June 30, 1999

Senate settles ag bill impasse.  Senate Republicans have agreed to debate the managed health care legislation the week of July 12, breaking the impasse that had kept the Senate from finishing work on the agriculture appropriations bill. With the stalemate broken, the Senate will wrap up the appropriations bill soon, but it could be after the week-long July 4 recess. Today, the Senate will consider the bill appropriating money for foreign aid and diplomacy.

Boehner wants milk orders gone.  Rep. John Boehner (R-OH) plans to offer an amendment today calling for an end to the 66-year-old federal milk marketing order system to give dairy farmers the "freedom to milk." Boehner will offer the amendment at the 10 a.m. markup of another legislative approach to changing milk marketing orders by the House Agriculture Committee.

Commerce investigates China in apple juice import probe.  The Department of Commerce will initiate a dumping investigation of apple juice concentrate imports from China. A complaint was filed June 7 by the U.S. apple industry. The International Trade Commission also conducted a preliminary hearing at which members of the apple industry presented evidence of economic injury from the Chinese imports.

Medical council finds little risk from BSE.  An arm of the American Medical Association finds the risk to U.S. consumers from bovine spongiform encephalopathy (BSE), related to the "mad cow" disease that struck Europe, is "minimal." BSE hasn't turned up in the United States, and adequate regulations exist to prevent it from developing in this country, the panel says. 

More livestock payments made by USDA.  USDA is making another $70 million in payments to farmers and ranchers under the Livestock Assistance Program. Payments are compensation for 1998 grazing losses from droughts and other natural disasters. Already livestock producers have received $200 million under the program. 

USDA proposes to amend shell egg grade standards.  USDA is proposing to amend the shell egg grade standards to simplify and clarify terminology used to grade shell eggs and remove information from the standards that is no longer of value to the industry.

Ag People In The News:

Joe Dial, former commissioner at the Commodity Futures Trading Commission, has joined E-Markets as business development director. E-Markets is an online marketplace for the agricultural community. It connects buyers and sellers of agricultural products and provides access to detailed market information through the Internet. Dial will be responsible for developing strategic alliances between E-Markets and major agribusinesses and food industry companies as well as agricultural producer associations and trade organizations.

Food Safety and Inspection Service Administrator Tom Billy has been named chairman of Codex Alimentarius, the international food standards organization. He will remain at his FSIS post during his tenure as Codex chairman. The election took place Tuesday in Rome. Billy has been vice chairman of the Codex Commission for two years and served as national coordinator for Codex and as U.S. delegate to the Codex Commission.

Ag News Summaries:

U.S., China spar publicly. U.S. and Chinese trade negotiators sparred publicly Wednesday over the issue of restarting suspended bilateral negotiations on China's accession to the World Trade Organization, KYODO NEWS reports from Auckland, New Zealand. At a news conference, Long Yongtu, China's vice minister for foreign trade, questioned the motives behind the long delay in china's WTO accession. Deputy U.S. Trade Representative Richard Fisher rejected the notion that the United States was trying to block China's entry. The "ball is in China's court," he said, "and when they wish to begin discussions, we are there to resume those discussions." 

Eizenstat on trade. President Clinton's nominee for deputy treasury secretary says the Europeans have "an absolute fear" of genetically modified foods. Stuart Eizenstat, at a Senate Finance Committee hearing on his nomination, said that is "to my mind the single greatest trade threat that we face systemically with the European Union," THE ASSOCIATED PRESS reports. Almost all U.S. agricultural exports in the next five years will be either genetically modified or combined with bulk commodities that are genetically modified, he added. 

An echo from Paris. Agriculture Secretary Dan Glickman had EU trade in GMOs on his mind as well. An EU market closed to GMO crops could escalate into a "serious and expensive trade conflict," he said in Paris. BLOOMBERG NEWS reports Glickman met with French Agriculture Minister Jean Glavany to discuss EU action last week to block the sale of genetically altered crops in the 15-nation bloc. "Unless we find a resolution, my belief is that this will create far more trade tensions than hormone beef or bananas," Glickman said at a news conference. Glavany didn't soften France's stance on GMO foods, but he agreed to consider U.S. concerns as the EU drafts new rules for approving modified crops.
 

June 29, 1999

Senate continues to stall on ag appropriations.  Senate Republicans couldn't jar loose four spending bills, including agriculture, in a series of votes late Monday. Republicans could not corral more than 50 votes on any of the cloture tallies, well short of the 60 votes needed. The stalemate probably forces both sides to negotiate a schedule for debating the so-called "patients' bill of rights" and separate that legislation from the appropriations bills.

Sanctions, dairy, farm aid on appropriations list.  Amendments expected to be offered when the Senate gets rolling once again on the agricultural appropriations bill include a limit to unilateral trade sanctions on food, expanding and extending dairy compacts and another effort to funnel more than $6 billion into farmers' pockets to increase farm income.

Corn growers seek a niche in California's gas market.  Officials of the National Corn Growers Association were in California last week to explore opportunities to expand the use of ethanol in California gasoline. California is phasing out MTBE, and corn producers believe using ethanol to replace MTBE would add a dime to the U.S. corn price.

Cheese demand driving strong farm milk prices.  Dairy processors believe the basic formula price (BFP) for milk could wind up the third largest annual average on record, at nearly $13 per hundredweight. The BFP should continue to increase through October as cheese prices remain strong, says the International Dairy Foods Association. 

Codex to approve organic food guidelines.  The Codex Alimentarius Commission, meeting in Rome this week, is expected to approve trade guidelines for producing, processing, labeling and marketing organically producer foods. Maximum residue limits for bovine somatotropin (BST) also is on the Codex agenda.

Ag News Summaries:

Taiwan, Canada agree on WTO membership. Taiwan has negotiated an agreement with Canada that will allow the island to count on Canada's support when the island joins the World Trade Organization. REUTERS reports from Taipei that Taiwan has completed all required bilateral negotiations with the 26 member nations, and the signing with Canada Monday left only Hong Kong to sign a formal pact. Any WTO member may request "bilaterals" with a proposed member and effectively block the other nation's entry until bilateral t5rade differences are resolved. 

EU, Mercosur agree on free trade. The European Union and South America's Mercosur trade bloc have agreed to open talks this November in an effort to negotiate a free trade pact between the two regions. REUTERS reports from Rio de Janeiro that lower-level talks are to begin in November, but agricultural trade, considered the main stumbling block so far, will not be considered before early July 2001. 

APEC wants wider Seattle trade round. BLOOMBERG NEWS reports from Auckland that trade leaders from 21 Asia-Pacific countries will try to widen the next round of world trade talks to include industrial goods. The World Trade Organization opens talk in Seattle in November and already is committed to negotiating easier access for trade in services and agricultural products within three years. If the move by the members of the Asia Pacific Economic Cooperation succeeds, the Seattle talks will include all products. 

Cotton plantings could reach 14.4 million acres. A farmer survey by BLOOMBERG NEWS shows cotton plantings this year may reach 14.4 million acres, 3.6% more than was projected in March. Rains have increased soil moisture levels and improved growing conditions. The 14.4 million total would be the largest since 14.65 million acres were planted in 1996. USDA will publish its survey of cotton plantings as of June 1 on Wednesday.
 

June 28, 1999

Congress may vote on WTO guidelines. Congress may get the chance at least to lay down some guidelines for U.S. negotiators when the next round of international trade talks opens in December. The guidelines, introduced as a resolution by Rep. Tom Ewing (R-IL), follow the prevailing thoughts of many agricultural interests, members of Congress and the Clinton Administration. 

MAP allocations announced total $90 million.  In a far cry from the halcyon days when the program was popular and unscathed, USDA has announced $90 million in allocations to 65 U.S. trade organizations for export promotion activities under the Market Access Program (MAP). The U.S. Meat Export Federation leads the way with $8.3 million to spend.

Ag groups back study on climate and farm practices.  A dozen agricultural organizations and agribusinesses have signed letters delivered to the Senate in support of bills that promote research into agriculture's role in the carbon cycle, including greenhouse gas emissions. The groups say U.S. agriculture is the solution to greenhouse gas emissions, not the problem.

Trade groups present united front for Codex meeting.  More than 30 national ag trade associations and food companies have come out in strong support of the Clinton Administration's position on international food policy and standards as the Codex Alimentarius Commission begins deliberations today.

Almost a half billion goes for animal R&D.  Companies spent nearly $500 million in research and development for new animal health products and to maintain the effectiveness of existing products during 1998. The list includes pharmaceuticals, biologicals, feed additives, insecticides and diagnostics. Meanwhile, the Animal Health Institute reports that animal health product sales increased to $4.3 billion in 1998.

AFBF calls for noxious weeds control.  Noxious weeds are spreading quickly and in many cases are out of control, says the American Farm Bureau Federation. The AFBF called on Congress to help control the spread and limit the damage to land, crops, wildlife and livestock.

USDA seeks to give lactose-intolerant kids a break.  USDA is encouraging state agencies that administer child nutrition programs to work with local school districts to offer alternatives to milk for children who are lactose intolerant. The incidents of lactose intolerance are much greater among certain ethnic groups other than Caucasians. Lactose-free milk is an alternative.

Ag People In the News:

Kathleen A. Merrigan has been named administrator of USDA's Agricultural Marketing Service. She comes to USDA from the Henry A. Wallace Institute for Alternative Agriculture where she has been a senior analyst since 1994. She has administered her own consulting firm and served as a senior staff member on the Senate Agriculture Committee. She holds a master's degree in public affairs and a bachelor's in English and political science. At AMS she will be responsible for working with strategic marketing of agricultural products in domestic and international markets.

Merrigan replaces Enrique Figueroa who becomes deputy under secretary for marketing and regulatory programs. From 1986-97 he was an associate professor at Cornell University in agricultural economics. Prior to 1992, Figueroa was a post-graduate research agricultural economist and research assistant in ag economics at the University of California-Davis. He holds a doctorate in ag economics from the University of California, a master's in horticulture and a bachelor's in agricultural education.

President Clinton has nominated William Rainer to be chairman of the Commodity Futures Trading Commission. Rainer's financial background contrasts with the agricultural expertise of the other four CFTC members.

For the Calendar:

In Congress, the Senate will vote today on whether the limit debate on the 2000 agriculture spending bill, which Democrats have delayed in order to debate health care. On Wednesday, the House Agriculture Committee will vote on a bill to override Secretary of Agriculture Dan Glickman's decision and impose a more cautious version of milk marketing order reform

An international conference will be held this week in Arlington, VA, to present research and data on potentially harmful toxins in corn, wheat and other crops. The conference extends from today through Wednesday at the Doubletree Hotel Pentagon City/National Airport, 300 Army Navy Drive, Arlington. It is sponsored by USDA, the Food and Drug Administration, National Institute of Environmental Health Sciences and the International Life Sciences Institute, a nonprofit foundation. Participants will discuss data on fumonisin chemistry, toxicities and mechanisms of action. About 20 scientists and other speakers will identify factors that affect the occurrence of fumonisins and the means for management and control. 

Ag News Summaries:

Clinton supports more farm aid, questions 1996 law. President Clinton supports another round of aid to farmers, say REUTERS and BLOOMBERG NEWS. Clinton says there's "no other alternative" to more assistance. But he adds that Congress will have to decide if the 1996 farm law is "a fundamentally flawed bill" that needs revision. That, says the REUTERS article, allows Clinton to claim vindication for criticizing the law he reluctantly signed in 1996. Senate Democrats are trying to include a $6.5 billion farmer aid package in the Senate ag appropriations bill. 

Democrats' strategy questioned. PRO FARMER questions the strategy Democrats are using to hold up the ag appropriations bill in favor of health care reform debate. Senate Minority Leader Tom Daschle (SD) says funding levels in the appropriations bill are "questionable to start with." Says PRO FARMER, "Well, gee, wouldn't allowing the bill to move to the floor seem like a logical way to address those funding levels instead of keeping the bill from the floor and carping about it?" 

USDA breaks law with meat imports, CSPI claims. USDA is breaking the law by accepting meat and poultry from countries where testing for salmonella bacteria hasn't been approved by the United States, says the Center for Science in the Public Interest. BLOOMBERG NEWS quotes CSPI senior staff attorney Benjamin Cohen: "What they're doing clearly violates the law which requires that they not let the meat and poultry from any particular country unless they've determined that country's inspection system is equivalent" to that of the United States. 

IBP to buy Thorn Apple Valley. REUTERS reports that Thorn Apple Valley Inc. has agreed to sell its operating assets to IBP Inc., the world's largest fresh meat processor, for about $112 million. Thorn Apple Valley says it suffered "enormous damage" to its reputation when USDA condemned 30 million pounds of hot dogs produced at its Arkansas plant as unfit for human consumption. The company declared bankruptcy on March 5. The proceeds from the sale are not expected to provide any shareholder benefits. 

U.S., China fail on WTO accession progress. Senior U.S. and Chinese trade negotiators have made no headway on resuming suspended bilateral negotiations on China's accession to the World Trade Organization, says KYODO NEWS SERVICE in a report from Auckland, New Zealand. A meeting between senior trade officials of the two countries did not lead to a resumption of negotiations, said Richard Fisher of the U.S. trade representative's office. "They're well aware of the agenda that's required if they indeed wish to accede in this current calendar year," he said. 

EU expected to block GMO foods until 2002.The European Union is unlikely to authorize any new genetically modified crops before 2002, says a REUTERS article from Luxembourg. Environment ministers have finalized strict guidelines for licensing new GMOs. In another article datelined Zurich, REUTERS cites Swiss life sciences giant Novartis AG saying it deeply regrets the de facto ban. "We regret this decision deeply. We also think we will and we have to accept it," Arthur Eisele, Novartis seeds business official, told REUTERS. 

The Old Country behind the times.In an opinion piece headlined "Frankenstein foods," THE JOURNAL OF COMMERCE says there's a reason why Europe is called the Old Country. "While the rest of the world has long since come to terms with industrialization -- including the mechanization of agriculture -- Europeans aren't quite there yet," says the JOC.
 

June 25, 1999

Combest criticizes Glickman for payments remark. House Agriculture Committee Chairman Larry Combest (R-TX) took issue with agriculture Secretary Dan Glickman's reference to supplemental freedom to farm payments as "trade distorting payments." If the regular payments, being made annually under the 1996 farm law, are not trade distorting, neither are the supplemental payments, says Combest. 

House panel hears views on milk price options.  The House Agriculture Subcommittee on Livestock heard dairy industry views on a bill to mandate an option for milk pricing under USDA's final rule on milk marketing order reform that ranged from "there is no crisis in the U.S. dairy industry" to "a dire economic situation for dairy producers" will result if no changes are made to USDA's final rule.

Fast track, biotech touted at Senate hearing.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants fast-track authority for the upcoming round of international trade talks in Seattle, WA, and Sen. Tom Harkin (D-IA) believes a priority for the round is settling the dispute over agricultural biotech products.

Ag export sanctions must end, says AFBF.  The American Farm Bureau Federation told the Senate Banking Committee that unilateral sanctions on agricultural exports must end. They don't harm the target country in the least, and U.S. competitors "rub their hands with glee" when ag sanctions are imposed.

Chambliss introduces crop insurance bill.  Rep. Saxby Chambliss (R-GA) has introduced a bill to reform the federal crop insurance program. Among the bill's features: requires rate and coverage adjustments to make crop insurance more affordable, provides incentives for certain production practices, expands coverage and imposes stiff penalties for fraud and abuse.

USDA provides $2 million for karnal bunt.  USDA will provide $2 million in compensation to some growers, handlers, seed companies, grain storage facility owners and flour millers for losses and expenses from karnal bunt during the 1997-98 crop season. 

Ag News Summaries:

Lott to force vote on cloture. Senate Majority Leader Trent Lott will force a vote to shut off debate on the $61 billion agriculture appropriations bill, say THE ASSOCIATED PRESS and REUTERS. The cloture vote is set for Monday at 5:30 p.m., eastern time to be followed by cloture votes on three other appropriations bills. Democrats have held up the appropriations process with a "patient's bill of rights." Sen. Tom Harkin (D-IA) is expected to offer an amendment for $6.5 billion more in farmer assistance, and Sen. Patrick Leahy (D-VT) wants to make the Northeast Dairy Compact permanent and authorize a southern dairy compact. Leahy has been threatened with a filibuster by Midwest senators who oppose compacts. 

Democrats want single food safety agency. Two dozen House and Senate Democrats introduced legislation Thursday to create a single food safety agency. REUTERS reports the recent food scares in Europe show it is vital for the United States to "speak with one voice" on all food safety issues. The legislation would combine food inspectors and regulators from a dozen existing federal agencies. It has been introduced three previous times without success. "The political momentum for this is growing," said Sen. Richard Durbin (D-IL). "Unless we speak with one voice about food safety, we will lose credibility with consumers." 

Baucus lectures USTR on lamb imports. Sen. Max Baucus (D-MT) told U.S. Trade Representative Charlene Barshefsky Thursday to stand up for U.S. interests in a dispute over lamb imports from Australia and New Zealand. The Clinton Administration has delayed action on whether to impose trade restrictions on lamb imports. Australia and New Zealand have threatened to go to the World Trade Organization for dispute settlement if the administration limits imports. "I get the very strong sense that the administration is more concerned with being nice to Australia and New Zealand that doing what's right," Baucus told Barshefsky at a Senate Agriculture Committee hearing on trade. Barshefsky said the issue is not whether the administration will provide trade relief for U.S. lamb producers but what form the relief will take. 

U.S., Mexico argue over beef trade. U.S. beef producers dispute charges they're dumping beef on the Mexican market and charge that Mexican consumers will suffer if authorities impose compensatory tariffs. "The harm to Mexican producers is the fault other factors, like the 1994 peso devaluation, a drought for the past four years and lack of finance," Gilberto Lozano, head of the U.S. Meat Export Federation, told REUTERS in an interview. Mexican producers are concerned over U.S. beef imports that include finer cuts, beef brains, tripe and tongue, products that are used in many traditional tacos. Lozano says 13% of all beef consumed in Mexico and 30% of what is sold in supermarkets comes from the United States.
 

June 24, 1999

Democrats press farm aid, change in law.  Senate Democrats are reviving their arguments that the farm law needs to be changed, but they aren't giving up on their claim that emergency assistance for farmers is needed this year. Senators and farmers appeared Wednesday at a special event sponsored by the Senate Democratic Policy committee. 

Lower trade barriers and China keys to trade.  Agriculture Secretary Dan Glickman told the House Agriculture Committee Wednesday that battering down trade barriers in the upcoming round of international trade talks and getting China into the World Trade Organization are two key components of increasing U.S. agricultural trade.

Nothing special about soybean variability.  A report to be published in the Journal of Medicinal Foods claims that Roundup Ready soybeans may have reduced levels of isoflavones, nutritional components of soybeans. That's not unusual, says the American Soybean Association: the isoflavone content of soybeans varies, and experts already know that.

Trade-related income loss aid rejected.  The Senate Finance Committee rejected assistance to farmers when income losses can be attributed to unfair trade. Sens. Kent Conrad (D-ND) and Charles Grassley (R-IA) had offered an amendment to provide $100 million to farmers for the provision. It was rejected on a 9-11 vote.

Dairy payment rate announced by USDA.  USDA expects to have payments to dairy farmers completed by the end of the month under a $200 million assistance program approved by Congress. Officials say the payment rate was calculated to spread payments more equitably among all dairy operations and not disadvantage smaller dairy farms. 

Ag News Summaries:

More meat from EU may be imported. The Clinton Administration has proposed to allow more meat from the European Union to be imported into the United States, says a REUTERS article. Regions within the EU are free of serious animal diseases. The proposal will appear in Friday's Federal Register and will allow U.S. imports of certain animals and animal products from the disease-free regions under some conditions. 

Clinton friend up for CFTC chair. BLOOMBERG NEWS reports that William J. Rainer, private investor and friend of President Clinton from Arkansas, has been nominated to chair the commodity Futures Trading Commission. There has been no announcement from the White House. Rainer, 53, is a native of El Dorado, AR, co-founder of Greenwich Capital Markets Inc. and a former Kidder, Peabody & Co. trader. 

Lamb compromise may be sought. REUTERS reports from Sydney that the Clinton Administration may be searching for a compromise solution on the Australian and New Zealand lamb export issue, quoting Ian Donges, president of Australia's National Farmers Federation. THE ASSOCIATED PRESS reports from Washington that an announcement on whether to impose stiff tariffs on lamb imports may be made in the next two weeks. The U.S. International Trade Commission ruled in February in favor of U.S. sheep farmers that low-priced lamb product imports had economically hurt the U.S. industry.
 

June 23, 1999

Democrats hammer the relief theme.  Democrats want not only emergency farm legislation in the form of a $6 billion relief measure by Sen. Tom Harkin (D-IA) but also congressional action to require large meat packing plants to report prices they pay for livestock. And, says Senate Minority Leader Tom Daschle (D-SD), "we have to recognize that the current policies aren't working." 

Farmer Mac wants to emphasize the positive.  The Federal Agricultural Mortgage Corporation (Farmer Mac) has made progress fulfilling its statutory mission since the 1996 revisions in its charger, and officials want that known. "We believe several recent media items have misread" a report from the General Accounting office and "fixated on a few negative comments," says Farmer Mac President and CEO Henry D. Edelman.

ITC investigates imports of China apple juice.  The International Trade Commission is investigating imports from China of concentrated apple juice to determine if the imports are economically injuring the U.S. apple industry. The U.S. Apple Association is seeking relief from what are claimed to be below cost imports.

Federal judge says newsletter writers are exercising free speech.  A federal district judge distinguished between customized individual advice and making market views available in ruling that the Commodity Futures Trade Commission cannot require commodity software and newsletter publishers to register.

Senate Finance approves Africa trade bill.  The Senate finance Committee has approved a trade bill designed to base U.S. policy toward Africa on trade and private sector investment and not solely on foreign aid. Senate Agriculture Committee Chairman Richard Lugar (R-IN) said the bill would "start a new era in U.S.-African relations." 

Ag News Summaries:

Irradiation approval urged on FDA. A coalition of food and public health groups say the Food and Drug Administration should quickly approve irradiation to kill dangerous bacteria on hot dogs, vegetables, fruits and juices. The Food Irradiation Coalition, led by the National Food Processors Association, says it will submit a formal petition to the FDA by the need of July requesting the change in regulations, according to REUTERS. The article says consumer groups worried about food borne illness in children, the elderly and others with weak immune systems have reluctantly embraced the technology. 

Mexican sugar producer says crop down. Grupo Santos, one of Mexico's main sugar producers, says its sugar production in the 1998-99 harvest declined 10% to 388,000 tons from the previous crop. The group's operations director, Alberto Santos Boesch, told REUTERS the company's production in 1997-98 reached 433,000 tons. National sugar production as of June 12 was 4.66 million tons compared with 5.1 million tons in the same period of 1997-98. 

Meat processors get more time. U.S. meat processing plants will get more time to figure out better ways to prevent contamination from the listeria bacteria. USDA had set June 25 as the deadline for 1,100 meat processors to improve food safety checkpoints after an outbreak of listeria in hot dogs killed 21 people. REUTERS reports that a Food Safety and Inspection Service official says the June 25 deadline hasn't been extended officially, but companies will get more time simply because the agency has not yet completed all its preparations.
 

June 22, 1999

Lugar's risk bill to be ready next week.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) hopes to have a risk management bill ready for introduction next week. Aides said the cost of the legislation is expected to total $6 billion for fiscal 2000-2002. 

U.S. ag trade balance shrinks.  U.S. agricultural exports have declined $4.7 billion or 14% so far in fiscal 1999 compared with 1998. Exports have trended down during the fiscal year, but imports have trended up. The U.S. agricultural trade balance now is $7.9 billion in fiscal 1999, a 37% decline from 1998.

Milk producers disagree with impact analysis.  The National Milk Producers Federation "strongly disagrees" with an analysis of USDA's final rule on federal milk marketing order reform that finds little or no negative financial impact on dairy farmers. NMPF believes dairy farm income declines will be almost twice what the analysis found.

Environmental safety, ag economy tough to balance.  A North Carolina State University study finds that no single alternative waste management exists that meets the public's demand for environmental safety and ensures the economic stability of livestock producers. 

Ag News Summaries:

Senate debate begins on appropriations. The full Senate is debating the agricultural appropriations bill with Democrats poised to try again to attach $6.5 billion more in assistance to farmers faced with another year of low commodity prices. BLOOMBERG NEWS says a second round of government aid to farmers may be on the way after the price slump outlasted last year's $6 billion bailout. But in a twist from last month's House action, Senate consideration of the bill was delayed by an unrelated health care amendment offered by Democrats. When House consideration of the same appropriation bill was delayed by amendments from renegade Republicans, Democrats slammed the GOP for delaying aid to farmers. 

GMO crops force Asian dilemma. Asian commodity exporters are in a dilemma over whether to grow genetically modified crops that are demonized in Europe as "Frankenstein food" but offer attractive commercial incentives. Proponents of biotechnology told a video conference organized by the U.S. embassy in Bangkok the developing world simply could not afford to ignore the new technology, says a REUTERS report from Bangkok. They argued that it increases yields, protects crops from pests, offers a better nutritional profile and provides the means to feed an ever-growing global population. 

WTO chief impasse may mean new approach. A new approach will have to be considered if the impasse over the leadership of the World Trade Organization is not resolved soon, U.S. Trade Representative Charlene Barshefsky said Monday, according to a REUTERS report from Bonn. "We discussed the fact that the current impasse needs to be resolved very, very quickly or consideration to some other process will have to be made," she told reporters after attending a summit of U.S. and European Union leaders in Bonn. Supporters of the two remaining candidates for WTO director-general, New Zealand Prime Minister Mike Moore and Thai Deputy Prime Minister Supachai Panitchpakdi are refusing to budge from their positions. 

CFTC rules thrown out. A federal judge voided longstanding restrictions on publishers and web site operators who provide futures-trading information, The Wall Street Journal reported. Yesterday's decision by Judge Ricardo Urbina dealt with Commodity Futures Trading Commission rules that required newsletter publishers to be licensed, pay fees and submit to fingerprinting and background checks before they could publish futures trading information. The judge said the rule, in place since 1975, was "an impermissible prior restraint upon the exercise of free speech and runs afoul of the First Amendment." The CFTC has not yet decided whether to appeal, the Journal said.

June 21, 1999

Lugar expected to unveil risk management package.  Senate Agriculture Committee Chairman Richard Lugar (R-IN ) today is expected to reveal details of a risk management legislative package that ties increased farmer payments to crop insurance and the futures market. Farmers not eligible for annual freedom to farm payments also could receive a discount on their crop insurance. 

Are dairy compacts unconstitutional?  A new twist to the dairy compact debate has been raised by two university constitutional law experts: dairy compacts may violate a basic constitutional principle -- the establishment of a unified national market. If compacts are made permanent and expanded, the arguments could give impetus to court challenges from compact opponents.

Danish pork released from U.S. import ban.  USDA's Food Safety and Inspection Service has determined that pork from Denmark is free of dioxin contamination and may be imported for sale in the United States. Meat and poultry products produced in European Union member states have been on hold at U.S. ports of entry since June 3 because of the dioxin scare.

Hawaiian sausage recalled due to listeria.  A Waipahu, Hawaii, processing company has voluntarily recalled about 9,620 pounds of a sausage product that may be contaminated with listeria. Subject to recall are 16-ounce packages of "Hawaiian Winners" with 10 sausages per package. The products were distributed in Hawaii.

NPPC hails pork producer assistance.  The National Pork Producers Council says it appears "a significant number of (hog) producers" will qualify for the $125 million in direct assistance that Agriculture Secretary Dan Glickman says will be released.

Senate considers ag spending today.  The Senate is expected today to begin consideration of the 2000 USDA spending bill. At least two major arguments are expected: one over an amendment by Sen. Tom Harkin (D-IA) to add about $6 billion in disaster and income assistance to the coming year's appropriation, and another from Sen. Patrick Leahy (D-VT) and other dairy-state Senators to extend the current Northeast dairy compact and create a new one for the Southeast. 

Ag News Summaries:

Hog farmers still not whole. Pork industry leaders say the hog market may have recovered somewhat from its worst crisis in decades, but farmers still aren't breaking even, according to an article from THE ASSOCIATED PRESS datelined Des Moines, IA. "We're close to break even, but we're going to have to have some relatively decent markets for a while to make up for the money we lost the last nine months or so," said Karl Johnson, a hog farmer from Mankato, MN. Hog prices declined from 55 cents a pound or about $165 per 300-pound hog, to as low as 8 cents or $24 for the same hog. Prices have rebounded to $90-120 per hog. 

Veggie lubricant may work for engines. A team of entrepreneurs may have figured out how to lubricate engines using vegetables, REUTERS reports from Chicago. A fleet of U.S. Postal Service vehicles in Michigan is using AMG 2000, a lubricant made of vegetable oils. A plant to produce 20,000 gallons of the engine oil this year will be finished in two weeks in north central Michigan, said Rob Allen, vice president of development, Agro Management Group in Colorado Springs, CO. If the postal service tests prove positive, Agro Management expects to license the formula for production in two years. 

China's WTO membership being revived. Negotiations could resume soon to bring China into the World Trade Organization by year's end, THE ASSOCIATED PRESS quotes Canadian officials as saying in Cologne, Germany. The assessment comes despite the apparent failure of a U.S. diplomatic mission to Beijing to mend relations after NATO accidentally bombed China's embassy in Belgrade May 7. Canadian officials attending the G-8 summit said they looked forward to an early resumption of trade talks and that China's WTO entry "remains very much within the realm of real possibility" this year.

June 18, 1999

Symposium airs positives for biotechnology.  Consumers, farmers and developing nations soon could gain "tremendous benefits" from biotechnology, according to speakers at a symposium organized by American Agri-Women. Scientists also took the opportunity to debunk recent reports that Bt corn threatens the existence of the monarch butterfly. 

Soybean meal imports from Brazil rankle U.S. soybean interests.  The American Soybean Association says a decision by Rail Grain Receivers to import up to 75,000 tons of soybean meal "makes no sense." High quality U.S. soybean meal is available at low cost, says ASA.

Supermarket execs score dairy compacts.  Two major supermarket executives say dairy compact legislation would fix prices that harm consumers. The evidence is in the track record of the Northeast Dairy Compact, they add. Meanwhile, a Senate committee approved the 2000 USDA funding bill and deferred a dairy fight until the full Senate takes up the bill next week.

'Daunting challenge' for 21st century is food supplies. prospects.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) says a "daunting challenge" of the 21st century will be feeding the world's growing population. Resolving that problem "will minimize factors that contribute to global instability and the proliferation of weapons of mass destruction," he said. 

Ag News Summaries:

Petitions seek biotech food labels. Nearly a half million people have signed a petition urging Congress to require labels on foods with genetically modified soybeans, corn and other ingredients. The petition drive was coordinated by the Natural Law Party, a little known political group, according to REUTERS. The petitions were delivered Thursday to House Minority Whip David Bonior (D-MI). "We are not calling for a boycott of genetically engineered foods. We simply want labels on them so consumers can make a choice about what they buy," said Adam Dobritsky, party spokesman. 

Australia wants U.S. food aid on WTO agenda. A top priority for the upcoming round of world trade talks has to be the reform of U.S. food aid and export credit policies that distort international wheat trade, says Trevor Flugge, chairman of the AWB Ltd., formerly the Australian Wheat Board. Australia is not opposed to food aid to countries that need it, said Flugge, but U.S. wheat donations to Indonesia and Pakistan in the past year have displaced normal commercial sales, according to a REUTERS report.

June 17, 1999

USDA may use new LDP rates for 1999 crops.  USDA is considering using national loan deficiency payment rates using the 1999 crops of wheat, feed grains and oilseeds. Agriculture Secretary Dan Glickman also told the House Agriculture Committee that 1999-crop wheat and corn county loan rates will continue at 1998-crop levels. 

Cotton official calls for trade reforms. National Cotton Council Director Allen Helms, Jr., says the U.S. industry is competing in an international trade arena "rife with domestic and trade policy distortions." Some fundamental goals must be achieved in the upcoming international trade talks if the new round is to be of any significant benefit.

Burns wants to broaden pesticide use.  Sen. Conrad Burns (R-MT) has introduced a bill to allow U.S. farmers to request the use of pesticides already approved by foreign environmental agencies. If the Environmental Protection Agency finds significant reason to deny the use of a requested pesticide, it would retain the ability to do so.

Several Asian nations considered good trade prospects.  USDA has included several Asian nations on a list of "best prospects" for U.S. food exports. Japan, Hong Kong, China, South Korea, Taiwan and the Philippines show significant import growth prospects.

Erickson confirmed to CFTC.  Tom Erickson will take office as a member of the Commodity Futures Trading Commission after the Senate confirmed him on a voice vote yesterday. Erickson, a Democrat who previously managed Congressional relations for the CFTC, has also worked for the National Grain Trade Council. His confirmation leaves the CFTC with one vacancy following the departure of controversial chairperson Brooksley Born. William Rainer has been widely rumored as the next nominee for the chairmanship, but his nomination has taken longer than expected to emerge from the White House. 

Leahy expected to offer dairy compact amendment.  Sen. Patrick Leahy (D-VT) may offer an amendment to the Senate's version of agricultural appropriations today that would make the Northeast Dairy Compact permanent and authorize a southern compact as well. Leahy's office would not confirm the action, but dairy industry officials said they believed the amendment would be offered. The compact issue has been a controversial one within the dairy industry, and Leahy has advocated making the northeast compact permanent and favored allowing a southern compact to be established. The Senate Appropriations Committee is to consider the subcommittee's bill today at 2 p.m. 

Ag News Summaries:

ADM prepared to offer GMO-free foods. The CEO of Archer Daniels Midland, Allen Andreas, says his commodity processing company can offer European food markets U.S. products guaranteed not to be derived form genetically altered crops, says a REUTERS report, but the guarantee will come at a premium. "There's no question that it is going to be more expensive if they are not going to accept any genetically modified materials in the European food environment," he said in an interview. ADM is positioned to offer segregated or identity preserved crops, because their operations are large enough and often reach from the field to the delivery of a processed food ingredient. 

Australia presses for trade reforms. Australia's wheat exporter AWB Ltd has met with U.S. members of Congress in Washington to outline its priorities for the upcoming World Trade Organization talks on agricultural trade, reports REUTERS from Sydney. Trevor Flugge, AWB chairman, said the United States and AWB appear to agree the next WTO round is an opportunity for real advancement. "The people we've met in Washington have listened to our concerns and share our view that we all need to be committed to trade reform for it to happen," Flugge said. 

Meat plants can't meet listeria deadline. Some U.S. meat processing plants will not be able to meet a June 25 deadline to increase prevention procedures for listeria contamination. Jim Hodges, president of the American Meat Institute, told reporters some plants cannot manage the extensive scientific sampling and data collection needed to validate any changes, REUTERS reports. USDA set the deadline last month for some 1,100 U.S. processing plants to review food safety checkpoints in response to an outbreak of listeria that killed 21 people.
 

June 16, 1999

Glickman explains but does not announce new LDP. It now seems a foregone conclusion that USDA will announce a national daily rate for loan deficiency payments. Agriculture Secretary Dan Glickman said as much in a speech Tuesday. He explained the rationale in more detail that he had before but did not make a formal announcement of a revised program. Following his speech, Glickman told reporters USDA will begin paying hog producers $145 million in the next 30 days to help out with low prices in recent months. Payments will go to producers with 2,500 hogs and be limited to $5,000 per producer. The money was part of the supplemental appropriations bill passed by Congress last month. 

Senate panel approves agricultural funding bill.  The Senate Agriculture Appropriations Subcommittee has approved a fiscal 2000 $60.7 billion appropriations bill for USDA. The bill provides $3.1 billion in authorized loan levels for agricultural credit programs for farmers, $75 million more than the Clinton Administration requested. The bill also includes $808 million for various conservation programs. 

House approves congressional oversight for ag sanctions.  The House approved a bill on voice vote that provides Congress an expanded role in the imposition of sanctions involving agricultural products. The bill requires the President to submit a report to Congress within five days after imposing a selective embargo on agricultural products. Congress then could approve or disapprove the embargo.

Senators ask Clinton for farmer aid support.  Three senators have asked President Clinton to support and advocate more assistance to farmers. However, they did not fix a price tag to the assistance they thought was needed. They simply asked Clinton to support funding to shore up farm income this year.

Clinton urged to advocate biotech products to G-8 summit.  A Senate resolution, approved Tuesday, urges President Clinton to address the issue of increasing U.S. biotechnology exports when the G-8 summit is held later this month. The senators want G-8 support against other countries blocking the importing of agricultural products that have been genetically engineered.

New meat, poultry certification program to get airing.  USDA's Agricultural Marketing Service will hold a public meeting Aug. 10 to discuss developing a new certification program for meat and poultry processing equipment. The proposed program was mandated under the 1999 appropriations bill and requires a new service to be developed by AMS as a voluntary, user-fee program. AMS wants comments from individuals with expertise in meat and poultry equipment design and manufacturing, meat and poultry processing, public health and other related fields. The meeting will be held from 8:30 a.m. to 4 p.m. in room 107-A of the Jamie L. Whitten Building, 12th and Jefferson Drive SW, Washington, DC. 

Ag News Summaries:

Chicken nuggets recalled. Serenade Foods Inc., Milford, IN, recalled its Maple Leaf Farms brand of "crunchy chicken nuggets" because they may contain whey, a dairy product and allergen that could trigger lift-threatening reactions in people allergic to milk or milk proteins, THE ASSOCIATED PRESS reports. About 480,000 pounds of nuggets are involved in the recall that was prompted by a consumer who complained to USDA officials after having an allergic reaction to the nuggets. 

EU ministers seek protection for animal feed. European Union farm ministers are seeking ways to protect animal feed from contamination. They also assessed the fallout from Belgium's dioxin food crisis that has led to bans on EU foodstuffs in many nations and cost EU farmers hundreds of millions of dollars in lost sales, THE ASSOCIATED PRESS reports from Luxembourg. The commission is expected to develop proposals to improve food safety by the end of the year. France proposed a ban on using meat and bone meal fed to cattle. Feeding mammalian protein to cattle was how the so-called "Mad Cow" disease spread. 

EU approves new standards for organic meat. EU ministers also have approved new standards for organic food, designed to give consumers a guarantee that livestock products meet minimum criteria, REUTERS reports from Luxembourg. The standards will lead to an EU label for organic meat products to assure consumers that rules covering how animals are kept and what they are fed have been met. Animals will not be fed any genetically modified feed products or artificial growth promoters to qualify for the organic food logo which should be introduced in about 12 months. 

EU maintains $41 billion for farmers. In other European news, the EU plans to maintain its supports for farmers at about $41 billion next year, PRO FARMER reports. That virtually continues the current year level of farm supports into the marketing year that starts July 1 and ends June 30, 2000. The budget follows "a long and angry Common Agricultural Policy `reform' debate which wound up with little actual reform, the report says. "The current program creates huge incentives for production as it operates primarily through price support followed by export subsidies to get rid of the surplus."
 

June 15, 1999

Harkin wants $6.5 billion for farmers.  Sen. Tom Harkin (D-IA) will propose that the Senate agriculture appropriations bill include $6.5 billion for farmers. Farm families "are on the ropes," he says, and "in jeopardy of losing their livelihoods and life savings." The National Council of Farmer Cooperatives says without relief, net farm income will decline by nearly $3 billion. 

Environmental groups want ban on Bt corn. Several environmental and consumer groups have asked President Clinton to join them in seeking a ban on genetically modified corn that a Cornell University study found may be endangering the monarch butterfly. They call the Bt varieties "monster crops." 

USDA quarantines part of Florida county.  USDA has quarantined part of Hillsborough County, FL, because of Oriental fruit fly infestation. The state of Florida has restricted the intrastate movement of certain products from the quarantined area as well.

Majority in House supports 1A milk option.  A bill to mandate an option in USDA's milk marketing order reform rule more favorable to farm milk prices now has the support of 219 members of the House -- a majority. So far, only about 15 senators have signed on to a similar bill in that chamber.

Grazing permit extension sought in Senate.  Sen. Conrad Burns (R-MT) wants the Senate to extend grazing permits for ranchers until the Bureau of Land Management can review and renew each permit. BLM doesn't have time to get it all done by the end of the fiscal year, says Burns, so ranchers should be able to continue grazing under their current permits until the review can be completed.

Winrock, USDA agree to donate wheat.  Winrock International and USDA have agreed to donate wheat for monetization in Kenya. A total of 20,000 tons of wheat and related ocean transportation costs, valued at about $2.5 million, are involved in the deal.

House to consider anti-embargo bill.  The House of Representatives will vote today on a bill to restrict selective agricultural export embargoes. The bill, H.R. 17, has already been approved by the House Agriculture Committee and will be considered under the House's so-called "suspension calendar," reserved for less controversial measures. 

Ag News Summaries:

Leafy spurge not gone in North Dakota. Leafy spurge continues to grow in North Dakota despite a state program to distribute weed-eating bugs to whomever wants them, according to a report form THE ASSOCIATED PRESS. North Dakota acreage affected by leafy spurge increased from about 932,000 acres in 1991 to 1.1 million last year. The weed, if left unchecked, crowds out prairie grass, rendering pastures useless. The state has a flea beetle program through which beetles feed on the spurge plant, and their larvae tunnel through the week's roots. Land owners can obtain the bugs free of charge during annual summer distribution programs, but so far, "a lot of people aren't interested, or they think it's somebody else's problem," the article quotes John Leppert, state ag department official. 

Lamb import decision still due soon. Agriculture Secretary Dan Glickman told reporters after a speech to the Georgia Farm Bureau that President Clinton should decide soon whether to restrict lamb imports from Australia and New Zealand, according to REUTERS. "I expect the decision will be (made) pretty soon. I think the trick is to fashion the remedy," Glickman said. Earlier this year the U.S. International Trade Commission voted 6-0 that low-priced Australian and New Zealand lamb imports threaten to harm the U.S. lamb industry. Australia and New Zealand have threatened action through the World Trade Organization if imports are restricted. Glickman also said he expects to announce more financial aid to hog producers later this week. Congress approved $145 million for pork producers as part of the supplemental spending bill and also authorized USDA to spend up to $100 million from existing funds for hog producer assistance. 

Scientist says vindication imminent. The scientist at the center of an international row on genetically modified food says his research soon will be published and his name cleared. REUTERS reports from Oxford, England, that Dr. Arpad Pusztai was "sacked" by Scotland's Rowett Research Institute and "attacked" by Britain's prestigious science academy, the Royal Society, for going public with his research in a television documentary before it had been reviewed by his peers. Pusztai had found that rats fed GM potatoes suffered weakened immune systems and damage to vital organs. He has challenged his opponents to come up with hard evidence to prove that GM crops are safe. "My paper is already under consideration," he told REUTERS in an interview, and the results of the review are "due any day now."
 

June 14, 1999

Farm groups seek $6-8 billion.  More than 20 farm organizations are behind a move to convince the White House to support $6-8 billion for farmers to make it through another year of low commodity and livestock prices. They met Friday with President Clinton's chief of staff John Podesta, who made no promises but acknowledged persistent problems for farmers.

Performance measurement database created.  The National Pork Producers Council has created a national database in Ames, IA, to house standardized production and financial information from pork producers. The database is to measure industry performance. 

New study finds lower milk prices.  A report from the Food and Agricultural Policy Research Institute (FAPRI) finds lower all-milk prices under USDA's final rule for reforming the nation's milk marketing order system. The greatest milk price decline occurs if Class I premiums remain unchanged.

Rural areas face challenge of qualified workers.  Rural areas must develop a labor force with the skills and flexibility demanded by modern employers, a report from USDA says. The earnings premium for skilled over less skilled workers is increasing, and that is a concern for rural areas that tend to attract relatively few skilled jobs.

USDA extends peanut referendum.  USDA has extended to July 2 the voting period for a peanut industry referendum on a proposed promotion, research and information program. A large number of ballots went to rural routes for delivery and arrived later than expected. The referendum was scheduled originally for May 24-June 11 but now is extended an additional 21 days. USDA's Agricultural Marketing Service also has been contacted by potentially eligible voters who did not receive a ballot. 

Ag News Summaries:

E. Dole offers tax breaks to farmers. Republican presidential hopeful Elizabeth Dole, speaking in Des Moines Saturday, offered a 10-point package giving new tax breaks to farmers and targeting aid to the livestock industry, according to THE ASSOCIATED PRESS. She did not say what the package would cost but made clear she would "not pinch pennies." Dole spoke at the World Pork Expo at the Iowa State Fairgrounds.. She supports a 100% deduction of health insurance premiums for the self-employed and elimination of the estate tax for family farms. She also wants the Clinton Administration to release $145 million in emergency assistance approved and propose legislation to force meat packers to disclose prices. "I am a strong supporter of ethanol, and I have been for years," she said. Texas Gov. George W. Bush also endorsed ethanol this weekend, THE WASHINGTON POST reported. 

U.S. now blocks imports of eggs and products from Europe. The United States, in a second step to ensure consumers are not exposed to dioxin in food, said Friday eggs and egg-containing products from France, Belgium and the Netherlands would be blocked from import, according to a REUTERS report. At the same time, U.S. officials also approved the first exceptions to a total ban on pork from the European Union by allowing imports of Parma hams from Italy and Serrano hams from Spain. Dioxin can cause cancer, even at low levels, over time. 

EU may delay June 15 ban on U.S. beef. BLOOMBERG NEWS reports the European Union may postpone a ban on U.S. beef imports set to take effect June 15 as the United States moves closer to meeting EU standards for ensuring the beef doesn't contain hormones. "We're going in the right direction in our discussions with the U.S., and we're confident we'll find a solution," said Gerry Kiely, spokesman for EU Ag Commissioner Franz Fischler. "There's a possibility of extending the present arrangements."
 

June 11, 1999

House ag panel sets LDP hearing.  The House Agriculture Committee has scheduled a hearing for Wednesday, June 16, on a national daily loan deficiency payment rate with agriculture Secretary Dan Glickman scheduled to testify. It isn't clear whether this means Glickman will announce a national LDP rate prior to the hearing. 

Ewing sanctions bill headed for House floor.  A bill to prohibit the President from agriculture-specific sanctions without the consent of Congress now goes to the House floor for action. The bill, by Rep. Thomas Ewing (R-IL), cleared the House International Relations Committee Thursday. Earlier this year, the House Agriculture Committee approved it. 

Farmer assistance bill linked to trade law.  Sens. Charles Grassley (R-IA) and Kent Conrad (D-ND) have introduced a bill to make farmers eligible for assistance under a federal trade law that compensates workers when they are financial injured by international trade.

Without congressional attention, little CRP action seen.  Limited opportunities remain for new Conservation Reserve Program acreage to be enrolled. Only a limited number of acres in CRP contracts will expire through 2002. USDA also must hold to an enrollment capacity for the continuous signup. A USDA economist looks at the current situation and future of the popular program.

Wheat yield increased, acreage decreased in USDA report.  USDA's latest look at winter wheat production shows 1.61 billion bushels are expected from this year's crop, a fractional decline from last month but 14% less than 1998 production. Based on conditions about June 1, the yield is expected to average 44.7 bushels per acre, 0.3 bushels more than was expected in May. Acreage totals 36 million acres, a 1% decline from May 1. 

Ag News Summaries:

Pork funds fall short of needs. FARM JOURNAL'S Bob Coffman says the National Pork Board recognizes that if a national referendum is held to determine if the advertising and promotion program will continue, the cost of the vote will have to be financed by checkoff dollars set aside for that purpose. "We have estimated that could take $2 million," according to Arnie Struthman, board president. Last year, the board collected $44 million. But lower cash hog prices forced a $15 million shortfall that had to be made up by tapping reserves. 

Rominger says GMOs may lead trade disputes. Deputy Agriculture Secretary Richard Rominger says the issue of genetically modified organisms could be "a bigger issue than bananas and beef hormones." Rominger made the comment, says REUTERS, at a news conference held during the International Grains Council's annual conference in London. He also complained that the European Union had stalled the process of approving imports of new varieties of genetically modified U.S. corn and soybeans. "We've continued to push the EU to ... approve (GMO) products, but things seem to have bogged down," he said. 

Baucus presses White House on lamb import curbs. Sen. Max Baucus (D-MT) offered something of a quid pro quo to President Clinton last week over whether the White House would impose special import limits on lamb from Australia and New Zealand. BLOOMBERG NEWS reports Baucus told White House Chief of Staff John Podesta that administration had to take a harder line against imports that were harming Montana sheep ranchers. He also reminded the White House that Clinton needed Baucus' support to block legislation that would impose quotas on steel imports now pending in the Senate. That helps explain why Clinton hasn't yet made a decision on lamb imports that he was expected to deliver last Friday, the report says. 

Lawyer says internal debate is delaying decision. A lawyer for the lamb industry says a decision on whether to restrict Australian and New Zealand lamb imports has been delayed by an internal debate within the Clinton Administration, according to REUTERS. "I have no way of judging when they're going to actually come to a conclusion," said Paul Rosenthal, a Washington, DC, attorney. He said officials from federal agencies and departments have been unable to agree on what to do. Australia and New Zealand have threatened to take the United States before the World Trade Organization if imports are restricted.
 

June 10, 1999

Clinton officials explain new sanctions policy.  Two officials from the Clinton Administration Wednesday explained a new sanctions policy the White House has announced but not put into regulation yet. It calls for a licensing procedure that some in agriculture believe is an "onerous" way to go.

Repeal of India-Pakistan sanctions okayed by Senate.  The two Kansas senators successfully attached an amendment Wednesday to the Defense Department appropriations bill that eases sanctions on India and Pakistan. The full Senate approved the appropriations measure. The amendment suspends economic sanctions for the two countries for five years.

House bill a mixed bag, but no sharp cuts.  The spending bill passed by the House this week does not contain the major new farm assistance sought by some Democrats, but increases several popular spending accounts, including some sought by the Clinton Administration. Some interest groups will be disappointed in specific cuts that affected programs they support. Overall, however, dire predictions by some Administration officials that the budget would devastate important programs were not borne out.

USDA will pay $200 million to dairy farmers.  USDA will begin mailing checks next week worth a total of $200 million to dairy farmers. Payments are based on 1997 or 1998 milk production and are limited to the first 26,000 cwt. of production in the selected year.

Pork import assessments will be lowered.  USDA proposes to decrease assessments on imported pork and pork products by sixteen-hundredths of a cent per pound. The decrease reflects the 38% decline in hog prices paid at major U.S. markets last year and will bring importer assessments more in line with those paid by U.S. producers.

Railroads handling current traffic easily. USDA says grain transportation demand has increased compared to a year ago, but major railroads indicate they are handling current traffic levels easily. Continued strong domestic demand for grain and soybeans and stronger exports of wheat and corn are driving the increased need for transportation.

Russian food donations announced. USDA will donate about 7,500 metric tons of kidney beans, rice, soybean oil, wheat flour, canned pink salmon and nonfat dry milk to a private voluntary organization for distribution in Russia.

Ag News Summaries:

No lamb import duties for Australia?  Australian farmers say President Clinton's delay in endorsing a recommendation to impose tariffs on lamb imports from Australia and New Zealand is a sign the White House may back away from the move, according to a BLOOMBERG NEWS report from Canberra.  Clinton was to announce a decision last Friday on whether to impose tariffs to counter increasing lamb imports from the two countries.  "The White House is having second thoughts about what actions to take," said Ian Donges, president of the National Farmers' Federation.  "That's given me encouragement.  They are very conscious now that we will be looking to the World Trade Organization to take our case."

Australia's PM spoke to Clinton about lamb.  REUTERS reports from Canberra that Australian Prime Minister John Howard said he had told President Clinton that any U.S. restrictions on lamb imports would set back global moves for more open agricultural trade.  "I indicated during the conversation (by telephone) that if this action were taken it would be regarded more seriously than any other restrictive trade action taken by the United States during recent years," Howard told Parliament.  Howard said he told Clinton that Australian exporters had won their share of the U.S. lamb market fairly, and restrictions would send a "deplorable signal" to countries less committed to free trade, particularly in agriculture.

Soy in diet reduces cholesterol. A new study by Canadian researchers shows soy substitutes and fresh fruits and vegetables instead of meat in the diet can lower blood cholesterol significantly.  Researchers, according to a REUTERS release, were able to reduce the levels of low density lipoprotein cholesterol in healthy middle-aged men and women by replacing the meat in their diets with soy substitutes, vegetables and beans over two one-month periods.

June 9, 1999

LDP decision due; more congressional pressure.  Agriculture Secretary Dan Glickman says he'll decide by week's end whether to adopt a national daily rate for loan deficiency payments, a hotly debated option that two House members say can depress commodity prices.

House approves ag appropriations bill.  The House Tuesday approved the $61 billion agricultural appropriations bill for fiscal 2000. The vote was 246-183, with many Democrats opposing the bill. The Senate Appropriations subcommittee will reportedly act on its version of the bill June 15, with the full committee following on June 17 and Senate floor action the following week. Links: Yesterday's floor debate and House Appropriations Committee Press Release.

More narrow CFTC regulatory authority sought.  The National Grain and Feed Association has urged Congress to more narrowly define the regulatory functions of the Commodity Futures Trading Commission. CFTC should be more supervisory and assume an oversight role with more precise terms of futures and options contracts left to other self-regulatory entities.

USDA makes more money available for worker housing.  USDA has made more than $25 million in loans and grants available to finance construction of more than 500 new units of rental housing for domestic farm workers. That is $10.3 million more than last year.

Sugar industry applauds import loophole closing.  U.S. sugar producers are pleased with a ruling from the U.S. Customs Service that a sugar syrup product no longer will be permitted to enter the United States apart from the U.S. sugar import quotas.

USDA, USTR name 146 to trade advisory committees. A total of 146 agricultural experts have been named to six trade advisory committees by Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky. The committees were established under a 1974 law.

Ag News Summaries:

USDA considering more help for lamb producers. Following his speech to USDA field office employees in Kansas City, MO, Agriculture Secretary Dan Glickman said "a myriad of options is being discussed" to help U.S. lamb producers face competition from New Zealand and Australia, according to a REUTERS news article from Kansas City. The International Trade Commission has ruled that low-priced lamb imports from New Zealand and Australia threaten to harm U.S. producers. ITC recommended four years of import restraints. New Zealand and Australia have argued that any import restraints would be unjustified, since neither country subsidizes lamb producers.

Australia will fight U.S. trade restrictions. Another REUTERS report, from Canberra, says Australia is set to fight U.S. trade restrictions on lamb imports. Deputy Prime Minister Tim Fischer said the U.S. actions could be tougher than earlier expected. Quotas and tariffs could be imposed that would reduce U.S. imports below the 78 million pounds of lamb that Australia and New Zealand now export to the United States. Fischer says one option being considered in Australia is filing a complaint against the United States at the World Trade Organization.

Hastert's strategy works -- for now. With approval of the agricultural appropriations bill, it appears House Speaker Dennis Hastert's call for Republican unity is working. But it is unclear how far the new-found GOP togetherness will take the Republicans, reports THE ASSOCIATED PRESS. Passage of the ag bill marked a victory for Hastert (R-IL), because until Tuesday the measure had been bogged down by conservatives angry over what they considered excessive spending. The GOP goal is to keep all 13 spending bills below the $538 billion limit set by the 1997 budget balancing agreement with President Clinton. But most Republicans concede that some of the biggest, most controversial spending bills may not be approved without negotiations this fall with the White House. That's because they will fall billions below 1999 levels and even further below what Clinton wants.

Global food needs lack sensible solutions. THE JOURNAL OF COMMERCE says the world is "shooting from the hip" in responding to the latest food scare over dioxin in Belgian poultry and other products.  The paper compares U.S. action to halt European imports and European resistance to genetically modified U.S. products.
 

June 8, 1999

Burns wants hearing on USDA bias cases.  Sen. Conrad Burns (R-MT) wants the Senate Agriculture Committee to look into bias cases mostly from Montana women and Native Americans against USDA. The cases allege USDA discrimination and have been pending for years, says Burns.

Milk producers spell out trade talk hopes.  The National Milk Producers Federation lists five recommendations that should form the basis for U.S. negotiators at the upcoming round of international trade talks in Seattle this December. Topping the list is the elimination of all remaining dairy export subsidies within the next few years.

Doctors complain to FTC about milk campaign.  The Physicians Committee for Responsible Medicine has filed a complaint with the Federal Trade Commission challenging health claims in the milk industry's "milk mustache" advertising campaign. The ads incorrectly claim that drinking milk can lower the risk of osteoporosis, prevent high blood pressure and improve sports performance, says the PCRM. Dairy industry officials call the allegations "ridiculous and irresponsible."

Hay stocks large, prices down.  Hay buyers are finding prices significantly lower this year than in 1998, says a Purdue economist. Stocks May 1 were 14% larger than a year earlier, and prices have remained low. But prices have been increasing recently in response to greater use. Still, prospects for higher hay prices are dim.

Ag News Summaries:

Hastert proposes shifting funds. Republican leaders hope they have found the formula that will let them begin getting spending bills through the House and untrack a snarled legislative agenda, according to THE ASSOCIATED PRESS. House Speaker Dennis Hastert (R-IL) is to propose to GOP lawmakers that they shift about $7 billion to domestic programs and retain 13 annual appropriations bills for next year within limits set by the 1997 budget-balancing law. The article quotes GOP aides who spoke on condition of anonymity. The hope is that the strategy would allow spending bills for fiscal 2000, which begins Oct. 1, to move through the House. So far, those measures and others have fared poorly on the House floor. Defections by just six Republicans can keep the part from passing a bill if Democrats hold ranks, the article notes. The agricultural appropriations bill is the first on the spending measure agenda.

McDonald's pulls dairy desserts in Europe. McDonald's Corp., has halted sales of ice cream and milk shakes in five European countries over concern about dioxin in Belgian farm products. BLOOMBERG NEWS reports sales were suspended in France, the Netherlands, Italy, Greece and Belgium. "It's a precautionary measure," said Allesandra di Montezemolo, McDonald spokesperson. "There's no knowledge if there's risk or not." McDonald's may resume selling dairy products in Greece today and other affected countries soon, di Montezemolo said.

EU hopes to forestall U.S. ban on pork, poultry. European Union officials hope to provide the Untied States with information needed to narrow a temporary ban on all EU pork and poultry imports. REUTERS quotes an EU aide saying "there is no reason" to include all EU countries in the import ban. The United States imposed a blanket restriction last week after some Belgian livestock feed had been contaminated with dioxin, a carcinogen. Tassos Haniotis, ag counselor at the European Commission in Washington, said the EU will provide more information to U.S. officials on the extent of the potential contamination as early as today.

USDA now sees farm income at $45.1 billion. USDA now is forecasting net farm income at $45.1 billion this year, $1.5 billion less than the $46.2 billion estimated for 1998. PRO FARMER says USDA did not issue any news release on the May forecast. Net cash income in 1999 is expected to total $56.7 billion, a bit higher than the 1990s' average. For 1998, net cash income is estimated at $57.7 billion, the third highest of the decade.

Final hearings on property rights case underway. Final hearings are being conducted in federal court on a case involving property rights. Rancher Wayne Hage brought the case that property rights advocates are supporting to establish the precedent that grazing rights are more than just temporary leases, says PRO FARMER. A federal claims court found last fall that the grazing law and history establish that Hage held property rights in his grazing leases, water rights and rights of way. Hage plans to show that federal agencies, by adding undue regulations and restrictions, have "taken" beneficial use of those rights without just compensation.

Apple juice producers seek duty on Chinese imports. U.S. apple juice producers have asked the Clinton Administration to impose a 91% anti-dumping duty on apple juice concentrate imports form China. The petition was filed with the Commerce Department and U.S. International Trade commission, says REUTERS, and alleges that China sells apple juice concentrate in the United States at 91% less than its cost of production. U.S. Apple Association President Kraig Naasz says a "flood of cheap apple juice concentrate imports from China is drowning much of our industry in a sea of red ink."
 

June 7, 1999

Busy June ahead for Congress.  Republican leaders will be seeking to quell discontent within their own ranks long enough to pass crucial spending bills when Congress returns to work today. A report from THE ASSOCIATED PRESS says the Clinton Administration will offer the Republicans little help. "We think they should go back to the drawing board and figure out what they want," White House Chief of Staff John Podesta said Sunday on CBS' "Face the Nation." Before the Memorial Day recess, House GOP leaders had to set aside the agriculture spending bill and a measure authorizing defense spending because of mini-rebellions within the party.

Study claims organic crops can be profitable.  Organic cropping systems can produce profits in the Midwest that equal or exceed those from conventional rotations. The study, from the Henry A. Wallace Institute for Alternative Agriculture, also says premiums are not always needed for organic systems to outperform conventional systems.

Beef industry seeks to educate medical officials.  The beef industry has held a training seminar for media correspondents who represent doctors, nurses, dentists and other health professionals. As part of the training, information about beef and beef products was presented to help the professionals respond to media inquiries concerning food safety.

LDP decision should be this week.  It's been more than a week since Agriculture Secretary Dan Glickman told reporters he'd decide on revisions to the loan deficiency payment program in a week to 10 days. REUTERS reports Glickman said Friday he expects to decide this week whether to go ahead with a proposed change that would nationalize the LDP on a daily basis. USDA officials are to meet today to discuss the proposal. Low commodity prices have forced the issue into the limelight. LDPs are made only when market prices decline below the loan rates. One issue, says Glickman, is whether USDA should ask farmers for their opinions before making such a "profound" decision.

Busy month for committees. The House Agriculture Committee has an active June planned, and other panels will be busy too as appropriations action is likely to move into high gear.

For the Calendar:

The House Agriculture Committee plans an active June, with hearings on a wide range of topics. On Tuesday, its risk management subcommittee concludes a series of hearings on futures law, with farm and agribusiness groups testifying. Wednesday, the full committee will look at economic sanctions on Iran, Libya and other countries. The remainder of the month promises hearings on electronically filing farm program documents (June 17), management of the national forests (June 21), the upcoming World Trade Organization ministerial meetings (June 23) and legislation to alter USDA's plans for milk marketing order reform (June 24).

Also Tuesday, the House Ways & Means Committee will hold a hearing on U.S.-China relations that will likely attract heavy attention. The President's action last week to extend China's normal trade relations status by a year – and press reports of renewed Chinese interest in closing a deal with the U.S. on World Trade Organization membership – set the stage for a possible Congressional debate on China policy.

Appropriations action should move into high gear this month. The Senate Agriculture Appropriation Subcommittee is widely expected to mark up its version of the 2000 USDA funding bill June 15.

Ag News Summaries:

U.S. may ease ban on Europe's meat exports. The United States could ease its ban on imports of European pork and poultry if the products can be certified free of cancer-causing dioxin, REUTERS quotes Agriculture Secretary Dan Glickman saying. Consumer and food industry groups endorsed the decision announced Thursday to block imports in the wake of the largest food scare in Europe since the "mad cow" outbreak in Britain. "There will be further evaluations (of the U.S. ban) as time goes on," said Glickman, "perhaps to narrow it if it's warranted."

GM soybeans may be half the U.S. crop this year. The United Soybean Board says genetically modified soybeans could total almost 55% of the U.S. crop this year, according to a REUTERS report. Doug Magnus, USB official and a soybean farmer, says farmers find the biotech beans produce cleaner crops, higher yields and a reduction of 10-30% in required herbicides. World population growth and strains on an already fragile environment make the genetically modified crops essential, says Magnus.
 

June 4, 1999

Clinton renews China MFN for one year.  President Clinton will renew most favored nation status for China. The President argued that normal trade relations benefits Americans and to advocate "disengagement and confrontation" would play into the hands of those in China opposed to "greater openness and freedom." Congress has 90 days to overturn the decision.

USDA will hold all EU chicken, pork imports. USDA's Food Safety and Inspection Service said Thursday that all European Union chicken and pork and all products containing chicken or pork will be held from retail markets. FSIS also is reviewing products imported since January to see if any additional action is warranted. Belgian farm products have been found tainted with dioxin.

Cotton industry wooing Turkish textile executives. The U.S. Cotton Council International will showcase U.S. cotton June 7-16 to senior executives of 10 Turkish textile manufacturing operations. The United States exported 638,000 bales of cotton to Turkey last year. The Turkish executives will tour several U.S. cotton facilities during their visit.

Consumers spend a bit less on food.  U.S. consumers spent a little less at the grocery store during the second quarter of 1999. The American Farm Bureau Federation says retail prices are catching up to lower farm prices. Sixteen items were surveyed.

EPA working on tolerances for pesticide uses.  The Environmental Protection Agency has proposed a rule to establish tolerances for pesticide uses under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). The rule addresses tolerances, or maximum residue limits, resulting from emergency pesticide uses.

Ag People in the News:

Leroy A. Watson has been named legislative director of the National Grange, effective June 1. He replaces Tom Rugg who has returned to his home state of Vermont. Watson will review federal legislative and regulatory issues and help develop public policy proposals for the National Grange and its nearly 300,000 rural members nationwide. He is experienced in environmental policies affecting agriculture, alternative fuels and new-use applications for farm commodities, federal programs and state-level education and information initiatives.

Ag News Summaries:

WTO rule by July 12 on beef expected. A World Trade Organization dispute settlement panel is to set the value by July 12 of retaliatory sanctions the United States and Canada may impose on the European Union in the beef hormone dispute, REUTERS reports from Geneva. The EU won an automatic right to arbitration after telling the WTO dispute settlement body that the amount sought for alleged trade damage was excessive. The United States seeks to suspend tariff concessions on EU products worth $202 million; Canada seeks sanctions worth US$51 million. European Trade Commissioner Sir Leon Brittan says the EU will seek to reduce sharply to amount threatened by the United States.

Hot dogs blamed for listeria outbreak. A federal investigation of a food poisoning outbreak that left 15 dead last year concludes the source was hot dogs from a Bil Mar meat plant, THE ASSOCIATED PRESS REPORTS. Jeffrey Smith, a spokesman for Bil Mar parent company Sara Lee Corp., said the report "indicates there is some uncertainty about the cause of the outbreak" and that the company was taking steps to improve safety. Over the July 4 weekend, a refrigeration unit in a room where hot dogs were prepared for packaging was removed. The unit had to be broken up to get it out of the building, and the Centers for Disease Control believes the pieces spread the bacteria through the plant as they were taken out.

ConAgra will accept GM corn importers reject. ConAgra Grain Companies will accept and try to market varieties of genetically modified corn that have not been approved in some world markets, REUTERS reports from Chicago. ConAgra says it will make the corn available for sale in the United States or to foreign markets have approved it, provided the producer identifies the grain as genetically modified. The European Union has not approved Roundup Ready corn, a Monsanto product genetically altered to resist Roundup Ready herbicide, also produced by Monsanto.

Russia restricts Belgian pork, animal feed. Russia has extended a ban on poultry meat imports from Belgium that may contain dioxin to include pork and animal feed. French and Dutch poultry and pork imports and sales also are restricted. The products, when found, will be seized and submitted to special checks for the presence of the highly toxic dioxin. It has been discovered that animal feed with dioxin may have been fed to hogs and cattle in Belgium and some neighboring countries.
 

June 3, 1999

USDA sees improved grain exports.  USDA's latest export prospects include improved grain shipments for fiscal 1999. The total now is $14.4 billion, $600 million better than the earlier forecast. A more stable world economy and the beginnings of a recovery in Asia are the major contributors to the improved outlook.

Another cheese recall, this time in North Carolina.  AHarris Teeter is voluntarily complying with a North Carolina Agriculture Department request for a recall of the company's cheese made with sheep's milk. A sample turned up with a listeria contamination. No complaints or illnesses have been reported.

Hog farmers call for vote to overturn checkoff. More than 18,500 petition signatures have been turned in to USDA asking for a referendum on the pork checkoff. The Campaign for Family Farms launched the petition drive in April 1998. The CFF says USDA requires 15,000 signatures for a vote. But the group is upset that USDA officials say it will take up to 20 months to hold the referendum.

Senator urges farmers to report on concentration problems.  Sen. Russell Feingold (D-WI) wants farmers to report "stories regarding increased agricultural market concentration" to the Justice Department where an investigation will be conducted into the concentration issue. Corporate CEOs control prices at the expense of farmers who have "too little market power," Feingold says.

Delaware gets $10 million to improve water.  USDA and the state of Delaware will fund water quality improvements with a $10 million federal-state partnership. The money will help establish the Delaware Conservation Reserve Enhancement Program and will be used in the watersheds of the Chesapeake Bay, Delaware Bay and the Inland Bays basin area.

Ag News Summaries:

Questions raised on Cargill-Continental deal. PRO FARMER reports that Justice Department lawyers have raised antitrust objections to Cargill's planned acquisition of Continental Grain Company's grain operations. The parties are negotiating ways to modify the deal, says PRO FARMER, quoting two officials cited in Wednesday's Minneapolis Star Tribune. The Trib's article cites Jim Schaub, a USDA economist, saying that while he has no knowledge of Justice's concerns, forcing one of the firms to divest certain assets "would be consistent with the way other mergers are handled" by Justice. Schaub added that he doubted Justice would find that the acquisition would prohibit competitors from entering the market.

U.S. will support limited biotech international panel. The United States will endorse the creation of an international panel charged with examining the safety and nutritional value of genetically modified foods, REUTERS quotes U.S. officials saying Wednesday. Bob Lake, director of regulatory policy at the Food and Drug Administration's food safety and applied nutrition center, says the United States will oppose giving the panel a broad mandate to examine related issues such as the economic impact of the new foods. Officials say the United States also wants to limit the life of the panel to about three years.

FDA advises U.S. tourists on blood donations. A Food and Drug Administration panel is advising U.S. travelers to Britain not to donate blood as an extra safety precaution against the possible spread of a fatal brain illness linked to mad cow disease, THE ASSOCIATED PRESS reports. The panel decided on a 12-9 vote Wednesday even though it had no evidence that the deadly illness, a new variant of Creutzfeldt-Jakob disease, could spread through blood. Panel members stressed that the precaution doesn't mean frequent tourists are at risk of getting the illness just because they ate British beef. But not enough is known yet about the possible spread through blood.

Spears CFTC elevation a ‘surprise.' REUTERS calls the election of David Spears as acting chairman of the Commodity futures Trading Commission Wednesday "a surprise move." Spears will take over from departing chair Brooksley Born. Spears is a Republican, and it is unusual under a Democratic administration that he be elected to the top post. Democratic Commissioner Barbara Holum had indicated she expected to fill the role until a new chair was appointed.

President to Seek One-Year Trade Preference for China.President Clinton will seek a one-year extension of normal trade relations for China, setting up a potentially testy debate over Sino-American relations that could veer away from trade policy and focus on espionage and security issues. Few if any observers expect China to lose normal trade relations, formerly known as Most Favored Nation status. That would require both houses of Congress to pass a bill reversing today's Presidential decision and then muster a two-thirds margin to override a likely veto. However, Administration trade officials are bound to be disappointed with the course events have taken, since the two countries were on the verge of a comprehensive trade deal earlier in the year. The President decided not to close the deal at that time, and since then debate over the alleged diversion of U.S. nuclear secrets to China -- as well as the accidental NATO bombing of China's Belgrade embassy -- has overshadowed trade matters.
 

June 2, 1999

Cotton officials optimistic on Step 2 funding.  Cotton officials believe they have a "considerably better-than-even chance" to get Congress to fund the industry's Step 2 program that pays a subsidy to fill the gap between U.S. and world prices. The program ran out of money months ago. Sen. Paul Coverdell (R-GA) told the National Cotton Council he was optimistic that Congress would replenish the program.

Flat tax likely benefits farmers, but outlook mixed.  A new report from USDA says farmers likely would benefit from reduced compliance costs under a flat consumption-based income tax. The article also examines the effects on farmers from a federal retail sales tax.

Wine and food center starts construction in California. Ground has been broken for construction of the American Center for Wine, Food and the Arts in Napa, CA. The privately funded arts and cultural attraction will cost $70 million.

Ag News Summaries:

North Dakota meat company recalls 150 pounds of beef wieners. Valley Meat Supply voluntarily has recalled 150 pounds of beef wieners and frankfurters because they may contain listeria, REUTERS reports. The packages, weighing about 1 pound each, were sold between May 22 and June 1 at the company's retail counter in Valley City, ND. USDA's Food Safety and Inspection Service found the problem through routing monitoring. No illnesses have been reported.

Supreme Court clears way for rancher suit. PRO FARMER reports the Supreme Court has left open the possibility that Cable News Network (CNN) may be sued for invasion of privacy by an elderly ranch couple from Sand Springs, MT. A CNN camera crew followed armed U.S. Fish and Wildlife agents in a 1993 "ranch raid" to find evidence the owners poisoned eagles, an endangered species. The raid found no such evidence the plaintiffs in the suit never were convicted on related charges. All the agents found was "improper use of a pesticide" that they found stored improperly on the ranch.

USDA approves Australia's export meat program. USDA has approved Australia's new inspection system for export meats as equal to U.S. domestic inspections, reports REUTERS. The Food Safety and Inspection Service found Australian slaughter plant inspection was equivalent to the U.S. system in protecting consumers. Australian government inspections will oversee slaughterhouse employees, provide carcass by carcass verification and verify if a plant's meat safety rules resulted in a safe and wholesome product.

Brazil should approve Monsanto soybeans. BLOOMBERG NEWS reports Brazil will approve genetically altered soybeans made by Monsanto Co. by week's end. A meeting of officials from several ministries and government agencies concluded more than two years of often heated debate on whether to allow the use of the seeds in Brazil. The products from the seeds, however, will have to be labeled for consumer use. Authorities will monitor the production of genetically altered food and study how the products will be labeled. Monsanto can sell Roundup Ready seeds in Brazil after the registration of the seeds is published in a bimonthly government publication due to be released Friday.

Lamb producers expect import restrictions. U.S. lamb producers are confident President Clinton will restrict lamb imports from New Zealand and Australia, REUTERS reports. Whether the import restrictions will be as strong as the lamb industry wants remains to be seen, the article quotes Peter Orwick, executive director of the American Sheep Industry Association. Both Australia and New Zealand have argued that U.S. restrictions on lamb imports would be unjustified, since neither country subsidizes its lamb industry. The law under which imports may be curtailed, however, does not require that imports be subsidized, only that they injure a domestic industry. The U.S. operates the law – popularly known as "Section 201" – under so-called safeguard provisions of the General Agreement on Tariffs and Trade.

New WTO leadership contest possible. New Zealand sources tell REUTERS that new candidates to head the World Trade Organization may emerge in about a week if the current deadlock between a New Zealand and a Thai candidate cannot be broken. The WTO has been without a director general since Italy's Renato Ruggiero retired April 30. Some trade officials fear the leadership vacuum could hinder efforts to liberalize trade in agriculture and other sectors.

Belgian poultry scandal shakes public confidence. The Belgian government banned sales of domestically produced chicken and eggs after high levels of dioxin, a carcinogen, were found in some produce. REUTERS reports the scandal, which broke Friday and has led to the resignation of two ministers, has profoundly shaken public confidence in the government.

U.S. won't reveal beef math yet. The U.S. will wait to explain the calculations behind its estimate that the European beef import ban amounts to $202 million worth of damage, REUTERS reports. The U.S. will formally seek permission to retaliate Thursday at a World Trade Organization meeting and expects the EU to challenge its figure. Therefore, the U.S. will wait till an arbitration date is set before laying out its economic arguments, according to U.S. officials.
 

June 1, 1999

Democrats want action this month.  Senate and House Democratic leaders have called on Congress to work on more farm aid when members return June 7 from the Memorial Day recess. The Republican leadership allowed the agricultural appropriations bill to "grind to a halt on the House floor" just before the recess, they say.

Members back soybean donation effort.  Forty-five members of Congress have urged Agriculture Secretary Dan Glickman to administratively implement $1 billion in concessional sales and donations of soybeans and soybean products over the next two years. Soybean growers say the action is needed to help sagging soybean prices and income.

Pennsylvania company recalls contaminated meat.  Alpine Wurst & Meat House, Honesdale, PA, is recalling voluntarily about 60 pounds of weisswurst sausage that may be contaminated with listeria. Packages sold between May 18-25 are subject to the recall. The products sere distributed only at the company's retail counter.

Tax relief for electricity from renewable sources offered.  Sen. Charles Grassley (R-IA) has introduced a tax relief bill that includes a proposal to expand production of electricity from renewable resources. Any biomass and wind energy facility that starts production by July 2004 would be eligible for tax credits for five years.

USDA steps up efforts to combat listeriosis.  USDA has issued warnings to consumers and regulations for manufacturers on ways to reduce exposure to listeria. Soft cheeses and Mexican-style cheese are on the list of foods consumers shouldn't eat.

Food stamp violations seldom settled, GAO says.  A new report from the General Accounting Office says store owners seldom pay financial penalties owed for program violations. Over the past six years, USDA and the courts have assessed or levied about $78 million in penalties. About 13% or $11.5 million has been collected.

For the Calendar:

FSIS wants input for Codex meetings. USDA's Food Safety and Inspection Service holds a public meeting Wednesday to hear views on issues to be addressed at the upcoming multinational meeting of the Codex Alimentarius Commission. The meeting will be held from 9 a.m. to 12:30 p.m. in Room 107A, Whitten Building, 12th Street and Jefferson Drive, USDA, Washington. The 46th session of the Codex executive committee will be held June 24-25 and the 23rd session of the commission will be held June 28-July 3 in Rome.

Antibiotic resistance experts hold news conference. The Union of Concerned Scientists will hold a news conference 10 a.m. to noon Friday at the National Press Club's Zenger Room on antibiotic resistance. "Several of the world's top experts" on antibiotic resistance are to "delve deeply into the roots of this health crisis and examine upcoming opportunities to salvage these important drugs to treat disease in humans and animals," says the group. Overuse of antibiotics by doctors and veterinarians has created "dangerous strains of bacteria resistant to these once powerful drugs," the group says.

Ag News Summaries: