March 29

New Rules on Farm Loans Announced.  Agriculture Secretary Ann M. Veneman Thursday announced new rules designed to make it easier and faster for farmers who have suffered losses due to natural disasters to get federal loans. Local Farm Service Agency offices will process all new Emergency Loan Program applications from farmers under these rules which are effective immediately. 

ARS Launches New Nutrient Web Site.  Nutrient-conscious consumers and dietary professionals keen to make informed food choices now are tapping a new data resource available through USDA's Agricultural Research Service. 

USTR Invites Public Comments on Doha.  The U,S. trade representative's office, on behalf of the interagency Trade Policy Staff Committee (TPSC), is seeking public comments on U.S. negotiating objectives and the work program launched at the Fourth Ministerial Conference of the World Trade Organization (WTO)last November in Doha. These views will be considered as the Bush administration develops its positions for U.S. participation in the negotiations. Comments are due by May 1. 

U.S. Rejects Visas for Cubans.  THE ASSOCIATED PRESS reports U.S. officials rejected requests for visas from three Cuban officials who represent the Cuban agency responsible for food imports. An official said the administration saw no need for the visit, because food sales have been carried out between the two countries in recent months without the need for U.S. visits by Cuban officials. Such sales have been legal since 2000. The American Farm Bureau Federation expressed disappointment with the decision. A farm bureau statement said the proposed visit was related to an ongoing sale of poultry to Cuba. The Cuban officials wanted to inspect U.S. poultry plant facilities and discuss sanitary issues, it said, adding that U.S. officials routinely travel abroad for those purposes in connection with U.S. food imports. 

USTR Official Goes to North Dakota on Wheat Mission.  Chief agriculture negotiator for the office of the U.S. trade representative (USTR), Allen Johnson, will travel to Bismarck, N.D., April 3 to meet with the North Dakota Wheat Commission (NDWC) and listen to the concerns of wheat farmers regarding the trading practices of the Canadian Wheat Board (CWB). "USTR Robert B. Zoellick and I agree with American wheat farmers that Canada's Wheat Board is monopolistic and distorts trade. We will use all effective tools at our disposal to stop the Canadian Wheat Board from hurting our farmers. Working with producers in North Dakota and other states, we are undertaking several strong initiatives to address our problems with the Canadian Wheat Board," said Johnson. "I look forward to hearing directly from North Dakota farmers about the situation." 

Grassley Worries About China's TRQs. Sen. Charles Grassley (R-IA) has told the Chinese ambassador to the United States of his "urgent concern" that China's delay in issuing certain tariff-rate quotas for 2002 "is not an effort to shield China's own agricultural and fertilizer producers from import competition." In a letter to Yang Jiechi, China's U.S. ambassador, Grassley expressed his "urgent concern" about China's "repeated failure to establish long overdue agricultural and fertilizer tariff-rate quotas for 2002." Under the World Trade Organization accession terms, China was required to allocate tariff-rate quotas for agricultural imports on Jan. 1. "This lengthy delay, combined with a missed deadline for the issuance of certificates on quotas, calls into question China's good faith commitment to timely adherence to its WTO market access obligations," wrote Grassley. 

Russian Hopes Poultry Ban Lifted Soon.  REUTERS reports that Russian Foreign Minister Igor Ivanov has told U.S. Secretary of State Colin Powell that he hopes a ban on U.S. poultry imports could be lifted soon, the Foreign Ministry said. "It was stressed that active work by Russian and U.S. experts had produced a realistic prospect to reach agreements eliminating our concerns about the quality of products exported by the U.S. side," a ministry statement issued late on Thursday said. "Hope was expressed that this work can soon be completed." 

More GM Crops Planted This Year.  THE ASSOCIATED PRESS reports that farmers will plant more genetically modified crops this year, including one-third of the corn, apparently shrugging off international resistance to biotech food. Farmers are expected to grow more than 79 million acres of genetically engineered corn and soybeans, the nation's two most widely planted commodities, a 13% increase from last year, according to USDA's spring survey. The gene-altered crops require fewer chemicals, making them easier and cheaper to grow. The crops are engineered to produce their own pesticide or to be resistant to a popular weed killer. About 74% of this year's soy crop, or 54 million acres, will be genetically engineered, compared with 68% last year and 54% in 2000, the department said Thursday. Soy is a critical ingredient for a wide variety of foods and, like corn, also is used for animal feed. Some 32% of the corn crop, or 25.3 million acres, will be of biotech varieties, compared with 26% in 2001 and 25% the year before. 

Company Will Share Genetic Rice Map.  REUTERS reports a company poised to publish the first map of the genetic makeup of rice said it would share freely the information with researchers but retain the right to license and patent commercial developments from it. Leading scientists have lobbied for full public access to the information, which holds the key to breeding better varieties of the most widely eaten crop in the world and could help in the development of drought-and-disease resistant strains. Swiss agrochemical group Syngenta said as a compromise, it would give public-sector researchers access to its work while protecting its commercial interests. 

Russia Softens on Poultry.  REUTERS reports that Russia softened its stance Thursday on a ban on U.S. poultry products, an issue which has cooled U.S.-Russian relations. Russian officials now say the row could be resolved within the framework of an existing agreement. Russia banned imports of U.S. chicken and turkey from the United States from March 10, citing concerns including salmonella contamination and the use of antibiotics in feed. U.S. government and food industry officials say U.S. poultry is safe and have countered that Russia imposed the ban to protect its own growing poultry industry. The head of the Russian Poultry Union, Vladimir Fisinin, told a news briefing that current frictions could be solved within the parameters of an agreement signed in 1996, when Russia first raised the U.S. poultry meat safety issue. Earlier this month, Sergei Dankvert, Russia's first deputy agriculture minister, said Russia insisted on a new agreement with tougher Russian meat safety standards. 

March 28

Corn Growers Try to Convince Skeptical Europeans.  Representatives of the National Corn Growers Association (NCGA) are in Europe this week to spread the word on biotechnology and provide education to those who may have doubts. Biotech Working Group Chairman and Assumption, IL, corn grower Leon Corzine and Director of Public Policy Keira Franz have been talking to European media and farmers about the benefits U.S. growers are reaping thanks to biotech. 

Germany Pledges to Help in Afghanistan.  The Finance Committee of the German Parliament has approved a 7.6 million Euro aid package in support of agricultural rehabilitation carried out by the UN Food and Agriculture Organization (FAO) in Afghanistan. It is the first time for many years that Germany, in addition to its regular contribution to the FAO budget, has pledged money in support of FAO development activities, the UN agency said in a statement. 

USDA Funds Rural Projects.  USDA will make available $27 million in grants and $300 million in loans for distance learning and telemedicine projects serving rural areas. The deadline for applications is May 13 for grants, and Aug. 31 for loans or combination loans and grants. The program, administered by Rural Development's Rural Utilities Service, finances end user equipment to expand the resources available to students and opportunities for improved medical service in isolated rural areas. Distance learning enables students in such areas to participate in enriched classes such as virtual field trips, college preparatory and foreign language classes. Telemedicine technology makes it possible for doctors to examine and direct the treatment of patients without being physically present. Since the program's beginning in 1993, USDA has invested more than $125 million in more than 400 projects, bringing better quality health care and education to thousands of rural Americans. Information on the Distance Learning and Telemedicine Program for 2002 is available at http://www.usda.gov/rus/telecom/dlt/dlt.htm. Included at this site are the application guide and the Federal Register Notice. 

China Clarifies GM Rules. REUTERS reports that China's farm ministry has clarified its rules on imports of genetically modified foods. The news raised traders' hopes that Sino-U.S. soybean trade, worth $1 billion a year, could recover soon from suffocation by red tape. The Ministry of Agriculture told a training seminar on genetically modified organisms (GMO) that foreign firms did not have to apply for as many safety permits for their GMO products as originally thought under China's current, temporary rules. "Foreign exporters do not need to apply for separate safety certificates for each cargo, as long as they have applied for the same type of GMO products and it involves the same exporters and buyers," a ministry official told the seminar in Beijing. 

Kansas Wheat Hit Again.  THE ASSOCIATED PRESS reports that Kansas farmers, already suffering through a drought, could be plagued by another nuisance this spring - an infestation of stripe rust, a disease that reduces yields. USDA pathologist Bob Bowden said Wednesday that stripe rust has survived the winter in Texas, and he puts the risk for Kansas having an infestation as moderately high. Last year, winter wheat yields were reduced 25-50% in Kansas. It was the first such outbreak since 1918. The Kansas Agricultural Statistics Service reported this week that drought has stressed the winter wheat crop so much that nearly half of it was ranked in poor to very poor condition. 

FAS Hosts Paris Pavilion.  USDA's Foreign Agricultural Service will host a U.S. pavilion Oct. 20-24 at the SIAL International Food Products Exhibition in Paris, France. SIAL offers U.S. companies a chance to participate in one of Europe's major trade shows. In 2000, the show attracted 132,000 visitors from 185 countries. Of that total, 37% of the visitors were in the import and export trade business, and 44% worked in the food industry. According to surveys, more than 80% of the visitors were the buyers for their company. News media from 58 countries will attend. This year's show will be at Parc des Expositions Paris Nord Villepinte. There are exhibit spaces for many food products, including confectionaries, dairy products, beverages, meats and seafood. A majority of SIAL visitors are from Europe, but visitors also come from Asia, Africa and the Middle East. For more information on exhibiting products at the SIAL show, or for information on other USDA-endorsed shows, contact Sharon Cook at (202) 720-3425 (e-mail: Sharon.Cook@fas.usda.gov). 

Knight Named to Head NRCS.  Bruce I. Knight has been named chief of USDA's Natural Resources Conservation Service (NRCS). Knight will oversee the 11,000-person agency with a budget of $1.1 billion. NRCS works directly with landowners to help protect the nation's soil and water resources on private land in a voluntary, science-based approach. It also works in partnership with a broad array of state and local groups to sustain and enhance environmental quality. Knight currently serves as vice president, public policy, for the National Corn Growers Association's (NCGA) Washington office. Knight previously served on the staff of Senate Majority Leader Bob Dole (KS), focusing on development of the conservation title of the 1996 farm bill. He also worked for the National Association of Wheat Growers and as a legislative assistant to former Rep. Fred Grandy (IA) and Sen. James Abdnor (SD). Knight succeeds Pearlie S. Reed, who has served as NRCS chief since March 1, 1998. Knight will officially join USDA on May 6. 

Farmers Urged to Host Children.  Australia's Agriculture Minister Warren Truss says city children hold a lot of romantic ideas about farming life that should be corrected by first-hand visits to actual farms, the AUSTRALIAN BROADCASTING CORPORATION reports. He has called on teachers and farmers to work together to open farm gates to urban students. The Member for Wide Bay was visiting Sydney's Royal Easter show, which he says provides some excellent junior programs. However, he says this is the closest most city children get to farm animals. "It is another step then to go from just seeing something that is warm and cuddly and moos and purrs at the right time to actually seeing a modern scale farm operation," Truss said. "They could not imagine the machinery, the technology, the scope from just looking at their school textbooks." 

March 27

USDA Approves CRP Biomass Pilot Projects. Agriculture Secretary Ann Veneman said today that switchgrass may soon create energy in Illinois and Oklahoma and promote a cleaner environment as she announced approval of two Conservation Reserve Program (CRP) biomass pilot projects for the two states at a meeting in Chicago here with more than 300 area farmers and agribusiness representatives. 

USDA Scientists Find New Uses for Oilseeds.  USDA scientists with the Agricultural Research Services have found a potentially profitable new use for high-oleic oilseed crops, pulling these alternative crops into production. 

Apple Standards Proposed for Revision.  USDA is proposing to revise the U.S. standards for grades of apples. The proposed revisions to existing standards were requested by the McLean, VA-based United States Apple Association. One change would amend size requirements for Red Delicious and Golden Delicious varieties, which would provide an option to growers to meet either minimum diameter or minimum weight requirements. Another change would reduce to 12 the number of apple varieties that must meet minimum color requirements. The proposed rule changes and request for comments appeared in Tuesday's Federal Register and may be viewed at www.ams.usda.gov/fv/fpbdocketlist.htm. 

Veneman Says U.S. Still Seeks Russian Resolution. REUTERS reports from Chicago that Agriculture Secretary Ann Veneman says U.S. officials are working to resolve Russia's ban on U.S. poultry imports despite recent talks in Moscow that ended without agreement. A U.S. delegation left Moscow late last week after two weeks of talks aimed at ending the Russian ban of U.S. poultry imports that began on March 10. "That doesn't mean that we've let down our guard or quit working on it," Veneman told reporters during a visit to the Chicago Board of Trade. "The U.S. team did come home over the weekend, but they continue to have an exchange of documents and discussions with the ag council that's over in Russia and the ambassador." 

World Cotton Crop to Be Smaller.  REUTERS reports from Rome that the International Cotton Advisory committee said Tuesday global cotton production is expected to decline next season, perhaps by 10%, because of low prices that are giving producers some of the worst prices in years. "Low cotton prices will reduce the supply of cotton next season," Washington-based ICAC, which represents 43 cotton producing and consuming nations, said in a paper delivered to a meeting of economists at the United Nations world food body. "The decline in prices is affecting Northern Hemisphere planting activity under way now for the 2002 harvest, and world production in 2002/03 may decline by 10 percent," added the paper circulated at the Food and Agriculture Organization (FAO). 

UK's Small Steps Toward Green Production. REUTERS reports that the U.K. government has made what it called the first step towards transforming the countryside, to promote green policies and healthy eating. But it said big spending on this goal would have to wait. Agriculture minister Margaret Beckett detailed its plans after a meeting of leaders from the food and farming industry, consumers and environmental groups, hosted by Prime Minister Tony Blair largely in a response to the devastation caused by last year's foot-and-mouth disease outbreak. "Today is the first step. There is much work to be done. Together we can deliver more sustainable food and farming industries which contribute to thriving rural economies and protect and enhance our environment," Beckett told reporters. The initiatives she announced included establishment of a permanent industry center to link all parts of the food chain, a coordinated approach to healthy eating, five million pounds of marketing grants and a plan to boost organic food production. 

Hop Growers Want Acreage Reduction. Washington state hop growers want to establish a special assessment to raise $2 million that would be used to pay producers to remove up to 6,500 acres from production this year. Their goal is to bring hop supplies into alignment with lower demand in an oversupplied world market. A group of growers petitioned the Washington Hop Commission to put a set-aside program in place. Under the proposal, the commission would pay growers to set aside existing hop acreage this year. The program would be financed by a one-year special assessment that would bring in 5 cents per pound, or $10 per 200-pound bale of hops. This would be in addition to the current $2.50 per bale assessment used to carry out the Hop Commission's programs for research, grower education and market promotion that support the state's hop industry. Participation in the set-aside program would be voluntary. The Hop Commission would use the special assessment funds to pay producers about $300 per acre to set aside or remove acreage from production this crop year. 

WTO Trade Proposal Coming.  KYODO NEWS reports from Geneva that the chairman of the agriculture committee of the World Trade Organization (WTO), Stuart Harbinson, will present a draft centering on tariff reduction and other issues by mid-February next year. Harbinson unveiled the plan at a special committee session that started Tuesday in order to coordinate schedules among member countries so that they can decide on the details of agricultural issues that will be taken up under a new global round of talks on trade liberalization. Member countries are due to adopt the details by March next year in order to present the agenda for the negotiations to the WTO's fifth ministerial conference slated for the summer of 2003. Three sessions of negotiations will be scheduled for each of three key themes -- market access, subsidies for domestic agriculture and export subsidies -- which the WTO decided to address in the new round at its fourth ministerial meeting last November, the sources said. An intense tug of war is being staged over agricultural trade liberalization between farm produce-exporting and -importing countries, KYODO reports. Australia, the United States and other exporters are demanding accelerated liberalization, while Japan and other importers are stressing that each country's situation should be taken into account in the trade talks. 

March 26

U.S. Faces Stiff Competition for Philippine Wheat Market.  Healthy wheat consumption in the Philippines continues to mean greater import prospects, but U.S. wheat is facing a stiffer challenge from both new and traditional suppliers, according to USDA. With a population of 75 million and per capita wheat consumption relatively low at just 61 pounds, growth potential in the market for milling wheat is high. 

USDA Scientists Use New Test for Special Wheat.  Because of interest in releasing a new subclass of soft wheats with enhanced dough mixing strength for crackers, USDA's Agricultural Research Service scientists are now using a new industry test to screen for "soft but strong" wheat varieties. 

EU Proposes Ban on Feed Antibiotics.  The European Commission wants to prohibit the use of antibiotics as growth-promoting feed additives. The four remaining authorized antibiotics currently used as growth-promoters in feed would have to be phased out as of January 2006, according to a commission proposal. 

Pest Control Operator Is Concerned About EPA Policies.  The owner of a Toledo, OH, area pest control company appeared Monday before a congressional panel in Bowling Green, KY, to voice concern over practices used by the Environmental Protection Agency (EPA) to enforce a 1996 pesticide law. 

Panel Blames Government for Bone Meal Fiasco.  KYODO NEWS reports that a joint panel created by Japan's agriculture and health ministries has endorsed a draft final report that blames the government's haphazard approach to controlling the use of meat-and-bone meal (MBM), an animal-based feed and the suspected cause of mad cow disease, for a ''grave policy mistake.'' The final report will be adopted on April 2 for presentation to Agriculture, Forestry and Fisheries Minister Tsutomu Takebe and Health, Labor and Welfare Minister Chikara Sakaguchi. An overwhelming majority of panel members agreed that the final report should state that the farm ministry made a mistake in 1996 when it decided to regulate the use of MBM feed through administrative guidance rather than imposing a legal ban on it. Panel members criticized the ministry for its poor sense of crisis and haphazard risk management as it failed to take seriously numerous warnings over the possible outbreak of mad cow disease at that time. 

March 25

Tolman Counters California Arguments.  National Corn Growers Association (NCGA) CEO Rick Tolman last week found himself defending the group's position on ethanol before representatives of the California Agriculture Leadership Program in St. Louis. Tolman was invited by the group to speak to them concerning NCGA's policies on ethanol. 

Diesel Consortium Formed.  The Renewable Fuels Association (RFA) and E-diesel stakeholders have announced the formation of an "E-diesel Consortium" to address the emerging technical, regulatory, and developmental issues associated with the future viability of E-diesel. 

More 'Crop Per Drop' Urged by FAO.  Irrigated crop production is set to increase by more than 80% by 2030 to meet the future demand for food in developing countries, the UN Food and Agriculture Organization (FAO) said. But "an increase by 80% can never be met with an increase of 80% more water", said FAO Assistant Director-General Louise Fresco. 

Regional Dairy Plan for Australia.  THE AUSTRALIAN BROADCASTING CORPORATION reports that a new regional "action plan" for Queensland Dairy Farmers Organization is designed to increase milk production in a "more environmentally friendly way." The plan covers an area from Kempsey in New South Wales to the Atherton Tablelands in far north Queensland. It is designed to ensure dairy farming in the region is sustainable into the future. The organization's research officer, Lindsay Mullins, says it is hoped better environmental management will win the favor of consumers. "The consumer keeps demanding more and more conservation and primary industries...in particular the dairy industry, have constantly risen to meet these challenges," he said. "So hopefully they will recognize that and make their choices accordingly." 

Agriculture a Block to Latin Free Trade.  THE WALL STREET JOURNAL reports that the Bush administration "hasn't yet figured out the dance steps that accompany the tune" of free trade within the Americas. "If the stumbling doesn't stop soon, the president's big plan for hemispheric free trade is likely to fall flat on its face," this article says. The root of the problem is the administration's unwillingness to stand up to protected U.S. industries. Two such industries involve agriculture: trade and farm subsidies. "U.S. farm trade barriers are a major source of trade tension in the region. High tariffs currently block access to the U.S. market for many highly competitive Latin American farm goods -- including sugar, citrus products and beef," according to this article. "Massive subsidies to U.S. farmers further distort markets to the detriment of Latin American producers. Making a bad situation even worse, the House and Senate have passed new farm legislation that would boost outlays by more than $70 billion over 10 years." 

Poultry Inspection Expanded.  A final rule requiring mandatory inspection of ratites and squabs has been published in the Federal Register and will go into effect May 21, USDA's Food Safety and Inspection Service announced. Some ratites and squabs were inspected under the agency's voluntary paid programs. However, part of the fiscal 2001 Agriculture Appropriations Act set aside $2.5 million for mandatory inspection. The final rule is an affirmation of the May 2001 interim rule, which placed squab and ratite slaughtering establishments under mandatory inspection. Minor changes in the final rule include changing the definition of squabs from "young pigeons that have not flown" to "young pigeons from one to about 30 days" and adding information about E. coli testing and sampling for ratites and squabs. Ratites are flightless birds such as ostriches, emus and rheas. Comments submitted on the interim final rule and specific changes to the language may be reviewed at http://www.fsis.usda.gov/OPPDE/rdad/FRPubs/01-045F.htm. 

Bison Meat Purchases Announced.  USDA will purchase up to $10 million of meat products from domestic bison during the next few months. The purchase will provide a boost to North Dakota's bison industry which is undergoing severe economic hardship, according to USDA. All the bison meat will be used in federal food and nutrition distribution programs. Purchases will be made under authority granted to USDA for emergency surplus removal of food commodities. Contracts will be awarded by July 15. A portion of the funds will be used to purchase and process live bison produced by Native Americans. Further information will be announced soon and will also be made available on the worldwide web at: http://www.ams.usda.gov/lsg/cp/. 

Apple, Potato Farmers Getting Paid.  USDA will provide nearly $38 million to approximately 1,775 American apple and potato farmers hit by natural disasters in 1999 and 2000. These payments, made under the Quality Loss Program for Apples and Potatoes, were issued starting last Friday. Because the total of the claims filed was in excess of $129 million and, by statute, only $38 million is available for the program, farmers will be paid 27.8 percent of their qualifying losses. The $38 million compensates farmers for crop quality loss not included in previous disaster programs. Producers should contact their local USDA Service Center or Farm Service Agency office for additional information about this and other USDA programs. 

March 22

Millions Lost Unless Locks, Dams Updated.  A study sponsored by an agricultural coalition concludes that unless the lock and dam system on the Upper Mississippi and Illinois Rivers is updated, the nation's farmers are looking at losing hundreds of millions of dollars in the next 20 years. The study's author, Mike Evans, is professor of economics, Department of Managerial Economics and Decision Sciences, Kellogg Graduate School of Management, Northwestern University. 

Farm Bureau Wants Congress to Upgrade Waterways.  The American Farm Bureau Federation Thursday called on Congress to provide upgrades of the Mississippi and Illinois waterways to improve transportation for both agricultural products and farm supplies. 

Roberts Introduces Another Farm Emergency Package.  Sen. Pat Roberts (R-KS) Thursday introduced an assistance package that protects farmers through the current crop year and provides guidance to producers and their lenders as they work to determine operating loans for spring planting decisions. The $7.35 billion agricultural assistance bill ensures that producers will receive assistance above last year's levels if Congress does not finish a new farm bill in time for it to apply to 2002 crops. 

Enzi Urges Keeping Packer Proposal.  Sen.Mike Enzi (R-WY) is urging the House-Senate conference committee considering a final version of the farm bill to retain a provision to ban meat packer ownership of livestock more than 14 days before slaughter. He says that will encourage competition and fairness of small livestock producers. "Packer ownership of livestock is the most visible aspect of the captive supply problem. Banning it will be a very important first step in dealing with the larger problem of captive supply," said Enzi. 

Agricultural, Fuel Coalition Urges RFS.  A broad coalition of agricultural groups and renewable fuels producers sent a letter to senators urging their support for the renewable fuels standard (RFS) agreement in the energy bill ( S. 517). The Senate is expected to complete work on the energy bill after the Easter district-work period. "On behalf of America's farmers and ranchers, we are writing to express our strong support for the bipartisan agreement reached in the Senate energy bill, S. 517, that will dramatically increase the nation's use of domestic, renewable fuels including ethanol and biodiesel over the next decade. The agreement establishes a five billion gallon renewable fuels standard, which will triple the use of biofuels produced from agricultural commodities. The agreement also phases out the use of the MTBE in the U.S. fuels marketplace in four years, eliminates the federal oxygenate requirement in reformulated gasoline, and protects air quality. It is supported by the petroleum and ethanol industries, agriculture and the environmental community." The letter was signed by the American Coalition for Ethanol, American Farm Bureau Federation, American Soybean Association, American Sugar Alliance, Ethanol Producers and Consumers (EPAC), National Association of Wheat Growers, National Biodiesel Board, National Corn Growers Association, National Farmers Union, National Grain Sorghum Producers, Renewable Fuels Association, and Women Involved in Farm Economics (WIFE). 

Prices May Fall from Russian Poultry Ban.  REUTERS reports from Chicago that consumers may see lower prices as a result of Russia's ban on U.S. chicken and turkey imports; much of the 2 billion pounds sent to Russia each year could be diverted into U.S. stores, driving down prices and possibly hurting demand for beef and pork, analysts said. Wholesale chicken prices have declined, and one analyst believes leg quarters soon may sell for as little as 19 cents per pound in local stores, compared with 29 to 49 cents before the Russian ban. Russia is the top overseas buyer of U.S. poultry, taking more than 2 billion pounds a year of mostly dark-meat chicken leg quarters. But it halted those purchases beginning March 10, citing food safety concerns about salmonella and the use of antibiotics in feed. U.S. government and industry officials have said the concerns are groundless. 

Ukraine Persists with Poultry Ban.  Ukrainian government officials will stand by a ban on U.S. poultry imports during upcoming talks with U.S. agriculture officials, REUTERS reports. A delegation of U.S. officials arrived in the Ukrainian capital, Kiev, from Russia on Thursday for talks on Ukraine's ban, which was put in place in mid-February over the use by U.S. farms of antibiotics -- a process that is banned in Ukraine. Ukrainian officials said they would change the policy only when U.S. farmers stopped using antibiotics in feed. 

Bush Pressed for Mandatory Food Recall Authority.  THE ASSOCIATED PRESS reports Senate Democrats want the Bush administration to seek the legal authority to require food companies to recall tainted products, a power the industry doesn't want the government to have. 'I want the administration to ask for these tools," Sen. Richard Durbin (D-IL) told USDA officials. The Clinton administration asked Congress for mandatory recall authority but couldn't get lawmakers to grant it because of opposition from the food industry. Last fall's anthrax attacks raised new concerns in Congress about whether the government had the power it needed to protect the food supply Elsa Murano, the Agriculture Department's undersecretary for food safety, said food companies are good about recalling contaminated products without being forced to do so. 

March 21

Agriculture Loses a Great Leader  Former Senator Herman Talmadge, who served as Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry from 1971 to 1980, died at his home in Hampton, GA at 12:03 a.m. today. He was 88 years of age. He was a member of the Senate Agriculture Committee from the time of his election to the Senate in 1957 until his defeat in 1980. 

Staff Resume Farm Bill Meetings.  A day after lawmakers agreed on how to divide up farm bill money, their staff again planned long meetings to hammer out details, a Congressional staffer said. 

Rotation Secret to Avoiding Soybean Cyst Nematode.  Farmers who practice no-till, leaving soils unplowed before planting, run little risk of boosting soybean cyst nematode (SCN) populations as long as soybeans are rotated with corn, an Agricultural Research Service study suggests. 

Cotton Farmers Commend Farm Bill Agreement.  National Cotton Council Chairman Kenneth Hood said Wednesday the U.S. cotton industry is pleased that the House-Senate farm bill conferees reached an agreement on the budget allocation for the bill. "This is an important step that moves the conference process toward completion of a farm bill for the 2002 crop and beyond," the Gunnison, MS, producer said. 

Carcinogen in Feed Prompts National Probe.  THE ASSOCIATED PRESS reports that the discovery of low levels of dioxin in livestock feed ingredients from a Minnesota plant has prompted a nationwide investigation to determine if other companies might have manufactured feed supplements containing the carcinogen. The findings could provide insight into how trace levels of dioxin find their way into meat and poultry. The dioxin levels found in the feed supplements made at Chaska-based Quali Tech were so low, especially after they were diluted in feed, that they wouldn't pose a health hazard to people, said Hillary Carpenter, a toxicologist with the Minnesota Department of Health. But Carpenter and Food and Drug Administration regulators are questioning whether the contamination could be an industrywide problem. 

Senators Seek TPA Vote Set Before Recess. Twenty-six senators have asked for a date certain when the Senate will vote on trade promotion authority. They asked the leadership to determine the date before Congress adjourns for the two-week holiday recess. In December, the Senate Finance Committee voted 18 to 3 for trade legislation. The House of Representatives passed its version of TPA in December. "It's time to get TPA to the Senate floor and get it passed," Sen. Charles Grassley (R-IA), one of those signing the letter, said. "Renewing the authority will help level the global playing field and create opportunities for American workers, farmers and businesses." In part, the letter said, "Trade promotion authority is indispensable to our success at the negotiating table. With trade promotion authority, our negotiators have the credibility they need to make the meaningful offers and concessions that are required to advance negotiations. Without it, we simply will not be able to bring back good agreements." 

Trade Barriers Blamed for Nations' Woes.  REUTERS reports from Monterrey, Mexico, that participants in a United Nations development conference are blaming trade barriers for strangling developing nations. They also implied the European Union and the United States contributed to the problem by promising more cash for the world's poor. World Trade Organization President Michael Moore said rich nations spend far more on subsidies to support their farmers -- which shut out imports of food from the developing world -- than they give out in handouts to the world's poor. Billions of dollars were being paid every day in subsidies to farmers in rich countries "to make food dearer for their people," said Moore. "If we did a deal on agriculture, that would return more than five times all the ODA (overseas development assistance) to developing countries," Moore told REUTERS in an interview at the U.N. Conference on Financing for Development. 

Little Progress Made on Russian Chick Import Ban.  THE ASSOCIATED PRESS reports that Secretary of Agriculture Ann Veneman says the Bush administration has made little progress toward getting Russia to drop a ban on imports of American chicken. 'They're just at an impasse right now," she said, referring to talks that have been going on in Moscow between U.S. and Russian officials. Chicken is the top U.S. export to Russia, bringing in $600 million to $700 million a year to producers in 38 states. Russia has raised a variety of concerns with U.S. poultry, including the presence of salmonella, a common bacteria, the use of antibiotics in growing chickens and the use of chlorine to kill bacteria on carcasses in slaughter plants. Russian negotiators have been pushing for the right to inspect U.S. plants. 

March 18

Davis Delays MTBE Removal in California.  The Renewable Fuels Association (RFA) has expressed dismay that California Gov. Gray Davis has delayed the deadline for removing MTBE from California's gasoline supply until Jan.1, 2004. The ethanol industry trade group urged California refiners to end the use of MTBE voluntarily by the end of this year. 

Harkin Calls for Administration Position on Two Provisions.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) called on Secretary of Agriculture Ann Veneman to clarify the administration's position on two key provisions in the Senate farm bill. While the Administration has taken positions on some of the significant differences that exist between the House and Senate bills, it has not taken a position on two of the most significant provisions in the Senate bill: a ban on packer ownership of livestock and stricter limits on commodity program payments, according to Harkin. 

USMEF Starts Meat Campaign to Japanese.  A new U.S. campaign designed to deliver messages of safety, taste and nutrition directly to Japanese consumers was launched in Japan late last week, according to U.S. Meat Export Federation President and CEO Philip Seng. 

Rich Need to Help the Not-so Rich.  REUTERS reports from Alexandria, Egypt, that the head of the Organization for Economic Cooperation and Development believes rich nations should open their markets fully to exports by developing countries, including agricultural products developed through biotechnology. Donald Johnston, OECD secretary-general, told a biotechnology conference he was enthusiastic about new food production techniques because they could make a strong contribution to the sustainable development of poor countries. "We are firmly committed at the OECD to trade and investment liberalization," Johnston told delegates at the conference in Alexandria. "Barriers in OECD countries that prevent countries from importing are unacceptable," he said in a keynote speech. Johnston later told REUTERS in an interview that his enthusiasm for biotechnology and genetically modified produce depended on full safety controls being in place to ensure there were no risks to human health and the environment. 

Final Farm Bill This Week Is Goal.  THE ASSOCIATED PRESS reports that congressional negotiators hope to work out a final agreement this week on a new farm bill that could take effect in time to apply to this year's crops. Aides to members of a House-Senate conference committee expected to work through the weekend to sort through a number of contentious issues, including a Senate-passed ban on meatpacker ownership of cattle and hogs and new restrictions subsidies individual farmers can collect. The lawmakers "are going to make a run at getting it completed," Seth Boffeli, a spokesman for the lead Senate negotiator, Sen. Tom Harkin (D-IA) said. His House counterpart, Rep. Larry Combest (R-TX) said lawmakers had to reach agreement on the final bill by Tuesday if they were to have any chance of getting it approved by the House and Senate before lawmakers leave for a two-week recess Friday. The negotiations are "moving in a very positive direction, still with a lot of work to be done," said Combest spokesman Keith Williams. 

'Upheaval' Possible from EU Farm Benefits.  REUTERS reports that introducing European Union aid payments fully to farmers in new member countries in eastern Europe could more than double their incomes, causing major social upheaval in some countries, a new report from the European Commission said. The study, carried out by the Commission to defend its option of phasing in direct aids to farmers over 10 years, starting at 25% of what existing members receive, will be presented to ministers from the candidate countries on Tuesday. It said surpluses of wheat should not be a problem as the EU is expected to be competitive on world markets and the corn surplus could be entirely absorbed by existing EU member states. Only rye and other grains, mainly oats, could have difficulty finding outlets on world markets, the study said. 

Biotech Investment Urged.  REUTERS reports from Alexandria, Egypt, that developing nations have been urged to invest more in biotechnology research in order to wage war on hunger and disease. Delegates at a conference said developing countries needed to form research joint ventures with multinationals in order to share the spoils of new patents from advances in genetic engineering of crops and medicinal drugs. Genetic engineering of plants can improve crop yields and develop resistance to drought, salinity and pests. Biotechnology is also used to develop drugs to treat diseases such as diabetes and hepatitis. Opponents of biotechnology say the full impact of these new life sciences on health and the environment is not known. 

U.S. Continues Poultry Pressure on Moscow.  U.S. negotiators have extended their stay in Russia in an effort to persuade Moscow to end a costly ban on U.S. poultry products, a senior U.S. official said on Saturday, according to REUTERS. Russia imposed the ban March 10, citing food safety concerns and problems with U.S. export procedures. The team of U.S. experts are in Moscow for talks to end the ban which has shaken U.S. meat and feed meal sectors as around half of U.S. poultry exports, worth about $600 million a year, go to Russia. Russia has accused the United States of failing to observe safety rules agreed in 1996 and on Friday it hardened its stand and insisted on a new agreement. But the U.S. official said the existing bilateral agreement on safety standards covered the issue. "Our objective is to get the ban lifted in the framework of the current agreement," the official told reporters, adding that negotiators had extended their Russian visas for another week. The official said the U.S. team was ready to discuss new agreements but did not consider that to be the only way to settle the dispute. 

March 15

Amendment Increases Ethanol, Biodiesel Use. Sens. Charles Grassley (IA) and Mark Dayton (MN) have introduced legislation that would require the federal government to increase the use of ethanol and biodiesel fuels in its vehicles. The amendment applies to the energy bill currently being debated in the Senate. 

USDA's Food Safety Record Laid Out for Panel. USDA Under Secretary for Food Safety Elsa Murano told the House Agriculture Appropriations Subcommittee that the department continues to strengthen meat, poultry and egg food safety systems to protect consumers. She also detailed agency actions that are improving food safety protections for U.S. consumers. 

Young Farmers Hang on to Profitability as Priority.  Overall profitability continues to be the top concern of America's young farm and ranch families, but after reaching a low point in 2000, their optimism is clearly on the rebound. In addition, a growing number say they are better off financially than they were five years ago. 

Ridge Wants Food Safety Agencies Combined.  THE ASSOCIATED PRESS reports that Homeland security chief Tom Ridge says the Bush administration, concerned about preventing a bioterrorist attack on the food supply, wants to combine rival agencies with responsibility for keeping deadly toxins out of everything from beef to broccoli. "We have to see whether the system that has developed over the past two decades is the one we need in the future," Ridge told food industry officials Tuesday. Food inspection programs are divided between the Agriculture Department and the Food and Drug Administration. FDA, which is responsible for safeguarding for nearly all foods except meat and poultry, only has a fraction of the staff that USDA has and weaker legal authority. FDA has about 750 inspectors to check 55,000 food plants nationwide. The Agriculture Department has 10 times as many inspectors for 6,000 meat processors. 

More Irregularities Found in Snow Brand Case.  KYODO NEWS reports farm ministry inspectors, rechecking beef bought by the government after the mislabeling scandal involving Snow Brand Foods Co., found fresh evidence of irregularities in the beef buyback scheme introduced in response to the outbreak of mad-cow disease in Japan last fall. Sources familiar with the ministry's rechecking program said the irregularities found include beef that was sold to the government after the date of quality guarantee had expired. The Ministry of Agriculture, Forestry and Fisheries is expected announce the findings on Friday but will not release the names of companies that were found to have sold beef to government that falls outside the scope of the buyback scheme, officials said. 

Monsanto Has New Bt Corn. REUTERS reports that Monsanto Co. has asked USDA for permission to move ahead with commercializing a new genetically modified Bt corn that has been tested for four years. In a Federal Register notice, the USDA asked farm groups, plant experts, consumer activists and others to comment on Monsanto's request by May 13. Monsanto's new crop is genetically engineered to resist the destructive larvae of a certain corn rootworm pest. The corn plant is designed to express a naturally occurring pesticide known as Bacillus thuringiensis kumamotoensis, the USDA said. Monsanto asked the USDA's Animal and Plant Health Inspection Service to grant non-regulated status to the new corn plant, saying that its studies and tests showed the crop posed no risk to the environment. Because the corn plant involves a natural pesticide, Monsanto has also filed an application to register the crop with the Environmental Protection Agency, which regulates pesticides. Other varieties of Bt corn have been widely used by U.S. farmers in recent years. 

Harkin's Bill Gives USDA Renewed Authority.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) has introduced legislation to give USDA the authority to enforce standards for reducing pathogens on meat and poultry products. Similar authority was struck down by the 5th Circuit Court of Appeals in Supreme Beef, Inc. v. Glickman. A companion bill was released in the House by Reps. Anna Eshoo (D-CA) and Rosa DeLauro (D-CT). The Pathogen Reduction Act gives USDA the authority to enforce its existing Salmonella standard. It requires USDA to set standards for the food-borne pathogens that contribute most to the 5,000 deaths, 325,000 hospitalizations, and 76 million illnesses each year based upon the best available science, and reasonably available technology to reduce contamination. Harkin and Eshoo called upon the Bush administration and meat and poultry industry to join the effort to get this bill passed through Congress. 

EPA Increases Pesticide Residue Level Fee. The Environmental Protection Agency has increased the fees charged to industry for processing requests to establish new legal pesticide residue levels in food and feed. As part of the agency's evaluation of pesticides, EPA does an assessment of pesticide residues that potentially may remain on foods, and the agency establishes maximum allowable levels for these residues (called "tolerances") that are protective of human health. Under the new fee scale, which takes effect April 12 and was announced in the Federal Register March 13, the basic fee for establishing a new tolerance will be $77,625, an increase of approximately 13 percent. The increase reflects federal civilian pay increases in the Washington, D.C./Baltimore, Md. metropolitan area over the past three years, during which time tolerance processing fees were not increased. 

New Hog Disease Probed. REUTERS reports that agriculture officials in New Zealand are investigating a possible case of a pig disease never before found in the South Pacific country. The inquiry was sparked by the hospitalization of a man with suspected brucella suis, a bacterial disease mainly affecting pigs that can be transmitted to humans. The Ministry of Agriculture said it had yet to confirm the disease was present in New Zealand's pig population. "Our first priority is to establish whether infected animals are actually present in New Zealand and then investigate the potential spread of the disease and the necessary control measures on infected farms," the ministry said in a statement. Information so far suggested that the ill person may have been infected during the "back yard" non-commercial slaughter and preparation of pigs for home consumption. Brucella suis has never before been found in the New Zealand pig population, but if there was direct evidence of an infection the export of pig meat and pig products would be suspended as a precaution, the ministry said. Brucella suis is from the same family of bacterial diseases present in cows, dogs, and sheep, but is a strain specific to pigs and does not cross to other animals, a spokeswoman from the ministry told REUTERS. 

March 14

Cattlemen Find Fault with Packer Ownership Study.  A new economic study on the issue of packer ownership of livestock fails to demonstrate the benefits of banning packer ownership and only adds to the perplexity on a challenging issue, says the National Cattlemen's Beef Association (NCBA). 

Dairy Farmers Seek $2 Billion from Farm Bill.  The National Milk Producers Federation (NMPF) is asking House and Senate leaders working on the 2002 farm bill to include $2 billion in direct dairy farmer payments in the final version of the measure. House and Senate agriculture committee conferees began their deliberations Wednesday, seeking to reconcile difference between the respective House and Senate versions. 

Grocery Prices Increase in First Quarter.  Supermarket prices increased for consumers in the first quarter of 2002, according to results of the American Farm Bureau Federation's quarterly market basket survey. The average total cost of 16 basic grocery items increased 50 cents on the latest informal survey conducted in February. 

Corn Best for Bioproducts, Biorefineries.  National Corn Growers Association Vice President of Operations Mike Rohan said corn was selected the crop best fit to near-term and future potential in bioprocuts and biorefineries by participants at a Department of Energy-sponsored workshop titled "Identifying High Potential Crops for Bioproducts and Biorefineries". The meeting took place in Chicago and brought together more than 80 representatives of industry, academia, agricultural organizations and government agencies. 

GIPSA Verifies Corn Testing Kit.  USDA's Grain Inspection, Packers and Stockyards Administration has verified that the Strategic Diagnostics Inc., TraitÖ RUR NK603 Corn Grain test kit (Part No. 7000011) detects the presence of one Roundup Ready corn kernel in 800 kernels in five minutes. The test was evaluated under GIPSA's recently expanded Rapid Test Performance Evaluation Program. GIPSA acting Administrator David Shipman said that GIPSA's evaluation of this test will help the grain markets make more informed decisions about the grain being bought and sold. For information on GIPSA's Rapid Test Performance Evaluation Program and Proficiency Program, visit GIPSA's Biotechnology web page at http://www.usda.gov/gipsa/biotech/biotech.htm. 

Afghan Farmers Get Wheat Seeds.  REUTERS reports that the United Nations world food body has delivered wheat seeds and fertilizers to thousands of impoverished farming families in drought-hit northern Afghanistan in an effort to help them feed themselves. The Rome-based U.N. Food and Agriculture Organization (FAO) has provided in recent weeks some 1,500 tons of wheat seeds and fertilizers to 30,000 families in rural areas of northern Afghanistan for spring planting, officials said. A lengthy drought and conflict have devastated farming in the region, where production of the staple wheat is rain-fed. 

Asia Relieved at U.S. FMD Test Outcome.  REUTERS reports that East Asian beef importers were relieved Thursday after U.S. cattle tested negative for foot-and-mouth disease. But the psychological blow to consumer confidence threatened to outlast the initial panic. Reports of a potentially devastating outbreak of the disease, not seen in the United States since 1929, sent shudders through Japan's beef industry, which is already reeling from an outbreak of mad cow disease late last year. "After the mad cow case, people in the domestic meat industry are hyper-sensitive to trifling things," a senior meat-industry source said. "The initial reports of testing were enough to send it into a panic because U.S. beef had built up great credibility as being disease-free. All beef deals by distributors and processors came to a halt in the early morning." Several Japanese meat processors were said to have started looking to South America for substitute beef imports, the source said. 

CNBC Says Kansas Cattle Okay.  REUTERS reports cable news channel CNBC said a test on a small number of cattle in Kansas proved negative for foot-and-mouth disease. But a USDA spokesman told the news agency that the results of the tests would not be released until 10 p.m. Thursday. CNBC quoted unidentified sources saying the tests were negative. It did not elaborate further. Earlier, a department spokesman said five cattle at a livestock market in Holton, KS, were being tested for the virulent disease after mouth blisters were discovered on the animals. An outbreak of the disease in Britain last year prompted the slaughter of thousands of animals and caused billions of dollars in losses to farmers. U.S. livestock has been free of foot-and-mouth disease since 1929. Highly contagious to cattle and hogs, the disease causes blisters on the animals' mouths and feet and prompts weight loss and lameness. 

U.S. Officials Call for Immediate Lifting of Poultry Ban.  Russia's ban on U.S. poultry imports is without merit and should be lifted immediately, REUTERS reports. Early this week, Russia announced it would no longer buy chicken and turkey from the United States, citing salmonella concerns and worries about other practices for poultry shipments. "There is absolutely no merit in claims by Russia about quality or safety of our product," USDA Undersecretary J.B. Penn said in testimony at a House hearing. Penn added that Russia's ambassador to the United States would be summoned later Wednesday to the USDA headquarters, where Secretary Ann Veneman would tell him the ban "should be lifted immediately." Penn added that the new trade problem could spill over into broader U.S.-Russian relations. He noted Russia wants to become a member of the World Trade Organization and to improve ties with Washington. 

March 11

Formal Meeting of Farm Bill Conference Will Begin on Wednesday.  The House-Senate farm bill conference will officially get underway on Wednesday, March 13, at 4:00 p.m. House Agriculture Committee Chairman Larry Combest (R-TX) will serve as the conference chairman. 

Press Conference to Support the Renewable Fuel Standard.  Last Friday, Senators rallied in support of the renewable fuel standard (RFS) in national energy legislation. The rally was a celebration of the agreement earlier last week to include the RFS in the Senate energy bill. The RFS could triple ethanol production over the next 10 years by requiring an increasing percentage of renewable fuels, such as ethanol and biodiesel, to be blended in automotive fuels. 

First Meeting of Klamath Working Group to Assist Farmers, Ranchers and Conserve Fish.  At the first meeting last Friday, the Klamath River Basin Federal Working Group announced a number of steps the federal government is taking to assist farmers and ranchers in Oregon's Klamath Basin who depend on water for irrigation, while conserving the basin's fish and wildlife. USDA will provide more than $1.6 million to accelerate the delivery of conservation, technical and financial assistance for irrigation water management, filter strips and creation of wildlife habitat to improve water quality an result in a water savings of up to 30% in some cases. 

FCIC Board Expanded.  Six new members have been named to the Federal Crop Insurance Corporation's (FCIC) Board of Directors. The Agricultural Risk Protection Act of 2000 changed the size of the FCIC Board of Directors from seven to 10 members. The new members appointed include four farmers (one of whom is a specialty crop producer), one person experienced in the crop insurance business, and one person experienced in reinsurance or the regulation of insurance. These six new members are John B. Askew, corn and soybean producer, Glenwood, IA (four years); Frank Bedford Jones, Jr., farmer-rancher, Lubbock, TX (four years); Timothy M. Kelleher, lawyer and self-employed rice producer; Yuba City, CA (two years), and Christopher R. Watt, specialty crop producer, Albion, NY (two years). The insurance representative is Roger Swartz, vice president and general manager, American Farm Bureau Insurance Services Inc., Bloomington, IL (two years). The reinsurance/regulatory representative is Susan Penix Fitzsimmons, agricultural analyst, Insurance Corporation of Hannover, Los Angeles, CA (four years). 

Leaders React to CBO Error. That $6 billion-plus error the Congressional Budget Office made in scoring the Senate farm bill has caused more than just a ripple among Senate agriculture leaders and Agriculture Secretary Ann Veneman. Senate Agriculture Committee Chairman Tom Harkin (R-IA) it was a "disappointment" that CBO made the error, but it "should not stand in the way of the progress we have made so far and our efforts to complete a conference on the farm bill very soon." The error occurred when CBO scored the Senate farm bill's commodity title to apply only an 85% payment factor to fixed payments when in fact the Senate bill applies a 100% payment factor to these payments. The 100 percent factor had been in the Senate farm bill for more than four months. Sen. Dick Lugar (R-IN), the committee's ranking Republican, told CBO Director Dan Crippen to answer several questions: What provision in S. 1731 led to the higher score? When was the scoring error discovered? And, once discovered, who was notified and when were they notified? Veneman said if the numbers are accurate, "it causes us great concern because it would put the budget numbers of the Senate farm bill far in excess of the budget agreement and in fact it would front-load it even more than we had talked about earlier." 

No Quick End to Russian Poultry Row Seen. REUTERS reports that Russian officials see no quick end to the trade dispute with the United States over Russia's ban on U.S. poultry imports. Tests had revealed new cases of salmonella. "The U.S. side wants the problem to be solved as quickly as possible, but so far there seems to be little scope for solving it as quickly as the Americans want," Russian First Deputy Agriculture Minister Sergei Dankvert told reporters. A 12-member team from USDA, the U.S. trade representative's office and the Food and Drug Administration flew to Moscow after Russia imposed a blanket ban on all imports of U.S. poultry from March 10. Russia said it had to resort to the ban after the U.S. failed to produce proof the poultry passed necessary quality controls. U.S. officials said earlier the poultry ban was not justified and that exporters had obeyed all Russian regulations. 

March 8

House Names More Conferees. The cast of characters in the conference committee on the 2002 farm bill expanded Thursday when the House of Representatives named members of nine additional committees to the group that will work out a final version of the legislation. 

CBO Acknowledges $6.1 Billion Mistake in Farm Bill Estimate. The spending gap between the House and Senate farm bills widened Thursday when the Congressional Budget Office admitted it made a $6.1 billion mistake in estimating the cost of the Senate-passed bill. The farm bill, H.R. 2646, is now in a House-Senate conference, and until yesterday lawmakers had thought their competing proposals were about $10 billion apart over the next 10 years. 

U.S., China Reach Farm Trade Deal.  China and the United States struck a deal to remove barriers to U.S. farm exports because of China's new rules for genetically modified crops, The Wall Street Journal reported. U.S. agriculture negotiator Allen Johnson announced the pact, which is expected to preserve the $1 billion market for U.S. soybeans. 

Californians Support MTBE Ban.  A new poll taken by a group supporting renewable fuels shows Californians favor phasing out MTBE despite the prospect of higher gasoline prices, Agweb.com reports. 

Kansas Farmers Band Together.  Farmers in Kansas are coming together to address problems that arise in today's tough times for agriculture, the Associated Press reports. The Farm Crisis Seminar will help farm families through workshops on agricultural law, mediation services, financial planning, career choices, restructuring, stress reduction and legislative issues.

March 5

U.S. Cattlemen Work to Increase Beef in Japan.  Efforts by the National Cattlemen's Beef Association (NCBA) have helped increase the U.S. government's support for increased beef promotions in Japan, according to the organization. These promotions have become even more important since a case of Bovine Spongiform Encephalopathy (BSE) was discovered in Japan Sept. 10, reducing both Japanese consumers' confidence in beef and the amount of U.S. beef exported to that country. 

Swenson's Final Address Calls for Taking Charge.  Leland Swenson, in his final address as president of National Farmers Union (NFU) challenged farmers and ranchers to continue working together to take charge of their futures. NFU's president of 14 years also gave a nod to the farm organization's past accomplishments and highlighted its current strength. 

Fish and Farming Clash in Klamath River Basin.  Last year's drought in the Klamath River Basin in Oregon and California, along with federal legal requirements regarding water use, resulted in a scarcity of water available both for agricultural use and for maintenance of water levels necessary to sustain threatened and endangered fish populations in the Klamath River Basin. 

IDFA Urges Members to Act.  The International Dairy Foods Association is urging its members to take advantage of the current lull in farm bill activity to contact members of Congress and the conference committee to tell them what dairy processors want in the final version of the bill. House and Senate members who will serve on the conference committee to resolve differences between the two farm bills have been appointed, but no real action has yet occurred. The staffs of these members began to meet last week, but official meetings of the conferees can't get underway until they settle a minor dispute over whose turn it is to chair the conference, IDFA says. Typically, the House and Senate Agriculture Committee chairmen alternate this responsibility. But, while the Senate chairman handled the last farm bill conference, House Chairman Combest (R-TX) chaired the more recent conference held last year on new crop insurance reforms. On Feb. 28, IDFA sent a letter to all conferees urging that dairy provisions be rejected if they discriminate between regions or farm sizes or would encourage overproduction or otherwise distort milk markets. The letter reiterated the unified support by the processor organizations and the National Milk Producers Federation for a simple continuation of the dairy price support program at $9.90 per hundredweight. The Coalition for Fair Milk Prices also communicated with conferees recently to express strong opposition to any deal that would include interstate dairy compacts. 

Pork Producers Claim New Unity, Optimism.  National Pork Producers Council (NPPC) President Dave Roper says that pork producers emerged from their annual meeting unified, optimistic and ready to tackle the challenges that face the industry. "Pork producers understand that their future depends not only on their skills as businessmen and women, but on having a strong national organization that can speak with authority on legislative and regulatory issues," said Roper, a pork producer from Kimberly, Idaho. Roper said that delegates passed a two-part resolution in support of a voluntary producer assessment program to fund public policy and advocacy programs. The assessment would be 10 cents per $100 of value and half the money would stay in the state in which it was collected. The producer consent program is under development and is expected to be implemented later this year. In the interim, pork producers supported an immediate voluntary assessment of 10 cents per $100 of value to fund public policy programs. 

Germany Finds Forbidden Antibiotic.  REUTERS reports that Germany claims to have found a forbidden antibiotic, which earlier caused a health flap involving shrimp, in freshwater crab, other fish and sausage ingredients imported from China. In February Germany ordered extra checks on imported Chinese food after Britain's watchdog body the Food Standards Authority recommended Chinese honey contaminated with the antibiotic chloramphenicol be removed from UK shelves. The antibiotic, effective in combating diseases such as typhoid or anthrax, is banned in food and animal feed because it can in certain cases stop blood cell production in humans. After it was found in Chinese shrimp used to produce animal feed, the European Union on January 20 banned imports of several Chinese food products including honey and crustaceans. Shipments already in transit may be imported after additional checks until March 14. 

Farm Bill Hinders Trade Reform, Aussies Claim.  REUTERS reports Australian officials believe the farm bill now before a House-Senate conference committee will hinder U.S. ability to push for trade reform through the World Trade Organization. Australia's Agriculture Minister Warren Truss said the ongoing three-year trade round launched in Doha, where Australia is pressing for agricultural trade reform, had begun promisingly. But the U.S. farm bill and doubts about how far the European Union would reduce agricultural supports were sending "nervous shocks around the negotiating table," he said. Truss said the bill was certain to go ahead because of promises to farmers by the Bush administration. 

Afghan Farmers Need Immediate Help.  REUTERS reports from Geneva, Switzerland, that donor countries must help Afghan farmers soon with seed and fertilizer or the country will face another food crisis next year, Afghan Planning Minister Haji Mohammad Mohaqiq said Monday. "If something is not done in the coming two or three weeks, there will be another tragedy next year. Something must be done on an emergency basis," he told a news conference. Mohaqiq, who is also a deputy chairman of the interim Afghan government, was attending a meeting of the Afghan Support Group which brings together major donor countries. Officials fear that Afghanistan risks a return to chaos if the new government is not given the means to handle humanitarian crises. 

Falsely Labeled Chicken Sold in Japan.  KYODO NEWS reports that a chicken meat processing company affiliated with the National Federation of Agricultural Cooperative Associations (Zen-Noh) last year sold seven tons of imported chicken falsely labeled as domestic, company officials revealed Monday. Zen-Noh Chicken Foods Corp., based in Toda, Saitama Prefecture, sold ''chicken spare ribs'' from Thailand and China as Japanese products during the latter half of November until the middle of December, the officials said. It sold them to a group of co-ops in Saitama Prefecture, they said. A sales chief at a Tokyo metropolitan branch of the company ordered the foreign meat to be passed off as Japanese because the company could not keep up with an increase in demand for chicken following the mad cow disease scare, the officials said at a news conference in the capital. Katsuo Sasaki, company president, apologized at the press conference, saying, ''Our company, whose mission is to deal in domestic chicken, broke the law. I feel full of remorse.'' The Agriculture, Forestry and Fisheries Ministry will launch an investigation into the case soon since the company likely violated the Japanese Agricultural Standard regulations, in which producers are required to show the country of origin on product labels, ministry sources said. 

March 4

Veneman, Zoellick See No Reason for Russian Ban.  Secretary of Agriculture Ann M. Veneman and United States Trade Representative Robert B. Zoellick find "no reason whatsoever" for Russia to issue a ban on U.S. poultry imports. "U.S. poultry and poultry product exports meet the highest safety standards in the world. We have been cooperating fully and promptly with Russian authorities in meeting information requests," they said in a statement. 

Farm Bureau Opposes Missouri Plan.  The American Farm Bureau Federation has told officials with the Army Corps of Engineers of the AFBF's opposition to proposals to change the Missouri River water control plan. AFBF policy states that the Corps should maintain the current water control plan and should not deviate from those established standards. 

New Research Project on Ethanol Underway.  A new ethanol diesel research project partnership is underway among the National Corn Growers Association (NCGA), John Deere, the Renewable Fuels Association, the Illinois Department of Commerce & Community Affairs and corn growers from six states. 

Codex Group Meets in Tokyo.  KYODO NEWS reports that a five-day special meeting of a Codex subgroup is being held this week in Tokyo. The international gathering will discuss safety guidelines and other issues concerning genetically modified food. Representatives from more than 30 nations, and international and nongovernmental organizations (NGOs) are set to discuss ''traceability,'' organizers said. The term refers to a comprehensive tracking system for genetically modified food to cover the stages of production from cultivation to distribution, they said. Tough negotiations on introducing such a system are expected due to a wide divergence in the views of participating countries. The Codex Alimentarius Commission was established by the Food and Agriculture Organization and the World Health Organization in 1962. 

Land Switching Lowers Vietnam Rice Crop.  REUTERS reports that the key winter-spring rice crop in southern Vietnam is expected to yield 8.61 million tons of rough rice this year, less than last year. Farmers have switched land use to for other crops, a newspaper report said on Monday. With the harvest of the export-quality crop nearing its peak, the Nong Nghiep Vietnam (Vietnam Agriculture) newspaper said output was likely to decline 74,327 tons compared with the same crop in 2001. It said farmers in the region have switched 47,000 hectares (116,100 acres) of rice land to sugarcane, soybeans, tobacco and cotton, retaining 1.61 million hectares (3.98 million acres) for rice. 

False Alarm in England on FMD.  REUTERS reports exhaustive testing showed a new foot-and-mouth scare in the north of England was a false alarm. "No traces of foot-and-mouth have been found following extensive tests that were concluded this morning," a government spokesman told the news agency. "We can now start to lift the bans on livestock movements. Tests on two suspect sheep showing foot-and-mouth symptoms sparked fears in rural England of a repeat of last year's epidemic, which led to millions of animals being slaughtered and ruined large sections of the rural economy. The panic set off by the discovery in Hawnby, North Yorkshire, even rippled through currency markets, with the pound sliding overnight on Tuesday on the news. The two sheep were found to have lesions in the mouth during a regular inspection. They were destroyed and samples were taken from them and a further 150 sheep on the same farm, government officials said. 

U.S. Complaint Filed Against Japan at WTO.  KYODO NEWS reports that the United States has filed a complaint with the World Trade Organization (WTO) over Japan's plant quarantine regulations, claiming its inspection procedures on apples for fireblight disease violate the WTO sanitary and phytosanitary (SPS) pact, according to trade sources. The United States asked for bilateral consultation with Japan over the issue under the WTO dispute-settlement body, the sources said, on the second dispute settlement case for Washington against Tokyo over plant quarantine regulations. In the previous case over Japan's variety-by-variety fruit testing, the WTO body upheld a U.S. complaint in 1999, leading Tokyo to revise its procedures. Washington is expected to insist in the new case again that Japan's regulations effectively serve as a nontariff barrier to apple imports. 

March 1

Tracking GM Crops With IP May Prove Troublesome. While one way to segregate genetically modified (GM) crops from non-GM crops in the nation's food delivery system may be the use of identity preservation (IP) -- a method of tracking bulk commodities as they move from farm to dinner plate -- such an approach may raise as many questions as it provides answers. 

Conferees Named to Decide Final Farm Bill. .  Members have been named to a conference committee that will decide the shape of a final farm bill that Congress will approve. House Republicans are Agriculture Committee Chairman Larry Combest (TX), Committee Vice Chairman John Boehner (OH) and subcommittee chairmen Bob Goodlatte (VA), Richard Pombo (CA), Terry Everett (AL), Frank Lucas (OK), Saxby Chambliss (GA) and Rep. Jerry Moran (KS). For the Democrats, conferees include Reps. Charlie Stenholm (TX), Gary Condit (CA), Collin Peterson (MN), Cal Dooley (CA), Eva Clayton (NC) and Tim Holden (PA). Senate conferees are Agriculture Committee Chairman Tom Harkin (IA), and Sens. Patrick Leahy (VT), Kent Conrad (ND) and Tom Daschle (SD). Republicans are Sens. Richard Lugar (I N), Jesse Helms (NC) and Thad Cochran (MS). Additional House conferees from other committees will be named later. 

Russia May Have Banned U.S. Poultry Imports.  REUTERS reports from Moscow that Russia's agriculture ministry claims it has banned U.S. poultry meat imports because of the use of antibiotics in production. But local media reports quoted the minister as saying it was only a threat. "Yes, the ban has been imposed," Diana Magad, the head of the Agriculture Ministry's press service, told Reuters earlier. "But I have no further comment." Another ministry spokeswoman said the order setting the ban existed, but would not say whether it had been signed. However, Interfax news agency later quoted Agriculture Minister Alexei Gordeyev as saying no final decision had been taken over a ban. "We are issuing a warning as we haven't received an answer to three requests on which antibiotics and in what quantity are used in poultry production," Gordeyev said. Earlier, Interfax had quoted First Deputy Agriculture Minister Sergei Dankvert as saying that the ban would take effect from March 10, and the issuing of new licenses on U.S. poultry imports had been suspended from March 1. 

Robots Now Milking Cows.  THE ASSOCIATED PRESS reports that seven farms in the country are experimenting with robotic milking machines. One of them, H.E. Heindel & Sons dairy farm find that their 150 cows practically are milking themselves. Most of its cows are trained simply to walk up to a milking station and spend a few minutes there munching grain while the robot's quietly moving parts prod at the animal's udder. A laser locates the cow's nipples, which are cleaned by rollers coated with disinfectant before being milked by long, white suction tubes on the unit's "milking claw." Vacuum-activated rubber rings at the end of each tube massage the nipple, prompting the cow to release its milk. The fluid is deposited into aluminum refrigeration tanks. "We're no longer doing things just because that's the way grandpa did it," said Alan Bair, a dairy industry advocate working for Pennsylvania State University and the state Department of Agriculture. The technology is being billed as a tool that may save small family-owned dairies beleaguered by long hours and slim profit margins. 

Farmers, Oilmen Work on Compromise.  THE ASSOCIATED PRESS reports that oil companies, farmers and environmentalists are among the interests being considered in a proposal calling for major changes in the nation's gasoline being worked out in the Senate. The tentative agreement would require a tripling of the amount of ethanol to be used in gasoline, a boon to the farming industry, while it also would ban the additive, MTBE, which has been blamed for fouling lakes and streams in a number of states. And it would end the requirement that gasoline in areas of serious air pollution contain a certain amount of oxygen, a rule the oil companies say is outdated because they can blend fuel to meet air quality requirements. While some details remained to be worked out, Senate negotiators - and the unusual alliance of frequently feuding interest groups - have reached general agreement on the plan, several participants in the discussions said Thursday. 

El Nino Becoming Major Worry.  REUTERS reports that worldwide attention is being given an El Nino weather pattern that may cause climatic havoc again in 2002 just five years after a devastating El Nino weather pattern engulfed the globe, killing more than 20,000 people and wreaking some $34 billion in damage. In recent weeks, the world's top meteorological centers have said that the odds are shortening for a recurrence of El Nino, where unusual warming of Pacific waters off South America triggers far-flung drought, ice storms, floods and fires. Forecasters at the U.S. National Oceanic and Atmospheric Administration began the new year saying El Nino would likely return in spring though its intensity was unclear. Meteorologists in China, Thailand, Peru and South Africa say El Nino may be forming but although central Pacific temperatures are rising it is early days yet and experts say that only the next few weeks will tell for sure. Australian academic Jim Fox, who accurately forecast in 1998 that El Nino would create a need for record rice imports by Indonesia, said 10 of 11 indicators he looked at were indicating a transition to El Nino was under way. 

Food Processors Like Crawford's New FDA Role.  Lester Crawford, well known in agricultural and food circles, has been appointed deputy commissioner for the Food and Drug Administration. National Food Processors Association President and CEO John R. Cady said the organization applauds the appointment. "Dr. Crawford brings public policy and public health expertise and experience to his new position at FDA. NFPA looks forward to working closely with Dr. Crawford to assure continued protection and enhancement of the U.S. food supply." Crawford has served as NFPA's executive vice president of scientific and regulatory affairs.