have formed a new $30-million venture capital fund, the Burrill Nutraceuticals Capital Fund, with an initial closing investment of $10 million each. The alliance is expected to provide the development of science-based food products and an increase in safe, healthy, more nutritious foods. 

ACGA Opposes USDA-Terminator Involvement. The American Corn Growers Association (ACGA) has told the USDA Advisory Committee on Agricultural Biotechnology it opposes USDA's involvement in the so-called "terminator" technology. The technology leaves second-generation seeds sterile. USDA funded research into this technology and holds a co-patent with Delta & Pine Land for the licensing of terminator.

News Summaries

Canada Farmers' Incomes Increase. REUTERS reports that Canada projects farm incomes will increase this year due largely to government aid and better cattle and livestock prices. "Canada RNI (realized net income) is expected to recover in 2000 to a level significantly above the five-year average, as higher livestock receipts and program payments... more than offset increases in expenses and depreciation charges," said Agriculture Canada's 2000-2004 farm income forecast. The article notes that the Canadian government and farming provinces have been forced to step up farm aid in the last two years as producers have struggled with ongoing low world commodity prices. "RNI is expected to decline considerably in 2001 from the previous year due mainly to a large drop in program payments but to remain at previous five-year average levels," the forecast said. The report added that crop receipts should increase throughout the forecast period. "Compared to the 1995-99 five-year average, RNI is significantly higher in 2000 and is expected to drop to average levels in 2001," it said. "Over the medium term (2002-04), RNI should move above the five-year average in 2003." 

French Farmers Suffer in the Cold. Gloomy, chilly weather has brought the coldest July to France in 20 years, and farm revenues are expected to be hit hard, REUTERS reports from Paris. "Even though grain, oilseed and pulse yields were looking promising, the incessant rains will trigger a very sharp drop in income," Luc Guyau, head of the leading FNSEA farm union, told Agriculture Minister Jean Glavany in an open letter last week. "Today we've reached a point where the situation is becoming dramatic and is raising serious worries about the quality and quantity of the crops," he said. Grain and oilseeds crops had weathered an excessively dry spring and early summer and had been on target for healthy, if not record production in 2000, the article says. Storms hit the northern part of France in early July just as harvesting began. Wheat crops were flattened by hail, and rapeseed fields turned white as violent winds split the stems of the plants. The REUTERS article quoted a Paris analyst who said, "The problem is when it pours down on mature cereals," noting that part of the wheat crop had started to sprout, a phenomenon which causes enzyme changes and reduces the baking value of milling wheat. So far, crop analysts say the precise impact of the weather is hard to gauge. 

Cuba Sanctions Provision Restricted. Congressional Republican leaders have managed to "kill off a proposal" to ease sanctions on Cuba, despite strong House support, until after Labor Day, REUTERS reports. Republican leaders, working overnight, assembled a spending bill shorn of language allowing unrestricted travel and food and medicine sales to Cuba. The article says they want to resolve the Cuba trade issue as part of House- Senate negotiations on a final version of the $75 billion agriculture funding bill, probably in September. Iran, Libya, Sudan and North Korea also could benefit from a decision to exempt food and medicine from U.S. embargoes. On a 214-210 vote, the House agreed on Thursday to consider the bill, although a final vote was still needed on it. REUTERS says farm lobbyists "cautiously accepted the leadership promise but said it might be difficult to move beyond the House plan, considering the bare-knuckles tactics used by leaders." While permitting food and medicine sales, the House plan would prohibit any U.S. government or private financing of food sales as well as writing into law the current set of U.S. travel rules. 

Georgia Tobacco Farmers Face Uncertainty. THE ASSOCIATED PRESS reports that Georgia's flue-cured tobacco growers face many uncertainties with the market opening Tuesday. They've endured a drought and an unusual disease outbreak that devastated some fields, and cigarette companies are besieged by lawsuits, including a record $145 billion award earlier this month in Florida. The article says some growers wonder about the future of the crop, a mainstay of Georgia agriculture. The AP article notes that last year, the state's gross sales were down 28% from 1998. The crop's gross value, about $106 million, was $59.5 million less than in 1998. Only 87% of the effective quota was sold at auction. The season average of $169.67 per hundred pounds was 88 cents lower than in 1998. In addition, says the article, declining cigarette consumption and increased reliance on cheaper imported tobacco has led to a 50% reduction in the effective quota - the amount growers are allowed to produce - over the past three years. This year could be even worse. 

Trade a Silent Campaign Topic. BLOOMBERG NEWS notes that the rhetoric from the 2000 presidential campaign "has been and likely will remain silent on international trade." "You've barely heard George Bush and Al Gore say anything about it," says Brookings Institution economist Robert Litan. "They're afraid of it." The article says that from the candidates' perspective, there's "scant political gain in bringing up trade." The U.S. trade deficit is increasing and likely will reach a record $350 billion this year. Gore doesn't want to anger labor unions by touting free trade. And last year's anti-free-trade protests in Seattle have spooked politicians of all hues. BLOOMBERG notes that nevertheless many analysts say that fashioning a new trade agenda will be one of the most important challenges the new president will face. "Although the trade deficit isn't attracting much attention now, it could easily become a political hot potato when the economy begins to slow, intensifying protectionist pressures," according to the article.
 

July 28, 2000

Glickman Outlines World Lunch-for-Kids Program. Agriculture Secretary Dan Glickman Thursday outlined for the Senate Agriculture Committee an attempt the Clinton Administration is making to involve developed countries in a program designed to provide school food programs to needy nations.  The United States would use surplus commodities for donation to developing countries with certain conditions attached to the food. 

'Junk Scieince,' Milk Processors Call PCRM Action.  The Physicians Committee for Responsible Medicine (PCRM) reportedly will file a petition with the Federal Trade Commission (FTC) requesting an investigation into the health claims in the "milk mustache" ads sponsored by the nation’s milk processors.  PCRM filed a similar complaint with FTC in April 1999, which resulted in no action.  The group also last December filed a suit against USDA over the U.S. Dietary Guidelines; but that suit also has resulted in no action.. 

Agricultural Exports Ahead of Last Year. U.S. agricultural exports in fiscal 2000 are more than $1 billion greater than at this point in fiscal 1999, reports USDA.  The trade surplus so far is $200 million behind that of 1999 as imports have accumulated faster than exports.  The $506 million surplus of May is the narrowest monthly total this year but is still $83 million more than May 1999.
 

News Summaries

FSIS Corrects Closing Date.  USDA’s Food Safety and Inspection Service posted an inaccurate closing date for the comment period on its current thinking papers on egg safety.  The comment period will close on Aug. 14, not Aug. 31 as previously announced.  Comments on the current thinking papers will be considered before drafting proposed regulations or other actions to ensure egg safety from farm to table.  The papers will be made available at a public meeting on Monday, July 31.  The public meeting will be held from 8 a.m. to 5 p.m. at the Holiday Inn, 415 New Jersey Avenue, NW, Washington, DC 20001.  To register for the meeting or arrange for a sign language interpreter or other special accommodation, contact Sally Fernandez, FSIS, tel. (202) 501-7251, fax (202) 501-7615.  Written comments on the thinking papers must be submitted by Aug. 14 to USDA/FSIS Docket Clerk, Docket No. 98-045N4, 300 12th St. SW., Rm. 102, Cotton Annex, Washington, DC 20250-3700.

No Deal with Mexico on Sugar Exports.  BLOOMBERG NEWS reports a U.S. negotiator has  returned from Mexico with no agreement that would limit Mexican exports of sugar in the face of a record U.S. crop and falling prices.  “We've had negotiations and we've agreed to continue negotiating,”' said Brendan Daly, spokesman for the U.S. Trade Representative's office.  Greg Frazier, the U.S. special negotiator for agriculture, spent a day in Mexico City meeting with his Mexican counterpart, Daly said.  The BLOOMBERG article says the talks with Mexico came as U.S. sugar producers are demanding help.  U.S. cane sugar futures sank in February to a 20-year low of 16.75 cents a pound before climbing back slightly.  The article notes that U.S. and Mexican trade officials “have been wrangling for months over how much duty-free sugar Mexico can sell to the U.S. at the beginning of the U.S. fiscal year, starting Oct. 1.”  The issue involves terms of the North American Free Trade Agreement.  Mexico says the agreement entitles it to sell all of its surplus sugar to the United States beginning Oct. 1.

Western Farmers File Suit on Citrus Imports.  Farmers in California and Arizona have filed a lawsuit to force USDA to overturn a decision that allows imports of citrus from Argentina, the world's largest producer of lemons, REUTERS reports.  “USDA's rule is completely unprecedented,” Pierre Tada, co-chairman of the U.S. Citrus Science Council, one of the parties in the lawsuit.  “USDA is allowing the importation of citrus from areas that admittedly are infested with serious diseases and pests.”  USDA said last month that it would allow citrus imports from four Argentine states that USDA had determined were free of cancrosis, a highly contagious disease that can badly damage citrus fruit.  Last week, the Senate approved an amendment offered by Sen. Barbara Boxer (D-CA) that would block imports until USDA completes further studies, the article says.  Whether that measure becomes law depends on the outcome of negotiations between the House and Senate in September on a final fiscal year 2001 agricultural spending bill, REUTERS notes.Congressional Republican leaders have managed to "kill off a proposal" to ease sanctions on Cuba, despite strong House support, until after Labor Day, REUTERS reports. Republican leaders, working overnight, assembled a spending bill shorn of language allowing unrestricted travel and food and medicine sales to Cuba. The article says they want to resolve the Cuba trade issue as part of House- Senate negotiations on a final version of the $75 billion agriculture funding bill, probably in September. Iran, Libya, Sudan and North Korea also could benefit from a decision to exempt food and medicine from U.S. embargoes. On a 214-210 vote, the House agreed on Thursday to consider the bill, although a final vote was still needed on it. REUTERS says farm lobbyists "cautiously accepted the leadership promise but said it might be difficult to move beyond the House plan, considering the bare-knuckles tactics used by leaders." While permitting food and medicine sales, the House plan would prohibit any U.S. government or private financing of food sales as well as writing into law the current set of U.S. travel rules.
 

Committee Approves Derivatives Bill.  The House Banking Committee by voice vote approved a bill that could let average consumers trade complex financial instruments known as over-the- counter derivatives, according to BLOOMBERG NEWS.  The article says the committee approved a measure proposed by Chairman James Leach and ranking Democrat John LaFalce.  The measure would give the Treasury Department and Federal Reserve Board one year to draft rules to protect small investors in OTC derivatives.  If they failed to do that, both would have to answer to Congress and small investors could not trade the instruments. Only large institutions and wealthy individuals can buy and sell them now, says BLOOMBERG.

July 27, 2000

USDA Considering Sugar PIK Program. USDA is considering a payment-in-kind (PIK) program for sugar beet producers in an effort to reduce production in fiscal 2001. August Schumacher, Jr., under secretary at USDA, told the Senate Agriculture Committee that appears to be "the most feasible use of surplus sugar." The committee hearing was remarkable in that it involved some of the fiercest arguments heard in public testimony for some time on a federal agricultural program, in this case, the sugar program. 

House Panel Hears More Policy Analysis. The House Agriculture Committee's hearing on farm policy, one in a long series of hearings on the subject, heard Jack Roney, director of economics and policy analysis for the American Sugar Alliance (ASA), say that the apparent trend toward agricultural free trade is showing alarming signs of reversing itself. The Uruguay Round agreement five years ago and the "more profound reforms" from the 1996 farm law seemed to "presage a sea change: Governments removing themselves from the agricultural marketplace." 

Farm Bureau Calls for End to CRP Taxation. Congress must approve legislation to ensure equitable tax treatment for farmers and ranchers who lease environmentally sensitive land to the government or participate in other federal programs that benefit the environment, the American Farm Bureau Federation told a Senate Finance subcommittee.

News Summaries

Crop Insurance Guidelines Announced. Ken Ackerman, administrator of the Risk Management Agency (RMA), has announced new guidelines for crop insurance policies with a contract change date of April 30. The guidelines will allow certain provisions of the Agricultural Risk Protection Act of 2000 (ARPA) to be added to existing contracts. Earlier contract change dates will be unaffected by these guidelines. "Because these contracts were in effect when ARPA was enacted, we are giving both parties of the contract -- the reinsured company and producer -- the choice to stay with the original contract or accept the changes that would introduce provisions of the new legislation, said Ackerman. The changes include new subsidy amounts, administrative fees, and the option to elect actual production history (APH) adjustments. Each reinsurance company may determine the best means to implement these changes. However, RMA recommends not canceling or rewriting of policies. No extension will be granted to accept applications or contract change forms after published sales closing dates. 

No Peanut Assessment Increase. Agriculture Secretary Dan Glickman announced Wednesday that in lieu of imposing an increased assessment on 2000 peanut crop to cover the $35 million loss on 1999 crop quota loan peanuts, the Secretary will offset that amount with a loan from the Commodity Credit Corporation. The authority for the Secretary to borrow the $35 million from CCC was provided in the fiscal year 2001 Military Construction Appropriations Act which was signed by President Clinton on July 13. The Act provides that the $35 million loan from CCC be recovered from the regular peanut marketing assessment in excess of the amount needed to offset losses on peanuts for the crop year in which the assessment is collected. "In the absence of some relief, peanut producers in the southeast production area in states such as Georgia, Florida, and Alabama could have received $45 per ton less on quota peanuts marketed in the 2000 crop year," said Glickman. 

Glickman Going to Africa. Agriculture Secretary Dan Glickman will lead a week-long trip to Nigeria, Kenya, and South Africa to discuss and learn more about hunger, infrastructure, and health care issues facing Africa while promoting agricultural trade, food security and democratic transformation. "I want to shine a spotlight on the desperate urgency of the development challenges in Africa," said Glickman. "These countries are facing a wide array of catastrophic situations including AIDS, poor infrastructure, famine and war. Without the help of the United States and other members of the international community, they have little short-term hope of overcoming these obstacles. The United States has a stake in Africa's future and a responsibility to ensure that future is as bright as possible." The trip will provide an opportunity for Glickman to explain and discuss President Clinton's new $300 million Global Food for Education pilot program. President Clinton announced the initiative at the G-8 summit in Okinawa, Japan last week. Glickman has met with representatives of private voluntary organizations and the World Food Program to brief them on the President's plan and seek further input. Participating countries have not yet been selected. 

Lott Moves PNTR for China Forward. REUTERS reports that Senate Majority Leader Trent Lott (R-MS) Wednesday removed a major barrier to Senate action on permanent normal trade relations with China, setting the stage for a vote in September. Lott filed a procedural motion seeking a vote today or Friday that would direct the Senate to proceed to the China issue when senators return after Labor Day. That came after intense lobbying by the White House and pro-trade business groups, REUTERS said. "I am pleased to see the process move forward," U.S. Trade Representative Charlene Barshefksy said, commenting on legislation. "Prompt action is essential if the U.S. is to benefit from China's accession to the WTO." Obstacles remain possible, the article says. Before passing the trade bill, Lott said he wants the Senate to vote on legislation that could lead to sanctions against China for alleged weapon sales to Pakistan and other states. Sen. Fred Thompson (R-TN) introduced that bill which is opposed by business groups and the White House even though Thompson agreed to several changes. The REUTERS article says the latest draft of the bill would address proliferation threats across the board, not just from China. But it still would require the administration to impose sanctions unilaterally. 

Dairy Heavyweights Form Web Site. THE WALL STREET JOURNAL reports that a consortium of "dairy-industry heavyweights" including Kraft Foods Inc. and Suiza Foods Corp. plans to form a business-to-business Web site called Dairy.com. The companies hope to use the site beginning next year to order raw milk for their own use and sell products such as cream and cheese. The article says a "shakeout is beginning among the numerous agricultural business-to-business sites launched earlier this year," but this latest venture "has deep pockets." The eight investors -- including publicly held companies and farmer-owned cooperatives -- have raised $19 million for the site and say they can get more, the JOURNAL says. The group is searching for a management team for the operation. The investors include Dreyer's Grand Ice Cream Inc., Oakland, Calif.; Land O' Lakes Inc., Arden Hills, Minn.; Leprino Foods Co., Denver; Schreiber Foods Inc., Green Bay, Wis.; Dairy Farmers of America Inc., Kansas City, Mo.; and Dannon Co., a unit of Groupe Danone of France. Kraft Foods is a unit of Philip Morris Cos. of New York. The biggest dairy company that isn't investing in the Web site is Dean Foods Co., an executive of which said the Chicago concern might still decide to participate in some way, the article says.

July 26, 2000

Hitchhiking Boll Weevils Threaten. The National Cotton Council is urging cotton industry members and farm equipment operators to help prevent boll weevils from getting into areas where the insect pest has been eradicated. The boll weevil has been eradicated from most Southeastern states and from Arizona and California, but some weevils occasionally reinfest these areas by hitchhiking on cotton pickers and other farm equipment being transported between eradicated and non-eradicated cotton production areas. Most times, for example, the weevils are in cotton bolls that have not been removed from the harvesters. 

House Panel Passes Grain Act Bill. The House Agriculture Subcommittee on General Farm Commodities, Resource Conservation, and Credit has passed, by voice vote, legislation (H.R. 4788) providing for reauthorization of the U.S. Grain Standards Act. 

Grants Awarded for Marketing Projects. Agriculture Secretary Dan Glickman has awarded 14 matching grants totaling $600,000 to support agriculture market research and demonstration projects. The grants, provided under the Federal-State Marketing Improvement Program, will be used to improve marketing systems for food and agricultural products or to identify new market opportunities for farm products. 

Smithfield Agrees to Water Quality Pact with State. Smithfield Foods, Inc., and its North Carolina-based swine production companies, including Murphy Farms, Inc., Brown's of Carolina, Inc., and Carroll's Foods, Inc., have finalized an agreement with the state of North Carolina designed to enhance state water quality and ensure the economic stability of North Carolina's swine industry. 

Smithsonian Yields Dairy Waste Cleaning System. An Agricultural Research Service microbiologist has found inspiration to design an algae scrubber system to clean waste from dairy barns in the Smithsonian Institute. Agricultural Research Service scientist Walter Mulbry redesigned and moved a device out of the Smithsonian's living coral reef exhibit to dairy barns at a research center about 15 miles away in Beltsville, MD.

News Summaries

FAO Calls for GMO Labeling. REUTERS reports the Food and Agricultural Organization wants national food safety programs to evaluate, authorize and label animal feed containing genetically modified organisms (GMOs). The statement came in a report to its European regional conference on food safety. Focusing on animal feed, the FAO avoided the controversy raging in Europe over whether eating food with modified genes can be a health hazard, which has led to many consumers rejecting GMO products, according to REUTERS. The FAO noted that agreement existed on the right of consumers to be informed as to how their food is produced. "Research carried out so far has not demonstrated any hazard posed by GMOs, but further work is required," the FAO said, according to the article. "What is essential in the short term, however, is to achieve consensus in the international community concerning the approach to the evaluation and regulation of GMOs in food and feed." 

House to Extend Export Programs to Vietnam. The House of Representatives today may extend Vietnam's eligibility for U.S. export programs, REUTERS reports. The action would be a stop-gap measure before lawmakers consider an agreement to extend normal trade relations for the first time since the Vietnam War. President Bill Clinton asked Congress in June to extend Hanoi's access to U.S. government credits and investment guarantees for another 12 months, the article says. But Rep. Dana Rohrabacher (R-CA) objected. He introduced a resolution that would deny the benefits. The resolution was scheduled for a vote on Wednesday and is widely expected to fail, REUTERS says. In June the Ways and Means Committee urged the full House to reject the Rohrabacher resolution. If that happens, Vietnam will remain eligible for financial backing from the U.S. Export-Import Bank, the Overseas Private Investment Corp. and Department of Agriculture export credit programs. 

More USDA Sugar Buys Advocated. Sugar producers want USDA to buy more sugar and now are asking the government to pay farmers to plow up their fields to increase prices, REUTERS reports. "We cannot emphasize too much how important we believe it is that USDA issue an announcement immediately of additional sugar purchases, in a significant amount, to avoid CCC (Commodity Credit Corp) loan forfeitures," sugar groups said in a letter hand-delivered to Agriculture Secretary Dan Glickman on Monday. The Senate Agriculture Committee holds a hearing today to review U.S. sugar policy, which has been under pressure because of rising domestic production and international trade commitments. REUTERS also notes that in its latest budget forecast, the Clinton administration estimated the sugar program would cost taxpayers more than $1 billion through the end fiscal 2005. The sugar program traditionally has operated at no cost to the government, but plummeting sugar prices have changed that, the article says. 

Glickman Supports Meat Inspection Program. THE ASSOCIATED PRESS reports Agriculture Secretary Dan Glickman expressed confidence Tuesday in an experimental meat inspection system that allows more company involvement in the inspection system. An appellate court has ruled that the program illegally gave too much responsibility to processors. "We certainly don't want to give up on it. We think it has a great opportunity to improve food safety," Glickman said The AP article says that under the new system, USDA inspectors are leaving it to plant employees to do the traditional poke-and-sniff method of inspecting animal carcasses and are instead doing more testing for microbes and sampling for fecal contamination. The inspectors union sued to stop the project, and a three-judge panel of the U.S. Court of Appeals for the District of Columbia agreed last month that USDA inspectors are required by law to do hands-on checks of animal carcasses, the AP says.
 

July 25, 2000

Imported Meat's `Free Ride' Ends, Says NCBA. The National Cattlemen's Beef Association says a USDA decision to propose an end to grade stamping imported meat signals an end to the "free ride" imported meat has enjoyed. Giving imported carcasses a U.S. grade is a "direct violation of the Agricultural Marketing Act," says NCBA. 

IDFA Responds to Massachusetts Compact Withdrawal Move. The International Dairy Foods Association said "politics triumphed over common sense" when the state legislature was forced to allow the state to remain part of the Northeast Dairy Compact. Gov. Paul Cellucci (R) promised to veto a bill that would have allowed the withdrawal, forcing budget conferees to drop the provision. 

U.S., Mexico Talk Hog Imports. The United States and Mexico are trying to resolve a dispute over Mexico's claim that U.S. hogs are being dumped on the Mexican market, justifying Mexico to levy antidumping duties. The two sides have 30 days from July 10 to resolve their differences. If that's not successful, the United States can request a World Trade Organization dispute settlement panel to rule. 

More on Senate Appropriations. When the Senate approved the agricultural appropriations bill late Thursday, $450 million was included for crop loss assistance for farmers plus $893 million in emergency assistance for livestock and dairy producers. Total appropriations are $75.7 billion for fiscal 2001. A Senate-House conference committee now will work out the differences in the two spending measures. 

Company, Colleges, USDA Collaborate on Animal Genomics. AniGenics Inc, a new animal genomics company based in San Francisco, says it has formed a coalition with USDA's Animal Research Center, the Universities of Illinois and Minnesota and the Roslin Institute for genetic modifications in livestock. 

`Questionable' Disaster Payment Refunds on Hold. USDA's Farm Service Agency will complete an internal review before any further action is taken to obtain refunds of disaster payments already made to South Miami-Dade County, Florida, farmers. Agriculture Secretary Dan Glickman says FSA is to take a "detailed and thorough look" at resolving the situation before going through a formal appeals process.

News Summaries

Corn, Beans Spiral as Weather Cooperates. THE ASSOCIATED PRESS reports from Chicago that corn and soybean prices spiraled lower Monday on the Chicago Board of Trade as more good weather in the Midwest continued to nudge crops toward bumper quantity. Heavy selling was reported as investors anticipated that USDA would increase the corn crop rating after the latest spell of excellent growing weather. That sent prices into a tailspin just as they were about to cross the $2 per bushel mark again. The article said soybeans declined because of the good growing conditions, which have hung over the market for weeks. The decline in corn eliminated any chance for a rebound, according to the AP. Wheat edged lower in quiet trading, faced with a slow export market and the losses in soybeans and corn. Beef futures declined on the Chicago Mercantile Exchange, while pork futures increased, the article said. 

Korean Farmers Denounce U.S. THE ASSOCIATED PRESS reports that thousands of farmers rallied in Seoul, denouncing the United States and South Korean governments for opening agricultural markets. The article says eight leaders cut their fingers and wrote "Abolish import agricultural policy!" with their blood on a white sheet. Others threw fruits, vegetables and soil in plastic bags at riot police. Chanting, "Kim Dae-jung government, repent!" almost 10,000 protesters carried banners and pickets with similar slogans on, in the rally in downtown Seoul. The AP says the farmers demanded that the government remit their debts. They claimed the debts were incurred by an excessive opening of the farm market to imports. They denounced the U.S. government for pressuring Seoul to open Korean markets. Many of the farmers wore traditional ivory hats used for funerals. They burned a truckload of watermelons in crates, covered with a huge U.S. flag. 

Carousel Retaliation Not Yet in Place. The controversial new U.S. trade retaliation tool known as "carousel" still is not ready to spin into action, the U.S. Trade Representative's (USTR) office said on Monday, according to a REUTERS report. The White House still must okay the next round of retaliatory duties despite weeks of painstaking interagency review. The article says it's the first in a potentially endless cycle of changes to U.S. retaliation on $308.2 million worth of European Union goods in separate spats over beef and bananas. "With President Bill Clinton plunging back into Mideast peace talks after his return from the G8 summit in Okinawa, it remains unclear just when that approval will come even though the announcement is already long overdue," REUTERS said. On May 18, Clinton signed legislation requiring the administration to change the retaliation in the two trade disputes every six months until the EU brings its beef and banana import policies in line with international trade rules.
 

July 24, 2000

Food Insecurity Continues, With Some Gains. The United Nation's Food and Agricultural Organization says gains in meeting the needs of the world's undernourished people are encouraging "but far from satisfactory." The number of undernourished declined by 40 million between 1990-92 and 1995-97, but the momentum "Is too slow and the progress too uneven to achieve the goal set by the World Food Summit in 1996."

News Summaries

USDA Proposes to Discontinue Imported Meat Grading. USDA proposes to restrict the grading of imported beef, lamb, veal and calf products. A proposal will be issued later this summer. In 1999, the National Cattleman's Beef Association and the American Sheep Industry Association requested that USDA end the official grading of imported meat products. USDA solicited comments earlier this year. One hundred and four people and producer groups responded with the majority requesting that USDA restrict its meat grading services to exclude imported meat products. They expressed the belief that applying the USDA grade shield to imported meat products contributes to consumer confusion regarding the origin of those products. 

Disaster Areas Declared in Three More States. Agriculture Secretary Dan Glickman has declared parts of Iowa, Nebraska and Texas agricultural disaster areas due to drought and severe storms, making farmers in those areas eligible for emergency low-interest loans. The declaration covers 13 Iowa counties and 12 Nebraska counties for severe storms and drought, and one Texas county for severe storms. All contiguous counties are also covered by the declaration and therefore eligible for the same benefits. There are a total of 90 contiguous counties in Colorado, Iowa, Kansas, Missouri, Nebraska, South Dakota, Texas and Wyoming. The declaration makes qualified family-sized farm operators in both primary and contiguous counties eligible for low-interest emergency USDA loans. Farmers in eligible counties have eight months from the date of this declaration to apply for the loans to help cover part of their actual losses. USDA's Farm Service Agency (FSA) will consider each loan application on its own merits, taking into account the extent of losses, security available, repayment ability, and other eligibility requirements. Some counties in Iowa, Missouri, Nebraska and South Dakota may also be eligible for the Emergency Conservation Program (ECP), which provides cost-share assistance to supply water for livestock and other conservation measures. A total of $190,000 is available in these states. 

One Sheep Flock Removed After Positive Tests. USDA removed a flock of 21 quarantined sheep from a small farm in Vermont after four sheep in related flocks tested positive for a transmissible spongiform encephalopathy last week. The owner of the flock voluntarily sold these animals to USDA. "This is in the best interest of America's animal health, and USDA appreciates the farmer's cooperation," said Michael V. Dunn, under secretary for USDA's marketing and regulatory programs. "It can be very hard to see this as a national issue when it's personal and painful for the owner and the community." Agriculture Secretary Dan Glickman has authorized compensation for the owner through an independent process that determines the fair market value of each animal. On July 14, Glickman signed an order to seize two other flocks. USDA remains committed to acquiring these potentially infected sheep, thereby reducing the risk of transmission to other animals. The sheep will be euthanized and diagnostic samples taken. The diagnostic samples will be used for research into TSE's. The original sheep, imported from Belgium and the Netherlands in 1996, were placed under limited federal restrictions when they entered the country as part of USDA's voluntary scrapie eradication efforts. In 1998, USDA learned that it was likely that European sheep were exposed to feed contaminated with bovine spongiform encephalopathy (BSE). In 1998, at USDA's request, the state of Vermont imposed a quarantine on these flocks which prohibited any of the imports or their progeny from entering the human or animal food chains. However, prior to 1998, some animals were slaughtered for food. Since 1996, USDA has been actively monitoring these flocks for any evidence of TSE. 

Panel on GMOs Considered by G8. KYODO NEWS SERVICE reports from Nago, Japan, that the leaders of the Group of Eight (G-8) major countries agreed Sunday to consider establishing an independent panel to discuss issues associated with the safety of genetically modified (GM) foods. A communique was issued that said the G8 will work "'to integrate the best scientific knowledge available into the global process of consensus-building on biotechnology and other aspects of food and crop safety." KYODO says this means the G-8 will consider setting up a panel to coordinate the work at international forums on genetically modified foods, G-8 officials said. Britain has been calling for such a panel. The report also says the European Union (EU), bowing to consumer pressure, has imposed a moratorium on approval of GM foods since 1998. The United States has threatened to take the EU to the World Trade Organization over the issue. The G-8 leaders -- from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- held their annual summit in Nago, Okinawa Prefecture from Friday to Sunday. 

Cuban Sanctions Reform Closer. The House and Senate have approved different versions of a proposal to allow food and medicine sales to Havana, proponents said on Friday. REUTERS reports the votes late on Thursday were the latest show of support in Congress for relaxing U.S. economic sanctions imposed four decades ago when Cuba began receiving support from the Soviet Union. The report also says farm and business groups call the embargo a futile relic of the Cold War. Both chambers passed language to permit food and medicine sales to Cuba but did so on different bills and in different versions that must now be reconciled. That may not happen until after Labor Day. REUTERS says Senate Democratic Leader Tom Daschle said there was a risk die-hard Castro foes still could scuttle the measure. "Ultimately, it has to be a final version the House and Senate (Republican) leadership can live with," said a farm lobbyist, referring to the leadership's staunch opposition to liberalizing trade with Cuba.
 

July 21, 2000

High Gas Prices Hold Promise for Agriculture. USDA's Chief Economist Keith Collins says higher energy prices and the nation's dependence on imported oil can mean opportunities for agriculture to produce energy supplies that will help stabilize energy supplies. USDA is using existing authority to expand the production and use of ethanol and biomass energy supplies, he says. 

Lugar Calls for Tax Relief This Year. Sen. Richard Lugar (R-IN), chairman of the Senate Agriculture, Nutrition and Forestry Committee, has urged the Senate to approve tax relief for farmers this year. "Farmers need this important tax relief to improve their net farm income," he said. "They need the tools to increase income and build on the existing farm safety net. They need the ability to average out income in high and low years. And they need this tax relief this year."

News Summaries

Egg Salmonella Meeting Scheduled. USDA's Food Safety and Inspection Service and the Food and Drug Administration will co-sponsor a public meeting on July 31 to discuss information for reducing or eliminating the risk of Salmonella enteriditis in shell eggs and egg products using a farm-to-table approach. At the meeting, current thinking papers for proposed regulations to ensure egg safety from farm to table will be made available. The papers will include possible requirements related to the production, processing, packaging, and retail sale of shell eggs. The public meeting will be held from 8 a.m. to 5 p.m., Monday, July 31, at the Holiday Inn, 415 New Jersey Avenue, NW, Washington, DC 20001. To register for the meeting or arrange for a sign language interpreter or other special accommodation, contact Sally Fernandez, FSIS, tel. (202) 501-7251, fax (202) 501-7615. Written comments on the thinking papers must be submitted by August 31 to: USDA/FSIS Docket Clerk, Docket No. 98-045N4, 300 12th St. SW., Rm. 102, Cotton Annex, Washington, DC 20250-3700. 

Egg Inspection Fees Increased. USDA's Food Safety and Inspection Service is increasing the fees it charges egg product plants for providing overtime and holiday inspection services. The fee increase becomes effective July 30. The fees for providing overtime inspection services will increase from $26.16 to $39.76 per hour per program employee. For holiday services, the fee will increase from $17.44 to $39.76 per hour per program employee. The fees for egg product inspection are now the same as overtime and holiday fees for meat and poultry inspection. FSIS is responsible for the inspection of egg products at official federally inspected plants. The cost of mandatory inspection, except for services provided on holidays or on an overtime basis, is borne by FSIS. Federal inspection protects the health and welfare of consumers by assuring that egg products are wholesome, not adulterated, and properly labeled and packaged, according to USDA. 

Glickman Talks School Lunches in Africa. REUTERS reports a Clinton administration proposal to launch a school lunch program for children in poor nations will be among the topics discussed with African leaders by Agriculture Secretary Dan Glickman later this month. Glickman will visit Nigeria, Kenya and South Africa during a ten-day trip set to begin on Saturday. The article says the administration has no details to talk about yet on the feeding program. Glickman hopes the program can be modeled after the U.S. program that serves about 27 million school children each day. REUTERS says in addition to providing subsidized nutritious lunches to poor children, an international school lunch program would also benefit American farmers with a vast new market for their grains, milk, meat and other commodities. "Our delegation will hold meetings with government officials, private voluntary organizations, citizens, business leaders and academics," Glickman said. "We intend to make stops at an agricultural research facility, a refugee feeding camp, as well as a number of health care facilities and local schools." 

Commerce Panel Approves Futures Bill. A House Commerce subcommittee Thursday approved a bill to change futures laws. REUTERS reports it is another step forward for an effort to deregulate U.S. derivatives markets to help them better face growing global competition. But the panel substantially altered the version of the bill cleared last month by the House Agriculture Committee, adding to a complex political and regulatory tangle that has clouded the chances of its passage this year, the article says. The legislation would not allow government oversight of privately negotiated, or over-the-counter (OTC). It also would restructure the regulation of U.S. futures exchanges and allow the trading of futures on single stocks, according to REUTERS. The article says the effort has gained broad support amid fears that outdated regulations are hurting U.S. competitiveness, but single-stock futures have become a major stumbling block as stock and futures exchanges and regulators remain locked in dispute over how they should be traded and overseen. The subcommittee version supports the Securities and Exchange Commission and provides the SEC broad authority to regulate as securities single-stock futures traded on both options and futures exchanges. REUTERS says that's certain to be opposed by the Commodity Futures Trading Commission and futures exchanges, just as the SEC and stock exchanges oppose the Agriculture Committee bill, which effectively gives primacy to the CFTC. 

Cuba Sanctions Status Unclear. Supporters of eliminating sanctions against food and medicine sales to Cuba say they are not sure what action Congress will take this year, THE ASSOCIATED PRESS reports. "This improves the likelihood we'll have some sanction reform," Rep. Jerry Moran (R-KS) said Thursday after the House voted 301-116 for his language ending enforcement of current restrictions against drug and food sales in the communist nation. "But there are many members of Congress, including people in the leadership, who oppose lifting sanctions this year." The AP article says opponents of lifting four-decade-old trade sanctions against Fidel Castro's regime include House Majority Whip Tom DeLay (R-TX) and Senate Majority Leader Trent Lott (R-MS). The House also voted 232-186 to stop enforcement of restrictions against travel to Cuba. That provision was sponsored by Rep. Mark Sanford (R-SC). Rep. George Nethercutt (R-WA) said the votes "enhance" the chance that a compromise he reached last month with DeLay and House Speaker Dennis Hastert (R-IL) would become law, according to the AP article. That deal allowed food and medicine sales to Cuba and four other countries, but Cubans could not pay for the transactions with credit from U.S. banks or the U.S. government. That restriction - which critics have said means few sales to Cuba would take place - is something he might seek to change, Nethercutt said in an interview, the AP reports. 

More Money for Farmers. REUTERS reports the Senate voted on Thursday for the second time this year to send special aid to U.S. farmers to help offset low prices and bad weather, but it drew the line against any more such help this year. Senators added $900 million in emergency aid to the $75 billion agricultural appropriations bill that already had more than $1.1 billion in disaster relief. A conference committee will have to negotiate a final bill. The money would be on top of $7.14 billion in special farm aid that was enacted at the end of May, primarily to help farmers through a third year of low prices. A farm-sector recovery is at least a year away, according to the REUTERS article. "At some point in time, these additional emergencies have got to stop," said Budget Committee Chairman Sen. Pete Domenici (R-NM). He said emergency declarations were being used too often to exempt spending from budget controls. The article says a few other senators complained the spending was being approved with little explanation and no chance to see if it truly was needed. 

Tobacco Farmers Get $340 Million. USDA will distribute $340 million to compensate tobacco farmers who suffered a reduction of tobacco quota or acreage for the 1999-2000 crop years. While USDA does not pay direct subsidies to tobacco farmers, the amount of U.S. tobacco produced is regulated to match supply and demand with a guaranteed minimum price for producers. In recent years, allotments and quotas for some kinds of tobacco have been significantly reduced. As directed by Congress, farmers of designated types of tobacco will receive a portion of the $340 million to help defray lost income resulting from declining quotas and allotments. Sign-up at local USDA Farm Service Agency offices begins on July 31 and ends on Sept. 1. Payments will reach farmers between October 1-20. Individual farm payments will be allocated evenly between farmers and quota owners for flue-cured and cigar/binder tobaccos. For burley and fire-cured tobaccos, the payments will be split three ways among farmers, quota owners and those who control the quotas. FSA will publish program rules in the Federal Register before issuing the payments. Additional information is available at local FSA offices or on the web at fsa.usda.gov
 

July 20, 2000

Billy Blasts Bad Meat Article. An article published last week by Scripps Howard News Service is based on "misinformation" and constitutes "irresponsible journalism," says Food Safety and Inspection Service Administrator Thomas Billy. The article, bylined by Lance Gay, claimed federal meat inspectors and consumer groups are protesting FSIS action to classify "tumors and open sores as aesthetic problems, which permits the meat to get the government's purple seal of approval as a wholesome food product." 

Lugar, Others, Introduce Farmer Relief Bill. Sen. Richard Lugar (R-IN), chairman of the Senate Agriculture, Nutrition and Forestry Committee, and Rep. John Boehner (R-OH) Wednesday introduced legislation to increase farmers' competitiveness by opening foreign markets, providing tax and regulatory relief, and expanding risk management options for farmers. Sens. Pat Roberts (R-KS) and Rick Santorum (R-PA) cosponsored the bill. 

Major Commodity Groups Heard at House Hearing. Corn, soybeans, wheat and cotton were the commodities represented Wednesday when the House Agriculture Committee held yet another hearing on future farm policy. The hearings, which have been going on most of this year, could set the stage for changes in farm laws next year, but that is by no means certain. 

CFTC Should Include Agricultural Markets. The National Grain and Feed Association believes it would be a "critical mistake" for the Commodity Futures Trading Commission to exclude agricultural markets from its proposed new regulatory framework that is designed to provide a reduced level of regulation of futures markets. The views were expressed Wednesday before the CFTC Agricultural Advisory Committee by NGFA President Kendell W. Keith.

News Summaries

House Banking Considers Futures Deregulation. REUTERS reports the House Banking Committee Wednesday became the latest congressional panel to consider "a complicated and contentious effort to deregulate U.S. futures and derivatives markets to help them better face growing global competition." The article says the effort in both the House and Senate "has gained broad support amid fears outdated regulations are hurting U.S. competitiveness in those markets (and) remains tangled in a web of competing jurisdictional and regulatory concerns -- making its passage increasingly uncertain as the congressional session winds down." Banking Committee Chairman James Leach told a hearing Wednesday that his panel would seek "some modification" of the version of the legislation passed unanimously by the House Agriculture Committee last month. That could include an even broader exclusion from regulation for OTC derivatives, modifications to provisions concerning the clearing of derivatives and the addition of a measure that would simplify the treatment of the instruments in bankruptcy, a committee spokesman said, according to REUTERS. With the Commerce Committee last week also signaling it will pursue its own approach, House leaders may face the task of reconciling three rather different bills when they return from the congressional recess in September. The article also notes that leaders may have to try to resolve a continuing dispute between U.S. stock and futures regulators over the lifting of the current ban on single-stock futures -- which has become the major stumbling block for the broader effort. 

Consumer Groups Go After Campbell and Biotech Ingredients. Consumer and environmental groups want Campbell Soup Co. to stop using biotech products in its soups, breads, juices and other products as part of a new campaign targeting major food makers, REUTERS reports. Greenpeace, Friends of the Earth, the Center for Food Safety and four other groups said they aimed to swamp companies with letters, e-mails and telephone calls from consumers the groups claim are worried about the lack of safety testing and labels on foods containing gene-altered crops. The article says Campbell Soup, the world's biggest maker of soups, is the first company targeted by the coalition. The New Jersey-based firm licensed the first genetically modified food -- the Flavr Savr tomato, which was engineered for a longer shelf life. "Campbell Soup is an American icon," said Rep. Dennis Kucinich (D-OH). "People are largely unaware that the food they are eating is genetically engineered." Kucinich supports the new campaign and has sponsored legislation to require labels on biotech foods, the article notes. "All of the foods we produce are safe and meet all federal government requirements, including labeling," said John Faulkner, a Campbell spokesman. 

Vermont Sheep Farmers Go to Court Against USDA. Vermont farmers have gone to court to try to prevent USDA from destroying their sheep because they may carry an ailment similar to "mad cow" disease in cattle, according to a REUTERS article. USDA, which has been closely monitoring all American livestock since the 1996 outbreak of mad cow disease in Europe, wants to destroy sheep on three Vermont farms as a precaution, the article says. "I don't want any mad cow problem in America, I can tell you that right now," said Agriculture Secretary Dan Glickman at a Rotary Club meeting. Lawyers for the farmers went to court in Montpelier, VT, to seek a restraining order to stop the USDA. 

No Target Date for New Trade Talks Expected. Leaders of the Group of Eight (G-8) countries, meeting Okinawa, will not set a target date for launching a new round of global trade talks, a senior G-8 official said Thursday, KYODO NEWS SERVICE reports. The officials says a joint statement to be released Sunday will say simply that the talks should start as quickly as possible. The talks will be conducted through the World Trade Organization. The article quoted the official saying, "The communique will not set a target such as by the end of this year. From a realistic point of view, nobody thinks a new round will be launched by the end of this year." Leaders from the G-8 countries -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- will gather in Nago from Friday to Sunday for their annual summit. KYODO says not setting a target day for launching new talks "underscores wide differences among the Group of Seven (G-7) industrialized countries -- the G-8 minus Russia -- over a specific agenda for the round." The article adds that another obstacle is developing countries' objections to starting the new global trade round. Developing nations, which make up the bulk of the Geneva-based WTO's 137 members, have said they will refuse to consider taking on new liberalization commitments until their problems are addressed, according to the article. 

USDA Revising Cheese Standards. USDA is proposing to revise the standards for grades of Swiss cheese and Emmentaler cheese. In response to requests from The Wisconsin Dairy Products Association and the Wisconsin Cheese Makers Association USDA is proposing to revise federal Swiss cheese grade standards to allow a smaller eye size in Grade A Swiss cheese and to remove cheese block size recommendations. USDA is also proposing to define an eye size range for Grade B Swiss cheese, clarify the color requirements for Grades A and B Swiss cheese, correct minor errors that currently exist in classification tables, and make minor editorial changes to give the standard a more uniform appearance and make it easier to use. USDA grade standards are voluntary standards developed to facilitate the marketing process. Manufacturers of dairy products are free to choose whether or not to use these grade standards. The proposed changes will be published in today's Federal Register. Comments postmarked by Sept. 18 should be sent to Duane R. Spomer; Chief, Dairy Standardization Branch, Dairy Programs, Agricultural Marketing Service, U.S. Department of Agriculture, Room 2746-SB, P.O. Box 96456, Washington, DC 20090-6456; faxed to (202) 720-2643; or, e-mailed to Duane.Spomer@usda.gov.

July 19, 2000

Glickman's New Biotech Approach. Agriculture Secretary Dan Glickman took a somewhat new approach to promoting the benefits of biotechnology Monday in a speech before the United Nations Economic and Social Council. Instead of touting biotech's benefits and continuing the war of words with Europe over the worth of the technology, Glickman appealed for consideration of the Third World's need for what biotechnology can offer. 

Organic Food Standards Rule by Year's End. USDA says 40,774 public comments were submitted on its revised National Organic Program proposed rule. The comment period for the proposed rule, which would establish national standards for the production and handling of organically produced products, closed on June 12. A final rule is expected by the end of 2000. 

Anti-Cancer Extract from Common Weed. A common weed called mayapple may offer an alternative to an Asian plant that's been harvested almost to extinction for an anti-cancer extract, says Agricultural Research Service administrator Floyd Horn. "Besides providing a dependable, long-term supply of the anti-cancer drug, the new extraction method--if adopted--could turn the American mayapple into a new alternative crop for U.S. growers," Horn said. ARS and University of Mississippi scientists developed the new extraction method. 

IDFA Likes New Dairy Pilot Program. The International Dairy Foods Association (IDFA) has voiced strong support for USDA's newly released final rule on a milk forward contracting pilot program. The final rule incorporates the suggestions that IDFA and several of its member companies gave USDA this spring on how to make the program a success. 

USTR Slapped on Wrist by WTO. A dispute settlement panel of the World Trade Organization has concluded that the United States acted inconsistently with WTO rules when it changed import requirements for a period of six and one-half weeks last year before WTO dispute proceedings had concluded in the bananas dispute. However, the panel rejected arguments by the European Union that U.S. tariffs now in place in the bananas dispute violate those rules. The panel's ruling requires no action by the United States. 

Chemical Pesticides Should Be Retained. There is no reason to abandon chemical pesticides, says a new report from the National Academies' National Research Council. However, more government-sponsored research and incentives are needed to spur the development and use of alternative pesticides or new chemical pesticides that pose fewer risks to humans and the environment, and that are not too costly to use. 

CSPI Calls for Halt to Functional Food Claims. The consumer activist Center for Science in the Public Interest (CSPI) wants the Food and Drug Administration (FDA) to halt the sale of dozens of "functional foods" that contain ingredients CSPI says are not considered by the agency to be safe. In 158 pages of written complaints concerning more than 75 products, CSPI also urged the FDA to order manufacturers to stop making false and misleading claims about their products.

News Summaries

E-Commerce Can Link Farmers to Consumers. Food sector experts believe e-commerce may soon revolutionize the supply chains that bring food to the marketplace by linking farmers to retailers through scores of intermediaries, REUTERS reports from Chicago. About 9,000 e-commerce sites will be on the World Wide Web by next year and about 10% will be deal with agriculture, according to Ejnar Knudsen, chief executive officer of vTraction.com, a unit of Dutch lender Rabobank. The article says web-based commerce has the potential to alter the farm sector landscape by providing small and large producers equal access to information, putting them on the same footing in the marketplace, Henry R. Winogrond of Orlando, Fla.-based start-up World Commerce Online Inc., told a recent conference on world agribusiness in Chicago. "I think this really has the potential to be one of the greatest leveling tools ever developed," said Winogrond. "There has never, ever in the history of information technology been this degree of quality of information for this little money." 

Arizona Counties Declared Disaster Areas. Agriculture Secretary Dan Glickman has declared seven of Arizona's 15 counties as agricultural disaster areas due to drought, making farmers in those areas and 12 neighboring counties, including counties in Utah, New Mexico and Colorado, eligible for emergency low-interest loans. Glickman's disaster declaration covers seven of Arizona's 15 counties: Apache, Cochise, Graham, Greenlee, Pima, Pinal and Santa Cruz. Four other contiguous Arizona counties also are covered by the declaration (Gila, Maricopa, Navajo and Yuma) and therefore are eligible for the same benefits. Other contiguous counties in New Mexico are Catron, Cibola, Grant, Hidalgo, McKinley and San Juan counties. San Juan county in Utah and Montezuma county in Colorado are included in the declaration as contiguous counties. This designation makes qualified family-sized farm operators in both primary and contiguous counties eligible for emergency low-interest loans from USDA. Farmers in eligible counties have eight months to apply for the loans. Each loan application is considered on its own merits, taking into account the extent of losses, security available, repayment ability, and other eligibility requirements. 

Senator Coverdell Dies at 61. Sen. PaulCoverdell (R-GA) died Tuesday following brain surgery to relieve pressure from a cerebral hemorrhage. He was 61. Doctors said death was caused by swelling in the brain. THE ASSOCIATED PRESS says his death came at the height of his quick rise to Republican leadership, just days before a national convention that was to bear the imprint of his tireless work in Congress. Coverdell, a member of the Senate Agriculture Committee, was hospitalized Saturday after complaining of severe headaches. He had surgery Monday to relieve pressure from a cerebral hemorrhage. "Paul Coverdell was one of the kindest and most decent men I met in my entire life,'" said former President Bush, who appointed Coverdell director of the Peace Corps in 1989, a position he held until 1991. "We shall miss him as we would miss our own son." The AP article noted that Coverdell signed on early as the Senate liaison to Texas Gov. George W. Bush's presidential campaign and was busy days before his death preparing for the Republican National Convention, which begins in Philadelphia in two weeks. "Paul's soft-spoken, hard-working ways will be sorely missed by all of us who knew him and loved him," the younger Bush added. Coverdell was first elected to the Senate in 1992 by defeating incumbent Democrat Wyche Fowler Jr. The AP article says he became the fourth-leading Republican in the Senate, serving as GOP Conference secretary and sitting on several committees, including agriculture, finance and foreign relations. 

Sales to Cuba Would Be Tough. U.S. food exporters would have a difficult time selling products to Cuba under a proposed compromise in the House that is designed to ease sanctions, REUTERS reports, quoting Tim Galvin, administrator of USDA's Foreign Agricultural Service. Galvin said the potential for U.S. exporters to make sales "would be very limited" under the House language because U.S. government or private sector financing are not allowed. The Clinton administration wants an approach that allows the president to make decisions about export credit guarantees and other financing arrangements, Galvin said. Last month, House Republican leaders agreed to a compromise that would ease the 38-year-old U.S. trade embargo on Cuba to allow U.S. food and medicine sales, REUTERS notes. The measure, which is slated to become part of an annual farm spending bill, would prohibit public or private financing of U.S. food sales to Cuba and would bar imports from Cuba. Sen. Pat Roberts (R-KS), during a hearing by the Senate Agriculture Committee at which Galvin testified, said he was concerned the "sanctions language in the House will tie our hands" on food sales to Cuba.
 

July 18, 2000

New Cotton Business Seen with U.S.-China Trade. U.S. cotton industry officials see new business opportunities for both the United States and China through the World Trade Organization accession agreement designed to bring China into the world trading community. The forecast came from Phil Burnett, National Cotton Council (NCC) and Cotton Council International (CCI) executive vice president, speaking to news media in Beijing. 

Roberts Calls for Cuban Reforms to Promote Trade. Sen. Pat Roberts (R-KS) says Cuba must be viewed as a long-term trade partner, not a short term market. He called for economic and social reforms by Cuba and urged elimination of U.S. sanctions on Cuba. Roberts returned late Sunday from a three-day trip to Cuba that included a ten- hour meeting with President Fidel Castro. He was joined on the trip by Sens. Max Baucus (D- MT) and Daniel Akaka (D-HI). 

Milk Pricing Pilot Program Announced. Dairy farmers will have a new, voluntary tool for marketing their milk used in non-fluid products beginning Aug. 1. USDA has issued final rules to implement a dairy forward contracting pilot program for milk marketed under the federal milk marketing order program. The pilot program will be in effect for milk marketed Aug. 1, 2000, through Dec. 31, 2004. 

Teachers Favor Biotechnology Curriculum. Biotechnology ranked first on a list of 11 topics that middle school and high school teachers would like to include in future curricula, according to a survey conducted at the National Science Teachers Association annual convention in Orlando, FL, in April, the American Farm Bureau Federation reports. 

More Food Aid for Africa; Glickman to Visit There USDA will donate an additional 350,000 metric tons of U.S. wheat, corn, rice and other commodities to meet urgent needs in Africa and elsewhere. In total this year, USDA will provide approximately 1 million tons in commodity donations for needy countries in Africa, nearly triple the tonnage provided for all of Africa last year.

News Summaries

USDA Panel to Discuss `Terminator' Genes. USDA's advisory committee on biotechnology will meet next week to discuss the role of the USDA in commercializing so-called Terminator genes and recommend research issues for the National Academy of Sciences to explore, REUTERS reports. A public meeting will be held July 26 and 27. The panel will consider the social and economic impact of the controversial Terminator gene developed by department scientists and Delta and Pine Land Co, a developer of cotton seeds, according to the article. The Terminator technology produces sterile seeds from a gene-altered crop. It has been criticized by some groups for its potential impact on poor farmers in the Third World, according to REUTERS. Among other agenda items are the collection of U.S. statistics on gene-spliced crops, budget priorities for fiscal 2002, and research topics for the National Academy of Sciences' permanent committee on biotech issues. 

G-8 May Seek New Trade Round This Year. KYODO NEWS SERVICE reports from Tokyo that the Group of Eight (G-8) major powers may issue a joint declaration at the upcoming Okinawa summit that includes a call for new multilateral trade talks before the end of this year, International Trade and Industry Minister Takeo Hiranuma hinted Tuesday. "Expectations are mounting that the G-8 members will reach an agreement" to strive for the launch of a new round of talks under the World Trade Organization (WTO) by the year-end. The article also says Hiranuma and European Trade Commissioner Pascal Lamy agreed Monday to promote efforts to launch the new WTO round by the end of this year. The United States and the European Union reached a similar agreement in late May. Hiranuma and Lamy remained opposed to narrowing the agendy for a new WTO round of talks. They support talks that include a variety of issues such as investment and competiton rules and electronic commerce.
 

July 17, 2000

Sheep Flocks to be Destroyed in Vermont. USDA will acquire 376 sheep from three Vermont flocks after four sheep were confirmed positive July 10 for a transmissible spongiform encephalopathy (TSE). USDA is purchasing one flock of 21 sheep and has issued an order to seize two other flocks of 355 sheep. The owners will receive fair market value for their animals, which USDA will then destroy to prevent the possible contamination of other livestock. 

Georgia Counties Declared Disaster Areas. Agriculture Secretary Dan Glickman has declared Georgia and parts of South Carolina and Florida agricultural disaster areas due to drought, making farmers in those areas eligible for emergency low-interest loans. "The devastating effects of last year's historic drought continue to plague many states again this year," said Glickman. "USDA is working to help farmers and ranchers hit hardest by these conditions." 

USDA Issues Crop Production Expectations. U.S. feed grain production in 2000 is projected at 278 million metric tons, up 7 million from a month ago and up 14 million from 1999, according to USDA. The June 30 Acreage report showed planted acres increased from earlier intentions for corn and oats, while sorghum and barley acres declined. The projection for 2000 corn production was raised 3% from last month because of the increased estimate of harvested acres. As of July 9, 74% of the corn crop was rated good or excellent, down from 78 percent last year. 

Environment Benefits from Biotech Crops. Farmers who plant biotech seeds benefit the environment by reducing the use of chemicals, fuel and energy, while increasing plant yields that lessen the need to farm land that may be more fragile, the American Farm Bureau Federation. 

Farm Groups React Positively to Estate Tax Vote. Senate passage Friday of legislation repealing the federal death tax by 2010 will not only help farm families across the country continue the businesses they have worked long and hard to build, but provide support for the rural communities that depend on these family-run businesses, according to the American Farm Bureau Federation.

News Summaries

Appropriations Bill Possible in Senate This Week. The Senate may begin debate this week on the 2001 agriculture spending bill, Congressional sources said. The House has passed its version of the USDA appropriations measure, but Senate action has been delayed up to now by partisan wrangling and the press of other business. Sources close to the Senate Appropriations Committee said the bill might be on the floor late in the week. It is unclear whether the Senate will stage a major confrontation over sanctions reform, the issue which delayed the House bill for weeks. An amendment by Sen. Byron Dorgan (D-ND) and others, added during committee consideration of the spending bill, would allow more trade with Cuba and other "rogue" nations than would the compromise language agreed by some farm-state Representatives and the House Republican leadership. That compromise, though supported by the leadership, is not part of the current House bill, and might be added in conference with the Senate. 

Lott Refuses to Schedule China Vote. The White House and business interests have waged a strong lobbying effort for a Senate vote on China's bid for permanent normal trade relations with the United States, but Senate Republican Leader Trent Lott refused on Friday to schedule a vote on the bill and cast doubt on its prospects of passage until September or later, REUTERS reports. Before taking up legislation, Lott said the Senate must complete before the end of July at least four more spending bills and a sanctions measure that would punish Beijing for alleged weapon sales to Pakistan and other states. "There is not that kind of urgency on China PNTR," Lott told reporters. "It could be done earlier or later." Senate Democrats said they may try to force a vote on the trade bill next week, with or without Lott's help, the article adds. REUTERS also says the White House fears Lott will put the trade bill on hold until just before the November election, jeopardizing its prospects for passage. The article also quotes aides who said Senate Democrats were discouraged because Lott continues to refuse to schedule a July vote on the trade bill, as they had hoped. "Delay is danger," Sen. Max Baucus (D-MT) warned. 

Buns and Beer Recalled in Japan. In a new series of contaminated food scares, REUTERS reports that Japan's top bakery is recalling thousands of curry-flavored buns believed to contain mold and a beer company withdrew a soft drink. The bakery's recall followed a major incidence of food poisoning this month when 14,000 people fell ill from drinking tainted milk from Snow Brand Milk Products Co Ltd's plant in Osaka, in western Japan. The article says Health Ministry officials said the plants would remain shut for about three weeks for nationwide inspections. Yamazaki Baking Co Ltd, also based in Osaka, said it had begun voluntarily recalling nearly 10,000 buns after receiving complaints from convenience stores on Thursday that the bread appeared to be moldy. Local public health officials said at least two people had complained of stomach pains after eating the buns, according to REUTERS. They said they were inspecting Yamazaki Baking's Osaka plant and questioning company officials. Yamazaki officials said they had not publicized their decision to recall the buns earlier for fear of a public backlash similar to that triggered by the milk poisoning, the REUTERS report said. 

Italy May Sue U.S. Tobacco Firms. REUTERS reports from Rome that Italy may give serious thought to suing U.S. tobacco firms because of harm caused to Italian smokers. The article quotes a Corriere della Sera newspaper report from Sunday. Such action would follow a decision last week to make U.S. tobacco companies pay huge damages to U.S. smokers. Codacons, Italy's main consumer association, said it had proposed that the government "begin legal proceedings on behalf of the Italian people directly in the United States," Corriere della Sera reported. REUTERS said Italy's agriculture minister, Alfonso Pecoraro Scanio, said any legal action in the United States would be within the power of Prime Minister Giuliano Amato. "We will decide the steps the government will take once we have received an opinion from the State Bar Association," Scanio, who has already had contact with lawyers in the United States, told Il Sole 24 Ore newspaper on Sunday. Italy's health minister, Dr Umberto Veronesi, plans to meet executives of Philip Morris, the world's largest tobacco company, in the near future, Corriere della Sera said. Codacons said the aim would be to obtain compensation for Italian smokers which they cannot get from their own country. 

Consumer Groups Urge GM Moratorium. Consumer groups from seven nations say the Group of Eight countries meeting in Tokyo should approve a moratorium on genetically modified seed and foods to help soothe public concerns over the technology's health and environmental effects, REUTERS reports. "We are gravely concerned about the current trend of developing genetic engineering on rice, the major staple crop for many Asian countries, and about a recent approval by the Japanese government for field plantation of GE (genetically engineered) rice," the groups said. The groups included the U.S. Organic Consumers Association and Britain's Genetic Snowball, according to REUTERS. The seven countries represented at the meeting were Malaysia, the United States, the Philippines, South Korea, Britain, Australia and Japan. GM food is on the agenda for the summit in southern Japan, but countries are sharply divided over its merits, says the article. 

Farmers Depending on the Internet. THE ASSOCIATED PRESS reports that farmers have begun marketing their crops through the Internet. That gives them access to radar that shows where rain is falling and provides price information that applies to their particular county. "Only until recently farmers had little reason to go to the Internet other than for information," said Dave Abbott, president and CEO of the computer Web site E-Markets. "If farmers have more compelling reasons to go online, you'll see the interest grow higher." Ames, IA, based E-Markets offers grain elevators an Internet application called Decision Rules for Contracts that allow forward marketing and pricing of commodities, the AP article says. A farmer can choose from several marketing options. For example, he can promise to deliver 10,000 bushels of corn in 100 days for the average price over that period. "Instead of picking a day to sell or responding to a banker who says he needs a bank payment or loan payment today, this helps farmers become more disciplined," Abbott said. About 250 local elevators offer farmers the program, which costs "pennies per bushel," he said. "Consumers are looking for food products that are grown or raised or prepared in certain ways," Abbott added. "That's being communicated back to the farm level." The AP article also said the Internet gives farmers a broader audience for their products, according to Ron Mortensen, a market adviser in Fort Dodge. Companies willing to pay a premium may ask producers for certain attributes in the commodities. "With unique value-added products developed into foods or feed, that's where the Internet will play a contracting opportunity," said Kim Pendleton, president and CEO of St. Paul, Minn.-based DirectAg.com. 

Philippines Dispute over Poultry Restrictions. THE WALL STREET JOURNAL reports the Philippine government and the country's private food sector are arguing over the government's restrictions on imported poultry meat, according to documents issued by the government Monday. The Philippine Federation of Food Industries Inc., a food industry association, sued Philippine Agriculture Secretary Edgardo Angara in June for not approving applications by the association members for a veterinary quarantine certificate, or VQC, that will allow them to bring in 1,367 metric tons of poultry meat, according to the article. The Philippine Department of Agriculture issued Monday a copy of the group's petition and the department's response. The article says the group claims it followed all legal requirements needed to import the meat and added that the failure to gain approval hurt their business since its member companies already contracted the imports from the First International Exchange Corp., a U.S.-based supplier and committed a certain amount to local buyers. Angara, however, argued in a response filed at the Manila Regional Trial Court, that the company failed to follow the government rules on meat imports, the Journal article says. In a response to the court July 12, Angara stressed that his department has "justifiable grounds for the non-issuance of the VQCs."
 

July 14, 2000

Agriculture Panels Have Busy July A flurry of hearings will make July a busy month for both the House and Senate agriculture committees, though major legislation sought by both panels remains in doubt. 

Supply Controls: A Comeback in Unexpected Places? Production controls for most commodities were abolished by the 1996 "Freedom to Farm" law, and there is little likelihood that they will be revived soon. But within the past week, supply management seemed to make something of a comeback – though not for the commodities that might first come to mind. 

Farm Credit System Divided Over National Charters The Farm Credit System's lobbying arm says the decades-old cooperative lending system needs the "operating flexibility" that will come from national charters allowing lending units to operate nationwide. But the Texas Farm Credit Bank disagrees and has filed suit to overturn the new procedures.

News Summaries

Beef Herd Expansion Ahead? Good prices for feeder cattle may be pushing U.S. cow-calf operators toward expansion plans for the first time in several years, analysts interviewed by REUTERS say. The last peak in animal numbers was in 1996. Strong beef demand and low feed prices have contributed to current relatively good returns, the analysts said.
 

July 13, 2000

USDA Announces Pork Checkoff Referendum. Pork producers who have owned and sold one or more pigs or hogs between Aug. 18, 1999, and Aug. 17, 2000, are eligible to vote in a referendum to decide if the promotion and research program will continue. Kathleen Merrigan, USDA Agricultural Marketing Service administrator, said AMS received 1,005 comments after proposed voting procedures were made public last spring. 

House Panel Hears from Farm Groups. The House Agriculture Committee Wednesday heard from national farm organizations on the problems facing farmers and the need for congressional action. The hearing was part of a series of sessions the panel has conducted this year in preparation for writing new farm program legislation. 

Food Processors React to Appropriations. Food processors, reacting to a House vote Tuesday to approve the agricultural appropriations bill, said the measure included "a number of priorities advocated" by the National Food Processors Association. A key item in the bill for the NFPA was a call for Food and Drug Administration to unify inter-agency efforts, particularly with USDA, to address regulation of biotech foods. 

Conventional Stock May be Best Way for Biotechnology. Progress by a team of Agricultural Research Service scientists shows that biotechnology's best shot at improving livestock may be to help conventional breeders identify genetically superior animals. "This team of 15 scientists is generating a vast amount of new genetic information that's being shared with researchers around the world," said Floyd P. Horn, administrator of USDA's Agricultural Research Service. The team is based at the Roman L. Hruska U.S. Meat Animal Research Center (MARC) operated by ARS at Clay Center. 

Pasture Recovery Gets $40 Million. USDA's Farm Service Agency Administrator Keith Kelly says about $40 million will be issued to producers under the Pasture Recovery Program (PRP). On March 13, Agriculture Secretary Dan Glickman announced the program, designed to help farmers whose pastures were severely damaged by drought in 1999 re-establish forage crops. Eligible land included pasture which was normally grazed by livestock, but was so damaged by drought that seeding was required to reestablish the forage crop. 

AFBF Denounces EPA TMDL Decision. American Farm Bureau Federation President Bob Stallman says the Environmental Protection Agency's decision to proceed with a final rule on total maximum daily loads (TMDLs) would "cripple farms, ranches and forestry operations at a time when producers can least afford new regulations."

News Summaries

Near Record Corn Crop Seen. REUTERS reports that farmers will harvest a near-record 10.01 billion bushels of corn this year, 273 million bushels more than thought a month ago. That, says the news agency, may mean lower grain and oilseed prices across the board. Soybean production could total a record 2.94 billion bushels, 297 million bushels more than the 1999 crop, and total cotton production could reach 19.3 million bales weighing 480 pounds each, the article says. Wheat was projected to total 2.243 billion bushels, a 3% decline from the 1999 crop. "Corn's headed south now. Soybeans are going to head south," the article quoted Stewart Ramsey of the consulting firm WEFA. Analyst John Baker of World Perspectives also pointed to pressure for lower prices, including large -- and growing -- surpluses of corn and soybeans. The USDA monthly report on supply and demand also lowered forecasted farm prices of wheat and corn by 15 cents a bushel and the average soybean price by 10 cents from June. Corn and wheat season-average prices would be the lowest in 14 years and soybeans the lowest in 28 years, says REUTERS. 

Rain, Hail Damage Ukraine Crops. Heavy rainstorms and hail on July 4-5 damaged more than 200,000 hectares of crops in western, central and southern parts of Ukraine, Emergencies Minister Vasyl Durdynets said late on Tuesday, according to a REUTERS report. The article says officials have not yet estimated crop losses, but analysts say large areas under sugar beet and winter grains were seriously damaged. Two people were killed and more than 10 injured and some 800 small towns and villages were without power, the article said. REUTERS also reports that unseasonable frosts in May affected some 900,000 hectares of Ukraine's spring and winter crops, and agricultural officials said then that losses to local farms totaled more than 450 million hryvnias ($83 million). Last year May frosts cost Ukrainian farming over $130 million. REUTERS says the agriculture ministry has regularly said Ukraine's grain crop will total 24.5 million tonnes in 2000, but analysts say bad weather, lack of funds, and slow reforms in the farming sector may cause the crop to fall to 21-22 million tonnes. Ukraine harvested 24.4 million tonnes of grain in 1999, its lowest total since World War II. 

Confidence Builds for Senate China Vote. There's growing confidence among Senate leaders that a vote can be held yet this month on permanent normal trade relations (PNTR) for China, REUTERS reports. Republicans and Democrats have agreed to work out a compromise on legislation that would punish Beijing for alleged weapons sales, the article says. "I don't need to have any more assurance than what Senator (Trent) Lott (R-MS) has given me that we're going to do our level best to get it done this month," Senate Democratic Leader Tom Daschle (SD) told reporters after a closed-door meeting with Republican Leader Lott and senior White House officials. When passed by the Senate and signed into law, the measure would end the annual ritual of reviewing Beijing's trade status and guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation, REUTERS says. In exchange for the benefits, China would open a wide range of markets, from agriculture to telecommunications, to U.S. businesses under the terms of a landmark agreement ushering China into the World Trade Organization. PNTR was approved by the House in May. 

Iowa Farmers Pessimistic on Economy. THE ASSOCIATED PRESS reports from Iowa that only about one in eight Iowa farmers believes the general farm economy will improve in the next five years. That's the most pessimistic outlook in 18 years, according to Iowa State Extension. The article says just 12% of Iowa farmers think the farm economy will get better, according to the annual Iowa Farm and Rural Life Poll, while 64% think the economy will get worse and 24% expect it to stay about the same. The previous low point was in 1994, when only 15% of respondents expected improvement. The article quotes Paul Lasley, an Extension sociologist: "I think in general it's a shroud of uncertainty and concern that farm prices and the farm economy continues to languish behind the general economy." A variety of issues, most of them beyond the control of farm families, contributes to the pessimism, including low commodity prices, rising interest rates and fuel costs, Lasley said. 

U.S., Vietnam Again Work Out Trade Agreement. THE WALL STREET JOURNAL reports that for the second time in a year, the United States and Vietnam have reached an agreement in principle to liberalize trade between the two countries. Negotiators from the two countries reached agreement after a week of negotiations. The agreement should make it easier for U.S. companies to sell products in Vietnam, the article says. Under the pact, Vietnam would reduce tariffs on a host of products, including agricultural and industrial goods. The agreement also calls for Vietnam to adopt global standards that protect intellectual property and to allow U.S. companies to invest in Vietnamese joint ventures, officials said. President Clinton is expected to sign the pact with Vietnamese Trade Minister Vu Khoan later this week, THE WALL STREET JOURNAL says. While administration officials say they have an agreement in principle with the Vietnamese, some apprehension remains. The two sides reached largely the same agreement a year ago, but Hanoi later refused to sign, arguing certain provisions were unfair, according to the article. U.S. executives with ties to Vietnam say Vietnamese officials in Hanoi thought their negotiators in Washington last year went too far with concessions to the United States. The article says that since then, Vietnamese officials have dragged their feet about signing the pact. It was only in recent months that Hanoi, under pressure from businesses in Ho Chi Minh City, has indicated a willingness to finalize the pact. He

July 12, 2000

EPA Moves on TMDLs, Tells Congress to Change Its Mind. The Environmental Protection Agency Tuesday announced it would move ahead with actions to reduce water pollution throughout the country, in cooperation with the states, through total maximum daily loads (TMDLs) that would establish limits to reduce pollution. The agency also called on Congress to retract a legislative rider to an emergency supplemental appropriations bill approved just before the July 4 recess. 

Scientists Release Biotechnology Report. Seven academies of science from around the world, including five from developing nations, issued a white paper Tuesday spelling out what they believe is the promise of agricultural biotechnology to alleviate hunger and poverty in the Third World. The paper urges governments to base their decisions regarding biotechnology on sound science and strongly encourages private corporations and research institutions to share their technology with scientists and farmers in developing countries who desperately need it. 

Environmental Reviews for Trade Pacts. Future trade agreements will be subject to tougher environmental reviews, according to a decision announced this week by the Clinton Administration. An executive order, signed by President Clinton last November, commits the United States to careful assessment and consideration of the environmental impacts of future trade agreements including written reviews of certain major trade agreements, and directs the U.S. Trade Representative and Council on Environmental Quality to develop implementing guidelines. 

Cottonseed Payments Announced. USDA's Farm Service Agency Administrator Keith Kelly says that $79 million in payments for the 1999-crop cottonseed payment program will be made as of Monday, July 10. The program was first announced by Secretary Dan Glickman on March 29 to help farmers offset losses from low 1999-crop cottonseed prices. 

Philippine Cotton Crop Down from 1999. Cotton production in the Philippines this year is expected to total 500 tons, a significant decline from the 650 tons produced in 1999 and an even more dramatic decline from the 974 tons produced in 1998. Hectares planted also have declined with 3,665 hectares planted in 1998, 2,170 hectares planted in 1999 and 1,700 hectares projected for 2000. One hectare equals 2.47 acres. 

Canadian Grain, Oilseed Group Formed. A national organization of Canada's cereal, oilseed, and special crop producers has been created to represent grower interests in federal farm policy making. The establishment of the Grain Growers of Canada (GGC) comes after six months of planning and consultation with grain producer organizations across the country.

News Summaries

Senate Democrats Fight Against China Sanctions. Senate Democrats continued to fight Tuesday against a measure to impose sanctions on China for alleged weapon sales. They warned the sanctions would hurt U.S. companies and provoke a backlash from Beijing, REUTERS reports. Senate Majority Leader Trent Lott (R-MS) wants a vote this week on the sanctions bill. But Democrats have demanded that Lott first schedule a vote this month on permanent normal trade relations (PNTR) with China. "The bottom line is that if the Senate is on record with this harsh rhetoric and these extraordinarily harmful sanctions, I think it could seriously poison the well and cause maybe some reaction on the part of the Chinese that would be even more counterproductive when we consider PNTR," Senate Democratic Leader Tom Daschle (SD) told reporters. The sanctions bill would require sanctions against China and groups or companies that help nations develop oracquire nuclear, chemical and other deadly weapons. REUTERS says Senate support for the Thompson bill has increased in recent weeks and Republican aides said it was likely to pass, despite a White House veto threat and dire warnings from big business. The U.S. Chamber of Commerce said the sanctions mandated by Thompson would end up hurting multinational corporations, small businesses and American farmers. 

Farmers Dump Milk in Wisconsin. About 300 dairy producers dumped $98,000 worth of milk last week in protest to low prices, BLOOMBERG NEWS reports from Bloomer, WI. They also want the government to help increase milk prices. Milk prices are in their worst slump in two decades. Production had been increased to record levels, but over-production has led to an over supply of dairy products and lower prices. Compounding the surplus is the spread of big, low-cost farms that make it cheaper to produce milk, says the BLOOMBERG article, and while total demand for milk is up, U.S. consumers on average are drinking a lot less of it, preferring sodas, juices and bottled water. "We have to let people know that we're serious about needing a price increase," said Don Moos, a dairy producer from Chetek, WI, who dumped milk during the Independence Day holiday protest. "All segments of agriculture are in the pits right now." 

Georgia Wants Disaster Aid. Georgia Commissioner of Agriculture Tommy Irvin has asked the governor to officially request that Agriculture Secretary Dan Glickman declare all of Georgia's 159 counties disaster areas due to drought. The request comes following a meeting of USDA's State Emergency Board in Athens, GA, which reviewed damage assessment reports from across the state. The reports showed sufficient production losses to warrant disaster area designation, said Commissioner Irvin. Disaster area designation will allow all family-sized farms in qualifying counties to be eligible to be considered for low-interest emergency loans from USDA's Farm Service Agency. Each application for an emergency loan will be considered on its own merits, taking into account the extent of losses, security available, repayment ability and other eligibility requirements. 

Agriculture Funding Passes House. The House approved a $75.4 billion agriculture appropriations bill Tuesday that could become the vehicle to ease sanctions on food and medicine sales to Cuba. REUTERS reports the bill passed 339-82, a day after language was deleted to exempt food and medicine from unilateral U.S. economic sanctions. However, the sanctions portion could come back later, perhaps as part of the agriculture bill. Farm-state lawmakers and an anti-Castro bloc in the House agreed to a compromise on Cuba sanctions that would prohibit government or private U.S. financing for food sales to Havana and make he current set of travel regulations law. The funding bill now goes to the Senate, which has a more liberal provision on food and medicine trade as part of its version. REUTERS says an aide to Rep. George Nethercutt (R-WA), sponsor of the original House language, said the final version may be written later this month. 

Vanclief Wants U.S. to be Less Intrusive on Credit Rules. Canada's Agriculture Minister Lyle Vanclief wants the United States to allow progress in talks to establish rules for agricultural export credit guarantees, REUTERS reports. Members of the 29-nation Organization for Economic Cooperation and Development (OECD) will meet again in Paris next week to work on the issue, Vanclief told reporters after a meeting with Agriculture Secretary Dan Glickman. Vanclief said the talks now are stalled "because the U.S. has not been prepared to negotiate. Hopefully, they can move ahead so we can get a firm set of rules, rather than freeze in place what is happening at the current time," Vanclief said. REUTERS said the United States, which is one of the biggest users of credit guarantees to help finance farm exports, has found itself on the defensive in the negotiations. Competitors complain the United States' aggressive use of export credit guarantees gives U.S. exporters an unfair advantage in the world market.

July 11, 2000

Water, Waste Grants, Loans Announced. USDA will provide more than $226 million to improve drinking water and wastewater service in rural areas. The funds, a combination of grants and loans, will benefit 380,000 rural residents through 113 projects in 41 states. 

EPA Moving on Stricter Pollution Controls. Despite Congress calling for a delay, the Clinton administration is considering imposing new pollution controls aimed at cleaning up lakes and streams, according to the American Farm Bureau Federation. 

`Sensible' Conservation Programs Needed. American Farm Bureau Federation President Bob Stallman says federal conservation programs must focus more than ever on delivering "sensible solutions economically." Stallman emphasized formal participation in federal conservation programs depends largely on the state of the farm economy. 

USDA Study Shows Decline in Food Stamps. A new USDA study shows participation in the Food Stamp Program has experienced an unprecedented decline since 1994. Average monthly participation peaked at 27.5 million that year, then declined to 18.2 million last year.

News Summaries

Business Wants Senate China Vote. Business leaders are lobbying Senate Majority Leader Trent Lott (MS) to bring permanent normal trade relations with China to a vote this month, REUTERS reports. It has been rumored that the issue could be set aside until September while Congress works on sanctions measures and spending bills. Lott still has not set a date for PNTR for China although lobbying efforts from business have been going on for weeks. Lott has said the Senate should immediately approve a sanctions measure aimed at curbing alleged Chinese weapon sales to Pakistan and other nations. He also wants the Senate to complete work on appropriations bills before moving to the PNTR issue. The U.S. Chamber of Commerce said on Monday it would intensify its lobbying effort on Capitol Hill. Unlike the House, where two out of three Democrats voted against the measure, the trade bill enjoys broad bipartisan support in the Senate. Sixty-three senators said in a recent REUTERS poll that they would vote in favor of PNTR, enough to override a vote-blocking filibuster. 

Vanclief in Washington This Week. Canadian Agriculture Minister Lyle Vanclief is in Washington this week to talk trade with U.S. officials, REUTERS reports. "The minister's trip will provide him with the opportunity to meet face-to-face with American policy makers to discuss bilateral agricultural trade, the World Trade Organization agriculture negotiations and other international trade policy issues," a ministry statement said. While in Washington, Vanclief is to meet with Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky. 

EU Will Offer End to Banana Dispute. The European Union will offer former colonies in Africa and the Caribbean new banana import rules that allocate sales licenses on a first-come, first-served basis. BLOOMBERG NEWS reports the offer is a bid to put an end to a trans-Atlantic trade dispute. Negotiations on a new proposal to effectively force shippers to race their bananas to EU ports in a bid to offload their produce are scheduled. Ministers rejected a proposal for a tariff-only import system from 2006. The World Trade Organization last year told the EU to overhaul its banana import rules, which give preferential treatment to former colonial African and Caribbean banana producers over Latin American bananas sold by U.S. companies such as Chiquita Brands Inc. and Dole Food Co. Since the EU failed to propose new import rules according to WTO regulations, Ecuador and the United States have been allowed to impose $393 million annually in punitive tariffs on EU goods such as champagne and cheese. 

Italy Farm Group Says Label GMOs. The largest farmer organization in Italy has recommended the labeling of genetically modified animal feed. The best way for farmers to guarantee safety and the ability to trace feed is to produce it themselves, the group, Coldiretti, said, according to a REUTERS report from Rome. The EU Commission, which has already released a White Paper on food safety, was likely to propose a threshold for the labeling of GM inputs in animal feed around September this year, industry officials said. EU members voted in October last year to force food producers to label products with GMOs if they cannot guarantee that each of the ingredients contains less than 1% GM material. Feed compound officials say there is no evidence that genetically engineered feed passed on to humans in the food chain via animals. Coldiretti has promoted a "safe sowing" campaign in which Italian farmers are encouraged to ask suppliers to provide certificates saying their seeds are not genetically altered. Pecoraro Scanio, a member of the Greens, has opposed using genetically modified crops in open fields because of concerns over possible environmental and health risks from GMOs. 

Philippine Millers Want to Import. Philippine feed millers want licenses from the government to import 100,000 tons of corn at a lower tariff to shore up an expected shortfall in corn production. Continuing skirmishes between government troops and Islamic rebels in parts of the southern Mindanao region have affected major growing areas, REUTERS reports. Congress approved in May 151,000 tons to be imported at a tariff of 35% compared with the normal rate of 65%. Import licenses for 51,000 tons of yellow corn already had been used up, and the feed industry required additional supplies of feed corn to meet current demand, the Philippine Association of Feed Millers Inc. said in a June 30 letter to the Department of Agriculture. Officials at the department were not immediately available for comment. The Philippine Agriculture Department expects corn production this year to reach 4.8 million tons, compared to 4.6 million tons last year. But industry executives and traders have said they do not expect that much to be produced. 

EU Ready to Clear Merger of Novartis, AstraZeneca.The merger of agricultural businesses Novartis AG and AstraZeneca PLC is about to be approved by the European Commission's antitrust regulators, THE WALL STREET JOURNAL reports. The article quotes people familiar with the situation and notes that the two companies have offered divestitures to satisfy competition concerns. Although a formal decision isn't expected until Aug. 4, a recent draft recommendation showed the commission would approve the merger. Officials have been investigating the merger for nearly four months. Officially, the commission wouldn't comment on its antitrust inquiry, and the companies said only that they expect the deal to receive regulatory clearance. In the United States the merger is still under regulatory review by the Federal Trade Commission. The European Commission has been concerned that the new agribusiness venture, Syngenta AG -- which will have 23,000 employees and $8 billion (8.45 billion euros) in annual sales -- could create a dominant position in the market for certain crop-protection substances such as fungicides used on cereal crops. In response to concerns in Europe and the United States, the companies recently offered to divest themselves of Novartis's Flint operation and AstraZeneca's Acetochlor unit. Flint produces "second-generation stobilurin," the basis of fungicides that the commission had identified as a potential antitrust problem. Acetochlor makes corn herbicides, which also were flagged by the commission as a potential problem. 

USDA Considers Sugar Production Controls. USDA is considering asking sugar beet farmers to plow under some plantings in an effort to further control sugar surpluses, REUTERS reports. Most of the sugar beet harvest takes place in October, so a decision must be made soon. Growers would be offered government-owned sugar as a "payment in kind" for reducing production. "It's something being discussed. That's no secret," said Parks Shackelford, associate administrator of the Farm Service Agency. There is a $20,000 limit on payments to sugar growers under the 1985 PIK provision, which would limit the reduction likely on a farm. However, the cumulative effect could be a meaningful cut in this year's production and surpluses in the coming year. USDA purchased 132,000 short tons of sugar last month at a cost of $54.13 million, to bolster domestic sugar prices. Agriculture Secretary Dan Glickman said USDA was willing to buy up to 150,000 tons in hopes of boosting prices enough to avoid large-scale forfeiture of sugar price-support loans. 

Carousel Retaliation Changes Coming Soon. U.S. Trade Representative Charlene Barshefsky says a decision will be made "shortly" on changes in European products targeted for $308 million in retaliatory duties resulting from two U.S.-European Union trade disputes, REUTERS reports. The goal, says Barshefsky, is to made the decision before the G8 summit next week in Japan. That annual meeting provides leaders of the seven richest nations and Russia a chance to discuss economic and political issues. Under a new law, the USTR must revise every six months the list of EU goods targeted for retaliation until Europe changes its beef and banana trade policies to comply with World Trade Organization rulings. The deadline for the current round of changes was June 19. Washington imposed 100% duties on $116.8 million worth of EU goods last July to pressure the EU into dropping a longtime ban on beef produced with artificial growth hormones. Another $191.4 million of duties was imposed against the EU in April 1999 over access to the banana market.

People in the News

Pork Board Appointees. Agriculture Secretary Dan Glickman has announced seven appointments to the 15-member National Pork Board. Five appointees will serve three-year terms, one appointee will serve a two-year term, and one appointee will serve a one-year term. One-third of the Board's members are appointed each year. The seven were chosen from among 11 pork producers nominated by the National Pork Producers Delegate Body during its meeting in Kansas City, MO, in March. The five appointees to serve three-year terms are Chester T. McManus, Fulton, SD; Marlin P. Pankratz, Mountain Lake, MN; Andrew Mark Reding, Howardstown, KY; Craig E. Christensen, Bouton, IA, and David S. Culbertson, Geneseo, IL. The appointee to serve a two-year term is James C. Pollock, Kinston, NC; and the appointee to serve a one-year term is Bradley K. Thornton, Eagle, ID. 

Tobacco Inspection Advisors Named. Fourteen members and their alternates have been named to the National Advisory Committee for Tobacco Inspection Services. Members and alternates will serve a two-year term ending May 24, 2002. Newly appointed members, followed by their alternates, are: Ernest Richard Terry, Madison, FL, and Jon Wallace Deas, Jennings, FL; James Emory Tate, Denton, GA, and David Harrell Lee, Alma, GA; Charles Murray Harden, Windsor, NC, and Elbert Pay Pitt, Macclesfield, NC; and Lynda Gilliam Bowers, Sanford, NC, and Charles Mosley Lambeth, Greensboro, NC. Reappointed members, followed by their alternates, are Terry Rye Gilbert, Danville, KY, and Benjamin Lye Clifford, Cynthiana, KY; William Hamilton Fritz, Cynthiana, KY, and Frances Ann Brown, London, KY; Kerry Hade Lyons, Tompkinsville, KY, and Charlie Benge, London, KY.; Richard Arnold Enoch, Mebane, NC, and Richard Joseph Jenks, Apex, NC; Clay Hester Vernon, Milton, NC, and Earl Brown Hendrix, Raeford, NC; John Leonard Hudson, Newton Grove, NC, and Margie Humphrey Spivey, Lumberton, NC; Kenneth Stephen Ring, Georgetown, OH and Larry Wayne Hall, Georgetown, OH; Donald Keith Allen, Latta, SC, and Floyd Coleman Worley, Nichols, SC; Jeffrey Lynn Aiken, Telford, TN, and Carl Hobert Bolton, Tazewell, TN; and Cynthia Kaye Compton, Richlands, VA, and Richard Lous Sutherland, Elks Creek, VA. Appointees may serve a maximum of three two-year terms as members and alternates. 

Milk Board Members Named. Secretary of Agriculture Dan Glickman has announced the appointment of two incumbents and seven new members to the National Fluid Milk Processor Promotion Board. Reappointed to serve second terms were Alan L. Faust, Cincinnati, OH, (Region 6); and John R. Jilbert, Marquette, MI, (at-large). Newly appointed were Mary E. Spencer, Chelsea, MA, (Region 2); Sylvia C. Oriatti, Rosemont, IL, (Region 3); Roger D. Capps, Carlinville, IL, (Region 8); James W. Turner, Memphis, TN, (Region 9); Michael H. Leb, Walnut Creek, CA, (Region 12); Richard Walrack, Los Angeles, CA, (Region 15); and Robert E. Baker, Omaha, NE, (at-large public member). The appointments for regions two and eight expire on May 31, 2002. The appointments for regions 3, 6, 9, 12,15, one at-large, and one at-large public member expire on May 31, 2003. 

Egg Board Gets Nine Members. Agriculture Secretary Dan Glickman has appointed nine members and nine alternates to the American Egg Board for the 2000-2001 term. All members and alternates will serve 2-year terms. The board administers an egg research and promotion program authorized by the Egg Research and Consumer Information Act of