March 31, 2000

Yeutter `Astonished' at WTO Withdrawal Advocates. Former U.S. Trade Representative and Agriculture Secretary Clayton Yeutter says he is "astonished" that anyone "would seriously advocate" U.S. withdrawal from the World Trade Organization. His comments came in testimony before the House Ways and Means Committee.

Vote Against China, You Vote Against Beef. Members of Congress who vote against permanent normal trade relations with China are voting against cattle producers, says the National Cattlemen's Beef Association. China easily could become the top market for U.S. beef exports, NCBA CEO Chuck Schroeder told the House Ways and Means Committee.

Pork Producers Review Major Industry Changes. The National Pork Producers Council says the pending sale of Farmland Foods Inc.'s Dubuque, IA, packing plant to Smithfield Foods is only one example of major changes taking place in the pork industry. Hog ownership by packers and mandatory price discovery are others that are reviewed in a lengthy statement by NPPC.

Lugar, RFA Like Clinton's Fuels Stance. Senate Agriculture Committee Chairman Richard Lugar (R-IN) and the Renewable Fuels Association are two strong advocates of President Clinton's call for the country to develop alternative fuels. Lugar said the president sounded a lot like him.

Organic Farming Shows Swift Growth. Organic farming has become one of the fastest growing segments of agriculture, and producers, exporters and retailers are struggling to keep up with consumer demand for a wide range of organic products, USDA reports.

Ag News Summaries

Democrats Pledge Opposition to China NTR. Nineteen House Democrats will oppose granting China permanent trading privileges in the U.S. market, dealing a blow to White House efforts to round up votes, REUTERS reports. The Democrats had voted in favor of annual renewal of China's trade status in the past, but they told President Clinton in a letter that they would oppose legislation to make that status permanent, insisting that Beijing first improve human rights and labor standards. With those commitments and others, the chief vote counter for the opposition, Democratic Rep. David Bonior (MI) estimated at least 135 of the House's 211 Democrats now opposed the legislation. While he conceded that was not enough to defeat the measure, which is overwhelmingly supported by the Republican majority, Bonior said the opposition had ``momentum'' and was within striking distance. The announcement was a setback for Clinton, who asked Congress to approve permanent normal trade relations (NTR) legislation by June to ensure U.S. companies benefit from a landmark trade agreement that would open China's vast marketplace, potentially the world's largest with 1.3 billion consumers. 

House Ag Approves E-Filing. The House Agriculture Committee has approved a "freedom to E-file" bill the provides for electronic form filing by farmers. The bill requires USDA to establish an electronic filing and retrieval system to enable the public to file with USDA all required paperwork electronically. It also would allow the public to have access to information on farm programs, quarterly trade, economic and production reports and other similar information. Farmers could download forms from the Internet and submit them completed and/or modified. The system would have to be fully operational in two years. 

Monsanto Denies DuPont's Soybean Charges. Monsanto Co. and DuPont have traded suits over soybean technology, THE WALL STREET JOURNAL reports. DuPont's lawsuit reportedly seeks damages and other relief for the sale of products containing technology for Roundup Ready soybeans. Monsanto says it "will aggressively defend against all claims by DuPont" and continue to sell its Roundup Ready technology. Monsanto's suit against DuPont seeks to terminate a licensing agreement for soybean technology with DuPont's Pioneer Hybrid International unit. 

Sara Lee Recall Spoils Safety Stance. The reappearance of listeria in Sara Lee Corp. hot dogs is wounding the meat industry's efforts to ward off tougher food safety regulations, according to THE WALL STREET JOURNAL. The recall provides ammunition for consumer groups and members of Congress who want USDA to require markers of ready-to-eat meats to test for listeria. Some already do that voluntarily but not extensively enough for the activists. The Center for Science in the Public Interest and the Consumer Federation of America are among those pushing for warning labels on ready-to-eat meats and for food companies to reduce the recommended shelf life of cook meat products. 

EU–China Trade Talks End with No Deal. Trade talks between China and the European Union have ended without an agreement, according to the AUSTRALIAN BROADCASTING CORP. and KYODO NEWS SERVICE. An EU spokesman would not comment on the substance of the negotiations, only saying there were "positive movements on both sides." No date has been set for more talks. "We made progress," said Anthony Gooch, the spokesman for EU Trade Commissioner Pascal Lamy. "As you know, the issues under discussion were wide ranging and complex, and a complex negotiation requires due time." Lamy is quoted as saying while both side made concessions during the four days of talks, the EU felt it could not conclude a deal. KYODO reports that the latest failure, the third round this year, is a severe blow to Beijing's efforts to enter the World Trade Organization this year. There also are indications Congress could change its mind on voting on permanent normal trade relations with China this spring and wait until the EU talks are concluded. 

AFBF's Stallman Questions Concentration. American Farm Bureau President Bob Stallman wonders if structural changes in agriculture really mean "big is better, especially when it comes to price discovery for the commodities we produce." He told the National Grain and Feed Association annual meeting that the AFBF wants to know the adequacy of antitrust enforcement by USDA and the Justice Department, the integrity of the Capper-Volstead Act which exempt cooperatives from antitrust laws and the sufficiency of current antitrust laws and the Packers and Stockyards Act. "We need answers, and we need to look ahead, because it sure is painful to look back," he said. "People in farm country are hurting. Most analysts agree that we are heading into what, for many farmers, will be the third year of low commodity prices." Net farm income, he added, could decline below $50 billion this year – 20% less than last year and the lowest since 1986.
 

March 30, 2000

ICBA Wants Two More Farmer Aid Years. The Independent Community Bankers of America wants Congress to approve two more years of emergency farm aid. The ICBA also outlined provisions for a new farm law that included countercyclical payment options for farmers. ICBA was one of several organizations testifying Wednesday before the House Agriculture Committee.

Glickman Calls for Attention to Biotech Issues. Agriculture Secretary Dan Glickman believes "substantial" economic, structural and social issues must be addressed "in a comprehensive and timely manner" if biotechnology is to benefit farmers and consumers.

Methyl Bromide Phase-Out Means Heavy Losses. USDA's Economic Research Service has issued a study that shows the methyl bromide phase-out will cause "substantial, short-term losses" to producers and consumers of crops treated with the fumigant. Those losses will be mitigated when effective alternatives are on the market, and although alternatives do exist, there are regulatory restrictions at the federal and state levels that could limit or ban their use.

Ag News Summaries

Moore Hopes for EU-China Accord. World Trade Organization Director-General Mike Moore said on Wednesday he hoped the European Union and China would wrap up an agreement on China's WTO entry this week, REUTERS reports. ``I'm not predicting it will happen, I'm saying yes it would be great,'' Moore told reporters during a Brussels visit. It would be a ``major move forward'' if the EU and China sealed a bilateral accord on China's entry to the global trade body, Moore said. ``But that's not all there is to it,'' Moore said, cautioning that a lot more work remained before China could join. European Trade Commissioner Pascal Lamy is in China this week for crucial talks on China's WTO entry. Talks adjourned on Wednesday without a deal but Lamy and Foreign Trade Minister Shi Guangsheng agreed to continue efforts on Thursday. The 15-nation EU is the largest trade power which has yet to reach a market-opening agreement with Beijing which would allow it to join the WTO. About 10 other countries still must complete their own agreements with China and other procedural steps must be fulfilled, WTO officials say. 

Moore Hopeful for New Round This Year. World Trade Organization Director General Michael Moore Wednesday said it's possible to launch a new round of global trade talks this year, but WTO members need to show more flexibility, according to THE WALL STREET JOURNAL. "The mood in Geneva is quite good," Moore told journalists. "I think it's moving. I never expected there to be dramatic, dramatic change, but it's building up. What we haven't seen enough of yet is flexibility." Moore said WTO members still remain divided on key issues that helped lead to the breakdown of the WTO's meeting in Seattle last December. Trade experts doubt a new round will be launched until after the U.S. presidential election in November. The EU. has said that one of the reasons Seattle failed is that the U.S. wasn't prepared to make concessions on anti-dumping issues, as well as textile quotas and other market access issues. Trade ministers have told Moore that there must be agreement on issues such as agriculture, anti-dumping, investment, competition and labor standards before they agree to attend another WTO meeting. When asked whether a new round is politically possible, Moore said "I don't know, I give it a modest chance." He admitted that agreement on major issues needs to be reached by this summer for a new round to be launched this year. He said the labor standards remains an important sticking point for many developing countries. 

Minneapolis E. Coli Probe Underway. Minnesota health officials are investigating an outbreak of the E. coli bacteria that may have infected as many as 16 students at an elementary school in Minneapolis, BLOOMBERG NEWS reports. Five students at Risen Christ Catholic School have confirmed cases of E. coli 0157:H7 infection, and 11 more show symptoms associated with the food-borne bacteria, said Buddy Ferguson, a spokesman for the Minnesota Department of Health. No one has died. The city of Minneapolis, the Minnesota Department of Agriculture and state health officials are interviewing students and school officials to determine the source of the outbreak, Ferguson said. He said the most likely source is a hamburger dish served March 14 in the school cafeteria. Cases of infection tend to increase as the warm-weather grilling season changes food-preparation habits, Ferguson said. The U.S. Department of Agriculture in December approved a rule allowing processors to use a process called irradiation to rid red meat of bacteria, including E. coli. 

Glickman Not Veep Choice. At a ceremony honoring his years at USDA, Secretary of Agriculture Dan Glickman took himself out of contention for the number-two spot on this year's Democratic ticket with Vice President Gore. Glickman also said he will not run for governor of Kansas in 2002. 

Lawmakers Work on Supplemental, Farm Bills. The House of Representatives neared passage of an ever-growing supplemental appropriations bill for 2000, but Senate passage remained in doubt. Repeated reports of an imminent Senate Appropriations Committee meeting to approve the bill contrasted with statements from Senate Majority Leader Trent Lott (R-MS) that the supplemental spending should simply be part of normal 2001 appropriations legislation. Meanwhile, House Agriculture Committee staff were busily preparing for a conference with Senate counterparts on crop insurance legislation. As for the farm assistance spending planned in both the House and Senate budget resolutions, one high-ranking lawmaker in a position to set farm policy direction told AgricultureLaw.com flatly that another year of additional Freedom to Farm payments is in store. It is not certain, though, that the wording of the budget resolution will strictly require this format for delivering new benefits, so Democrats will likely force votes on alternative ways to make the payments.
 
 

March 29, 2000

Court of Appeals Rejects Government Petition to Rehear Mushroom Case. In late 1999, the U.S. Court of Appeals for the Sixth Circuit struck down the Mushroom Promotion Act of 1990 as a violation the First Amendment to the United States Constitution. United Foods, Inc. v. United States. This was the first appellate decision to significantly restrict the reach of the Supreme Court's 1997 decision in Glickman v. Wileman that decided that commodity promotion laws do not violate the First Amendment. On March 23, 2000, the entire Sixth Circuit refused the government's request to reconsider its United Foods decision. Now, it appears, another Supreme Court ruling analyzing the constitutionality of commodity promotion laws may soon be necessary. Click here for an article analyzing the Court's ruling. 

Milk Expansion Continues. As the year progresses, sharply lower returns to milk producers should slow expansion in milk production, says USDA. But relatively high milk prices from preceding years, inexpensive concentrate feed prices and plenty of alfalfa supplies "have unleashed a major expansion in milk production." Any quick moderation of production is not likely. 

Perdue Unfair to Farmers Says Justice. The Justice Department has charged Perdue Farms Inc. with unfair and deceptive practices in dealings with poultry growers. Justice also charges Perdue failed to abide by the terms and provisions of an agreement entered into with its growers. 

New Soybean Good for the Heart. USDA has just released a non-transgenically modified soybean called Soyola that yields oil that doesn't need to be hydrogenated to improve its usefulness for cooking. Hydrogenation produces most of the dietary trans fats now recognized as unhealthy for the heart.

Ag News Summaries

Well-Done Okay, Study Says. Eating well done meat does not appear to increase the risk of breast cancer and consuming more white meats may offer protection against the disease, according to a study released Tuesday by the University of California Irvine College of Medicine, REUTERS reports. This contradicts previous findings that a link existed between breast cancer and the consumption of well done meats. "No matter how the food was prepared -- blackened, barbecued, grilled or pan fried -- red meat didn't increase the risk and white meat actually seemed to offer protection against breast cancer," said Dr. Ralph Delfino, assistant professor of epidemiology at the university, who co-led the research team. The co-leader of research and epidemiology, Hoda Anton-Culver, urged caution in interpreting the results since the study involved a small number of participants and studied only those with breast diseases. 

Georgia Grocery Recalls Ground Chuck. that may be contaminated with E. coli, USDA says. The ground chuck was packaged in various sizes and produced March 22 and 23. The packages bear the Quality Foods name and are marked with sell-by dates of March 24 and 25. 

Vidalia Onion Prices May Increase. Consumers who enjoy Georgia's sweet Vidalia onions may be in for higher prices and later delivery this year, THE ASSOCIATED PRESS reports. Prices may increase about 10 cents a pound, because farmers in the 20-county southeast Georgia region where the famed onions grow are peeling back production. "We can harvest only so many onions, physically. We had more onions planted last year than what we could get packaged. We don't need that many, so we had to cut back," said Delbert Bland who operates a 2,600 acre farm south of Reidsville. State figures indicate Georgia farmers planted 14,918 acres of Vidalias this year compared with 15,500 acres in 1999 and 16,000 acres in 1998. 

Armey Thinks May for China Vote. House Majority Leader Dick Armey hopes to schedule a May vote on permanent normal trade relations with China, and he expects it to be approved, REUTERS reports. The Clinton Administration and supporters of PNTR have warned that if a vote is to held by May the process could become bogged down in election politics and may have to be set aside until next year. Armey did not guarantee a May vote; he said the onus was on Clinton to round up 90 Democratic votes to ensure House passage. 

Food Labels Not Needed. Proposed warning labels on genetically modified foods would scare millions of consumers needlessly who fill their shopping carts with the food each week without realizing the technology played a part in the process, THE ASSOCIATED PRESS reports. At the BIO2000 convention in Boston Tuesday, Gene Grabowski, spokesman for the Grocery Manufacturers of America, said, "It looks like the surgeon general's warning on cigarettes." He was referring to "a square warning label" that would be required on biogenetic foods under a bill introduced in the House by Rep. Dennis Kucinich (D-OH). Sixty percent to 70% of all processed foods on supermarket shelves contain some genetically modified ingredient, Grabowski said. 

Senate Panel to Act on Budget. After weeks of wrangling, Senate Republicans came together on a compromise budget resolution for 2001 that is expected to get the Senate Budget Committee's approval today. It includes an extra $5.5 billion in immediate assistance for farmers, REUTERS reports. 

More Countries Ban Korean, Japanese Meat. Australia and Singapore joined three other nations in suspending imports of beef and pork from South Korea and Japan as concern spread over disease found in cattle, REUTERS reported. Officials in South Korea said it could take up to a week to establish whether an illness affecting two cows on Sunday is foot-and-mouth disease, which is fatal and highly contagious on cattle and pigs. But it cannot be transmitted to humans.
 

March 28, 2000

Ag Exports Decline by Almost $500 Million. Agricultural exports for October-January declined by almost $500 million to $17.8 billion, USDA reports. Combined with more imports, the cumulative trade surplus was reduced to less than $5 billion from $6 billion a year earlier.

Harkin Says Rethink Inspection Cuts. Sen. Tom Harkin (D-IA) wants USDA and the White House to rethink the administration's proposal to reduce the number of meat and poultry processing inspections and the inspector workforce. USDA hasn't demonstrated that it's able to meet food safety needs with a reduced force, says Harkin.

Consolidation Occurred from Scale Economies. A new USDA study suggests that consolidation in the cattle and hog slaughter industries occurred because of scale economies: larger plants can produce meat at slightly lower costs than small slaughter plants. A policy challenge is to ensure that high concentration does not erode price competition among packers, the study says.

Large Majority Believe Soy Products Are Healthy. A new survey sponsored by the United Soybean Board shows 71% of consumers consider soy and soy products "very healthy" compared to 67% in 1998 and only 58% in 1997. Consumers also say they are eating more soy products.

Ag News Summaries

Firms Fail to Pay $3 Million; USDA Acts. USDA has filed administrative actions against two firms for "repeated and flagrant" violations of the Perishable Agricultural Commodities Act. In one action it is alleged the firm failed to pay promptly and in full 99 sellers $2.5 million for perishable agricultural commodities, and in the other action, USDA alleges the second firm failed to pay promptly and in full 44 sellers $997,078. The first action is against International Exports Unlimited Inc., Miami, FL, and the second action is against Hurwitz Distributing, Novato, CA. Between December 1998 and December 1999, pro rata distributions of trust assets totaling $1.4 million were made to 78 claimants of International; in February, pro rata distributions of trust assets totaling $179,718 were made to 39 claimants. Both firms will have an opportunity to request a hearing. 

Farm Official Accused of Bribery in Japan. The Japanese Agriculture Ministry expressed shock following the arrest of a 44-year-old ministry bureaucrat for allegedly taking 1.9 million yen in bribes through wining and dining from an agricultural cooperative in Kagawa Prefecture, KYODO NEWS SERVICE reports. Kinya Mizokami was arrested early Monday on suspicion of having had his personal drinking expenses paid by the Shikoku Okawa Cooperative between 1997 and 1999 allegedly in return for helping get government subsidies for the co-op. Ministry officials say it is the first time a "career" official in the ministry has been arrested by police. Career officials hold administrative jobs in the government bureaucracy and enjoy a fast track in promotion. 

Glickman Says Russian Aid Back-Burner. Agriculture Secretary Dan Glickman says additional and substantial U.S. food aid to Russia "is not on the top burner," REUTERS reports. Glickman made the remarks to reporters and said the Clinton Administration continues to evaluate the food situation in Russia and does not rule out humanitarian assistance in the future. "Substantial, additional food aid to Russia, as of today, is not on the top burner," he said.
 

March 27, 2000

Dunn Hails STB Suspension Decision. USDA Under Secretary Michael V. Dunn "wholeheartedly supports" a Surface Transportation Board decision to suspend all railroad merger activity for 15 months while the STB develops new rules governing railroad mergers. USDA agrees that the rail industry should not now undertake what likely would be "a final restructuring of the North American railroad industry."

Ball Park Hot Dogs Recalled. Ball Park Brands has voluntarily recalled about 34,500 pounds of hot dogs that may be contaminated with listeria. The hot dogs were distributed in 15 states from the Eastern Seaboard through the Great Plains.

Cotton Backing CBI Initiative. The National Cotton Council has told Senate Majority Leader Trent Lott (R-MS) the cotton industry supports Caribbean Basin Initiative-Sub-Saharan Africa trade legislation that should lead to an additional consumption of 1 million bales of U.S. cotton.

Internet Cattle Trading Approved. The Commodity Futures Trading Commission has approved a new Internet-based trading method for cattle futures. The National Cattlemen's Beef Association supports the "increased competition, whether in the live cattle marketplace or by having another risk management alternative that gives sellers an alternative when trading in futures markets."

Ag News Summaries

Two ‘Bios' Face Off in Boston. BIO2000, a meeting of some 7,000 scientists, biotechnology executives and investors, began Sunday at Boston's convention center. Less than a mile away on the campus of Northeastern University, BioDevastation2000, a gathering of about 1,000 activists, scientists and executives from the organic food industry, began meeting Friday. REUTERS reports Boston police advised shops in the area where the conferences will be held "to prepare as if they were expecting a hurricane," a police official said. Experts attending the BIO2000 meeting said Sunday agricultural biotechnology allows farmers to use fewer pesticides and holds the promise of preventing disease affecting millions of people around the world. BIO stands for Biotechnology Industry Organization. "In developing nations, especially in Africa, millions of people struggling to provide food for themselves and their families can greatly benefit from biotechnology," said C.S. Prakash, professor and director of the of the Center for Plant Biotechnology Research at Alabama's Tuskegee University. 

USDA Announces $900,000+ in Rural Grants. USDA says $936,712 in grants will be used to help spur the development of new businesses and create jobs in the rural areas of seven states. The largest grant of $500,000 went to the George D. Aiken Resource Conservation and Development Council of Vermont to develop statewide agri-tourism initiative. A $75,000 grant went to the Wisconsin Farmers Union Specialty Cheese Co., a cooperative farmers' enterprise that seeks to expand its market for high-value specialty and gourmet cheeses. The seven states where the grants are being issued are Georgia, Utah, Maine, South Dakota, Vermont, Wisconsin and West Virginia. The grants are part of the Rural Business Enterprise Grant Program that helps public entities, nonprofit corporations and cooperatives and federally recognized Indian tribal groups finance the development of small and merging private businesses in rural areas. 

UK Farmers Support Biotech Crops. THE FARM JOURNAL reports that Monsanto UK has released results of a survey it conducted of more than 2,000 farmers. It revealed that 89% of those responding support crop biotechnology but with some reservations. More than 95% of farmers said they understood that biotech crops can reduce significantly the need for pesticides and more than 50% said they would consider growing biotech crops; 48% said they would not. 

Plans for WTO Being Worked Out. High-level officials from Japan, the United States, the European Union and Canada will meet June 1-2 in Boston to work out ways to launch a new round of multilateral trade negotiations under the auspices of the World Trade Organization, KYODO NEWS SERVICE reports. The meeting is to be attended by deputy ministers, but it could be elevated to ministerial talks, sources said. KYODO also reports that WTO delegates agreed to begin substantive talks on global agricultural trade next March after examining negotiating proposals from member countries to be submitted by the end of this year. Sources said major progress this year is unlikely to be achieved on farm trade liberalization. The 135-member WTO will hold special sessions of the agricultural committee in June, September and November, and if possible, another meeting in January 2001 to examine negotiating proposals. 

U.S. Labor Plans China Pact Assault. U.S. labor leaders say they will launch a major offensive in April against the trade agreement with China, including a rally on Capitol Hill expected to draw at least 10,000 union activists, REUTERS reports. The campaign is designed to pressure dozens of Democrats in the House who have not taken sides in the biggest trade fight since the 1993 North American Free Trade Agreement. Senate support virtually is assured, but union leaders and their allies say they are within striking distance of killing the bill in a severely divided House. The AFL-CIO is organizing the campaign. They fear the pact will undermine workers' rights in China. 

EU to Stand Firm. The European Union is committed to further liberalizing agricultural trade but will not sacrifice the "European model" of agriculture, KYODO NEWS SERVICE reports from Brussels. European Commissioner for Agriculture Franz Fischler made the remarks. "As agreed in the Marrakech agreement, we will take a further step toward the liberalization of farm trade," he said. But, he added, "this does by no way mean that the EU would be prepared to sacrifice the European model of agriculture on the altar of liberalization." "All forms" of export subsidies will be a "core issue" in Geneva, said Fischler, and that means not only the EU export refunds, "but also disciplines in export credits as well as other form of export promotion like state trading enterprises or trading boards." Export subsidies have been a major flash point between the EU and the United States. 

USDA Has New Livestock Disaster Aid Program. USDA says producers who raise livestock owned by others can be reimbursed for income lost last year from natural disasters that killed the livestock. Congress authorized up to $10 million for the program to help farmers like those in North Carolina who were hit with floods but not able to get aid in other USDA programs because they did not own the pigs or chickens that drowned. Farmers may sign up March 27-May 1 at Farm Service Agency offices in the county where the losses occurred. Livestock producers who qualified for benefits under previous Livestock Indemnity Programs cannot get benefits from this program. 

RFA Says California EPA Chief Off Base. Winston Hickox, who heads California's environmental protection program, says he's "skeptical" the ethanol industry can replace MTBE in California despite a new ethanol industry analysis that demonstrates the capacity for dramatic increases in ethanol production over the next two years, says the Renewable Fuels Association. RFA President Eric Vaughn says Hickox "missed he important point. We don't have to ramp up anything. The ethanol industry has the capacity to meet California's needs today. Between ethanol in storage and underutilized capacity at existing plants, the ethanol industry can provide the 550 million gallons of clean air, clean water oxygen additive California needs – today." If Hickox wants to help California's environment, adds Vaughn, he should "spend more time reducing the current use of MTBE and less time trying to block the use of ethanol in Califonria." 

Farmland Price Gain Slowest Since ‘82. Farmland values advanced last year at the slowest pace since 1982, THE WALL STREET JOURNAL reports. Collapsing prices get the blame for the slowdown. Economists say prices would actually have fallen, instead of just stagnating, had not Congress passed a multi-billion farm aid package. The national average price of an acre of farmland, including buildings, edged up $30 to $1,050.
 

March 24, 2000

Senate Approves Crop Insurance Reform. The Senate, on a 95-5 vote, Thursday approved crop insurance reform. With the House waiting in the wings with its bill that was approved last September, the bills now go to a conference committee for reconciliation. House Agriculture Committee Chairman Larry Combest (R-TX) said he hopes the new program will be in place for winter wheat plantings this fall.

Meat Groups Withhold Judgment on China. Four U.S. meat groups say they'll wait to see how smoothly exports to China work before making any judgment on China's new import rules that opened the doors wider to more trade with the United States. The real test, say the groups, will come "when and if there is an uninterrupted flow of product to China."

USDA Lifts Poultry Restrictions on Mexico. USDA has lifted certain restrictions on poultry imports from Sinaloa and Sonora, Mexico. The restrictions were in place until USDA was assured there would be no poultry diseases transmitted with imports from Sinaloa and Sonora. Imports from the two regions must be certified that there has been no contact with poultry from other regions of Mexico where disease risks exist.

Expanded Collateral Rules Get ABA Commendation. The American Bankers Association has commended the Federal Housing Finance Board for publishing rules that allow rural banks to pledge their farm loans for collateral in order to receive lendable funds from the Federal Home Loan Bank System.

Ag News Summaries

IDFA Supports Forward Milk Contracting. The International Dairy Foods Association "fully supports" forward contracting of milk under federal order regulations. USDA issued a proposed rule March 1 for a pilot program to allow Classes II, III and IV milk buyers and sellers to use forward contracting. "IDFA believes this program is very important for the dairy industry as it creates an additional risk management tool that milk producers, cooperatives and milk handlers may voluntarily use," said IDFA chief economist Bob Yonkers. "This authority is long overdue." IDFA supports the provision that combines a multi-plant handler's Classes II, III and IV utilization at all of its plants regulated under a federal order -- essentially, its non-fluid milk usage -- in determining the quantity of milk eligible for forward contracting. But IDFA believes the rule is overly restrictive in some of the terms of forward contracts. The association opposes, for example, a six-month limit on initial contracts, because most handlers and producers operate on a 12-month planning cycle. IDFA also wants more flexibility for buyers and sellers to contract on whatever basis works best for both parties.

More than $1 Billion Goes to Rural Poverty. The "rural empowerment zone and enterprise community initiative" has exceeded $1 billion in investments during the past five years in some of the nation's most depressed rural areas. Agriculture Secretary Dan Glickman says 10,892 jobs have been created or saved; 854 news businesses have been attracted to empowerment zones or expanded operations; 11,881 clients have been served through business development and job training initiatives; 2,112 houses have been built or renovated, and 513 new electric gas or water-drainage hookups have been completed. The initial seed grants of $119 million in 57 rural communities have been multiplied more than eight times, says Glickman. Most of the efforts are concentrated in Appalachia, the South and on Indian reservations where poverty rates of 25-35% existed before the program. 

Iraqi Poultry Hit by Disease. A United Nations Food and Agriculture Organization report says 60% of Iraq's chicken farms have been hit with Marek and Newcastle diseases, REUTERS reports from Baghdad. The UN Security Council's sanctions committee allowed Baghdad to buy 12 million vaccines to combat poultry diseases, but the contract was put on hold for nearly eight months, time enough for the diseases to develop. The committee held up the vaccines until it could make sure they would not be used for military purposes. 

WTO Ag Talks Launched. World Trade Organization talks on removing barriers to freer global farm trade were launched Thursday in Geneva, but diplomats say the talks could drag on for years, REUTERS reports. The Cairns Group insisted the negotiations should have a definite time frame and no firm ties to a wider trade liberalization round. But Japan argued that the farm talks could be concluded only as part of an overall package covering other areas of trade in a new round, agreement on which diplomats say is a long way off. The United States has said deadlines were needed to avoid "needless procedural wrangling." So far, negotiators have failed to agree on a permanent chairman for the talks – not an encouraging sign for rapid progress, according to observers. 

USDA Increases Seed Inspection Fees. USDA has increased seed inspection fees to cover the cost of testing and issuing analysis certificates by the Livestock and Seed Program. Costs of salaries, rent and supplies were blamed for the increase. The increases changes the hourly fee for testing and issuing certifications from $0.40 an hour to $44.40 an hour and increases the fee for issuing additional duplicate certificates from $10.10 to $11.10. 

No Oxygen Raises Red Flags. PRO FARMER reports that the administration's proposal to phase out MTBE in favor of ethanol and other renewable fuel sources has raised some red flags with lawmakers and some commodity groups. Replacing the 2% oxygenate requirement with a 1.2% renewable fuels requirement doesn't signal the demand-growth potential for ethanol that leaving the 2% requirement in place would portend. Illinois Corn Growers Association says it provides "very little" for ethanol and amounts of "pandering to petroleum refiners." The administration's proposal calls for a four-year phase-out of MTBE use. 

Helms Drops Cuba Opposition. Sen. Jesse Helms (R-NC) has dropped his opposition to allowing sales of U.S. food and medicine to Cuba, says THE ASSOCIATED PRESS, leading to a vote by the Senate Foreign Relations Committee Thursday to license such sales as long as they are not subsidized by USDA. That will protect U.S. "moral and national security interests," said Helms, who chairs the committee. The Cuba provision is part of a foreign assistance bill that also authorizes $600 million in debt relief to developing countries and $300 million in aid for victims of the African AIDS epidemic. The legislation also prohibits the President from including food and medicine in future embargoes of other countries without congressional approval. 

Pharmacia, Monsanto Merger Approved. Shareholders of U.S.-Swedish drug maker Pharmacia & Upjohn Inc., and life sciences firm Monsanto Co. Thursday approved a planned merger of the companies in separate shareholder meetings, REUTERS reports. The new entity will be called Pharmacia Corp. and expected sales this year are more than $16 billion, $11 billion from drugs and $5 billion from genetically modified seeds, pesticides and other agriculture-related products. The merger is due to be completed on or by April 1 and calls for Pharmacia to become a subsidiary of Monsanto. Pharmacia CEO Fred Hassan will run the combined company. 

Farmland Sells Pork Plant. Farmland Industries plans to sell its Dubuque, IA, pork processing plant to Smithfield Foods Inc., the country's largest pork producer, REUTERS reports. The all-cash transaction, due to close on or about May 15, will strengthen further Smithfield's market-leading share of the pork industry. Terms of the agreement were not disclosed. Smithfield's aggressive acquisitions in the pork industry have made it a lightning rod for critics who say rising corporate concentration of ownership in U.S. agriculture is driving family farmers out of business.

March 23, 2000

China Clears Last Hurdle for U.S. Ag Trade. China has cleared the way for imports of U.S. meat, poultry, wheat and citrus. By issuing new rules on the imports, the bilateral portion of last year's U.S.-China trade agreement goes into effect.

Senate Opens Crop Insurance Debate. The Senate began debating a crop insurance reform bill Wednesday afternoon. Included in the bill is a pilot program provision for $500 million in direct risk management assistance to farmers who choose to forgo crop insurance subsidies in a particular year.

U.S. Issues Response to EU Precautionary Principle. U.S. officials are critical of the European Union for insisting on a "precautionary principle" on food safety but not defining the principle. Without a clear definition, they say, the principle could be used to prohibit or inhibit trade.

GIPSA Wants More Legislated Authority. USDA's Grain Inspection, Packers and Stockyards Administration wants Congress to grant several legislated authorities it says will enhance its operations. One industry organization calls for more flexibility for GIPSA to control costs and maximize operational efficiency.

Ag News Summaries

USDA Wants to Reduce Plant Inspections. THE ASSOCIATED PRESS reports that USDA wants to reduce inspectors' required visits to meat processing plants and switch to random checks. That would allow the government to concentrate on facilities where food is most likely to be contaminated, and random checks would make it more difficult for processors to hide problems from the inspectors. The AP cited Margaret Galvin, association administrator of the Food Safety and Inspection Service with the information. Caroline DeWaal of the Center for Science in the Public Interest said the switch is being made to save the meat industry money and could endanger public health.

Gore Lobbies for China Trade Deal. Vice President Al Gore said Wednesday he is lobbying Congress to support the trade agreement with China despite opposition from his allies in organized labor, REUTERS reports. "I've talked to undecided members, and I intend to continue doing that," Gore told reporters after speaking to House Democrats on Capitol Hill. Now that he has clinched the Democratic presidential nomination, White House officials say Gore is ready to take on a more aggressive role in the administration's campaign for the agreement. 

Canada Optimistic on Free Trade Deal. Canadian officials say they are optimistic that a pact with the four-nation European Free Trade Association will be finalized by the end of this week, REUTERS reports from Geneva. The deal would be the first ever free trade accord between a European economic group and either of the North American economic giants, the United States and Canada. The EFTA includes Switzerland, Norway, Iceland and Liechtenstein. Officials said only a few technical details remain to be finalized. 

Argentina Sees More Ag Exports to China. Argentina's new agriculture-dominated trade pact with China should more than double its exports to the Asian giant and lure investors, top officials say, according to REUTERS. President Fernando de la Rua told reporters, "I am convinced this accord will have a positive impact on our trade and our economy." Tariffs on Argentina's grass-fed beef will be reduced to 12% from 45% over four years under the agreement. The pact is contingent on China's membership in the World Trade Organization.
 

March 22, 2000

Farmers Protest on Capitol Hill; Results Questionable. More than 2,000 farmers, ranchers and rural business people were in Washington this week to lobby Congress for changes in the 1996 farm law in hopes of higher farm prices. The two days gave Agriculture Secretary Dan Glickman a chance to tout the Clinton Administration's plan for supplementing farm income in times of low prices; it gave Sen. Kent Conrad (D-ND) a chance to promote his farm income legislation designed to equate U.S. farm subsidies with European subsidies, and it gave Sen. Byron Dorgan (D-ND) a chance to tell the Senate of farmers' plight in the face of low prices. But any farm bill changes remain doubtful, though another emergency cash infusion seems probable.

Grassley May Rethink China Accord Support. Sen. Charles Grassley (R-IA) told China's trade minister he may have to rethink his support of normal trade relations with the PRC unless China abides by the terms of the meat component of the agreement signed in December. It was one of two issues Grassley raised with Vice Minister Long Yongtu.

Ag Outlook Probes Organics, Economics, Food Prices. USDA's latest Agricultural Outlook includes several issues of importance to ag interests: the continued expansion of organic agriculture, an economic outlook that sees near-term weakness and a modest increase in food prices on the horizon. An article on biotechnology and implications for corn, soybean and grain handlers also is included.

Venture Money Funds Drinks Site. DRINKS.com, an Internet source of wine, spirits and beer products at reduced prices, has secured $15 million in venture capital funding to expand into additional markets and increase the company's marketing efforts.

Ag News Summaries

Lugar Wants More Food Donations. Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants Congress to encourage increased donations to food banks, soup kitchens and other hunger relief charities. His bill would expand the tax deduction for food donations to all business taxpayers, including farmers and restaurant owners; increase the tax deduction for donated food to the fair market value of the product, not to exceed twice the product's basis, and codify the tax court ruling in which the court found that taxpayers should base the determination of fair market value of donated product on recent sales. 

FSIS Reports Decline in Salmonella Incidences. USDA's Food Safety and Inspection Service reports substantial reductions in the prevalence of salmonella in raw meat and poultry products produced under the hazard analysis and critical control point (HACCP) system. Results of two years of testing in large plants under HACCP show declines in salmonella prevalence in all product categories. In pre-HACCP baseline studies, salmonella prevalence in young chicken carcasses was 20% but 10.3% under HACCP; prevalence in hogs was 8.7% before HACCP and 4.4% under HACCP; in ground beef, prevalence was 7.5% prior to HACCP and 5.8% under HACCP, and 49.9% in ground turkey before HACCP and 34.6% under HACCP. In small plants the results were similar except for hogs: 18.2% of hog carcasses tested positive afer HACCP compared to 8.7% before the program. 

Meetings Slated for Salmonella in Eggs. USDA's Food Safety and Inspection Service will co-sponsor two public meetings to solicit and discuss information for reducing or eliminating the risk of salmonella in shell eggs and egg products using a farm-to-table approach. The first public meeting is March 30 at the Hyatt Regency Columbus, Columbus, OH, and the second is April 6 in the auditorium of the California Department of Food and Agriculture building in Sacramento. Linda Russell is in charge of registration for the Ohio meeting; (202) 501-7249, and Mary Harris for the Sacramento meeting: (202) 501-7315. 

Armey Says Date May Be Set for China Vote. House Majority Leader Dick Armey (R-TX) says he's willing to set a "date certain" for a vote in the House on normal trade relations with China that would clear the way for the U.S.-China trade deal to become effective if Congress approves, REUTERS reports. The Clinton Administration has been pressing the Republican leadership to schedule a vote, arguing it would put pressure on wavering Democrats and improve chances for passage. "If setting a date certain helps us close that gap and get those votes, then I'm certainly wiling to do it," Armey told reporters. Pro-trade lobbyists have begun to say that the vote must be held by Memorial Day or will likely be delayed till next year. 

Supreme Courts Deals Tobacco Setback to FDA. The Supreme Court's 5-4 ruling against the Food and Drug Administration's rationale for regulating tobacco was an increasingly rare victory for the tobacco industry, but could prompt new efforts to deal with the issue in Congress. If that happened, changes in the tobacco price support program would be a possibility: Cigarette companies made major cuts in projected tobacco purchases from farmers this year, leading to unprecedented reductions in the quotas that govern how much tobacco farmers are allowed to sell. The quota cutbacks have already prompted a lawsuit, and Congress made tobacco farmers part of last year's emergency cash infusion.
 

March 21, 2000
Government Seeks MTBE End. The Environmental Protection Agency wants the use of MTBE in gasoline either significantly reduced or eliminated. EPA will take two approaches: one is regulatory, the other is legislative to accomplish that goal. But the end result does not guarantee ethanol will be the sole replacement for MTBE which has been branded a pollutant.

Corn Growers Honor Getty Petroleum. The National Corn Growers Association has given its annual President's Award to Getty Petroleum Marketing, Inc., for the company's use of ethanol at nearly 1,300 stations in 12 northeast and mid-Atlantic states.

China's WTO Membership Has a Ways to Go. A General Accounting Office report details the steps yet to be taken before China becomes a member of the World Trade Organization and the U.S.-China trade agreement becomes a fact. It could take several more months to conclude all the negotiations necessary for China's WTO accession.

Biotech on a Fast and Slow Track. Biotechnology is going great guns in health care and medicine, but biotech foods are threatened with a much slower process before public acceptance puts such foods on grocery shelves to any great extent. Geneticists may be the world's new explorers, but like the explorers of old food geneticists at least are encountering many skeptics, says the American Farm Bureau Federation.

Ag News Summaries

Futures Leaders Laud CFTC Deregulations. U.S. futures leaders Monday praised a Commodity Futures Trading Commission proposal to relax futures regulation but debated issues such as retail customer access to unregulated over-the-counter markets, fund segregation and product definitions, REUTERS reports from Chicago. Three panels of industry heads from exchanges, futures commission members and institutional users testified before a U.S. Senate agriculture subcommittee chaired by Sen. Peter Fitzgerald (R-IL). All agreed that the plan proposed last month under CFTC Chairman William Rainer would make U.S. markets more competitive by introducing three levels of regulation based on such guidelines as types of users and products offered. 

Worse Russian Feed Grain Shortage Seen. USDA forecasts the shortage of feed grain in Russia will worsen this year, REUTERS reports. USDA said trade sources estimate that Russia will need between 30-33 million tons of feed grain to maintain livestock production at current levels. "The feed situation in this year is gloomy," the report said. "Low grain stocks and structural problems in the Russian grain sector, domestically available supplies are not expected to increase in 2000." Actual Russian feed consumption for 1999-2000 should total 25.1 million tons, almost 15% less than the previous season's consumption of 28.6 million tons and 5-8 million tons less than needed for livestock production. 

U.S.-China Pact Backers Fear Taiwan Flare-Up. U.S. congressional support for a trade agreement with China hangs in the balance as lawmakers weigh Beijing's response to the presidential election in Taiwan, REUTERS reports. So far, China's reaction to the election of Chen Shui-bian, leader of the Democratic Progressive Party, has been moderate, and Sen. Max Baucus (D-MT) finds that encouraging. But Clinton Administration officials and lawmakers who support the agreement fear that could change, given warnings from Beijing before the vote that the election of the leader of the pro-independence party could spark war. 

Australia Wheat Group Isn't Giving Up Iran. Australia's national wheat exporter says it has sold more than 1 million tons of wheat to Iran so far in the 1999-2000 marketing season and is unfazed by Washington's decision to ease trade sanctions against Iran, REUTERS reports from Sydney. Iran is the world's largest wheat importer and one of Australia's main wheat customers. Now U.S. and European traders see Iran returning to the market for the U.S. wheat it has refused to buy sine 1981, although signals from Tehran have been mixed on the subject. 

House Votes Property Bill. The House has approved legislation designed to make it easier for individuals to litigate property takings claims in federal courts. It now takes property owners up to 10 years to get their day in federal court. The legislation clarifies when a property owner can appeal a local decision to a federal court. The National Cattlemen's Association says cattle producers and other property owners often are stalled endlessly in local bureaucratic red tape if they try to sue because they feel a local government has denied unjustly a building or development permit. The law now says private property rights cases can't go to federal court unless the state or local government has made a final ruling. "This bill is about fairness and due process," said Brice Lee, NCBA property rights chairman. "These undue procedural rules have resulted in middle-class property owners not having the resources to at last have their claims heard." The House bill now goes to the Senate.
 

March 20, 2000

Hearing on Market Regulations Today. Sen. Peter G. Fitzgerald (R-IL) will hold a panel hearing in Chicago today on a government proposal to give regulatory relief to traditional futures exchanges. The proposal, released last month, gives exchanges more flexibility to compete with foreign trading ventures.

Young Farmers Want Expanded Exports. A survey of 302 young farmers and ranchers, ages 18-35, from 47 states shows their main concerns are profitability and expanded exports. The survey was conducted by the American Farm Bureau Federation and is the eighth such AFBF survey.

Contract Production Benefits Pork Industry. A new study from USDA's Economic Research Service shows contract production and vertical integration may be controversial, but they lead to lower production and slaughter costs, lower consumer prices and improved product quality.

Ag News Summaries

EU-Mercosur Talks Scheduled. The European Union will begin formal negotiations today (March 20) with the Mercosur countries of Brazil, Argentina, Uruguay and Paraguay in a bid to create the largest free-trade area in the world, BLOOMBERG NEWS reports from Brussels. EU Trade Commissioner Pascal Lamy will conduct week-long talks with officials from Brazil, which currently holds the rotating presidency of Mercosur. The two blocs exchanged $41.1 billion in goods in 1998. The talks will start on non-tariff trade issues, addressing production levels, investment promotion, environment, consumer protection, bureaucracy, legal trade barriers and technology. Negotiations on tariffs and services begin in July 2001. 

EU Compromise on Farm Subsidies Blocked. France and Belgium blocked a move by other European Union nations to give ground to U.S. pressure to reduce farm subsidies, casting further doubt on efforts to start a new round of international trade talks, BLOOMBERG NEWS reports from Porto, Portugal. "We think we have a lot of work to do to restore confidence," said French Trade Minister Francois Huwart. "Flexibility is not the priority of the moment." Sweden, the Netherlands and Finland sided with the European Commission in pushing for a flexible approach, but France and Belgium blocked the EU efforts to compromise on agriculture and the bloc's broader agenda of competition policy and rules on investments. World Trade Organization director general Mike Moore, attending the Oporto meeting, said it was still possible to launch a new trade round this year, but added that nations must show more flexibility for that to happen. 

U.S. Action on Iran May Open Grain Trade. The White House decision to allow Iranian imports of carpets, pistachios and other products appears to open a door to more farm product trade in a market dominated by Europe and Australia, REUTERS reports. However, Agriculture Secretary Dan Glickman says there are no U.S. agricultural credits to Iran in the latest move to lift some sanctions against Tehran. Experts quoted by REUTERS say the administration's latest action should make Iran's grain importers more willing to consider U.S. products in their periodic wheat import tenders. A spokesman for the Iranian foreign ministry was quoted as saying the action would allow the United States to export grain and medicine to Iran. But Gerald Mason, senior economist with Britain's Home Grown Cereals Authority, said anything "bringing (U.S. wheat exports) one step closer is bound to make Europe -- and particularly French -- exporters quite nervous." Australia and France have been among the top wheat suppliers to Iran this season where import demand soared after a drought last year severely reduced domestic crop production. 

Ewing Plans Futures Law Overhaul. Rep. Thomas Ewing (R-IL), chairman of the House subcommittee that oversees futures, plans to propose by May a measure to overhaul laws on futures trading and ensure that over-the-counter derivatives remain unregulated, BLOOMBERG NEWS reports from Boca Raton, FL. "I visualize a plan that opens our markets to competition," Ewing said. "The stars are aligned to try to come to an agreement." Ewing spoke Saturday at a Futures Industry Association conference in Florida. He told reporters after the speech that House Speaker Dennis Hastert (R-IL) has made the legislation a priority for the House.

White House Studying Gephardt Proposal. The White House is studying proposals by House Minority Leader Richard Gephardt (D-MO) and others that could increase Democratic support for a trade agreement with China through granting China normal trade relations with the United States. REUTERS reports that proposals floated by Gephardt and others would set up a special commission to review China's human rights record and incorporate enforcement provisions that could lead to sanctions if China failed to live up to international norms of trade or human rights. The sanctions could include a freeze on international lending to Beijing. Asked about the penalties, an administration official said, "That sort of scenario is consistent with the World Trade Organization," but he stressed that many other initiatives were under review. Gephardt also privately has assured business leaders in recent meetings that he will not rally Democrats against the China NTR vote, the article says.
 

March 17, 2000
Billions More for Farmers in Budget Bill. The House Budget Committee has reported its version of the fiscal 2001 budget resolution, and it includes $6 billion for farm relief, the third consecutive year such aid has been earmarked for farmers. The Senate Budget Committee is likely to follow suit when it drafts its resolution, expected next week.

Food-Borne Illnesses Decline. Preliminary data from the Centers for Disease control and Prevention show another year of decline in the incidence of several major causes of food-borne disease in the United States. From 1997-99, illnesses from the most common pathogens declined nearly 20%.

Harkin Seeks Tighter Controls, More Ethanol. Sen. Tom Harkin (D-IA) is getting ready to introduce a bill that would tighten controls on certain compounds considered carcinogenic and open the door further for ethanol to be used in gasoline.

Grassley Wants More USDA Merger Authority. Sen. Charles Grassley (R-IA) wants USDA to be on a more equal footing with the Justice Department and Federal Trade Commission when it comes to reviewing agriculture-related mergers. USDA would submit recommendations to Justice and FTC under a Grassley bill.

Food and Video Games: Latest Online Service. Food.com and Blockbuster Inc. are cooperating on an Internet service that would provide consumers with delivered food and a movie. Food.com intends to acquire the Takeout Taxi and use the operation for restaurant deliveries.

Farmers Plan Rally for Legislation. A coalition of farm organizations takes to Capitol Hill next week to lobby for new farm policies, including nonrecourse loans at or near the cost of production, a farmer-owned reserve program and continuation of the planting flexibility now allowed by the 1996 farm law.

Ag News Summaries
Farmer Co-ops Need Relief. The National Council of Farmer Cooperatives wants Congress to allow farmer cooperatives to bypass the dividend allocation rule, a regulation that negatively affects the amount of the patronage dividend deduction taken by cooperatives. A House bill would allow just that, providing "substantial benefits" to cooperatives, according to the NCFC. A cooperative would be able to raise capital from outside investors; increase the amount of patronage earnings paid the farmer-owners; create a class of nonvoting preferred stock that could be traded on capital markets, providing liquidity to the cooperative's interests, and create a preferred stock program for management and employees that would improve incentive programs. 

New York Firm Recalls Hot Dogs. Smith Packing Co., Inc., Utica, NY, is recalling voluntarily more than 400 pounds of hot dogs that may be contaminated by listeria. The products subject to recall are "Honest John's" brand in 16 ounce packages and 12 pound boxes. The hot dogs were distributed in Oneida County, NY. The problem was discovered through routine USDA microbiological sampling. 

Frazier Becomes Special Trade Negotiator. Greg Frazier, Agriculture Secretary Dan Glickman's chief of staff, will join the U.S. trade representative's office as special trade negotiator for agriculture and food policy, replacing Peter Scher who left USTR last week after three years in the position. Frazier served as chief of staff since January 1995, prior to which he was a professional staff member in the House. He also served in various capacities for then-Rep. Glickman who represented a district in Kansas at the time. He holds a bachelor's degree from Kansas State and a master's degree from the University of Connecticut in U.S. foreign policy. 

Fluid Milk Order Amendments Proposed. USDA is inviting public comment on a proposed amendment to the fluid milk promotion order. The proposals would modify the membership status of the board to allow individual fluid milk processors to be represented by up to three board members instead of two. Also, board members, whose fluid milk processor company affiliation had changed, to serve for six months or until a successor was appointed, whichever was sooner. Comments must be postmarked no later than April 17 and sent to Dairy Programs, AMS, USDA, 1400 Independence Ave., SW, Stop 0233, Room 2958-S, Washington, DC 20250-0233. The proposed rule is published in today's (March 17) Federal Register. 

WTO Says U.S. Broke Law. A World Trade Organization panel has ruled the United States did not wait for WTO authorization before announcing sanctions against the European Union in a dispute over bananas, according to BLOOMBERG NEWS. Although the WTO interim report didn't question the actual sanctions, the panel held the U.S. was wrong to announce unilateral penalties against EU companies last year before a WTO arbitrator's report on trade losses caused by the EU's discriminatory banana import practices. The United States imposed $191 million in tariffs on EU luxury foods last April. "The case at issue is a rather narrow one," the article quotes U.S. Trade Representative Charlene Barshefsky as saying. "It's a largely irrelevant case." 

Key Committee Favors China NTR. A majority of the House Ways and Means Committee say they support normal trade relations for China and the trade agreement finalized last year, according to a REUTERS poll of members. That could give President Clinton some momentum in the House for NTR passage, where the outcome has been uncertain because of stiff Democratic opposition. House Democratic Leader Richard Gephardt (D-MO) has told Clinton he wants a compromise on the legislation that would increase enforcement of the agreement and give lawmakers the authority to monitor China's human rights record. According to the REUTERS poll, 20 of the 39 Ways and Means members say they will vote in favor of NTR for China. Ways and Means is the committee that will act on the NTR bill before the full House takes it up. 

CFTC May Change Regulatory Overhaul. Commodity Futures Trading Commission Chairman William J. Rainer says a planned overhaul of the CFTC rules may be changed to give more government protection to agricultural markets, BLOOMBERG NEWS reports from Boca Raton, FL. Different rules may be applied because of concern from producers who use futures to protect against sudden price shifts, although that could end up costing farmers more, Rainer said at a Futures Industry Association conference. "We're going to respond to concerns by some agriculture producer groups," Rainer told reporters after his speech. "It just may be the case that we have some exceptions for certain agriculture contracts." Farm groups and companies have criticized the CFTC's plan to permit more self oversight by futures exchanges, allowing them to avoid strict rules. However, U.S. markets, brokers and big grain companies hail the commission's moves to deregulate as vital to stemming the flow of business to less regulated overseas and electronic markets. 

Cattlemen Say Halt Grade Use. The use of USDA quality grades on imported beef should be halted immediately, says the National Cattlemen's Beef Association. U.S. grading of imported beef not only misinforms U.S. consumers and places domestic cattle producers at a competitive disadvantage in the domestic marketplace, it also goes against the Agricultural Marketing Act of 1946, says NCBA. At issue are U.S. grades such as "USDA Choice" and "USDA Prime" that have been an established brand equity for high-quality U.S. beef, NCBA adds. "We believe that Congress never intended to enhance the marketing of foreign products by placing official USDA seals on them," says NCBA President George Hall. USDA has issued a proposed regulation on the issue. NCBA called for the action last June in a petition to USDA to end the use of quality grades on imported beef. 

Price Reporting a Step Closer to Reality. Cattle producers will move "one step closer to gaining wider access to market information" from price reporting rules issued by USDA in a proposal earlier this week (see AgricultureLaw news report for Wednesday, March 15). The National Cattlemen's Beef Association expects the rule to be finalized this summer. "Often, producers feel they are making business decisions based on thinner and thinner information. We know it's not a guarantee to increase profits. However, it does represent an improved marketing tool for the producers so they can now have a clearer picture of marketing alternatives and what markets are doing," says NCBA President George Hall. 

U.S. May Free Iranian Assets. The United States is expected to begin the process of freeing Iranian assets, frozen since the hostage crisis of 1979, and to lift some trade sanctions, BLOOMBERG NEWS reports. Secretary of State Madeleine Albright may make the announcement at a speech today (March 17) at the American Iranian Council, according to the WASHINGTON POST. The sanctions would affect imports of Iranian pistachios, caviar and carpets. Sanctions prohibiting U.S. investment in Iran's oil sector won't be affected, the POST said. 

PETA Drops Ads. People for the Ethical Treatment of Animals will pull controversial ads that seemed to suggest college students drink beer instead of milk, after the advertising generated a firestorm of controversy from Mothers Against Drunk Driving and other groups, THE WASHINGTON POST reported. The ads satirized popular milk promotions.
 

March 16, 2000
Farm Income Improves with No MTBE. As ethanol supporters wait for the Environmental Protection Agency to decide if California can opt out of the reformulated gasoline program, USDA has issued an analysis that shows net farm income increases by about $12 billion over the coming decade. Not only corn farmers benefit: other feed grain and wheat farmers do, too.

Grassley Irked by Justice Stance. Sen. Charles Grassley (R-IA) says the Clinton Administration's opposition to a bill designed to help farmers reorganize debt is "absurd." The administration opposes the way the legislation treats capital gains under Chapter 12 of the bankruptcy code.

`Functional Foods' Give Farmers New Chances. Designing crops that could be used as medicine should be an exciting concept for farmers, says researcher Michael Timko. A "much higher" return is in store for a carrot grown for an edible vaccine than one grown for normal consumption, he says.

Noxious Weeds' Damage Is Widespread. Noxious weed infestations are a growing danger to national forests, recreational and agricultural lands, according to a new study from the Council for Agricultural Science and Technology (CAST). Costly and of ten irreparable damage occurs to wetlands, wildlife habitat, wildlands, rangelands and aquatic and riparian areas on public and private lands nationwide.
Ag News Summaries
Use Biotech with Care, Says FAO. Biotechnology may be a potent weapon in the fight to feed the world, but it must be used prudently, the United Nations food agency, the Food and Agriculture Organization, warned. REUTERS reports from Rome that the FAO said genetic engineering could help increase agricultural production. "Caution must be exercised in order to reduce the risks of transferring toxins from one life form to another, of creating new toxins or of transferring allergenic compounds form one species to another, which could result in unexpected allergic reactions," FAO said.

White House Wants China Vote Date. The White House wants a vote scheduled on permanent normal trade relations with China, whether the votes for passage are there or not, REUTERS reports. Commerce Secretary William Daley says setting a spring date could pressure wavering Democrats, many of whom are expected to vote against the pact because of concerns about its effect on labor and human rights. Congressional Republican leaders have demanded that President Clinton and Vice President Al Gore get 80-100 Democratic votes before floor action is scheduled. Separately, THE WASHINGTON POST reported that Chinese Premier Zhu Rongji made new threats against Taiwan if a pro-independence candidate wins that country's elections, now just three days away. Zhu's remarks could further complicate the prospects for the coming Congressional vote. 

Thailand Pressed to Open Market. The United States has called on Thailand to reduce its tariffs on agricultural imports which are said to be the highest in Southeast Asia and among the highest in all of Asia, KYODO NEWS SERVICE reports from Bangkok. "We would like to see Thailand ... reduce some of its tariffs on agricultural products," James Schroeder, deputy under secretary for farm and foreign agriculture services at USDA, told reporters after talks with Thai agriculture, finance and customs officials. Schroeder said that while the United States has reduced tariffs on agricultural products to an average of 10%, Thailand's relevant tariffs still average 40-50%. 

GM Wheat: A Marketing Nightmare? U.S. exporters could find genetically modified wheat a marketing nightmare once it becomes commercially available. According to REUTERS, Dawn Forsythe, spokeswoman for U.S. Wheat Associates, said the issue was difficult, because many U.S. farmers are attracted by new varieties that increase yields and help control weeds and pests. But embracing the technology could lead to lost export sales unless new marketing and distribution systems can be put in place to keep genetically modified wheat separate from conventional varieties. Many foreign buyers, fearing a consumer backlash, do not want to buy genetically modified wheat, says Forsythe. U.S. Wheat Associates asked its overseas staff to survey customer attitudes on genetically modified wheat, which could be available for planting as early as 2003. The results varied from country to country, but some of the most negative reaction came from the largest wheat customers. USWA's Tokyo office warned that importing genetically modified wheat would be a "highly sensational and emotional issue"in Japan and could "lead to a total boycott of U.S. agricultural products."
 

March 15, 2000
Combest:100 Democrats Needed. House Agriculture Committee Chairman Larry Combest (R-TX) says 100 Democratic votes are needed in the House to pass permanent normal trade relations for China. Approval of the NTR measure is "critical" for agriculture.

No Clouds Found on Agriculture's Horizon. The American Farm Bureau Federation has put together a television documentary on U.S. agriculture in the new century that features some rare good news. More people to feed, more wealth with which to buy food, more kinds of food and more uses for farm products are some of the reasons for optimism.

Mandatory Livestock Price Reporting Coming. USDA is proposing mandatory price reporting for major livestock packers, product processors and importers in an effort to make the livestock market more transparent. The program will give USDA information it never has been able to collect before under the voluntary market news reporting program.

Few Food-Borne Illnesses in Schools Are From School Food. A new General Accounting Office report finds only 8 of 20 food-borne illness outbreaks in the nation's schools during 1997 were from food served in the school meal programs. The other 12 came from foods consumed in schools but brought from home or obtained from other sources. Still, GAO has two recommendations for USDA, one to help schools develop food procurement contracts that further ensure food safety.

Ag News Summaries
USTR Releases U.S.-China Pact Text. U.S. Trade Representative Charlene Barshefsky Tuesday sent copies of the 250-page U.S.-China trade agreement text to members of Congress. It also was released to media. Click here for an abbreviated version of the agricultural portion. In a speech Monday to the Kellogg School of Management, Evanston, IL, Barshefsky said the agreement will help China "create a more open, efficient economy and help us redress a deeply imbalanced trade relationship."

Supplemental Bill Stalls. Further movement on the $9.1 billion fiscal year 2000 supplmeental spending bill, marked up by the House Appropriations Committee last week, is stalled by conflicting pressures from GOP leaders and fiscal conservatives, reports the National Journal's CONGRESSDAILY. The bill includes $2.2 billion for farmers and others who suffered losses from Hurricane Floyd. House Majority Leader Dick Armey (R-TX) says the leadership needs to brief members at today's GOP conference and have more leadership discussions before bringing the bill to the floor. Senate Majority Leader Trent Lott (R-MS) also doesn't want to move a supplemental bill, preferring to put the spending in the regular fiscal year 2001 bills. House leaders also are meeting stiff resistance from the Conservative Action Team which is pushing for more offsets to pay for the $9.1 billion spending package, according to CONGRESSDAILY. Budget hawks also are upset not only because the supplemental is nearly double the administration's $5.2 billion request but also because it contains only $115 million in offsets for the non-emergency appropriations; the remaining $8.9 billion would come from the fiscal 2000 on-budget surplus estimated at $23 billion by the Congessional Budget Office.

USDA Releases 1998 Pesticide Data Summary.USDA's Agricultural Marketing Service has released its pesticide data program annual summary for calendar year 1998. The program provides statistically reliable data on pesticide residues detected in selected foods. The Environmental Protection Agency uses pesticide data program information to assess dietary exposure to pesticide residues. In 1998, the PDP analyzed a total of 8,500 samples collected as close to the point of consumption as possible. Foods analyzed included six fresh fruits and vegetables, seven processed fruits and vegetables, milk, soybeans and corn syrup -- food items consumed in large quantities by children. The foods ere monitored for insecticide, herbicide, fungicide and growth regulator residues.

Georgia Firm Recalls Chicken Fritters. Zartic, Inc., a Rome, GA, firm, is recalling voluntarily about 18,600 pounds of chicken breast fritters, because the product may contain undeclared egg product. Egg products are a known allergen. Persons who have an allergy or severe sensitivity to egg products risk possible allergic reactions if the products are consumed. The product was sold to distributors in Alabama, Georgia, Illinois, Texas, Kentucky, Tennessee, Kansas, Florida, Oklahoma, Arizona, Ohio, North Carolina and Pennsylvania. The product being recalled is 18 pound cases of "COOKED CHICKEN BREAST FRITTERS" packaged for institutional use. 

Super Rice Due in Four Years. A new variety of high-yield rice which could increase global production by 15% should be ready for distribution to farmers by 2004, a senior officer at the International Rice Research Institute (IRRI) says, according to REUTERS. The Philippines-based IRRI has been working on the new plant type since 1990. The new rice plant has six to ten stems, all of which will be productive with large panicles, each with 200 to 250 grains. Current high-yielding rice varieties have 20-25 stems but only 14-15 of them produce panicles which are small, each containing about 100 grains. The article quotes Gurdev Singh Khush, head of plant breeding, genetics and biochemistry at IRRI. 

UK Firm Produces First Cloned Pigs. PPL Therapeutics Plc, the British biopharmaceutical company that helped clone Dolly the sheep, has created the world's first cloned pigs, according to a REUTERS report from London. The birth of the five cloned pigs on March 5 could herald a new age in animal-to-human organ transplants. Up to 68,000 people in the United States and 50,000 in Europe are waiting for livers, kidneys and hearts. The lists increase 15% a year, but the number of organ donors has been declining. The article says scientists believe genetically engineered pigs, which can be bred quickly and whose organs are about the same size as humans, could solve the problem. 

Iowa Study Shows Reluctant Older Farmers. A study by Iowa's Center for Agriculture Safety and Health shows older farmers often are unwilling to recognize or accept their physical limitations, THE ASSOCIATED PRESS reports. Daily farming can pose enormous risks to those with arthritis, limited visions and hearing, depression and other conditions associated with age. The study notes depression also is common among aging farmers, especially with the current economic downturn in prices and incomes. "We need to heighten awareness among farmers of the risks in farming as they grow older," said Tracy Keninger, who has been working on a task force on the issue. "They need to learn what adjustments they may need to make, such as changes in equipment they use or certain behaviors." 

More Dairy Aid on the Way? Sens. Herb Kohl (D-WI) and Russ Feingold (D-WI) have introduced a bill to give dairy farmers $500 million more in special assistance. The aid would be in addition to $325 million made available last year in emergency legislation. The bill could gain momentum since Kohl is the top-ranking Democrat on the Senate panel that sets spending levels for the Agriculture Department. 

Frazier May Replace Scher. REUTERS reports that U.S. Agriculture Secretary Dan Glickman's long-time top aide Greg Frazier appears to be the leading candidate to replace Peter Scher as special U.S. agricultural trade negotiator. 

Online Exchange Approved. After more than three years of deliberation, the Commodity Futures Trading Commission on Tuesday approved FutureCom Ltd. as the first Internet-based U.S. futures exchange, REUTERS reported. The new exchange will initially offer cash-settled live cattle futures and options contracts, but plans to add a range of other products going forward. It is owned by the privately-held Texas Beef Group, based in Amarillo, and will compete directly with the Chicago Mercantile Exchange, long the center of livestock futures trading.
 

March 14, 2000
Drought Grips Almost Half the Country. Government officials say drought has spread across much of the South and north central parts of the country. The dry conditions are expected to persist at least through spring, causing crop shortages in several parts of the nation.

No Farm Benefit from Rail Mergers. The American Farm Bureau Federation says major rail mergers have reduced competition but so far have yielded no benefits for many agricultural shippers. The concentration may be extensive enough to have precluded meaningful shipping options for the agricultural community, says AFBF.

Change in Sugar Intake Recommendations Rankles Industry. Recommendations in the proposed Dietary Guidelines that American limit the intake of sugar have brought strong objections from the sugar and grocery industries. There is "no basis in law or fact" for the recommendations, says the Grocery Manufacturers of America.

New Ethanol Production Record Set. The U.S. ethanol industry set a new production record in January with an average of more than 107,000 barrels per day for the month. That proves ethanol can meet the demand for a clean air gasoline oxygen additive, says the Renewable Fuels Association.

Ag News Summaries

Payments to Livestock Producer Begin. USDA is sending checks totaling $190 million to livestock producers for grazing losses last year from drought and other natural disasters and for livestock death losses as well. Payments will be made to more than 214,700 producers. Disaster assistance payments are based on reimbursing farmers for part of the value of supplemental feed costs incurred because of grazing losses; payments will be made at the rate of 46% of the eligible feed costs or death losses.

Pasture Recovery Payments Announced. USDA also announced that eligible farmers and ranchers with pastures damaged by drought last year can receive payments to help re-establish forage crops. The program is funded at $40 million and is available only in states with counties that suffered damage under both the Livestock Assistance Program and the Emergency Conservation Program. Established pasture is eligible where livestock normally are grazed and that was so damaged by drought that seeding is required to re-establish the forage crop.

Clinton Will Release China Trade Details. The White House has agreed to release the full text of its trade agreement with China in the hope of clearing the way for swift congressional approval, REUTERS quotes administration officials as saying. The document has been kept secret since November but will be released by the Clinton administration and the Chinese government as early as today (March 14) in Geneva and Washington. House Ways and Means Committee Chairman Bill Archer (R-TX) welcomed the decision. 

Farm Oil Costs Up $3 Billion. USDA Chief Economist Keith Collins says farmers may pay an extra $3 billion for fuel this year due to soaring oil prices, REUTERS reports. Farm fuel expenses totaled $6.4 billion last year. "Oil prices have gone up further than we thought and are staying high longer than we thought," Collins said. It could cost farmers an extra 12 cents per bushel to grow corn and wheat, he said. 

EU Fails to Back Leading Trade Talk Chair. The World Trade Organization delayed selecting a chairman to oversee talks on reducing agricultural tariffs and subsidies after the European Union failed to back the leading Brazilian candidate, BLOOMBERG NEWS reports. Trade officials say Celfo Amorim, Brazil's ambassador to the WTO, has majority support among the 135 members to chair the committee on agriculture. But The EU put up its own candidate, Michael Dowling, former permanent secretary at the Irish agriculture ministry from 1989-97 for the job. 

Genetic Protesters Rip Up Pineapple Crop. Protesters against genetic modification attacked a trial crop of pineapples near Brisbane, Australia, REUTERS reports. A group calling itself Free Seed Liberation claimed responsibility for pulling up about 100 genetically modified pineapples being grown in a trial crop by the Queensland Department of Primary Industries. Protesters breached a two-and-a-half meter high barbed wire fence to carry out the late night raid last week. 

Transition Payments May Be Doubled. House Agriculture Committee Chairman Larry Combest (R-TX) has suggested that the $5 billion for farmer relief included in the Republicans' budget proposal be used to double the payments being made to farmers under the 1996 farm law, REUTERS reports. Congress has approved a similar approach to shoring up farm income in the last two years. With low crop prices and drought conditions expected this year, it's almost certain Congress will provide more money for farmers.
 

March 13, 2000

USDA Proposes to Broaden Protein Sources in Food Programs. USDA has proposed broadening the use of vegetable protein products used in school lunch and other feeding programs. The programs would be able to use 100% vegetable protein products instead of meat, fish and poultry. The proposal brought an angry response form the National Cattlemen's Beef Association.

Grocers Want Biotech Foods Held to Science Standards. The Grocery Manufacturers of America says international standards on food safety and trade should not be undermined by the European Union's desire to "de-emphasize scientific principles as the basis for decision making."

ASA, USDA, Companies Cooperate on Crop Program. The American Soybean Association, USDA's Natural Resources Conservation Service, Monsanto and Philip Morris are cooperating on a management and education program for land stewardship. Soybean pests, diseases and environmental management are the major program components.

Push Made for River Infrastructure Improvements. Two major farm organizations want Congress to improve the infrastructures on the Upper Mississippi and Illinois Rivers. River congestion, inadequate locks and an inability to handle deep-water cargo vessels threaten a farm economy already beset with low commodity prices and farm income, they say.

Dairy Industry Seeks Dietary Guideline Changes. USDA's proposed dietary guidelines "miss the mark on some key points" regarding dairy products and lactose intolerance, says a consultant to the dairy industry. Lactose intolerance is not a reason to avoid dairy foods, says Natalie Webb, president of Nutrition Network, Inc.

Ag News Summaries

USDA Offices to be Co-Located. USDA will co-locate state offices in 25 states and Puerto Rico in a move expected to save nearly $9 million and result in more efficient service. USDA's Farm Service Agency, Natural Resources Conservation Service and Rural Development state offices will be located at one site, sharing space and administrative supplies. Cost savings are expected to total $1.3 million over the next five years and more than $8.9 million by 2008. No jobs will be lost due to the co-locations. Nevertheless the House Agriculture Committee promised a hearing on the issue. Committee Chairman Larry Combest (R-TX) and Rep. Charles Stenholm (D-TX), the ranking Democrat, announced the committee would ask the General Accounting Office to evaluate the choices made by the state-level directors of USDA agencies to group headquarters together for "efficiency, effectiveness and fairness." 

Screw Worm Alert Sounded. USDA is alerting veterinarians and others involved in the livestock industry in some areas of the country to be on the lookout for screw worm. On Feb. 27, 17 horses were imported into the United States from Argentina through USDA's animal quarantine center in Miami. Two of the horses were shipped to Georgia, five to California, one to Pennsylvania, one to Texas and eight to Florida. One of the horses in West Palm Beach, FL, was found to have screw worm larvae. The horse and the premises were treated. Only the one horse in Florida has been found infested. Screw worm is a pest that causes extensive damage to domestic livestock and other warm blooded animals. USDA says the livestock industry could suffer $750 million a year in production losses if the pest were reintroduced to the United States. 

Glickman Says Talk to UK Retailers About GM Foods. Agriculture Secretary Dan Glickman says the United States needs to talk more to food retailers in the United Kingdom to understand British consumers' reaction to genetically modified foods, REUTERS reports from London. Glickman met with food retailers in London Friday. "They've really got their fingers on the pulse of the public mood," he said. British food retailers have removed most genetically modified products from shelves. 

Lott Says NTR Will Pass Senate. Senate Majority Leader Trent Lott (R-MS) predicts that the Senate will approve permanent normal trade status for China, BLOOMBERG NEWS reports. Lott says he's convinced that President Clinton will work hard ot line up Democratic votes for the proposal which would ease the way for China to join the World Trade Organization. Lott said on CNN, "He convinced me that he is going to put it on line and if he will, I will." 

Subsidized Wheat Still Opposed. Despite huge U.S. wheat supplies it still makes little sense for the United States to subsidize exports, REUTERS quotes USDA officials as saying. Tim Galvin, Foreign Agricultural Service administrator, says that subsidizing U.S. exports could depress world wheat prices even more than they are now. That could lead to "wheat getting fed (to animals) rather than being milled," putting it in direct competition with U.S. feed grain exports, said Galvin. 

GOP Pushes Spending Increase. Top Republicans in Congress propose increasing federal spending by about $10 billion next year, hoping to avoid a budget showdown with President Clinton before November's national elections, REUTERS reports. The plan would provide $5 billion for farmers hit by low prices and bad weather. Republicans will propose $596.5 billion to operate most federal programs in fiscal 2001 compared to $586 billion in the current fiscal year. 

Spending Panel Provides Farm Aid. The House Appropriations Committee has approved a $9 billion emergency spending package that includes $2.2 billion for farmers and others who are recovering from last year's Hurricane Floyd that swept the East Coast, as well as other disasters, REUTERS reports. The total nearly doubles what President Clinton had sought in emergency funds for this fiscal year. The bill also includes $2 billion for peacekeeping operations in Kosovo and $1.7 billion to help Colombia fight is illegal drug trade. 

Drought Getting Attention. In a lead article, THE WALL STREET JOURNAL reports increasing concern about severe drought just as portions of the farm economy begin to recover. Dry areas include major portions of the U.S. Corn Belt, as well as a broad swath through the South and Southwest. 

GM Foods Safety Standards Debate Begins. Members of an international commission on food standards are expected to clash on safety standards for genetically modified foods during a four-day meeting in Japan that opens Tuesday, KYODO NEWS SERVICE reports. Denmark and other European nations will stress the need to label GM foods to protect consumers and propose a "precautionary principle" that would ban the commercialization of products if safety is not guaranteed, sources told KYODO. U.S. officials will oppose special safety checks conducted only on GM crops.
 

March 10, 2000

House Appropriations Committee Rejects Most Ag Amendments to Supplemental Bill After a number of agriculture amendments to the Supplemental Appropriations Bill were denied, the House Appropriations Committee approved a $9 billion mid-year spending bill on a 33-13 vote early Thursday evening. Rep. Maurice Hinchey (D-NY) was forced to withdraw an amendment that would have provided $150 million to growers of specialty crops, including fruits, vegetables and peanuts for crop disaster losses as well as market losses. Agriculture Appropriations Subcommittee Chairman Joe Skeen (R-NM) strenuously objected to this amendment and other agriculture-related amendments.

Glickman Challenges EU on Ag Issues. Agriculture Secretary Dan Glickman Thursday called on the European Union at least to reduce export subsidies that may be popular but actually are "inefficient, trade-distorting and ... detrimental to healthy competition which is the lifeblood of a strong economy."

FNS Rule Riles Cattlemen. A proposed rule from USDA's Food and Nutrition Service expanding the use of vegetable proteins in food service programs is "irresponsible" and "puts the most at-risk children in further nutritional danger," according to the National Cattlemen's Beef Association.

FDA Safety Review Bill Scored. A new House bill that would require a safety review by the Food and Drug Administration of all foods from genetically engineered crops is "nothing more than a backdoor effort to undermine the use of biotechnology in this country," says the National Food Processors Association.

Most Hogs Sold on Prearranged Arrangements. A University of Missouri study shows nearly three out of four market hogs are sold under some type of prearranged marketing agreement. Of all hogs slaughtered in January, 74.3% were sold on some type of prearranged arrangement, not on cash price. That compares with 64.2% a year earlier.

Ag News Summaries

Organic Rule Fails to Protect. Nature's Path Foods President Arran Stephens says that the organic rules announced this week by USDA omit critical protections for consumers as well as organic farmers whose fields are within seven miles of genetically modified crops. "We have searched the entire USDA regulatory document and found nothing that addresses the drift of pollen from genetically engineered corps to organically grown crops. There is no wall high enough that can be erected around a GMO crop to prevent pollen drift," he said. Nature's Path, Blaine, WA, owns and operates certified organic processing facilities in Washington State and British Columbia, Canada.

White House May Be Short on China Vote. Commerce Secretary William Daley says he hopes the White House and the business community can round up enough support for China's normal trade relations bill by June but concedes there probably aren't enough votes right now, REUTERS reports. "(We) probably don't have the votes right now," Daley told reporters. "Members (of Congress) are still trying to grapple with this; they're still wondering whether it's going to happen ... It's very fluid." 

U.S., EU Push for Progress on Farm Trade. European Union farm Commissioner Franz Fischler and Agriculture Secretary Dan Glickman met in London Thursday and agreed on the need to make further progress to jump-start international trade talks, according to REUTERS. They agreed the process needs to be speeded up. "The positive thing was that Glickman and Fischler achieved a regular working relationship," Fischler's spokesman said. 

EU Will Scrap Hormone-Free Beef Ban. The European Union will agree to scrap a planned ban on U.S. hormone-free beef next week after the United States agreed to tough controls to make sure the meat is safe, BLOOMBERG NEWS quotes EU farm Commissioner Franz Fischler as saying. The EU has approved the U.S. tests for residues of hormones and medicines in meat. The EU had suspended U.S. hormone-free beef last April after finding hormone traces in 12% of the meat.
 

March 9, 2000

China Trade Deal Heats Up. President Clinton Wednesday sent Congress legislation to give China permanent normal trade relations. Clinton wants action quickly and may get it. The action caps several days of administration activity aimed at getting Congress to move on the issue that agricultural interests believe can help energize the farm economy. 

Cattlemen Better Informed with Proposed Rule. The National Cattlemen's Beef Association says cattlemen will become better informed about beef demand in the export market with the first of several proposed rules that result from mandatory price reporting legislation that Congress approved last fall. 

Biotech Crop Testing Now `Quite Variable.' Verification testing will be needed to segregate biotech traits from conventional traits, says David R. Shipman, deputy administrator, Grain Inspection, Packers and Stockyards Administration, but testing for biotech crops "is rapidly evolving and quite variable at this time."

Ag News Summaries

Appropriations Committee Will Move Spending Bill. The House Appropriations Committee meets today at 1 p.m. to consider a supplemental appropriation bill for the current fiscal year. Intended to cover emergencies, the bill has already grown well beyond President Clinton's request and could get bigger during what some sources believe will be a contentious session today. 

Senators Blast Clinton on Oil Prices. Senators have called on the Clinton administration to release U.S. oil supplies to help drive down energy prices, REUTERS reports. "We have not reached the point where rising oil prices are no longer a nuisance but a crisis for our economy," Sen. Charles Schumer (D-NY) told a Senate Energy Committee hearing. "There is no easy answer, but this administration has not taken a tiny step, not even a baby step," said Sen. Pete Domenici (R-NM). 

Iran Canada's Largest Wheat Buyer. Iran is the largest buyer of Canadian wheat in the last six months because of politics, a poor Iranian crop and a surplus of average quality Canadian grain, REUTERS reports. Recent Canadian Grain Commission figures show that Iran bought 1.7 million tons of Canadian wheat from August to January; the second largest buyer was Japan at 711,700 tons. 

USDA Increases Inspection Quota. USDA's Food Safety and Inspection Service is increasing the amount of annual sales of meat products to hotels, restaurants and similar institutions that does not disqualify a retail store for exemption from requirements for federal inspection. Retail store operations may be exempt from federal inspection requirements if sales of meat or poultry products made to hotels, restaurants and other institutions do not exceed either of two maximum limits. One is a total calendar year dollar limit. For calendar year 2000 the maximum value for meat sales has been increased from $41,000 to $42,500. The limit on poultry sales remains at $39,000 for the year. More information is available at http://www.fsis.usda.gov

New Levels on Bovine TB Proposed. USDA proposes to establish several new levels of tuberculosis risk classifications to be applied to states and zones within states. The proposal also would specify that the tuberculosis regulations apply to goats as well as cattle and bison and to increase the amount of testing that must be done before some of these animals may be moved interstate. The proposal is published in the March 7 Federal Register, and more information is available at http://www.aphis.usda.gov/ppd/rad/webrepor.html

Biologics Policy Meeting Scheduled. USDA will hold a public meeting April 6 in Ames, IA, to discuss regulatory and policy issues related to the manufacture, distribution and use of biological products derived from plants. The meeting will be held in the Scheman Building at the Iowa State Center from 1-5 p.m. Information on the meeting and registration is available on the Internet at http://www.vetmed.iastate.edu/iicab/transpl.htm
 

March 8, 2000

Organic Standards Proposal Announced. Agriculture Secretary Dan Glickman has issued a proposal for national standards for organic food. He called it "the most comprehensive and strongest organic standard in the world."

Financial Crisis Had Moderate U.S. Consequences. The international financial upheaval that began in Thailand in mid-1997 and spread to other Asian countries had a moderate impact on U.S. agricultural trade but set back economic growth and trade worldwide, says a new report from USDA.

Ag News Summaries

China NTR Bill Comes Today. President Clinton will send legislation to Congress today to grant China permanent normal trading relations, REUTERS reports. It will kick off the "biggest trade fight since the 1993 North American Free Trade Agreement," the article adds. Clinton wants approval by June, and Senate leaders have agreed to "expedite" the vote starting with the Finance Committee.

RMA Expands Dairy Options. USDA's Risk Management Agency says dairy producers in 61 counties now are eligible for training and cost sharing under the dairy options pilot program. USDA pays 80% of the premium for a put option and $30 toward a "round turn" brokerage commission for each option purchased under the program that also provides a free workshop on using price risk management tools.

Colombia Rescinds Import Restrictions. USDA says Colombia has rescinded import restrictions on U.S. rice, effectively immediately. Colombia imported $74 million in U.S. rice in 1998 before the market was restricted in November 1998. Colombian officials enforced rigid requirements on rice imports from all countries after what was suspected to be the Thrips palmi insect was discovered in Columbia's main rice producing regions. The pest feeds on plant tissue and lays eggs in rice stalks significantly reducing yields.

Barshefsky Criticizes Carousel Retaliation. U.S. Trade Representative Charlene Barshefsky said the rotating "carousel" trade sanctions favored by farm groups might be less effective than they believe, REUTERS reported. In cases where the United States retaliates against other countries for violating trading rights, the "carousel" approach would periodically change the list of targeted foreign products as a means of pressuring foreign governments to yield. Barshefsky said importers might stockpile goods in order to evade the sanctions. At the same hearing, Barshefsky clashed with Senate Majority Leader Trent Lott (R-MS) over whether the Administration is doing enough to promote Congressional approval of China's normal trade status.

March 7, 2000
Witnesses Seek Higher Supports, Land Idling Producers at the first in a series of House Agriculture Committee field hearings called for higher price supports and a "flexible fallow" that would reward farmers with higher supports the more acreage they left idle, REUTERS reported.

Administration Wants Early Senate China Vote By formally submitting legislation to grant permanent normal trade relations to China, the Clinton Administration hopes to spur a quick Senate vote that will build momentum for the trade pact in the House of Representatives, REUTERS reported.

Group Assails Japan Zero Tolerance The U.S. Grains Council denounced Japanese plans for a zero tolerance policy on grain shipments containing genetically modified products that have not been approved by the Japanese government.

Organic Rules Expected Today Secretary of Agriculture Dan Glickman will unveil a new proposed rule on labeling organic products this morning, news wires reported.

Ag News Summaries

Corn, Bean Growers Have Common Concerns Corn and soybean grower organizations are uniting around three common goals this week, PRO FARMER reports. The American Soybean Association and National Corn Growers Association will support ethanol, permanent normal trade relations for China, and transportation spending to improve locks and dams on the Mississippi River system.

Aid Begins to Reach Mozambicans The first food aid shipments began to reach Mozambique as flood waters receded, THE WASHINGTON POST reported. Devastating floods have left 250,000 people homeless, THE POST said. Aid began arriving by helicopter under the auspices of the United Nations World Food Program, in which the United States and many other countries participate.
 

March 6, 2000

House Farm Policy Hearings Begin The House Agriculture Committee begins a series of 10 field hearings on changing farm policy today in Lubbock, Texas. The hearing, at 9:00 central time, is slated to "to develop a consensus for reviewing federal farm policy," according to the committee. Today's witnesses, all producers from Texas or Oklahoma, may give observers a clue about whether lawmakers will feel strong pressure to change current farm laws.

Corn Exports to China Could Triple U.S. corn exports to China could triple under the pending trade agreement between the two countries, the president of the National Corn Growers Association said. Lynn Jensen, speaking to the group's annual meeting, said NCGA's top trade priority for the year was passing permanent normal trade relations for China, a prerequisite for gaining the benefits of that country's trade concessions as it joins the World Trade Organization.

Ag News Summaries

NPPC Demands Investigations of USDA Vote Plans The National Pork Producers Council will demand a series of investigations into the Agriculture Department's decision to hold a vote on the national pork checkoff, REUTERS reported. NPPC directors are also considering a lawsuit against the decision, whose propriety they questioned during their annual meeting.

ASA: Gore Should Push for More Soy Aid The American Soybean Association said Vice President Gore should intervene to increase the amount of soybeans and soybean products in U.S. food assistance, REUTERS reported.

Organic Rules Out Soon New rules on organic produce will be proposed within days and will resolve earlier controversies in favor of organic advocates, THE WASHINGTON POST reported. Activists briefed on the new proposals told the paper that the new rules will prohibit genetically engineered grains