May 28, 1999

Disaster checks about to be mailed.  USDA plans to send checks to farmers the first week in June to cover 84.9% of their certified losses from natural disasters in 1998 or a combination of recent years. About $2 billion will be paid to 266,000 farmers.

Long-awaited LDP action may be close.  Agriculture Secretary Dan Glickman says an announcement on changes in the loan deficiency program should be made in a week to 10 days. But he wasn't clear on whether the Office of Management and Budget has okayed the changes.

Farm groups back fuels research bill.  Various farm organizations and the Clinton Administration are behind a congressional effort to increase research in renewable fuels production, including ethanol. Research into converting biomass to fuels and chemicals could involve virtually any plant or plant product, such as corn for ethanol.

Austria bans Bt corn; EPA urged to cancel it.  Austria has decided to ban genetically modified corn that was implicated as a potential threat to monarch butterflies in a Cornell University study released last week. Greenpeace praised the Austrian decision and called on the Environmental Protection Agency to cancel the registration of Bt crops.

Ag News Summaries:

Suit threatens dairy aid. A dispute between New Mexico dairy farmers and USDA over a $200 million aid package could jeopardize scores of emergency payments for dairy farmers nationwide, THE ASSOCIATED PRESS reports. New Mexico farmers filed a lawsuit in federal court in Albuquerque last week to stop payment distribution. Specifically they want USDA to change the formula used to determine the payments. Larger producers, such as those in New Mexico, should get larger payments, they allege. Payments are limited to $5,000 per producer for 116,000 dairy farmers.

House moderates want budget summit. Moderate House Republicans want Congress and the White House to agree how to increase budget limits for the next fiscal year and avoid a clash later that could threaten government services, REUTERS reports. Eleven moderate Republicans Thursday urged President Clinton and the Republican leadership to hold a budget summit quickly to reach a "national compromise" to increase limits set by the 1997 budget balancing agreement that Republicans and Democrats now say are unrealistically low. Congress is trying to approve the 13 appropriations bills to fund the government in fiscal 2000. The first of those bills, for USDA, ran into a buzz saw of opposition this week from conservative Republicans who said additional spending would come from Social Security trust fund surpluses. Without appropriations, the government could be shut down as in the past unless Congress and President Clinton approve funding at 1999 levels to keep offices operating.

Lawmakers urge tariffs on lamb imports. A bipartisan group of House members has urged President Clinton to impose tariffs on lamb imports from Australia and New Zealand that, they say, have undercut U.S. producers. RETUERS reports a letter from 32 members urged a two-tier tariff program to discourage low-priced lamb imports. Both Australia and New Zealand have said they would protest any U.S. trade restrictions to the World Trade Organization. Clinton has until June 4 to decide if any tariffs will be imposed.

U.S.-China relations further stretched. Analysts say a trade deal with China this year now looks increasingly unlikely, REUTERS reports. Beijing "shrugged off" calls by two senior U.S.lawmakers to freeze the WTO talks with China. China put the talks on hold after NATO's bombing of its embassy in Belgrade May 7. Pressure now is building in Congress to drop the negotiations after a congressional report accused China of stealing plans for an entire nuclear arsenal in a spying effort spanning two decades. Sen. Jesse Helms, chairman of the Senate foreign Relations Committee, and Rep. Benjamin Gilman, chairman of the House International Relations Committee urged President Clinton to suspend WTO negotiations with China because of the strain on U.S.-China relations.
 

May 27, 1999

House continues agriculture funding fight.  The House failed again Wednesday to conclude debate on the agricultural appropriations bill, instead bogging down in a fight over multiple proposals to trim spending in fiscal 2000. The ag appropriations bill calls for about $61 billion in spending throughout USDA. But Rep. Tom Coburn (R-OK) brought more than 100 amendments to the floor in a slowdown move. It now appears final action on the ag bill won't come until Congress returns from a week-long Memorial Day recess.

Meat industry split on foreign goods labeling. Livestock producers want mandatory labeling for products imported from other countries. Retailers prefer a voluntary labeling program. The positions were laid out Wednesday before the Senate Agriculture Committee in a hearing that also examined the issue of price reporting. Committee Chairman Richard Lugar (R-IN) wants an industry consensus on that issue.

Electric deregulation examined by subcommittee. The House Agriculture Subcommittee on General Farm Commodities, Resource Conservation and Credit Wednesday took a look at electricity deregulation and its effects on agriculture and rural communities. They found some potential positive effects, but rural consumers already enjoy low cost power, implying that deregulation probably wouldn't bring those costs down further.

LDP decision remains in limbo.  Whether or not USDA will change the loan deficiency program remains a mystery. Agriculture Secretary Dan Glickman has come under intense pressure from congressional Republicans and some Democrats not to make any changes, but the issue remains stuck at the Office of Management and Budget. USDA officials say they have satisfied all of OMB's major concerns. USDA is considering moving to a national daily average to compute the LDP. That could disadvantage farmers in several states, critics say, including the Upper Midwest.

Ag News Summaries:

Tougher imported food inspections sought. Three Democratic senators have introduced legislation to require that imported food be produced, prepared and packed under conditions that keep the food as safe as food domestically produced. An article from THE ASSOCIATED PRESS says the Food and Drug Administration, which has responsibility for most food import safety and the Health and Human Services Department would be responsible for determining that countries have such "equivalent" food safety systems. The bill was introduced by Sens. Ted Kennedy (MA), Barbara Mikulski (MD) and Richard Durbin (IL).

Senate panel exempts food from sanctions. The Senate Agriculture Committee has voted to exempt food from U.S. economic sanctions against North Korea, Cuba and Yugoslavia. BLOOMBERG NEWS reports that the measure applies only to commercial exports of whet, corn, soybeans and other agricultural products but also exempts food except in rare cases. The bill now goes to the Senate floor. Other bills are pending that seek broader changes in economic sanctions policy. Last month, the White House eased sanctions against Iran, clearing the way for Iran to buy $500 million worth of wheat and food products.

IBP weighs in against price reporting. TREUTERS reports IBP opposes legislation to require meat packers to report prices paid for cattle and hogs because some of the data would be too costly to collect. IBP told the Senate Agriculture Committee it opposed the provisions applying to hog prices, claiming the costs would "far exceed" what was workable. Bruce Bass, vice president of cattle procurement for IBP said companies were willing to submit daily transactions to USDA, but it was unreasonable to require packers to provide the exact time of each hog purchase throughout the day.

Canada may challenge U.S. meat rules. If the United States requires country of origin labels on meat, Canada will respond through trade-rule challenges under the North American Free Trade Agreement and the World Trade Organization, says REUTERS. About 1.1 million cattle were shipped from Canada for slaughter in U.S. packing plants last year. "If these proposals proceed, Canada will not hesitate to invoke its rights" under the NAFTA and WTO, said Ambassador Raymond Chretien in a letter. "To our friends in Canada, I say, tough luck, Ottawa," said Sen. Tim Johnson (D-SD). "We need to do what's right for our consumers."
 

May 26, 1999

Farmers reduce borrowing; income uncertain.  Farmers will reduce their borrowing this year by $1.3 billion, says USDA. Low prices and significant weather and disease problems in some regions have lenders concerned about farmers' ability to repay existing loans and qualify for new production loans.

USDA believes meat production will remain flat in 2000.  An increase in poultry will offset a decline in red meat production. Total meat exports in 2000 decline 1% as lower red meat exports offset an increase in poultry exports.

Monsanto gets registration for Maverick. Maverick herbicide from Monsanto is ready to be sold and used in the United States. The herbicide selectively controls cheatgrass, downy brome and many winter annual broadleaf weeds and was developed primarily for use in winter wheat.

Bill allows biomass harvesting on CRP.  Sen. Tom Harkin (D-IA) will introduce a bill to allow harvesting biomass for energy generation on land enrolled in the Conservation Reserve Program. Harkin also will introduce a bill to provide a 1.5 cents per kilowatt hour tax credit to utility companies using biomass energy sources.

AgricultureLaw adds WTO info site.  As preparations continue for new farm trade talks in the World Trade Organization later this year, AgricultureLaw.com has added several articles and links to help make sense of the complex issues at stake. Under "Hot Topics" click on "Seattle WTO Round" to access the articles.

Ag News Summaries:

Conservative Republicans hold up ag spending bill. Conservative Republicans launched a "filibuster by amendment" Tuesday on the fiscal 2000 agricultural appropriations bill, according to a REUTERS article. Rep. Tom Coburn (R-OK), supported by one-third of the House, warned that Congress was ready to break the limits of spending caps unless belt-tightening began at once with the $61 billion agriculture bill. Appropriations committee leaders said the bill was within the caps, so reductions were not needed. Rep. Steve Largent (R-OK) called the snarl "a logjam of ideals." Coburn filed 115 amendments to the agriculture bill saying he would "filibuster the bill with amendments" until he cut $260 million to freeze spending at this year's level. Two were rejected but another, to trim spending on an information office, was accepted.

UK extends probe into BSE. The United Kingdom government again has extended an investigation into bovine spongiform encephalopathy (BSE), the so-called "mad cow" disease, this time until March 31, according to BLOOMBERG NEWS. Agence France-Presse reports, citing Lord Phillips, chairman of the inquiry, that the second stage would take longer than thought originally. The inquiry was due to end June 30. Costs have increased from US$16.1 million to as much as three times that amount. Hearings for the investigation's second state will begin June 21.

Farm forum previews WTO negotiations. The first World Agricultural Forum, held in St. Louis, MO, this week, offered an "early glimpse" of the divisions likely to emerge when world agricultural trade negotiations begin later this year, according to REUTERS. In separate speeches to the more than 300 government and agriculture industry experts, U.S. and Argentine officials called for an aggressive agenda to open markets. But representatives from Japan and South Korea made clear their preference to maintain some protections to preserve what they called "the multi-functionality of agriculture." Yong-Kyu Choi, director general of South Korea's international agricultural bureau, said the talks should recognize the desire of some nations to preserve traditional rural cultures and maintain scenic landscapes.

Missouri dairy recalls specialty cheese. Morningland Dairy Farms Inc., Mountain View, MO, says the Food and Drug Administration has closed temporarily its cheese-making operations. The company has recalled 135 pounds of specialty cheese that may be contaminated with listeria. In Raleigh, NC, state officials reported a recall of imported cheese after tests found evidence of listeria. Routine testing at a grocery store revealed the pathogen in Pinna Ricotta Salata Cheese made with 100% sheep's milk. THE ASSOCIATED PRESS reports the Missouri recall involved Morningland Dairy Chives Colby Cheese made from raw milk. Contamination showed up in tests by federal health officials.

Meat safety labels still may be required. Meat plants still may be required to add warning labels to hot dog and other ready-to-eat meat products to alert pregnant women of the potential risk from bacteria, REUTERS quotes USDA Food Safety and Inspection Service Administrator Tom Billy as saying. "We are very open to the possibility of taking additional (labeling) steps," Billy said. USDA had announced it would launch a public education campaign to alert pregnant women, the elderly, chemotherapy patients and anyone else with a weak immune system of the risks from listeria. As part of the campaign, USDA will distribute listeria brochures to physicians, nursing homes and other public health officials, Billy said.
 

May 25, 1999

Cattlemen settle on price reporting proposal. The National Cattlemen's Beef Association has given congressional leaders proposed legislation that would mandate price reporting, volume and terms of trade for live cattle, boxed beef and beef exports. The proposal includes agreement on live cattle reporting in the non-cash market such as formula, packer-owned and contract cattle.

Glickman again cautions on biotech enthusiasm.  Agriculture Secretary Dan Glickman again had some cautionary words about the adoption of biotech products. "We shouldn't rush to embrace every new biotech innovation just because it's new," he said in St. Louis.

Dairy farmers want option 1A to protect income. Dairy Farmers of America has come out in support of legislation to implement option 1A of USDA's rule on milk marketing order reform. In its final rule, USDA proposed a modified version of another option (1B) that DFA says will lower farm prices in the Northeast, Southeast and Southwest.

Justice ends review of DuPont-Pioneer deal.DuPont and Pioneer Hi-Bred International, Inc., say the Justice Department has completed a review of DuPont's proposed acquisition of the 80% of Pioneer not now owned by DuPont. It's "another significant step" toward completion of the merger, says DuPont.

Humane Society says opposition to predator program strong. The Humane Society of the United States says 78% of Americans oppose funding for a predator control program by USDA's Wildlife Services. About 90,000 predators are killed every year under the program, says HSUS.

For the Calendar:

The Senate Agriculture Committee will hold a hearing on the National Sustainable Fuels and Chemicals Act of 1999 on Thursday at 9:30 a.m. in SR 328A with Agriculture Secretary Dan Glickman the leading witness. The committee also will mark up the sanctions bill, the Agricultural Trade Freedom Act, and consider the nomination of Tom Erickson for commissioner of the Commodity Futures Trading Commission Wednesday at 9 a.m. in SH 216. That will come as soon as a quorum is present for the hearing on livestock issues.

The House of Representatives may begin consideration of the FY 2000 USDA appropriations bill today. Rep. Marcy Kaptur (D-OH) is likely to offer an amendment to provide additional farm income assistance.

Ag News Summaries:

USDA wants tests for listeria. USDA is expected to issue guidelines today for meat plants to test for listeria in hot dogs and luncheon meat, according to a REUTERS report. The work on the guidelines began earlier this year after 21 deaths from contaminated hot dogs and deli meats sold by Sara Lee Corp.'s Bil Mar plant in Michigan. Investigators documented more than 100 illnesses in 22 states from listeria in the Sara Lee meat. The bacteria, destroyed by cooking, is common in the environment and not dangerous to most people. But unborn babies and others with weak immune systems can die if infected.

Spain, Portugal call for GMO revisions. Spanish and Portuguese grain traders say European Union rules on labeling genetically modified foods need to be overhauled. A REUTERS article datelined Lisbon say Spanish traders cite EU regulations that do not give a threshold for the percentage of GMO content that must be labeled and no guidance on testing processes for GMO ingredients. "EU rules should be made more transparent so that they can be put into practice properly," one Spanish trader said. "The whole regulatory framework needs to be reviewed."

High court acts in `takings' case. The Supreme Court has ruled that a property owner battling a government regulatory "taking" of property without just compensation may take the case before a jury, not just a judge. PRO FARMER reports that often a jury is more favorable toward an underdog plaintiff seeking redress of property rights loss under local or federal government regulations, especially environmental regulations such as those formulated under the Endangered Species Act. Government bodies, the article says, prefer dealing with only a judge.

Lamb purchases possible, says Glickman. In two REUTERS reports, the issue of whether lamb imports will be restricted is discussed. From St. Louis, Agriculture Secretary Dan Glickman is quoted saying USDA is considering purchasing lamb meat to help increase domestic producer prices, but Glickman declined to say whether lamb imports from Australia and New Zealand would be restricted as the U.S. industry has requested. In another article datelined Wellington, New Zealand, the country's farmer-owned Meat Board says it expects the Clinton Administration will impose tariffs on New Zealand and Australian lamb imports. New Zealand and Australia have warned they would go to the World Trade Organization for relief if tariffs were imposed. President Clinton has received recommendations for import relief from the International Trade Commission and under the law must make a decision by early June. The President is not legally bound to provide any relief.
 

May 24, 1999

'Deep concern' sounded on LDP change. House Agriculture Committee Chairman Larry Combest (R-TX) and Vice Chairman Bill Barrett (R-NE) told Agriculture Secretary Dan Glickman of their "deep concern" over the timing and process for changes to the loan deficiency payment (LDP) program. Any changes should "do no harm," they told Glickman.

Antibiotic use in animals resurfaces.  A new study in the New England Journal of Medicine links the use of antibiotics in poultry feed with increased resistance to campylobacter in humans. The Animal Health Institute says the study is based on a "very limited number" of poultry product samples and doesn't identify if the antibiotics in question actually were used in the production of the poultry sampled.

Greenpeace wants all GMO corn banned in EU. Greenpeace says all genetically modified corn should be banned in the European Union. An EU official has said new approvals would be suspended, but there was no need to withdraw approvals already issued on corn varieties.

USDA economist looks at concentration.Industrialization and structural change sometimes limit competition, but the broader effects more often reflect competition, says a USDA economist. Traditional methods of production, environmental control and public service delivery, however, may be undermined. Policy makers should identify the effects that need restraint and design methods to reach that goal.

For the Calendar:

The Senate Agriculture Committee holds a hearing Wednesday to examine mandatory price report of livestock and country of origin labeling of meat. The hearing will begin at 9 a.m. in SH 216. A lengthy list of witnesses includes Ken Clayton, associate administrator for USDA's Agricultural Marketing Service, and officials from the beef, pork and sheep industries along with frozen food, food marketing, meat processor officials.

Ag News Summaries:

Farm ministers in St. Louis this week. Agriculture Secretary Dan Glickman and farm ministers from around the world gather in St. Louis, MO, today and tomorrow for an international meeting to discuss biotechnology and farm trade. REUTERS reports Glickman will speak today, "squeezed in between" industry roundtable sessions on biotech and how to feed the world in the 21st century. Tomorrow will be devoted to international trade with a morning session on building food markets. In the afternoon, agriculture ministers from Indonesia, Japan, South Korea, Argentina, Ireland and Romania will discus major trade and production issues affecting their countries.

Washington will delay until late July planned retaliation against the European Union for banning imports of beef from animals treated with hormones. In an article datelined London, REUTERS quotes Peter Scher, USDA trade negotiator, saying the United States will ask the World Trade Organization for authority to retaliate against the EU's ban at a meeting June 3. But he said he expected that the EU will request WTO arbitration over the level of damages. That would take about 30 days, or until July 13. "We would have the right to retaliate within 10 days after that," Scher told REUTERS, adding it was possible that the number could change. Scher reiterated that the U.S. beef industry is prepared to label the beef sent to Europe from hormone-treated animals.

Salmonella linked to raw milk for cheese. A strain of drug-resistant salmonella bacteria that caused two outbreaks of illness has been linked for the first time to raw milk used to make a cheese popular with Hispanics, according to a new report cited in an ASSOCIATED PRESS article from San Francisco. The outbreaks struck three Northern California counties, peaking in February 1997 and involving 31 patients, and the Yakima, WA, area, peaking in April 1997 and involving 79 patients. They were the first such outbreaks of drug-resistant salmonella, and almost all those who became ill were Hispanics. All cases were linked to Mexican-style soft cheese made from unpasteurized milk, according to the report, which appeared in the May 19 issue of The Journal of the American Medical Association.

Canadian miller turns down GMO corn. A major Canadian corn miller, CASCO Inc., a division of U.S.-based Corn Products International Inc., will refuse to buy genetically modified corn from farmers for fear of losing European customers, reports REUTERS from Winnipeg. "For us to continue our relations with the European Union, we cannot have any GM corn not approved by Europe," said CASCO spokeswoman Shelley Wybo. The Ontario Corn Producers' Association said it will segregate county elevators that accept all corn from those that take only non-GM corn. CASCO operates three Ontario milling plants and buys corn for a distillery and buys about one-third of Ontario's corn production, much of it used for food products sold in Europe.
 

May 21, 1999

Congress approves supplemental funding for Agriculture. Congress gave final approval Thursday to the supplemental appropriations bill that includes several agriculture-related provisions: $109.6 million to replenish USDA guaranteed farm loan accounts; $42.75 million for Farm Service Agency salaries and expenses; $70 million for additional livestock disaster assistance payments; $28 million to fund Conservation Reserve Program technical assistance to farmers and ranchers for the rest of fiscal 1999 and $35 million for fiscal 2000; $145 million in assistance available to agricultural producers.

Senators call on Reno for quick action.   Five senators have asked Attorney General Janet Reno to move quickly on a review of existing antitrust laws to determine if legislation can help the Justice Department "effectively ensure a fully competitive environment in American agricultural markets."

Energy issues rule on biodiesel fuel.  The Department of Energy has issued an interim final rule to allow public vehicle fleets to earn credits under the Energy Policy Act of 1992 by using blend of 20% biodiesel and 80% petroleum diesel. Government fleet use of biodiesel could add up to 11 cents per bushel to the price of soybeans, growers say.

EPA chief blasts appeals court ruling on soot.   Environmental Protection Agency Administrator Carol Browner says a recent federal appeals court ruling against the way EPA has regulated air particulates is "extreme, illogical and bizarre." The court appears to have concluded that "more pollution could even be good for public health," says Browner.

Freedom to compete an ag must, says AFBF. The American Farm Bureau Federation believes that the freedom to compete in international markets is a "must" for U.S. agricultural producers. The goal can begin to be met in Seattle later this year with "strong leadership" from U.S. trade negotiators.

'America's most beloved butterfly may be imperiled.' Among the consumer advocates' reactions to a Cornell University study that found possible adverse effects on the monarch butterfly from genetically modified corn was this, for the Union of Concerned Scientists: "America's most beloved butterfly may be imperiled."

Ag Outlook addresses several country issues. The June-July issue of USDA's Agricultural Outlook includes articles on several country issues: Canada and wheat trade; Russia's economic crisis; Middle East and North Africa imports; Conservation Reserve Program acreage limits, and state trading and management of grain marketing in China.

Ag News Summaries:

U.S. won't compromise on beef dispute. BLOOMBERG NEWS quotes Agriculture Secretary Dan Glickman saying the United States "will continue to protect our interests under the World Trade Organization" in its approach to countering the European Union's ban on imports of hormone-treated beef. The article, datelined Dublin, Ireland, also said EU farm Minister Franz Fischler stressed that the EU is seeking a solution. "It can't be in anyone's interests that we end up in a trade war," he told reporters. Consumer confidence in beef could be lowered if the dispute intensifies, he added. Fischler said the EU was not in a position to lift the ban because it had "clear advice" from its scientists that hormone-treated beef is unsafe. "This advice does not put us in a position to lift the ban," he said.

UK farmers told to grow more for new markets.   British farmers need to produce more and find ways to get consumers to pay more for their products, says Ben Gill, president, National Farmers Union. A REUTERS story from Stoneleigh, England, quotes Gill saying, "We need to expand volume. We need to create markets." Gill also criticized farmers for being complacent during a period of weak currency earlier in this decade. An NFU report says taking more control of businesses, diversification and new technologies are key areas for farmers to use to boost future prosperity.

U.S. seeks `manageable agenda' for talks.  The United States is looking for a "manageable agenda" that will allow a three-year finish for the next round of world trade talks, says Peter Scher, a senior farm trade negotiator. A REUTERS article from London quotes Scher in a speech at the London School of Economics and Political Science. Due to the speed of technological change and growth in the world economy, eight-year negotiations no longer can be allowed, he said. Negotiations under the World Trade Organization begin in late November in Seattle, WA.

New small farmer group formed. The American Small Farm Association will be formed and managed by Teater-Gebhardt & Associates, Inc., a natural resource, agricultural and association consulting firm in Columbus, OH. The announcement came from Andy Stevens, editor of American Small Farm Magazine and Karl R. Gebhardt, president of Teater-Gebhardt.

Australia warns U.S. not to impose lamb limits. U.S. restrictions on lamb imports from Australia and New Zealand would trigger a strong response, including a possible challenge in the World Trade Organization. According to REUTERS, Australian deputy Prime Minister Tim Fischer told reporters that the United States would be "unjustified" in restricting lamb imports from either country. If it did, Australia would "consider very carefully" lodging a formal protest at the WTO and initiating dispute settlement proceedings, he added.
 

May 20, 1999

Glickman says EU risks WTO process. Agriculture Secretary Dan Glickman says the European Union, insisting on its hormone-treated beef import ban, is placing the entire World Trade Organization process at risk. "We can't accept (WTO responsibilities) when they're convenient and ignore them when they're not," he told the World Meat Congress in Dublin.

Wellstone wants another look at old mergers.   Sen. Paul Wellstone (D-MN) wants the Justice Department and the Federal Trade Commission to see if agricultural mergers and acquisitions since 1980 that were examined at the time can be reopened to see if any antitrust violations did occur.

House floor next stop for appropriations.  The House Appropriations Committee has approved a fiscal 2000 spending bill for agriculture that includes slightly more than $3 billion for farm loan authority. Rural housing loan authorizations total $4.8 billion, $581 million more than fiscal 1999.

Flood relief announced by USDA.   USDA will provide $42 million in flood relief for farmers and ranchers in parts of the country damaged by long-term flooding. The compensation will apply particularly in the Day County, SD, Devil's Lake, ND, and Red River Valley areas of the Upper Midwest.

Sugar industry supports free trade with a twist.  The U.S. sugar industry supports free trade because U.S. producers can compete if trade is free and fair, but there's a caveat, too. The United States "must retain at least a minimal sugar policy" such as what now is in place to prevent foreign subsidized sugar from displacing U.S. producers.

GAO recommends broad study on antibiotics. A General Accounting Office report recommends a broad study to determine which antibiotics used on animals may or may not contribute to the transfer of food borne pathogens to humans. Comprehensive estimates on illnesses from antibiotic resistant food borne pathogens are lacking, the report says.

News from other sources:

Cattle producers want swifter trade process.  U.S. cattle producers want a swifter mechanism to resolve international trade disputes, REUTERS reports. The current World Trade Organization process has been criticized widely by U.S. farm groups for failing to resolve disputes in a timely manner. The process "effectively rewards stall and delay tactics," says Chuck Lambert, senior economist for the National Cattlemen's Beef Association. Losing parties have no incentive to comply quickly "because compensation or retaliation only starts once the entire process is completed," Lambert said. "The injured party is not reimbursed for losses that occurred prior to or during the case."

Pessimism casts a pall over beef row.   Senior negotiators from the United States and European Union are not optimistic they can avoid a deepening trade war over the EU's refusal to import beef from hormone-treated animals, says THE ASSOCIATED PRESS in an article datelined Dublin, Ireland. Agriculture Secretary Dan Glickman and EU farm Commissioner Franz Fischler both played hardball in public appearances Wednesday at the conclusion of the World Meat Congress. When asked if he thought Americans who ate domestic beef were running a health risk, Fischler said, "Yes, absolutely."

Compensations to be offered U.S.  The European Commission will seek to avert trade sanctions from the beef import ban by offering compensation to the United States, reports BLOOMBERG NEWS. The European Union's executive agency meets today to plan a call for lowering tariffs on some U.S. goods, EU officials say. On Monday, the United States formally requested the World Trade Organization to approve $202 million in tariffs on EU products. BLOOMBERG quotes Glickman saying his meeting with Fischler is not to negotiate. "We will again be reasserting our rights" to impose sanctions to get the EU to comply with WTO rulings against the beef ban.

Farmers want $6-8 billion more in aid. REUTERS reports that farmers and ranchers want $6-8 billion more in aid this year. Congress enacted $5.9 billion last fall for farmer relief from natural disasters and low prices. The REUTERS article, bylined by Charles Abbott, said the prairie populist Senate Democrats have been "the loudest in calling for more aid to farmers," but Republicans "have quietly made clear they stand ready to help if conditions warrant it closer to the fall harvest." A dozen farm groups met with Republican senators Wednesday to push for the extra $6-8 billion this year.
 

May 19, 1999

CFTC chair cites derivatives 'unknown risks'Commodity Futures Trading Commission Chair Brooksley Born Tuesday warned Congress that the rapid growth of over-the-counter derivatives may prove a risk to the U.S. economy and global financial stability. The OTC trading volume has been estimated at $70 trillion worldwide.

Gickman touts reduced food risks, questions new pathogens.   Agriculture Secretary Dan Glickman says surveys show salmonella in meat and poultry plants has declined considerably, but new, more virulent and resistant strains of pathogens are showing up in the food supply. USDA will issue new guidelines to deal with increasing episodes of listeria contamination.

New wheat variety helps fight scab.  USDA has developed a new wheat variety to help farmers slow the spread of wheat scab. It will be available for use for spring crops in 2000. It is a hard red spring wheat.

Court decision on EPA's authority praised.   House Agriculture Committee leaders approve of the U.S. Circuit Court of Appeals decision that the Environmental Protection Agency overstepped its legal and constitutional authority in regulating the Clean Air Act.

Roberts calls for research on ag and climate.  Sen. Pat Roberts (R-KS) has introduced a bill that would intensify research into any links between agricultural practices and climate. At issue is the "carbon cycle" and whether it contributes to high levels of carbon storage in soil while reducing soil erosion and fuel costs.

Lugar supports USDA milk marketing order rule.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) supports USDA's recently announced final rule on milk marketing order reform. It is "more market-oriented, more beneficial to consumers and more equitable to farmers across the nation," he says. "If dairy farmers approve the new policy in referenda, we should allow the final rule to be implemented on Oct. 1 as scheduled without intervening legislation (that has been proposed), and I will work toward that end."

USDA mails peanut order ballots.  USDA's Agricultural Marketing Service has sent ballots to known peanut producers for a vote on implementing the peanut research, promotion and consumer information order. Eligible producers who do not receive a ballot should contact Daniel R. Williams at 1-888-720-9917.

News from other sources:

UK report says EU GMO report flawed.  The Royal Society of Britain says broadly publicized research that indicates genetically modified food could be harmful to humans is flawed, reports PRO FARMER. "No conclusion should be drawn" from the report, the Society says. The report comes on the heels of a British Medical Association call for a moratorium on introducing genetically modified crops and food into Britain. The Royal Society said it did not back the call and instead said its research must continue in a controlled environment.

Europe, U.S. beef row will continue.   It would be "uncharacteristic" for the European Union to change its stand against imports of beef from hormone-treated animals, THE ASSOCIATED PRESS quotes Philip Seng, president, U.S. Meat Export Federation in an article datelined Dublin, Ireland. "Europe has been working to keep out American beef for 11 years. They've really dug in their heels on the issue," Seng says. Seng oversees this year's World Meat Congress. Today, EU Agricultural Commissioner Franz Fischler and U.S. Secretary of Agriculture Dan Glickman address the conference that includes 30 meat producing nations. Fischler and Glickman are to hold talks today and tomorrow separate from the conference.

Compensations to be offered U.S.  The European Commission will seek to avert trade sanctions from the beef import ban by offering compensation to the United States, reports BLOOMBERG NEWS. The European Union's executive agency meets today to plan a call for lowering tariffs on some U.S. goods, EU officials say. On Monday, the United States formally requested the World Trade Organization to approve $202 million in tariffs on EU products. BLOOMBERG quotes Glickman saying his meeting with Fischler is not to negotiate. "We will again be reasserting our rights" to impose sanctions to get the EU to comply with WTO rulings against the beef ban.

U.S. calls for June 3 meeting on sanctions.  REUTERS reports from Geneva that the United States has asked for a special meeting of the WTO's dispute settlement body to seek authority to impose $202 million in sanctions against EU products in retaliation to the EU's ban in hormone-treated beef imports. The U.S. trade delegation in Geneva submitted the notice to the WTO in a letter late Monday. A WTO spokesman confirmed receipt of the request.

South Korea to accept Japan pork import plan.  Japan's agriculture ministry says it expects South Korea will accept a Japanese proposal for new rules on pork imports to deal with potential outbreaks of hog cholera. "We have agreed that South Korea will take similar measures to ones Japan currently takes in the event of a hog cholera outbreak," said an official at the sanitation division of the ministry's Livestock Industry Bureau, according to a REUTERS report from Tokyo. In the event of a hog cholera outbreak, Japan prohibits the transport of contaminated animals, among other measures.

USDA tenders first Russian pork aid.  USDA has issued its first tender for pork to Russia under a food aid package, says PRO FARMER. The total amount of pork involved is 50,000 tons; the first tender is for 18,000 tons. The commodities may be processed only in an eligible pork plant approved by Russia and stored in eligible cold storage facilities approved by Russia and listed on USDA's Food Safety and Inspection Service web site at www.fsis.usda.gov/OFO/export/lrupork.htm. It also is necessary to consolidate the cargo only in approved cold storage facilities at specified ports prior to shipment.

Europe's new protectionism toward food.  THE JOURNAL OF COMMERCE reports from Dublin that Europe is becoming increasingly protectionist about food. It will be up to the World Trade Organization to reverse the trend, according to meat industry officials and political leaders cited in the Journal report.
 

May 18, 1999

U.S. donates 400,000 tons of food to North Korea.The United States has agreed to donate 400,000 tons of food to North Korea to be distributed through the United Nations' World Food Program. The situation in North Korea is "desperate," says Agriculture Secretary Dan Glickman.

Harkin wants concentration forum in Iowa. Sen. Tom Harkin (D-IA) wants USDA and the Justice Department represented at an economic concentration forum in Iowa. Farmers nationwide find themselves "at the mercy of the food and agricultural conglomerates," he says, and the trend toward concentration "is being felt acutely in Iowa."

Steep decline in dairy prices counters CPI. The Consumer Price Index increased 0.7% in April but was alleviated by a decline of 3.3% in retail dairy prices. That was a steeper decline than any of the categories measured by the federal government.

Corn refiners back USTR in corn syrup decision.   The Corn Refiners Association supports a decision by the U.S. trade representative to explore further efforts by Mexico to limit consumption of high fructose corn syrup (HFCS) by Mexican soft drink bottlers. CRA says Mexico must stop efforts to restrict HFCS consumption.

Women's groups join to push nutrition.   Two national women's organizations are cooperating in an education program on nutrition designed to help reduce the risk of heart disease, osteoporosis and cancer in women. Relatively few women get the nutrients they need to help reduce the risks of those diseases, the groups say.

For the calendar:

The House Agriculture Committee opens a series of hearings today on the reauthorization of the Commodity Futures Trading Commission. The first, at 3 p.m. in 1300 Longworth, includes CFTC commissioners and officials from the Treasury Department, Securities and Exchange Commission and the Federal Reserve System. Subsequent hearings will be held Wednesday at 10 a.m., and Thursday at 9:30 a.m. A third hearing will be held at a future date.

Sen. Kit Bond (R-MO) will address the World Agricultural Forum in St. Louis, MO, Monday, May 24. He will discuss the challenges and obligations relating to the world agricultural market. The forum will be held at the Hyatt Regency Hotel, Union Station, St. Louis.

The full House Appropriations Committee is expected to mark up the FY 2000 USDA funding bill on Wednesday, and at the same meeting approve funding allocations for its 13 subcommittees. The agriculture allocation is likely to be $13.9 billion, CONGRESS DAILY reports.

News from other sources:

Brazil ends ban on GMOs.  Brazil will allow Monsanto to sell genetically modified soybean seeds nationwide. REUTERS reports from Sao Paulo that the announcement ends Brazil's historic ban on genetically modified crops but also deals a "severe blow" to Brazilian farmers worried about losing business in Europe where "Frankenstein foods" are being boycotted. Monsanto may begin immediately selling seeds for five varieties of its hebicide-resistant Roundup Ready seeds in Brazil, the world's second largest soybean producer behind the United States.

EU united against loosening beef import ban.   European Union farm ministers Monday supported the European Commission's position against lifting the ban on beef imports from animals treated with growth hormones. "There is a clear indication there is a health risk," said German Farm Minister Karl-Heinz Funke at a news conference reported by REUTERS. "We can only avoid an escalation (of a trade war) in the dispute if we discuss the findings of the scientific opinion." The ministers called for more dialogue and for transatlantic trade friction to ease. "It is my very strong view the decision should be based on science, and we should be talking it through with the Americans," said a British official. "No one wants a trade war." THE WALL STREET JOURNAL reported ministers leaned toward paying compensation to the U.S., something American officials have not ruled out but about which they have been unenthusiastic.

LDP rate structure could be set this week.  A new rate structure for the loan deficiency payment program could be finalized this week, says BRIDGE NEWS. The article quotes Keith Kelly, USDA Farm Service Agency administrator, saying reviews should be completed by the end of this week or early next week by USDA and the Office of Management and Budget. The latest the new system can be set up is June 1. The U.S. winter wheat harvest has contributed to the urgency of the review process. Kelly says officials are aware of public concerns over the new proposal such as whether it will treat regions unfairly or push too many farmers into forfeiting crops to the government. The concerns have been considered, he adds.

New mad cow disease case found in France.  A new case of mad cow disease has been discovered in France, REUTERS reports from Paris. This brings to 10 the cases found this year among cattle and the 59th since health authorities began tracking bovine spongiform encephalopathy in 1990. The animal and 75 others in the herd, in the Vendee region along the Atlantic coast, were destroyed over the weekend. Officials believe the disease should disappear after 2001. The disease's incubation period is five years, and all cases could be traced back to events before late 1996 when tough controls were placed on animal feed.

Farm financial conditions led to acquisition.  The declining U.S. demand for tractors and combines, fueled by tough economic conditions among farmers, may have contributed to the sale of U.S. Case Corp. to European construction equipment maker New Holland NV, REUTERS quotes analysts. With U.S. demand down, farm equipment makers will have time to combine operations without suffering a competitive disadvantage, analysts note. Case, based in Racine, WI, has been hit especially hard during the last several months by a sharp decline in North American demand for farm equipment. When completed, the deal will form a company to rival Deer & Co., Moline, IL, as the world's largest producer of farm equipment. THE WALL STREET JOURNAL quotes analysts who say the deal may take some time to complete because of regulatory scrutiny.
 

May 17, 1999

U.S. wants $202 million for EU retaliation.   The United States will tell the World Trade Organization that $202 million in suspended concessions to the European Union will be imposed as a result of the EU's failure to lift its ban on imported meat from livestock treated with growth hormones. The amount is based on a projection that U.S. beef exports to Europe would reach about $202 million a year.

Senators want Clinton to back farm aid. Three Republican senators want President Clinton to get behind a move to provide more assistance to farmers facing another year of low prices. The administration did not weigh in on the recent bid to tack another $5 billion on the supplemental appropriations bill for farm aid.

USDA publishes positive wheat outlook. On the heels of last week's crop and supply and demand reports, USDA sees a positive outlook for wheat in the 1999-2000 marketing period. Crop conditions point to good yields, production appears ready to decline this year, so farm prices should improve.

Most feed grain prices change little.  USDA's feed grain outlook now calls for little change in corn, sorghum and oat prices for 1999-2000 but a little increase in barley prices. Total feed grain production should decline 3% this year.

A steep soybean price decline expected.  USDA looks for a sharp decline in soybean prices for the coming marketing season but that should help domestic demand and exports increase. The global oilseed crop should be a record in 1999-2000.

News from other sources:

EU will defy the U.S. over beef imports.  A REUTERS story from Bonn quotes a German minister as saying the European Union will defy the United States in the trade dispute over EU imports of beef from animals treated with growth hormones. Agriculture Minister Karl-Heinz Funke acknowledged that the move would be illegal, the story adds. "Europe will continue to ban sales until the year-end at the earliest," Funke wrote in a commentary for the Bild am Sonntag newspaper released ahead of its publication on Sunday. "Because that means we are contravening international trade rules, we must expect to pay fines. But it must be worth it for our health," he wrote.

EU ministers will consider the dispute today.   Another REUTERS item, this one from Brussels, said European Union farm ministers, meeting today, will examine the escalating trade dispute with the United States over hormones and beef imports. The two-day meeting is the first since EU leaders at the end of March met to formulate an EU $50 billion a year Common Agricultural Policy. EU acting Farm Commissioner Franz Fischler said Friday the EU would challenge at the World Trade Organization the U.S. promise of 100% duties on EU products. Such a review could delay any duties at least until July 12. "We will certainly challenge this sum ($202 million) and the U.S. will have to justify (it) before a WTO arbitrator," Fischler said.

New Holland to acquire Case.  New Holland NV has agreed to acquire Case Corp. for about $4.3 billion, REUTERS reports. Analysts said the deal will create a formidable rival for Deer & Co., currently the largest maker of tractors, combines and other farm equipment. The acquisition continues the trend toward consolidation in the agricultural sector, and comes amid slumping demand for farm equipment because of low commodity prices.

Russia, EU to approve food aid.  Russian and European Union negotiators have initialled a final deal on pricing terms for a $500 million food aid package. The European Commission should approve it today, says a REUTERS story datelined Moscow. The aid negotiations have dragged on for months, the article says, snagged at the last minute by a dispute over the price at which the aid, offered to Russia to overcome a poor grain harvest last year and the consequences of a currency devaluation, should be sold.

Embassy bombing to be China's ploy.  Cargill CEO Ernest Micek tells REUTERS China will use the NATO bombing of its embassy in Belgrade to further its purposes in trade negotiations with the United States. "It appears the Chinese will continue to use this incident for their purposes," said Micek. "At best (negotiations) are delayed." Micek was in Hong Kong to speak at two international conferences.

USDA to ease delays at ports.  THE JOURNAL OF COMMERCE reports USDA will increase its inspection force and loosen documentation requirements in its battle against the Asian longhorned beetle. That should ease delays in clearing shipments at the Ports of New York and New Jersey, the Journal says.

Lawyers file against USDA in bias suit.  Lawyers have filed a class-action complaint against USDA on behalf of nearly 12,000 black workers claiming racism and destroyed careers. Employees say they were passed over for jobs, promotions and raises and were the target of racial slurs by co-workers and managers, says a REUTERS report. The complaint was filed late Thursday and seeks an unspecified amount of back pay, promotions and financial damages. It also demands USDA adopt stricter policies against discrimination.
 

May 14, 1999

Harkin vows to fight on.   Despite a setback in the supplemental appropriations bill conference committee, Sen. Tom Harkin (D-IA) vows to continue his fight to get more money for farmers. A 14-14 vote doomed Harkin's rescue package, worth about $5 billion. Sen. Conrad Burns (R-MT) was the only Republican to vote for the amendment. Click here for full text of proposed amendments.

Conferees approve supplemental spending bill. Senate and House conferees have wound up their work on the fiscal 1999 supplemental spending bill, earmarking $574 million for agriculture.

Farm groups react to EU snub.     The American Farm Bureau Federation and National Cattlemen's Beef Association used the same word to describe their reaction to the European Union's failure to comply with a WTO ruling against the EU beef import ban: "disappointed." The resolution to the impasse is simple, says NCBA: "Drop the ban."

Bill allows funds for new farmers.    A bill is pending in the Senate to increase access to a low-interest lending program for beginning farmers. It uses federal tax-exempt "aggie" bonds to finance low-interest loans through private lenders participating in the program. A similar bill has been introduced in the House.

USDA offers telecommunications money.    Money to help rural areas acquire telecommunications technology to improve education and medical services is being offered by USDA. Applications are being accepted for $160 million in loans and grants this year.

USDA allows carryover of unused DEIP quota.  USDA will allow the carryover of unused dairy quota under the Dairy Export Incentive Program for another 50,000 tons of products National Milk Producers Federation says the action will help increase dairy prices.

House panel approves USDA spending bill. The House appropriations agriculture subcommittee approved a 2000 funding measure for the Agriculture Department that increases discretionary by more than $1 billion.

For the calendar:

WA three-day meeting will be held May 25-27 in Arlington, VA, of a scientific advisory panel of the Environmental Protection Agency. The panel focuses on the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) and the Food Quality Protection Act (FQPA). The meetings will be held from 8:30 a.m. to 5:30 p.m. at the Sheraton Crystal City Hotel, 1800 Jefferson Davis Highway.

The National Cotton Council Board of Directors meets May 23-25 in Atlanta. Sen. Paul Coverdell (R-GA) will address the meeting May 24. An update on crop insurance reform also is on the agenda along with a report on export promotion activities.

News from other sources:

Taiwan makes new WTO concessions.  REUTERS reports from Taipei that Taiwan has agreed to widen imports of some meat-related farm products from July, six months ahead of schedule, in a concession linked to its World Trade Organization accession bid. Council of Agriculture officials say Taiwan negotiators agreed to adopt a global quota system allowing imports of pork bellies (5,000 tons), chicken meat(10,000 tons) and pork and beef offal (12,500 tons) from the United States in the first year with shipments beginning in July. The new concessions allow imports of 1,160 tons of pork bellies, 9,163 tons of chicken and 7,500 tons of offal.

Taiwan's bid, however, stalled by U.S., China.   BLOOMBERG NEWS reports that Taiwan's bid for WTO membership has been stalled by the NATO bombing of the Chinese embassy in Belgrade. China and the United States suspended talks regarding China's bid for WTO membership, and that stalled Taiwan's efforts. WTO members have negotiated with the understanding that China would join the TWO before its rival government Taiwan joined. "The assumption on this issue is that Taiwan's fate is tied to China," says Charles Wolf, an analyst with the Rand Corp., Santa Monica, CA, the article says. A protracted delay in gaining entry to the WTO could imperil Taiwan's sizable market-opening concessions to foreign businesses across several industries, from agriculture, heavy machinery and jetliners to telecommunications, auto parts and insurance, BLOOMBERG reports.

LDP change brings Hill reaction.  PRO FARMER reports that Sen. Pat Roberts (R-KS) and Rep. Jerry Moran (R-KS) have expressed "concerns" to Agriculture Secretary Dan Glickman concerning changes to the loan deficiency program under USDA consideration but stalled at the Office of Management and Budget. Problems under a new program "could actually be more severe than those that currently exist," they told Glickman in a May 13 letter. "We are particularly concerned with the effect proposals to establish a national LDP could have in counties and markets that are located large distances from terminal markets. It appears producers located in or near counties with terminal markets will have a distinct advantage over isolated counties."
 

May 13, 1999

USDA sees low prices continuing.  In its first forecast for the 1999-2000 crop year, USDA finds wheat prices should increase only slightly while corn and soybean prices remain in the basement. Yesterday's report also was the first projection for the upcoming winter wheat crop. Production is expected to total 1.6 billion bushels, slightly less than last year.

Conferees reject $5 billion for farmers.    Senate and House conferees, working on the supplemental appropriations bill, rejected a proposed $5 billion in aid to farmers proposed by Sen. Tom Harkin (D-IA). There still may be more money coming, however, if the year progresses with ever-declining prices.

Combest finds almost $500 million for loans.   House Agriculture Committee Chairman Larry Combest (R-TX) has told Agriculture Secretary Dan Glickman to cut loose almost $500 million for farm loan guarantees. Congress will shore up the shifted funds with the $1.1 billion for loan guarantees in the supplemental appropriations bill, Combest adds.

AT&T will settle class action claims on fiber optic cables.   AT&T has agreed to pay land owners $45,000 per mile plus additional benefits to settle a class action suit involving the company's installation of fiber optic cables on abandoned railroad rights of way. AT&T also will pay land owners' attorneys fees and all class-action costs. American Farm Bureau Federation calls it "a prudent course for other telecommunications firms to follow."

Lugar wants talks on biotech products.   Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants the Clinton Administration to talk about agricultural biotechnology products at the upcoming G-8 summit. Restrictions on biotech trade have become serious enough to warrant the attention of world leaders, says Lugar.

Ag people in the news:

Winston Wilson, president of U.S. Wheat Associates from 1981-97, died early Tuesday of an apparent heart attack, REUTERS reports. Current U.S. Wheat Associates President Alan Tracy said in a statement, "Winston made an important contribution to American agriculture and especially to the U.S. wheat industry through his work, and he was a friend to a great many people around the world. He will be missed." Wilson was a past president of the National Association of Wheat Growers and a deputy under secretary in the Carter Administration. A memorial service will be held in Washington today with the funeral scheduled Friday in Quanah, TX, near the Wilson family farm.

News from other sources:

U.S. will stay firm on China's WTO entry.   THE ASSOCIATED PRESS reports from Los Angeles that the Clinton Administration will remain firm on requirements for China's entry into the World Trade Organization while seeking to ease tensions caused by the accidental bombing of the Chinese embassy in Yugoslavia. The article quotes Commerce Secretary William Daley saying, "This is a commercial deal and these are commercial terms," referring to China's commitments to easing its trade restrictions. "Obviously the tragedy that occurred makes the timing of it more difficult," said Daley. "It should not impact the agreements that were reached before Premier Zhu came (to the United States)."

Goldthwait to get ambassador's post.   REUTERS reports that President Clinton intends to nominate USDA General Sales Manager Chris Goldthwait as ambassador to the central African country of Chad. Agriculture Secretary Dan Glickman made the announcement to the Senate Foreign Relations Committee, "acting a bit like a proud parent," the article said. Glickman said to the best of his knowledge, it was the first time in the history of USDA that a current employee had been nominated for an ambassadorship. Sen. Jesse Helms (R-NC), chairman of the committee, told Glickman, "I feel like I'm being lobbied a little bit" after Glickman emphasized Goldthwait's experience and expertise.

China's course right if WTO isn't a goal.   THE JOURNAL OF COMMERCE, in an opinion piece, says if China wants to stay out of the World Trade Organization, "it's pursuing the right course with a vengeance in its obstinate reaction to the unfortunate bombing of its embassy in Belgrade." In another article, REUTERS says ministers from four major trade powers agreed Wednesday to continue debating China's entry into the WTO, hoping to reach a conclusion in time for a November ministerial meeting in Seattle.
 

May 12, 1999

Former USTR official gloomy on China.  A former USTR official believes China's opposition to NATO bombing of Yugoslavia capped off by the bombing of the Chinese embassy in Belgrade easily could jeopardize the concessions China made to the U.S. in hopes of garnering backing for its admission to the WTO. The Chinese also were upset that U.S. officials publicized the details of the negotiations. "That was bad form" to the Chinese way of thinking, he says.

Another $5 billion try for farmers coming.  Sen. Tom Harkin (D-IA) intends to propose a $5 billion package of farmer assistance as an amendment to the supplemental appropriations bill. Dairy, cotton, pork and other livestock producers would share in the assistance.

ASA wants in on the assistance action.   The American Soybean Association wants Congress to include $2.8 billion in additional income support payments to farmers and $1 billion in concessional sales and donations for soybeans and soy products included in the supplemental appropriations bill.

Pesticide elimination leads to more food imports.   A study from Texas A&M finds U.S. farmers and consumers will be hurt financially and foreign food exporters will reap the benefits if two commonly used groups of pest-fighting crop protectants are eliminated. Organophosphates and carbamates are under the gun at the Environmental Protection Agency as part of implementation of the Food Quality Protection Act.

Lugar wants to selectively limit sanctions on ag products.   Senate Ag Committee Chairman Richard Lugar (R-IN) has introduced a bill to limit how sanctions may be applied to farm products. American Soybean Association says unilateral economic sanctions have been "a recurring nightmare for soybean producers."

Ag groups and companies seek more liberal trade.   Sixty-nine agricultural organizations and companies have urged the Clinton Administration to seek greater reform of agricultural and food trade policy, promote global food security through open trade and increase trade liberalization in agriculture and food.

NRC report exceeds imposed limits.   A National Research Council report on the effects of reformulated gasoline on the ozone goes beyond the limits of NRC's original charge from the Environmental Protection Agency, says the Renewable Fuels Association. By doing so, it draws conclusions about the efficacy of the reformulated gasoline program without the benefit of public comment or full use of scientific data, says RFA.

Farmers strong financially but still vulnerable.   A report from the Commission on 21st Century Production Agriculture finds farmers' debt to assets ratio is about 15%, low by historical standards. It puts farmers in a strong equity position. But the instability of export demand is a major source of financial risk to farmers and agribusinesses, the report says.

News from other sources:

New rule on U.S. food sales to Cuba takes effect. REUTERS reports new rules allowing the sale of U.S. food and medical equipment to private entities in Cuba went into effect Tuesday despite a three-decades old embargo. William Reinsch, Commerce Department under secretary, aid the Clinton Administration expects the changes, announced four months ago, to help the small but vital private sector in Cuba flourish. But many U.S. grain industry officials are skeptical that sales will increase significantly, the report continues, since relatively few buyers in Cuba are free of government control. The new regulations permit the sale of food and agricultural items such as pesticides, herbicides, herbicides, seeds and fertilizer.

EU employers want Brussels to end beef row.   The European employers' federation, UNICE, has urged both the European Union and the United States to end their dispute over hormone-treated beef. UNICE seized on a comment by Peter Scher, REUTERS reports from Brussels, special U.S. ag trade negotiator, who told reporters in Washington Monday, "If countries like the EU continue to fail to meet their obligations, then industries in Europe will have to suffer just like the cattlemen have suffered." Those kinds of "sharp words" will "not serve to bring this to a resolution," the article quotes UNICE Secretary-General Dirk Hudig. He added, "This dispute, as every other, must be settled exclusively in the framework of WTO (World Trade Organization) multilateral rules. Companies cannot continuously be held hostage to a situation which has nothing to do with them. This is harmful for employment, EU-U.S. relations and the world economy."

Iran food sales rules out in one to two months.   The Clinton Administration hopes to issue regulations within four to eight weeks to allow food and medicine sales on a case by case basis to Iran, Sudan and Libya, says a REUTERS report. Stuart Eizenstat, under secretary of State, says that an application by the Niki Trading Company to sell U.S. grain and other farm goods to Iran remains under active consideration. He noted that Iran's suggestion that the United States buy Iranian goods as well was problematic because of Iran's continued support for international terrorism and other activities not in line with U.S. interests. "We would be concerned about providing aid and suffrage for those activities by allowing U.S. firms to buy Iranian products," he said.

'Rice action plan' proposed to USDA.   PRO FARMER reports that the U.S. Rice Producers Association, on behalf of the California, Mississippi, Missouri and Texas rice producer members, has submitted a "rice action plan" to USDA. Dwight Roberts, president and CEO of the RPA said "the timing and implementation of many of the actions that (USDA) may take under the rice action plan are as important as the actions themselves." The plan includes several domestic policy initiatives, improvements in export performance, the pursuit of trade policy objectives and the launching of a "coherent biotechnology strategy."
 

May 11, 1999

FSA expands guaranteed loan program.  USDA's Farm Service Agency has expanded eligibility for farm credit lenders to participate in the Preferred Lender Program.  FSA Administrator Keith Kelly also urged Congress to approve the supplemental appropriations bill.

Meat, poultry equipment program changes.  USDA has changed the program to develop a meat and poultry equipment certification program.  The proposed program was mandated by the 1999 appropriations bill and requires that the new service be developed by the Agricultural Marketing Service as a voluntary user fee program.

Burns wants review of LDP wheat decision.  Sen. Conrad Burns (R-MT) wants USDA to review a hard white wheat loan deficiency payment change to determine its impact on producers.  The policy change allows the Farm Service Agency to base hard white wheat LDPs on hard red spring wheat prices

Farm laborers' housing gets boost.  USDA will make more than $25 million in loans and grants available to construct more than 500 new rental units for domestic farm laborers.  That's $10.3 million more than last year.

Bank warns rural Asia under threat.  A report on rural Asia by the Asian Development Bank says Asian policy makers' complacency threatens to wipe out the agricultural gains of the green revolution.  Agriculture is being treated as a "sunset industry" that no longer needs investment.

News from other sources:

U.S. warns EU of beef retaliation. REUTERS reports that U.S. officials Monday warned they are prepared to slap punitive duties on hundreds of millions of dollars of additional European Union products unless the EU agrees by Thursday to open its market to hormone-treated beef.  Peter Scher, special U.S. ag trade negotiator, says "there is still time" for the two sides to work out  labeling solution in the dispute that would allow EU consumers to decide whether they want to buy and consume U.S. beef.  "We're still very open to working with the EU in that direction," Scher said.  "But as I've said, and I think this administration has made clear, if the EU fails to comply, we will exercise our right" to retaliate.

U.S. urges EU to reconsiderits ban.  THE ASSOCIATED PRESS reports that U.S. leaders made a last-ditch effort Monday to persuade the European Union to end the 10-year ban on U.S. beef from hormone-treated animals.  But a European official said the ban would continue.  "We will not lift the embargo on May 13," Elio DiRupo, Belgium's deputy grade minister, told Dow Jones Newswires on Monday

EU offers to make up for beef ban.  BLOOMBERG NEWS reports the European Union has offered to compensate the United States for the ban on hormone-treated beef by further opening EU markets to U.S. products.  "The right thing to do is to negotiate interim compensation rather than there being sanctions," EU Trade Commissioner Sir Leon Brittan told a news conferences after a meeting in Berlin of EU trade ministers.  Compensation would mean "opening our markets" to U.S. goods, he said, but gave no details.

No ag at quad trade talks.  Trade ministers from four major economies will holds two days of talks in Tokyo beginning today, most on how to approach the upcoming round of World Trade Organization multilateral trade negotiations.  KYODO NEWS SERVICES reports, however, that agriculture will not be a major topic.  Yuki Takagi, vice minister for agriculture, told a news conferences, "While it may not be that the area of agriculture will not be touched upon at all, given the nature of the meeting, it will not be a major focus."  Canada, the European Union, Japan and the United States will participate.  U.S. Trade Representative Charlene Barshefsky will represent the United States.

Cotton added to U.S. farm-aid plan.  REUTERS reports that money for the cotton Step 2 program was added by farm-state senators seeking the second farm bail-out in two years.  The latest plan has a price tag that could exceed $5 billion.  But prospects for passage are cloudy, REUTERS says.  House Republicans have demanded cuts in federal programs to offset new expenditures, but President Clinton has threatened to veto the spending bill unless the offsets were deleted.  Republicans, the report continues, quietly have made clear they are ready to help farmers, but it was prudent to wait until later in the growing season when needs would be clearer.  The American Farm Bureau Federation has asked that the assistance total $6 billion.  Sen. Tom Harkin (D-IA) and other Democratic lawmakers may try to attach new spending to a supplemental appropriations bill as early as today, CONGRESS DAILY reports.  The bill is in a House-Senate conference.
 

May 10, 1999

House panel to consider USDA funding Thursday.  The House Agriculture Appropriations Subcommittee will unveil its plans for FY 2000 spending on farm, nutrition and other programs Thursday, Congressional sources said.

Bill planned to promote milk over soda.  Senators plan to introduce a bill designed to promote milk consumption in schools over sodas. It would prohibit the free pre-lunch or lunchtime distribution of sodas or other "empty snacks" in schools that participate in the federal school lunch or breakfast programs.

AFBF supports classifying fish as livestock.  The American Farm Bureau Federation supports a USDA proposal to possibly classify farm-raised fish as livestock.  That will help ease trade restrictions, says AFBF.  Fish farmers have had healthy fish product shipments returned due to an inadequate health certification process.

Ag trade options may not be feasible.  Agricultural trade options may not be necessary, but if they are to be part of a farmer's risk management portfolio, less regulation definitely is needed.  Cargill, Inc., won't participate in options unless the regulations are modified "substantially."  Brokers question the need but say if they are to be offered, there are risks that must be addressed.

Monsanto pledges tornado relief.  Monsanto will give $75,000 to the American Red Cross for rural relief efforts in the wake of the monster tornadoes that struck Oklahoma and Kansas May 4.  The company says it hopes other companies will chip in to help the relief effort.

AFBF supports additional farmer assistance.  The American Farm Bureau Federation supports the $4.3 billion in additional farm assistance proposed in the Senate but believes even more is needed.  AFBF wants another $1.7 billion for livestock, soybean, rice and cotton.

For the calendar:

Senate Agriculture Committee holds a hearing Tuesday in SR-328A on agricultural trade sanctions.  The 9 a.m. hearing includes such witnesses as Stuart Eizenstat, State Department under secretary; August Schumacher, USDA under secretary and a host of ag-related representatives from the private sector.

Researchers will unveil a study on Tuesday that says food safety law implementation could hurt farmers and consumers but help foreign producers.  Researchers from Texas A&M and Auburn Universities worked with scientists from 10 other land-grant universities to study the impacts of a ban on two major classes of pesticides.

Headlines from other sources:

Farmers can handle the climate change treaty.  REUTERS cites a new USDA report that U.S. farmers can survive and even make money off the Kyoto global climate change treaty if market-based incentives are included in a final agreement.  USDA concludes that studies showing severe economic impact on agriculture failed to account for adjustments farmers would make to production costs.   "When these flaws are corrected, it becomes apparent that, even if tradable emission permit prices turned out to be a good deal higher than we project them to be, the impact on farm income would be just a fraction of what these studies estimate," according to the USDA report.

Russian food aid tender may come this week.  REUTERS reports that tenders for freight and purchase of U.S. meat for a food aid package to Russia could begin this week.  The article quotes Chris Goldthwait, general sales manager at USDA.   "It's possible that we'll get those (minor technicalities) worked out" this week, he said, "but given the experience we've had so far, I want to stop short in saying that's guaranteed."

Congress likely to approve the $4.3 billion relief package.  PRO FARMER reports Congress likely will approve the $4.3 billion farm aid package because of politics.  The article quotes "congressional sources."   For one thing, Democrats know they are in the driver's seat even if Republicans reject or delay approval: Democrats still can score political points.  Another reason is that when the Congressional Budget Office projects the budget baseline, there will not be an increase in the projected budget surplus.  "This recognition led many lawmakers to conclude `let's take it now while we can rather than taking budget chances later as other domestic spending issues arise," the article says.
 

May 7, 1999

House approves more agfunding. The House, on a voice vote, Thursday approved $1.1 billion for additional backing for guaranteed farm loans.  It was part of a larger measure that would pay the cost of military operations in Yugoslavia.  The $1.1 billion also is part of the supplemental appropriations bill, requiring a merge of the two measures in conference.

Farm Bureau says put milk order reform on hold.  The American Farm Bureau Federation believes Congress should put on hold until 2002 any consideration of modifying milk market order reforms.  Reform "still has several problems" that must be worked out, says AFBF.

Dairy gears up for new WTO talks.  U.S. dairy interests eagerly support a Clinton Administration position that other nations' domestic price supports must be reduced.  The supports have been a "barrier to the growth of U.S. dairy exports," says the U.S. Dairy Export Council.

Glickman scores Senate effort.  Agriculture Secretary Dan Glickman criticized a Senate debate he says is aimed at "seriously" weakening a law that requires banks to lend money in communities where they are located.

Bill seeks to improve rural health care.  A bipartisan effort is underway in the Senate to expand access, increase choice and improve the quality of health care in rural areas.  The goals are to improve Medicaid and Medicare reimbursements to rural providers.

FCC recommendation on E-rate program applauded.  Agriculture Secretary Dan Glickman supports a Federal Communications Commission recommendation to preserve the nation's E-rate program.  Glickman says the move will help bring rural areas into the information age.

Burns seeks to help farmers facing foreclosure.  Sen. Conrad Burns (R-MT) wants to help farmers threatened by foreclose due to land reappraisals.  His bill would apply to foreclosures due to land reappraisals required by "shared appreciation agreements” (SAAs) signed a decade ago and that now are coming due.

EPA schedules organophosphate briefing.  The Environmental Protection Agency has scheduled a technical briefing on an organophosphate.  The farm community is concerned that EPA will phase out organophosphates before adequate alternatives are available.  EPA has scheduled organophosphates for review under the Food Quality Protection Act.

For the calendar:

 The Senate Agriculture committee has scheduled several hearings in May: May 11 on agricultural trade sanctions, 9 a.m. in SR-328A; May 20 on producing fuels and chemicals from plants, trees, grasses and agricultural residues, 9 a.m. in SR-328A, and May 26 to examine issues affecting the livestock industry, including mandatory price reporting and country of origin labeling, 9 a.m. in SH-216.

News from other sources:

Lawyers for black workers meet with USDA.  Top USDA officials have called a meeting for today with lawyers representing 12,000 black employees.  Attorneys hope this is a sign that USDA wants to settle a discrimination case, says REUTERS.
 Employees allege that they have faced constant discrimination in hiring, promotions and in daily life at USDA and have threatened to file a formal class-action lawsuit.

China cites progress with EU in WTO talks.  REUTERS reports from Beijing that China's foreign trade minister believes talks with European Trade Commissioner Sir Leon Brittan have made progress toward China's goal of joining the World Trade Organization.   However, a KYODO NEWS SERVICE report from Beijing says China's concessions to the United States last month appear to have contributed to the lack of a breakthrough in the talks.  Brittan said there is "no doubt at all there has been criticism in China" over the extent to which the Chinese went in concessions to the United States.

ADM will offer a premium on some soybeans.  PRO FARMER reports that Archer Daniels Midland will pay farmers a premium price for soybeans grown with a specific non-genetically altered seed variety.  The soybeans are known as Synchrony Treated Soybeans and are produced by DuPont.  They are bred to resist Synchrony herbicide, also a DuPont product.   Producers participating in the STS program would receive an 18-cents per bushel premium over the Decatur, IL, soybean price.

Farmland, Cenex likely to merge.  The nation’s two largest farmer cooperatives set plans for a merger, subject to membership and government approval, The Wall Street Journal reports.  Separately, REUTERS says Standard & Poors has placed Farmland’s debt in a credit-watch category that indicates it might be upgraded, downgraded or left the same as a result of the merger.
 

May 6, 1999

Crop insurance, dairy, likely congressional front burners.  Crop insurance reform and some action on dairy legislation likely will be on the front burner for congressional consideration this year.  A House official believes the $6 billion for crop insurance reform is too tempting to ignore.

Commission releases initial report.  The Commission on 21st Century Production Agriculture has released its initial report, The Status of U.S. Agriculture.  The report describes the agricultural economy as of December 1998.  “This report is a snapshot of U.S. agriculture as of December 1998, nothing more, nothing less,” said Barry Flinchbaugh, chairman.  The report will be available sometime today (Thursday) on the commission’s web site at http://www.agcommission.org/publications.asp.

Milk producers, processors give opposing views -- again.  Milk producers told Congress that changes are needed in federal milk marketing order reforms as proposed in a USDA final rule.  Milk processors, however, told the same hearing that Congress should leave the final rule alone, instead “stay the course” with the proposed reforms.

Lugar calls for more risk management education.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants an aggressive campaign launched to educate farmers on available risk management tools.  Example: A Commodity Futures Traqding Commission pilot program on agricultural trade options, intended to help farmers manage risk, was initiated a year ago.  No one yet has signed up to participate.

Lending program to be expanded.  USDA will expand the number of eligible lenders from 238 to 747 for the Preferred Lender Program begun in February.  The main feature of the program is a guaranteed 14-day turnaround on applications.

Cattle rancher pleads for tougher trade action.   A Wyoming cattle rancher told the Senate Banking Committee’s Subcommittee on International Trade that the United States needs to take tougher action on trade issues.  “There is a belief that the U.S. meekly complies with adverse rulings and does not vigorously advance the cause of U.S. business and citizens,” he said.

Ag people making news:

Mechel S. Paggi has been named director of the Commission on 21st Century Production Agriculture.  He is a native of Beaumont, TX, and has been employed at USDA’s Cooperative States Ressearch, Education and Extension Service as a national program leader for natural resource economics.  He also has served as a senior economist with the United Nations Food and Agriculture Oerganization in Rome.

News From Other Sources:

U.S. Has Some High Tariffs, Too:  U.S. insistence on free trade makes some import barriers in this country stick out like sore thumbs, USA TODAY
reports.  Perhaps best-known among U.S. import barriers are quotas on textiles from abroad.  Sugar, peanuts and dairy products are also subject
to strict import limits.  And some industrial tariffs remain high, with glassware imports subject to as much as a 38% duty.  Overall, though, the U.S. is among the least protectionist of the world's nations, the article says.

Senators call for $4.3 billion in aid:  Meeting in the office of the Senate Minority Leader, a bipartisan group of Senators agreed to seek $4.3 billion in new farm relief, according to REUTERS.  Sen. Tom Harkin (D-IA) may try to provide the money next week by amending a supplemental spending bill that is now in a House-Senate conference committee.  The Senators want $2.8 billion in additional AMTA (“freedom to farm”) payments and $1.5 billion in new crop loss payments, REUTERS says.

Lamb producers reject settlement:  U.S. lamb producers rejected a $1.5 million offer by Australia and New Zealand to settle a trade complaint that could lead to restrictions on lamb imports, REUTERS reports.  Under U.S. trade law, President Clinton is slated to make a final decision on the complaint and impose any remedies by June 4.
 

May 5, 1999

Commerce cattle ruling gets cautious support.  National Cattlemen's Beef Association supports a decision by the Commerce Department to continue an investigation on whether potential Canadian subsidies to cattle producers justify a countervailing tariff.  Canada reacts positively to the news.

Battle shapes up in Congress over dairy compacts.  With bills to expand dairy compacts and extend the Northeast Dairy Compact's life, battle lines are drawn over the feasibility of broadening the scope of such arrangements.  Compacts allow prices to dairy farmers to be set on an "over-order" basis, or greater than the price allowed by the federal milk marketing orders.

Economist finds sinking farm income from rule.  A University of Missouri economist says two changes in USDA's final rule on milk marketing order reform will decrease farm milk income by $583 million, $140 million of it due "exclusively" to a decline in Class I (fluid) prices.

Beef packers can but didn't exercise price power.  A new study from USDA says beef packers do not appear to be exercising market power over cattle prices, but the potential to do so exists.  Continued monitoring or market concentration and use of market power "would be helpful," the report says.

USDA, USTR will hold listening sessions on trade talks.  USDA and the U.S. trade representative's office will hold 11 public listening sessions in June and July for public comment on ag trade priorities in the upcoming World Trade Organization negotiations.

Success strategies for natural foods discussed.  A new study on the natural foods market identifies success strategies for expansion.  The retail market for natural foods is increasing at five times the rate of the total retail food market.

Daschle continues pressure for loan funds.  Senate Minority Leader Tom Daschle (D-SD) called on Congress to approve new funds for farm loans after meeting with a group of local bankers.  Daschle said failure to approve the funds -- part of a supplemental spending bill -- threatens farmers’ ability to get operating credit this spring.

News from other sources:

Omaha firm recalls meat after E coli find.  An Omaha meat company recalled more than 80,000 pounds of ground beef suspected of being tainted with E coli bacteria, according to a REUTERS report.  There were no reported illnesses linked to the meat, according to All American Meats Inc., President Shawn Buchanan.   Buchanan said most of the 82,929 pounds of ground beef were sold and apparently consumed in Illinois, Indiana and MIchigan.  About 40 boxes of the meat, packaged for use by retailers, was still on the market and has been recovered.

EU rules out ending ban on hormone beef.  A REUTERS report from Brussels says the European Union's executive body Tuesday ruled out lifting a ban on imports of meat from hormone-treated animals after EU scientists claimed to have found evidence that a hormone used in the U.S. cattle industry could cause cancer.   "The commission agreed that there can no longer be any question of lifting the ban on hormone-treated beef since the risk assessment has identified risks to health caused by hormones," the European Commission said in a statement released after its meeting in Strasbourg, France.   In a related article, European Farm Commissioner Franz Fischler said the United States' insistence on an end date of May 13 for the EU to end the import ban was blocking a possible compromise solution to the trade dispute.

Russian aid lags.  The Journal of Commerce today says beef tenders to Russia may be too late.  "Russian government officials and American meat packers have been asking `Where's the beef?'" according to the JOC.
 

May 4, 1999

Officials say EU hormone claim unsubstantiated.   Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky say there’s nothing new in the latest European Union claim that at least one animal growth hormone may be a human health risk.  The claim “repeats the same unsubstantiated arguments that the EU has already made before…” they say.

Similarities detailed between broilers, hogs.  A study from USDA’s Economic Research Service shows that contracting and vertical integration in both the broiler and pork industries have been associated with new technology and new areas of production.  Such information is helpful to policymakers who must make decisions on antitrust matters, the report says.

Glickman calls on grads to embrace sustainability.  Agriculture Secretary Dan Glickman told graduates at the University of Michigan School of Natural Resources to understand and embrace sustainability for the new century and the new millennium.  With opportunity comes responsibility, he said.  Even while using natural resources, “we must also protect and preserve them for future generations.”

News from other sources:

GAO says to analyze farm antibiotics.  The federal government needs to conduct a broad study to determine which antibiotics used on cows, pigs and other farm animals may be contributing to food borne disease and other human health risks, according to a General Accounting Office report, says REUTERS.  The GAO report says the use of antibiotics in agriculture has been linked to new and sometimes deadly strains of food borne diseases such as salmonella, campylobacter and E coli.   “Researchers believe these organisms acquire resistance to antibiotics while in an animal,” said GAO. “The resistant strain is then passed to humans through food or through direct contact with animals or animal waste.”  USDA and the Health and Human Services Department should jointly develop a detailed plan with deadlines and specific goals to determine the safe use of antibiotics in agriculture, the report said.

USDA may regulate farm-raised fish.  USDA is considering regulating fish raised on farms just as it regulates livestock, according to a REUTERS report.  The goal would be to protect the “global marketability” of farm-raised fish.  USDA made the suggestions after receiving 21 petitions from industry associations, producers, sate farm bureaus and others asking for the aquaculture regulation.
 USDA says it now provides aquaculture with some services including export health certificates and controlling damage from birds and other animals, but the industry is not protected from the introduction of harmful exotic pests and diseases.

Japan wants EU to back off rice tariffs.  Japan has called on the European Union to withdraw its objection to the world Trade Organization on Japan’s rice import tariffs, according to the KYODO NEWS SERVICE.  Japanese Agriculture, forestry and Fisheries Minister Shoichi Nakagawa made the statement during talks with EU farm Commissioner Franz Fischler in Brussels.
 Fischler was quoted as responding that the EU understands Japan’s position but objects to the technical aspect of the tariffication such as the calculation method of the tariff level.  Both sides agreed to continue working-level talks.

Soybean components may prevent cancer.  USDA scientists are searching for components in soybean oil and protein extractions that might help cancer-free people avoid the disease.  THE ASSOCIATED PRESS reports the idea is to turn DNA-friendly compounds, called chemoprotectants, into food additives and pharmaceuticals.   Some natural and synthetic chemicals cause DNA disruptions that sometimes result in malignancies, but chemoprotectants help protect against irreversible cell damage, according to USDA’s Agricultural Research Service.  Soybeans and other foods contain substances called antioxidants that can help prevent cell mutations.  Some of the antioxidant soy extracts, called isoflavones, are marketed as food additives.

Merger may be restricted.  Odds are growing that the government will put conditions on Cargill’s plan to acquire the grain assets of Continental Grain Co., REUTERS says.
 

May 3, 1999

Supplemental may be determined this week.  A conference committee is to decide this week the shape of a compromise supplemental spending bill for House and Senate consideration.  The Senate version of the bills passed by both chambers is of most interest to farmers:  $150 million that pork producers believe could be used to help them weather the storms of continued low prices; $152.9 million to fund guaranteed farm loans and $28 million for additional USDA personnel.

Daschle wants price legislation fast.  Senate Minority Leader Tom Daschle (D-SD) wants the beef industry to move quickly and submit legislation on price reporting to Congress.  Daschle says he welcomes efforts announced last week that packers and cattlemen were close to submitting a bill.

Low hog prices will have lasting impact.  USDA says hog price declines will have a lasting impact on the hog industry.  The cost structure is likely to have dropped, as many less efficient  producers have gone out of business.  “Structural transformation” will continue at an intensified pace.

Glickman looks for more pricing accusations.  Agriculture Secretary Dan Glickman says he expects more cases similar to the one against Excel Corp., alleging violations of the law through unfair pricing practices, will be filed by USDA in the months to come.  He also said there always will be farm programs “on some level.”

Consumers eating better and worse at the same time.  U.S. consumers now eat about 50% more grain products and 25% more fruits and vegetables per capita than in 1970.  Leaner meat and lower fat milk also are being consumed in greater quantities.  But they will consume record-high amounts of caloric sweeteners and some high-fat dairy products and near-high-record amounts of added fats, including salad and cooking oils.

News from other sources:

EU science now finds new hormone dangers.  A new report by European Union scientists finds strong evidence that one of six hormones used in the beef industry could cause cancer, reports REUTERS.  The conclusion “could drop a bombshell into a transatlantic trade dispute,” the article says.  The scientists said there were not enough data to draw final conclusions about whether five other growth-promoting hormones used to raise cattle in North America were safe for human consumption.   The report’s summary was obtained by REUTERS.  It comes just days before a May 13 deadline for the EU in a World Trade Organization case involving the EU’s ban on imports of beef from hormone treated animals.  The WTO decision called on the EU to stop the ban.  The report, by the EU’s Scientific Committee on Veterinary Measures Relating to Public Health, “will break the EU Commission in two,” the article quoted an unnamed source.

'Rarest of allies’' work on mandatory pricing.  The “rarest of allies -- the processing industry and farmers” -- have been brought together to find a way to implement mandatory pricing within the livestock industry,” according to THE ASSOCIATED PRESS.  The article says progress has been good enough to raise hopes that draft language for legislation can be brought to Capitol Hill in the next few weeks.   As the low livestock prices sent an already struggling agricultural economy into a tailspin, the article continues, both Republican and Democratic members of Congress began offering proposals for mandatory pricing.  the Clinton Administration offered its proposal last month.  Lawmakers on both sides predict the issue finally has enough support to pass Congress.

Dairy producers lose big under reform.  If federal milk marketing order reform becomes reality as is, participating dairy farmers would lose $583 million in 2000, according to a study from Missouri dairy economist Ken Bailey.  Lower Class I differentials would account for $140 million of that, says an article in Farm Journal’s Dairy Today fax.  Reduced milk marketings and lower prices for butter, powder and other commodities would be responsible for the rest. Bailey has four suggestions to fix the final rule: use “some form of Option 1A,” fix the Class III formulas which now are designed to allow western processors to compete more effectively with California; use Chicago Mercantile Exchange prices rather than “unaudited” National Agricultural Statistics Service surveys “that lag the market two weeks,” and maintain some sort of “effective price support program.”

IBP to appeal ruling.  The world’s largest beef and pork packer will appeal the latest ruling in a long-standing legal action brought by a group of cattlemen, REUTERS reports.  The ruling overturned an earlier decision that denied class-action status to the lawsuit.  IBP Inc. will appeal Thursday’s ruling that would allow the lawsuit to proceed as a class-action suit.

Iran sales may take a while.  Last week’s decision to allow food sales to Iran and other sanctioned countries may not lead to immediate sales, REUTERS says.  Noting that sales must still be approved on a case-by-case basis, the wire service says normal rulemaking delays could add some weeks to the time before actual transactions occur.

Lugar promotes alternate fuel development.  Senate Agriculture Committee Chairman Richard Lugar (R-IN) introduced legislation to earmark $48 million a year for six years to develop plant-based fuels.  One focus of the research would be to develop new feedstock sources for ethanol, bringing down the fuel’s cost.

New spread lowers cholesterol.  Grocery shoppers will soon see a new margarine-like spread that can help lower cholesterol, REUTERS reports.  A division of Unilever PLC makes the spread, called Take Control and made using a natural soybean extract.