May 31, 2000

FSIS's Final Rule on Meat Plant Controls. USDA's Food Safety and Inspection Service has published a final rule removing remaining requirements for partial quality control programs in meat and poultry processing plants. The final rule follows previous rulemakings that eliminated many PQC program requirements. Plants will now have greater flexibility to adopt new technologies and processed product regulations will be more consistent with the agency's regulations on hazard analysis and critical control point system operations, improving food safety, according to FSIS. 

McGovern Urges International Lunch Program. Former Sen. George McGovern (D-SD) believes a "universal school lunch program" could help alleviate hunger among 300 million children worldwide. Former Sen. Bob Dole (R-KS) agreed but thought it could be "costly." The remarks came at a nutrition summit in Washington where Glickman was the target of a pie thrown by an animal rights activist. 

FDA Issues Fruit, Vegetable Instructions. The Food and Drug Administration has issued a list of practices consumers should use for safe handling of fresh fruits and vegetables. The Centers for Disease Control and Prevention reports that food-borne disease occurrence increases during the summer months for all foods, including fresh produce. 

USDA Issues Sugar Purchase Invitations. USDA's Commodity Credit Corporation has issued invitations for about 150,000 tons of sugar for purchase on a bulk, in-store basis. The offers will be received until 2 p.m., CDT, on June 5. 

CSPI, Others React to Dietary Guidelines. The Center for Science in the Public Interest believes USDA's latest Dietary Guidelines for Americans is better than the previous edition but still shows the government "caved in to pressure from junk-food makers and downplayed its scientific advisory committee's advice." 

FCL Reports Increased Lease Volume. The Minneapolis-based Farm Credit Leasing (FCL) reports first quarter new lease volume of $119.2 million, up from $118.9 million or a .3% increase from the same quarter in 1999. Portfolio and fee income for the first quarter was $19.9 million, up from $18.4 million or an 8% increase from the same period a year ago. After tax net income was $2.7 million, up from $2.1 million or a 26-percent increase from last year.

News Summaries

Chamber Executive in Havana. The vice president of the U.S. Chamber of Commerce arrived in Havana on Tuesday for talks on increasing business with Cuba - one of several visits this week by U.S. officials interested in developing ties with the communist island. A Congressional Black Caucus delegation also was expected, joining a third delegation of Arkansas lawmakers and farmers, who arrived Sunday hoping to develop agricultural contacts, according to THE WALL STREET JOURNAL. The visit by Craig Johnstone, vice president of the U.S. Chamber of Commerce, follows last year's visit by Chamber President Thomas Donohue - the first made by a U.S. Chamber official to Cuba since the 1959 revolution brought Fidel Castro to power. The chamber has been especially interested in Cuba's small, nascent private sector. After the 1991 collapse of the Soviet Union, Cuba's communist government instituted modest economic reforms to ease severe financial crisis by allowing a small group of Cubans to open small businesses. The Arkansas lawmakers, meanwhile, were more focused on possible changes back in the states, as the House of Representatives considers easing a four-decade embargo. Sen. Blanche Lincoln and Rep. Marion Berry, both Democrats, said they hoped the House voted next week to eliminate restrictions on American sales of food and medicine to Cuba. The Black Caucus members were planning to meet with Cuban lawmakers, educators, physicians and clergy during their visit, which is aimed simply at helping them understand the country better. 

Glickman Worried About Method Of Distributing Aid. Agriculture Secretary Dan Glickman says he is satisfied with the crop insurance section of the farm aid bill that Congress passed last week, but "remains concerned" that the economic relief section of the bill is not better targeted to farmers who need help, according to National Journal's CongressDaily. Speaking to reporters at the National Nutrition Summit, Glickman said the question of targeting has to be addressed "at some point" or farm programs will lose public support. But when asked whether he would recommend a veto, Glickman pointed out that all the conferees on the bill had signed the conference report. Last week, Glickman questioned the decision to funnel that farm aid through the Freedom to Farm formula because that would steer the $5.5 billion "disproportionately" to the "largest, most prosperous farmers. This will weaken public support for adequate farm spending in the future." Glickman also said the Agriculture Department is trying to upgrade its enforcement of the Packers and Stockyards Act provisions on unfair pricing to deal with farmers' concerns about agribusiness concentration, particularly in meat packing but that concentration "ultimately is ... an issue that Congress is going to have to address."
 

May 30, 2000

Meat, Poultry Nutrition Labels Coming. President Clinton says nutrition labels for packaged meat and poultry will be proposed this summer. He called such labeling "just plain common sense." Nutrition labeling for meat now is voluntary. 

Dietary Guidelines Issued. The new Dietary Guidelines for Americans has been released, advising consumers to eat moderately, reduce salt, saturated fat and sugar consumption and exercise at least a half hour five times a week. The beef industry believes the guidelines provide a "fit" for consumers to eat beef. Grocers say USDA avoided "the blame game" in issuing this set of guidelines. 

New Retaliation List Proposed. Chicken and cheese are on the list of products for retaliation against the European Union for its ban on imports of beef from hormone-treated animals. The final list is to be issued by June 19. 

Ewing Introduces Exchange Bill. Rep. Thomas Ewing (R-IL) has introduced legislation to reauthorize the Commodities Futures Trading Commission. "Legal certainty" for over-the-counter derivatives is included along with regulatory relief for the futures industry and an end to the current legal ban on single stock futures. 

Price Competition at Stake in Concentration. A new USDA study says one policy challenge for the future is to ensure that high meat packer concentration does not erode price competition among packers. With few competitors, meat packers may reduce prices paid to livestock producers and increase prices charged wholesalers and retailers. But concentration also can lead to lower consumer prices and improved choices. 

New Corn Ready for Southeast. A new corn variety capable of adapting to the Southeast's sandy soils and warm climate and that can be used for cattle silage or forage is ready for production. A large-scale trial now is underway to document the benefits in silage-fed steers.

News Summaries

Global Warming May Affect Farmers. Farmers actually could benefit from global warming if it just brought better growing conditions for a wider variety of crops. But a group of scientists warns that the climate change also would bring more droughts, floods and pests, THE ASSOCIATED PRESS reports. Over the past three decades, global warming has contributed to a variety of weather extremes and pest problems that have led to greater variations in farm income, a pattern likely to continue, researchers say in a report by Harvard University's Center for Health and the Global Environment. A United Nations panel has predicted that average global temperatures will increase two degrees to six degrees in the next 100 years if current greenhouse gas emissions are not reduced. That would allow crops to be grown in areas that are too cool for them now. The Harvard report analyzed crop yields and production costs from 1950 on. Scientists concluded there has been greater volatility in both since the 1970s because of variations in weather, including a widespread drought in 1988 and the Midwest floods of 1993. 

Arkansas Delegation Visits Cuba. A 16-member delegation from Arkansas traveled to Havana where they met Monday with Cuban officials as Washington moves to ease the four-decade trade embargo against Cuba, THE ASSOCIATED PRESS REPORTS from Havana. The House has debated legislation to allow food and medicine to be sold to Cuba with a vote in the full chamber expected next week. The Senate approved a similar measure last year. "We feel like the embargo ... has not worked," said Rep. Marion Berry (D-AR). Lifting the restrictions on food and medicine sales would benefit both the Cuban people and hard-hit Arkansas farmers seeking new markets, he added. 

Australia Condemns New U.S. Farm Subsidies. Australia's Agriculture Minister Warren Truss Tuesday condemned a decision by the U.S. Congress to increase levels of farm subsidies and payments, REUTERS reports from Canberra. Truss said it was an attempt to further insulate U.S. farmers from the realities of the world market. "This once again demonstrates the double standards the U.S. displays when dealing with trade issues," he told parliament. "They are very bod and aggressive in giving advice to the rest of the world, but when it comes to their own market place they do very little and in fact increase their levels of subsidies." 

Industry Groups Not High on Guidelines. THE WALL STREET JOURNAL reports that the new dietary guidelines announced over the weekend have left some people with a bad taste in their mouths. The salt industry wanted Americans to "moderate" their salt intake, not consume "less" salt as the government panel recommended. The dairy industry balked at the possibility of listing calcium-enriched soy milk alongside more traditional members of the dairy food group. Soft-drink producers and the sugar industry didn't want the government telling Americans to "limit" sugar intake. Ultimately, the guidelines were changed back to the previous "moderate" wording for sugar, but consumers will still be told to consume less salt.
 

May 26, 2000

Clinton May Veto House Appropriations Bill. President Clinton will be advised to veto the fiscal year 2001 agricultural appropriations bill as reported by the House Appropriations Committee. House leaders Thursday pulled from floor consideration a rule that would have governed debate on the bill after a revolt by farm-state members against the leadership's plan to allow sanctions reform to be stricken from the measure. 

Conference Report on Farm Assistance Approved. The House and Senate have approved the conference committee version of a package of crop insurance reforms and farm assistance, sending the bill to the White House where President Clinton is expected to sign it. In addition to the broader provisions included in the Wednesday report by AgricultureLaw.com, there are other features in the final bill. 

Glickman Calls Farm Relief 'Sheer Damage Control.' The third package of farmer assistance included in the just-finalized crop insurance reform and farm assistance bill is "sheer damage control," not "carefully crafted policy," says Agriculture Secretary Dan Glickman. In an address to a Farm Credit Administration symposium, he again called for counter-cyclical supplemental farm payments and a national farm policy "that embraces more than just the row-crop producers of the heartland." 

Court Rules Against USDA in Meat Case. A Texas federal court has ruled against USDA's meat testing program. The winner in the case, Supreme Beef Processors, Inc., said the decision confirms the company's position, that the salmonella test to determine sanitary conditions at a meat plant "is flawed and outside the scope of USDA's authority." 

USDA Proposes Irradiation of Some Imports. USDA has proposed irradiation of imported fruits and vegetables to control fruit flies. The department considers irradiation as "an alternative" to the currently approved treatments that include fumigation, cold and heat treatments and greenhouse growing.

News Summaries

U.S. Organic Food Going to Japan. NRE World Bento, Inc., a California subsidiary of Nippon Restaurant Enterprise Co. Lt., will produce organic and natural prepared Bento meals using U.S. certified organic grains and produce as well as naturally raised beef, pork, poultry and seafood, for export to Japan, the company announced Thursday. "The organic movement is in its infancy in Japan with educational campaigns and labeling regulations just beginning," said Jeffrey Schnack, NRE president. "By tapping into the abundance of high-quality organic products available here in California and utilizing Japanese production technology, NRE World Bento will introduce a line of traditional style healthy, ready-made meals that are flash-frozen and delivered to the Japanese marketplace." 

Dietary Guidelines Due Next Week. New dietary guidelines spelling out which foods consumers should eat and how much they should exercise to stay health will be issued by the federal government in the next few days, REUTERS reports. The guidelines are revised every five years and used by physicians, food makers and educators. They also form the basis of the USDA food pyramid used to teach health eating habits based on food groups including grains, vegetables and fats. Eileen Kennedy, deputy under secretary for research and education at USDA said the final version will be unveiled next week at a national nutrition summit sponsored by the federal government. 

Cuba Battle Delayed into June. A behind-the-scenes victory for lawmakers supporting U.S. food and medicine sales to Cuba means the House may vote on the controversial issue in June, REUTERS reports. Legislation to allow the sales, now restricted under U.S. sanctions, is supported by farm-state lawmakers who argue that U.S. trade with Cuba will help bring about democratic change, an argument used in support of permanent normal trade relations with China. House Republican leaders and the Cuban-American lobby bitterly oppose easing the sanctions. Farm and business organizations view Cuba has a potentially large buyer of U.S. food. They say engagement would encourage democracy in Cuba as well as bolster weak U.S. farm prices.
 
 

May 25, 2000

Conferees Approve Crop Insurance, Farm Relief. House and Senate negotiators reached agreement Wednesday on a multi-billion-dollar farm assistance package that began as a crop insurance expansion bill and was augmented with farm income payments that will mark the third straight year of "emergency" measures.

• H.R. 2559's Conference Report in .pdf format
• Joint Explanatory Statement of the Committee of the Conference
• Senate Ag Committee Press Release
• House Ag Committee Section-by-Section Summary of the Conference Agreement

EU Acts on Beef Ban. The European Commission has decided to propose a definitive ban on one growth-promoting cattle hormone but keep a provisional ban on five others. REUTERS reported from Brussels that the move is an effort to bring a new European Union law into line with world trade rules and end damaging U.S. sanctions. U.S. cattlemen called it a "creative attempt" to circumvent international trade rules. 

Oil Prices Likely to Continue to Hurt Farming. A new report from USDA says if oil prices average around $25 per barrel for the next five years, grain and oilseed producers will feel a greater pinch in the pocketbook next year as available inventories of manufactured inputs dwindle. A resulting decline in net income from crops will persist longer than it will for the livestock sector. 

Clinton Calls for New Rural Investments. President Clinton has called for new markets tax credits to put $15 billion into new private equity investment for business growth in rural communities and inner cities. Investors receive tax credits over seven years valued at more than 30% in current terms. 

Agriculture Welcomes House Vote. The House approval of permanent normal trade relations with China brought the expected positive reactions from agricultural quarters. Agriculture Secretary Dan Glickman called it "an important victory" for farmers and the entire U.S. population. House Agriculture Committee Chairman Larry Combest (R-TX) said the 237-197 vote was "a decision to improve our access to the huge Chinese market rather than cede that market to the competitors of U.S. agriculture." Farming's Importance to Rural Economies Reduced. The ability of many rural communities to shrug off problems in the farming economy illustrates the reduced "relative importance" of farming to the economic stability of rural areas, says USDA. Agriculture "is no longer the primary economic engine of rural America," the report says.

News Summaries

Lugar Mulls Stop to Sugar Buy. The chairman of the Senate Agriculture Committee said Wednesday he had not decided whether to offer legislation that would stop the U.S. Agriculture Department from buying 150,000 short tons of sugar to prop up prices. There has been talk, REUTERS reports, that Sen. Richard Lugar (R-IN) could offer such an amendment to the agriculture appropriations bill that is expected to hit the Senate floor this week. Lugar, a long-term U.S. sugar program opponent, objected when the Agriculture Department announced earlier this month that it would make the sugar buy. "I haven't decided on a course of action," Lugar told reporters after a signing ceremony between U.S. grain groups and buyers from Taiwan. "I haven't made a judgment" on whether to offer an amendment or not. 

Groups Criticize Hog Farms Study. Some farm and environment groups criticize a university study that concluded large-scale hog farms are not as harmful to local economies as many believe, THE ASSOCIATED PRESS reports from Lincoln, NE. A six-state study by a University of Nebraska researcher concluded that large hog farms do not hamper retail sales, lower incomes, increase poverty or lead to fewer farm jobs. However, the study said populations declined and property taxes increased in counties that included large swine operations. Critics said the findings were flawed because of fundamental statistical and analysis problems, and that its conclusions should be ignored. 

USDA to Increase Meat Grading Fees. USDA will increase hourly fees charged for voluntary meat grading and certification services, effective June 26. Base hours for commitment applicants increase from $39.80 to $45; for non-commitment applications, from $42.20 to $52; premium hours for all applicants, from $47.80 to $57 and holiday hours for all applicants, from $79.60 to $90. The increases offset increases in employee salaries, non-salary costs, government rates covering travel expenses, costs associated with applicants requesting service and updating the automated information management system for compliance with fiscal year 2000 requirements.

May 24, 2000

Congress Moves Toward Final Action on Crop Insurance, Farm Relief After days of mixed signals, Republican leaders made some key decisions Tuesday evening that should lead to passage of crop insurance legislation and emergency farm income relief in coming days. 

House Members Seek to Mitigate EPA Influence. A bill has been introduced in the House designed to prevent the Environmental Protection Agency form overriding congressional intent by imposing new rules regulating total maximum daily loads (TMDLs) from non-point pollution sources such as agriculture. Bill authors maintain EPA is superceding congressional intent to let the states take the lead in regulating non-point source pollution. 

Bill Would Toughen Rail Merger Standards. Rep. Earl Pomeroy (D-ND) has introduced a bill to toughen review standards for railroad mergers and subject the industry to antitrust laws for the first time in history. The bill comes as a 15-month moratorium on major rail mergers is underway, imposed by federal regulators who are studying what changes may be needed. 

Feed Quality Workshop Scheduled. The National Grain and Feed Association will conduct the 13th in an ongoing series of feed quality assurance workshops July 10-11 in Sacramento, CA. The workshop helps feed mill managers custom-design their own feed quality assurance programs using as a model a first of its kind program developed by the NGFA.

News Summaries

Debate on China Opens. The House of Representatives started a debate on Tuesday on a pact that would grant permanent normal trade relations (PNTR) to China, a day ahead of a make-or-break vote, REUTERS reports. Supporters of the bill said it appears to be heading for passage in the House, saying they were winning more backers from a dwindling pool of undecided U.S. lawmakers. Final passage of the trade bill -- which the White House calls its number one legislative priority for Clinton's final year in office -- would do away with annual reviews of Beijing's trade status and permanently guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation. China would, in turn, open a wide range of markets, from agriculture to telecommunications, to U.S. businesses under the terms of a landmark trade agreement signed in November 1999 ushering China into the World Trade Organization (WTO). Eight Democrats in the House announced on Tuesday their support for a landmark China trade bill, moving it closer to passage a day ahead of a make-or-break vote. According to a REUTERS poll, this means the Democrats have 65 publicly declared supporters of the bill, three votes short of the number needed to get the bill passed on Wednesday if Republicans deliver the 150 votes they are expected to deliver. 

Three Farm Groups Oppose China Trade. A handful of U.S farm groups on Tuesday urged Congress to reject permanent normal trade relations (PNTR) with China, setting themselves apart from most other farm organizations, REUTERS reports. Representatives from the National Farmers Union, the American Corn Growers Association and the National Family Farm Coalition said the trade deal negotiated last year by the Clinton administration was more likely to increase China's agricultural exports than those from the United States. "I think what PNTR offers to American agriculture is more of the same failed trade polices," said Rep. Marcy Kaptur (D-OH) and key member of the House Appropriations agriculture subcommittee, said at press conference with the farm groups. The vote is "locked up tight on both sides," Kaptur said. "It's pleasantly close. I'm quite happy about that." Most U.S. farm groups, including the American Farm Bureau Federation, the National Corn Growers Association, the National Association of Wheat Growers, the American Soybean Association, the National Pork Producers Council, the National Cattlemen's Beef Association and others support PNTR. 

USDA to Decide on Clean Wheat. USDA is expected to decide on its proposal to clean up U.S. wheat for export within the next few weeks, a department official said Tuesday. "We are hoping to resolve this issue very soon," Tom Prescott, USDA deputy trade advisor, told REUTERS. "If a decision is not decided by June 1, it will be shortly thereafter." The U.S. wheat marketing year begins June 1. Prescott said the decision would have a "major impact" in making U.S. wheat more competitive in the global market. Foreign buyers complain that U.S. grain, especially hard red winter wheat, contains too much material such as husks, hulls, seeds and dust. The wheat industry fears that if U.S. grain is not made cleaner, foreign buyers will increasingly turn to countries such as Canada and Australia, which have made grain cleaning mandatory prior to export. The Kansas Wheat Commission, which met on Monday with Agriculture Secretary Dan Glickman and other top USDA officials, said two options were agreed upon at the meeting to improve U.S. wheat exports: supply cleaner wheat through food aid donations or revise the Export Enhancement Program (EEP) and provide bonuses for the additional costs of cleaning wheat for export USDA already has tightened standards for its wheat food aid program. Last month, the department lowered dockage level to 0.8 percent, from 1.0 percent previously. 

Cattlemen Deride `Death Tax.' The hurdles cattle producers must clear to satisfy federal estate tax obligations make keeping a cattle business running after a family member's death tough, the National Cattlemen's Beef Association (NCBA) says. Such hurdles were outlined Tuesday at a Capital Hill summit organized by The Death Tax Elimination Coalition. NCBA is a member of the coalition. The summit was a move to gain support from untraditional allies for the early June death tax vote in the House. NCBA member Phyllis Gardner, a cattle producer from Max, NE, described a number of the many loops through which cattle families must jump to pay estate taxes and maintain the family business. "I'm not a lawyer. I'm not a CPA. I'm just a rancher's wife who wants to stay on the land -- land that has been in the family for 115 years," Gardner said. According to a 1997 study by Kennesaw State University, family businesses often face heavy estate tax burdens because much of their capital is concentrated in the business. For cattle producers, the impact is even greater because the majority of assets include land, in addition to other tools necessary to manage an operation. NCBA commissioned the research to demonstrate the negative impact of death taxes of the nation's ranchers, the majority (98%) of which are family-owned businesses. Financial planning is expensive and can drain resources from the family and the business when taxes become due, the study stated. 

GOP Leaders Move to Protect Embargo. Even as they push for more open trade with China, Republican congressional leaders are working to preserve the trade embargo on Cuba by blocking legislation that would allow Cuba to buy U.S. food and medicine, THE ASSOCIATED PRESS reports. The measure, backed by the powerful American farm lobby, is attached to agricultural spending bills that have been approved by the House and Senate appropriations committees. But House GOP leaders, led by Majority Whip Tom DeLay (R-TX) have delayed action this week on the House version of the spending bill while they try to strip it of the Cuba provision. "Fidel Castro has built a dictatorship that allows no existence of private property and economic freedom. Consequently, trade with that kind of government will only serve to strengthen Fidel Castro," DeLay spokesman Jonathan Baron said Tuesday. "By contrast, the People's Republic of China has seen fit to allow significant free-market activity and commerce among its citizens," he said. The Senate overwhelmingly approved a similar trade measure last year, and supporters say they're confident it could pass the House as well. The House Appropriations Committee approved the measure 35-24 earlier this month over DeLay's objections. Some 220 House members signed a letter supporting an easing of the embargo. As negotiations continued, THE WASHINGTON POST reported one option was to strip the sanctions provision from the appropriation bill and attach it to a popular crop insurance measure. 

Texas Loses Its Egg Board. The Texas Egg Marketing Advisor Board is no more. Repealed three years ago by the 1997 state legislature, it wasn't formally killed until last week, when its demise was acknowledged in the Texas Register, reports THE WALL STREET JOURNAL. Begun in the late 1960s, the board never really did much, says James Grimm, executive vice president of the Texas Poultry Federation. "In the last 11 years, there may have been one meeting." Texas poultry farmers never showed any interest in the levy necessary to finance such campaigns. They depended on the American Egg Board and its "The incredible, edible egg" campaign. The Texas market already takes all the eggs the state produces.
 

May 23, 2000

Corn Growers Try Different Approach. The National Corn Growers Association spent Monday distributing bags of fortune cookies to members of Congress with a message promoting normal trade relations with China inside the bag.

EPA Registers Bio Pesticide. The Environmental Protection Agency has registered a "biochemical pesticide," the Harpin protein, designed as an alternative to conventional, synthetic pesticides such as methyl bromide. The protein doesn't act directly on the target pest; it activates a natural defense mechanism in the host plant.

U.S. Dairy Farmers Form Venture with New Zealand. Dairy Farmers of America and the New Zealand Dairy Board have formed a joint venture, DairiConcepts, L.P., that will manufacture and market cheese and dairy ingredients for sophisticated applications in food processing. Those products include intense-flavored cheese ingredients, seasoning blends, enzyme modified cheeses and other dairy-based ingredients now under research and development. 

Rewarding Environmentally Friendly Farming. Among the items published in this month's Agricultural Outlook from USDA is an article noting the growing interest in expanding government programs that would improve the environmental performance of agriculture and at the same time provide income support to farmers.

News Summaries

Global Agriculture in Trouble. A new analysis of detailed satellite photos of the earth's land mass and other data is helping scientists determine the state of global agriculture. Their conclusion: It's in trouble, THE ASSOCIATED PRESS reports. Previous data has assessed individual agricultural systems, but the U.N.-affiliated International Food Policy Research Institute is looking at the whole world and concludes that nearly 40% of farmland is seriously degraded. Soil erosion, loss of organic matter, hardening of soil, chemical penetration, nutrient depletion, excess salinity and other damaging influences on soil have left much of the world's potential and previous agricultural land unusable, according to the new analysis. The research covers only human-induced degradation. It says 75% of all crop land in Central America is seriously degraded, 20% in Africa and 11% in Asia. "This is the first attempt we know of that has tried to synthesize all the best available data and come up with a global perspective," Philip Pardey, senior research fellow at IFPRI, said Monday. On the satellite map, the world's land is divided into pixels, each representing an area of about one square kilometer, or roughly 250 acres. One striking conclusion was that 40% of all irrigated land is in China and India, Pardey said. 

Spending Bills Could be Debated Today. Both the House and the Senate may begin debate today on the 2001 appropriation bills that will fund USDA's operations. Senate Majority Leader Trent Lott (R-MS) said he wants the Senate to complete its work on the bill this week, and threatened to keep Senators in session through Saturday if necessary. Relations between Senate Republicans and Democrats are at one of their periodic low points, and Democrats have threatened to block action on spending bills that have not already passed the House of Representatives. The agriculture bill would fall in that category, though some Congressional observers doubt the Democrats will block it. Complicating matters further is an almost-complete crop insurance and farm income bill that some Senators want debated before the appropriations bill. Both appropriations measures have provisions to relax sanctions against Cuba and other countries. 

Special Favors Sought on China Vote. This week's hotly contested China trade vote will be decided by a dwindling pool of uncommitted U.S. lawmakers, including some holding out for special favors in the biggest legislative battle of the year, according to a REUTERS report. Clinton administration officials and Republican vote-counters are increasingly confident the House of Representatives will grant permanent normal trade relations (PNTR) to China in a do-or-die vote, tentatively scheduled for Wednesday, pitting organized labor against big business. In its hard-fought campaign to ensure passage, the White House has lavished extraordinary attention on little-known Democrats like Rep. Gregory Meeks (NY) who is expected to announce his support for the trade pact on Tuesday. Some of the hold-outs are demanding favors in exchange for backing President Bill Clinton's landmark trade bill, which would do away with annual reviews of Beijing's trade status and permanently guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation. Two undecided lawmakers from Texas want the White House's help with an oil project. Minnesota Democratic Rep. James Oberstar wants the administration to protect iron ore workers in his district. White House spokesman Joe Lockhart called such reports of horse-trading "grossly exaggerated." Just two days before the House vote, neither supporters nor opponents of PNTR have the 218 votes they need, making the last-minute decisions of the few dozen lawmakers who remain undecided all-important. According to a Reuters poll updated on Monday, the White House was still 26 votes short of the 218 needed for passage. One-hundred-ninety-two lawmakers said they would support or were likely to support PNTR, including 58 Democrats. 

High Court to Review EPA Power. The Supreme Court has agreed to decide whether the Environmental Protection Agency's 1997 air pollutant standards are constitutional, THE WASHINGTON POST reports. Taking a case that surprised many observers, the justices will rule on whether the rules were an "unconstitutional delegation of legislative power," a doctrine not invoked since the 1930s. THE WALL STREET JOURNAL adds that the Justice Department's appeal asserts the ruling conflicts with a long line of court cases in recent decades that have upheld regulatory agencies' authority. Recent scrutiny of livestock and poultry operation emissions under the Clean Air Act mean that the ruling will be closely watched by agricultural interests, although they are not direct parties to the suit. 

Australia Signs with China. Australia has signed an agreement, reached in principle last May, to support China's entry into the World Trade Organization in return for better market access for Australian farm commodities, BLOOMBERG NEWS reports. The agreement, signed by Trade Minister Mark Vaile and China's Foreign Trade Minister Shi Guangsheng, covers more than 1,000 product categories from agriculture to manufacturing, as well as key service sectors. It will lead to significantly improved access to the Chinese market upon the country's WTO accession, Vaile said. "This deal will guarantee secure trading conditions for billions of dollars of Australian exports and will help to expand these as China progressively reduces trade barriers," Vaile said. The agreement follows a round of talks between China and its major trading partners as the world's most populous country tries to increase support for its entry to the WTO. On Friday, China signed a bilateral trade agreement with the European Union on WTO accession. Last May, Australia announced China agreed to greater access for Australian exports including sugar, wool, wool tops, oilseeds, lupins, dairy products, seafood, meat, processed food, sheepskins and minerals. China also promised better access for wheat, cotton, rice, barley, wine and car parts.
 

May 22, 2000

USDA Accepts 2.5 Million Acres in CRP. USDA will enroll 2.46 million acres of environmentally sensitive farm land into the Conservation Reserve Program. That increases the total enrollment in the CRP to about 33.5 million acres effective Oct. 1, when the latest batch of contracts becomes effective. 

Conferees Ready to Finalize Crop Insurance. Senate and House conferees could meet early this week to finalize a crop insurance reform bill and send it back to both chambers for action before it goes to the White House. Agriculture Secretary Dan Glickman continues to have problems with the bill, including the expected addition of more than $7 billion in farm assistance. 

Sugar Acreage, Crop Should Be Records. Both the harvested acreage for beet and cane sugar this year and expected production should be records, according to USDA. Although winter conditions were less than ideal for storage, beets went into storage in good condition and remained that way through winter. 

USDA Makes 10 Recommendations to STB. USDA has made 10 recommendations to the Surface Transportation Board designed to protect the interests of agricultural producers, shippers and rural communities. STB is accepting public comment because the current regulations no longer are considered adequate to protec the public interest. 

Lugar Wants Tougher Trade Policy. Senate Agriculture Committee Chairman Richard Lugar (R-IN) took the opportunity over the weekend to criticize the Clinton Administration for not pursuing policies to increase farm income. A more aggressive trade policy is needed, said Lugar, along with sanctions reform and a more aggressive energy policy.

News Summaries

Bitter Divisions Remain Over China. The battle in a bitterly divided U.S. House of Representatives over commercial ties with China enters its final week with the Clinton administration and Republican leaders still scrambling for the votes to ensure the trade bill's passage, REUTERS reports. Labor unions launched a weekend offensive, lobbying undecided Democrats in their home districts against permanent normal trade relations (PNTR) with dire warnings that it would set back human rights in China and cost hundreds of thousands of American workers their jobs. To counter labor's advance, pro-trade business groups stepped up their own campaign, airing television advertisements touting the benefits of a pact that would, in exchange for PNTR, open the vast Chinese marketplace, potentially the world's largest with 1.3 billion consumers. President Bill Clinton, who abruptly canceled plans for a televised address on the trade bill, made the case for PNTR's passage in a speech on Sunday to centrist Democrats in New York. Clinton said the trade bill would benefit the U.S. economy as well as unleash forces that may hasten the demise of China's one-party state. 

Kroger May Have Bad Tuna in Georgia. Kroger Co., a U.S. supermarket chain, may have sold tuna salad contaminated with bacteria that can cause serious illness and even death, Georgia agriculture officials warned, according to BLOOMBERG NEWS. A routine sample of Kroger-brand albacore tuna salad revealed Listeria monocytogenes, Georgia's agriculture department said. Eating food contaminated with the bacteria can cause listeriosis, a rare but dangerous disease. No illnesses from Kroger's tuna salad are reported. The company wasn't available immediately to comment. Meningitis is the most common manifestation of the disease. Symptoms include high fever, severe headache, neck stiffness and nausea. Listeriosis also can cause miscarriages or stillbirths, as well as serious and sometimes fatal infections in infants, elderly people and others with weakened immune systems. Georgia Commissioner of Agriculture Tommy Irvin advises consumers to check the code and expiration date of their Kroger tuna salad. The contaminated sample came from a 16-ounce container bearing a code of 0047 and a ``use by May 17'' stamp. Consumers should return the product to the store where they bought it for a refund, he said. 

DeLay Optimistic on China. The top Republican vote-counter in the U.S. House of Representatives predicted on Sunday that lawmakers would grant permanent trading benefits to China in a do-or-die vote this week, REUTERS reports. "It's really been tough to get the votes on this. But we're doing really well. We're moving toward that magic number of 218 votes and I think, in the end, we'll be able to pass it," House Republican Whip Tom DeLay of Texas told Fox News Sunday. The House is expected to vote on Wednesday on legislation granting permanent normal trade relations (PNTR) to China, which would ensure U.S. companies benefit from a trade agreement ushering Beijing into the Geneva-based World Trade Organization (WTO). 

France To Decide on Rapeseed Destruction. France will decide shortly whether an accidentally sown crop of genetically modified rapeseed should be destroyed, the farm ministry said, at the same time denying speculation the government was split over the issue, REUTERS reports from Paris. The seeds in question, which were believed to be GM-free, were imported from Canada by seed company Advanta and sown in Britain, France, Germany and Sweden. French Consumer Affairs minister Marylise Lebranchu began a probe Friday after Britain and Sweden went public with news that farmers there had unwittingly planted crops including GM seeds, the use of which is highly controversial in Europe. Newspapers suggested there were splits within France's ruling coalition. They quoted Socialist Farm Minister Jean Glavany as saying that there was "no question"' of ripping out the crops in question. "Mr. Glavany denies the words attributed to him," an Agriculture Ministry official told REUTERS Saturday. "The minister is awaiting results from the interministerial committee inquiry," the official said, referring to conclusions which newspapers say could be ready in the next week.
 

May 19, 2000

Greenspan: Once More for China. Federal Reserve Board Chairman Alan Greenspan joined President Clinton in the Rose Garden Thursday for one more pitch to Congress for a favorable vote on permanent normal trade relations with China. Greenspan said as power is removed from central planners, individual rights broaden. That will happen when China joins the World Trade Organization, he said. 

Farmers Will Feel Interest Rate Pinch. The interest rate increase announced by the Federal Reserve earlier this week will be felt by farmers and ranchers, says Bob Stallman, president, American Farm Bureau Federation. Farm operating loans would move beyond a 10% interest rate, he adds. 

Rail Customer Losses Should Be Compensated. The federal Surface Transportation Board should require rail carriers seeking future approval of mergers or consolidation to make "full and timely compensation for any and all commercial losses" incurred by their customers from service-related disruptions caused by the merger, the National Grain and Feed Association says. Carriers need to be held accountable economically for the "full established consequences" of merger-related service disruptions.

News Summaries

France Wants Rapeseed Crops Destroyed. France has called for the destruction of rapeseed crops contaminated by genetically modified material as environmentalist fury swept across Europe over how farmers had been sold "Frankenstein seed," REUTERS reports. The row erupted when the Advanta company which imported the seed from Canada disclosed that farmers in Britain, France, Germany and Sweden were unwittingly growing oilseed rape contaminated with genetically modified (GM) material. Environmental pressure groups warned the contamination could spread to other crops through wind-blown pollination and said there was a risk to public health. They demanded compensation for farmers. France's Environment Minister Dominique Voynet called for the destruction of about 600 hectares (1,500 acres) of rapeseed grown from seeds contaminated by GM material and demanded an inquiry into how GM seeds had been mixed with normal ones. 

U.S. Groups Like Trade Bill. A coalition of American agricultural groups applauds President Clinton and Congress for enacting a trade bill that contains language which will make retaliation more effective against countries that violate World Trade Organization (WTO) rules. The American Farm Bureau Federation, American Meat Institute, Chiquita Brands International, Hawaii Banana Growers Industry Association, and the National Cattlemen's Beef Association said the "carousel retaliation" provision contained in The Africa and Caribbean Basin Growth and Opportunity Act will help the United States enforce its trade rights. The provision requires the U.S. government to rotate WTO-sanctioned retaliation against nations that refuse to comply with WTO rulings. This requirement, which originally had been introduced as a separate bill with bipartisan support from more than 100 Members of Congress and nearly 30 American agricultural groups, was incorporated into legislation. Last year, the WTO ruled that EU trade practices regarding beef and banana imports were illegal and cost American agricultural interests more than $300 million annually in lost business. Despite WTO-sanctioned tariffs imposed by the United States in 1999, Europe has refused to bring its trade policies into compliance with international law. By requiring periodic rotation of products targeted for retaliation, the "carousel" provision is intended to increase pressure on the EU and other countries to comply with WTO rules without changing the amount of retaliation being imposed. 

Canada Sees Europe Over-Reacting. Three more Republicans, previously considered undecided, now support permanent normal trade relations with China, including veteran Rep. Henry Hyde (IL). The other two are Reps. Tillie Fowler (FL) and Rick Hill (MT). REUTERS reports that with the latest announcements PNTR supporters remain some 50 votes short of the 218 needed for approval in the House. U.S. Trade Representative Charlene Barshefsky said Wednesday she was confident there would be enough votes for approval when the House considers PNTR next week. 

Delta Free of Monsanto Contracts. Delta & Pine Land Co., the largest U.S. cotton-seed producer, said it's free of contracts that made Monsanto Co. the exclusive technology provider for Delta & Pine's genetically engineered cotton, BLOOMBERG NEWS reports from Scott, MS. The change, disclosed in a U.S. Securities and Exchange Commission filing, allows Delta & Pine to use gene technology from Monsanto competitors. The contract was altered Dec. 8, 12 days before Monsanto canceled its $1.3 billion planned acquisition of Delta & Pine, according to the filing. The agreement is important to Delta & Pine because it lets the company keep using Monsanto technology while working with rivals, such as U.S. chemical makers DuPont Co. and Dow Chemical Co. or European drug and chemical makers AstraZeneca Plc, Aventis SA and Novartis AG. Monsanto and competitors develop gene technology to make crops resistant to insects, weeds and disease. So far Delta & Pine has no agreements with other companies, said Tom Jagodinski, senior vice president of finance at the Scott, Mississippi-based company. The U.S. Department of Agriculture has estimated about half of the 15.6 million-acre U.S. cotton crop this year will be genetically engineered varieties. 

Bio Patent Extension Sought. A bill passed by a U.S. congressional committee could make it easier to extend the life of a key biotechnology patent, which biotech companies say could cost the industry $500 million over the next five years, BLOOMBERG NEWS reports. Sen. Judd Gregg (R-NH) introduced a measure into a spending bill that would make it easier to extend the life of certain biotechnology patents. Industry officials said the proposal is aimed at keeping a specific patent held by Columbia University from expiring in August. That patent governs a process known as cotransformation, a way of inserting genes into cells so that the cells produce useful proteins such as Amgen Inc.'s Epogen, Immunex Corp.'s Enbrel or Genentech Inc.'s Herceptin. In return for use of the technology, companies pay Columbia a share of the sales of drugs they develop. "It's a big deal," said Peter Teeley, Amgen's vice president of government and public relations. "We're opposed to this. This is an 11th-hour and 59th-minute deal." Teeley said Amgen pays Columbia 1% of the sales of Epogen, an anemia drug. That means Columbia received more than $17 million of the $1.76 billion of Epogen's 1999 sales. Because so many companies have licensed the patent with similar terms, Teeley estimated the industry would owe the New York university $500 million in additional royalty revenue if the patent is extended five years. 

Havana Would Welcome Embargo End. The Cuban government on Thursday welcomed moves in the U.S. Congress for a partial lifting of the 40-year embargo against the communist island, but said it is not getting its hopes up, according to THE ASSOCIATED PRESS. Foreign Ministry spokesman Alejandro Gonzalez said recent approval by committees in the Senate and the House to lift restrictions on American sales of food and medicine to Cuba were "a step in the right direction." He added, "We are watching all of these initiatives. "We understand that although they are initiatives aimed in the right direction ... we also must not have false expectations." Hopes are even slimmer for a total lifting of the embargo, he said. Gonzalez noted that similar legislative initiatives to do away with restrictions on food and medicine sales have failed in the past when they reached a final vote. He blamed their failure on "the extreme right" and members of Congress who represent Florida, home to the majority of Cuban Americans in the United States. Farm groups wanting to sell food to Cuba have initiated a new battle in Congress over weakening the four-decades-old U.S. economic embargo on the island nation. Panels in the House and the Senate have approved the legislation that would permit exports of food and medicine to Cuba so long as they are not subsidized by the federal government.
 

May 18, 2000

Busy Day on the China Front. Two key committees Wednesday approved legislation to grant China permanent normal trade relations as Texas Gov. George W. Bush urged Congress to approve the controversial legislation as he carried his presidential campaign to Everett, WA. President Clinton warned in a speech in New London, CT, that "a future of dangerouos confrontation" loomed if PNTR was denied, and the House Agriculture Committee heard a litany of calls for PNTR approval at a hearing marred by a bottle-breaking incident and a suicide threat (see article below). 

Administration, Agriculture Call for Positive China Vote. Members of the Clinton Administration and representatives of livestock and crop producers Wednesday told the House Agriculture Committee how permanent normal trade relations with China would benefit their constituencies. PNTR for China ushers in a new era when access to the Chinese market is eased for nearly all U.S. farm products. 

Georgia Firm Recalls Ground Beef. Nearly 30,000 pounds of ground beef have been recalled voluntarily by a Georgia firm because the meat could be contaminated with E. coli. The beef was produced May 10 and distributed in five states

News Summaries

Agriculture Bill Could Halt Global Warming Funds. A provision in the USDA spending bill that would halt funding for global warming programs is bad policy and may be unconstitutional, REUTERS quotes a Clinton Administration official at a Senate subcommittee hearing. The provision comes at a time when some farm-state lawmakers are looking at ways to get growers more involved in reducing so-called greenhouse gas emissions through farming practices and plant-based fuels. The amendment to block funds for carbon emissions trading and similar programs was added t the House fiscal 2001 USDA appropriations bill by Reps. Jo Ann Emerson (R-MO) and Joe Knollenberg (R-MI). Neal Lane, science advisor to President Clinton, told the subcommittee that the provision should not be included because it interferes with presidential authority. "It's bad for farmers, it's bad for consumers ... and it may be unconstitutional," he said. 

Potato Crop at High Risk. The Northwest potato crop is at high risk of late blight, the disease that caused the Irish potato famine, THE ASSOCIATED PRESS reports. Washington State University plant pathologist Dennis Johnson said cool, wet weather last week increased the risk of the fungus appearing and similar conditions are expected to continue. "Any more rainfall in May will increase the risk," he said. "It's a disease that can ruin a grower financially." There was no indication that late blight had appeared this year, although it has shown up in Washington every year since 1990. Washington is the nation's second-largest potato producer, after Idaho, and the crop is worth more than $400 million pere year. Many of Washington's potatoes are processed into french fries. 

Three 'Undecideds' Back PNTR. Three more Republicans, previously considered undecided, now support permanent normal trade relations with China, including veteran Rep. Henry Hyde (IL). The other two are Reps. Tillie Fowler (FL) and Rick Hill (MT). REUTERS reports that with the latest announcements PNTR supporters remain some 50 votes short of the 218 needed for approval in the House. U.S. Trade Representative Charlene Barshefsky said Wednesday she was confident there would be enough votes for approval when the House considers PNTR next week. 

Dioxin Firmly Linked to Cancer. The federal government is ready to declare firmly that dioxin, a toxin found throughout the food supply, and in the bodies of most people in the world, causes cancer in people. THE WASHINGTON POST carried the story in Wednesday editions, and REUTERS said officials who have reviewed studies on dioxin for 10 years and who worked on the draft confirmed the newspaper report. Dioxin was the toxin component in Agent Orange, used in the Vietnam war, and it caused the evacuation of the town of Times Beach, MO, in 1983 and the Love Canal site in Niagara Falls, NY, in 1978. A report from the Environmental Protection Agency is due in June and notes that emissions of dioxin have plummeted from peak levels in the 1970s but still pose a significant cancer threat to some people who ingest it, mostly in food, especially food of animal origin.
 

May 17, 2000

Drought Commission Releases Report. The National Drought Policy Commission has released its final report, putting preparedness at the top of the list of national priorities in dealing with devastating dry conditions. The country has developed the capability to produce a wealth of basic weather, water, soil moisture, snow amount and climate observations without which preparedness would be difficult at best, the commission noted. 

High Court Upholds Grazing Reforms. The U.S. Supreme Court has ruled Interior Secretary Bruce Babbitt's rangeland reforms are within legal boundaries, giving the secretary the authority to cancel, modify or limit grazing permits to protect other values of public lands. Reactions from farm and ranch interests were mixed, from clear disappointment to the position that the court's opinion provides "an element of stability to the livestock industry." 

Meat, Poultry Groups Want HACCP Amendments. A group of meat and poultry organizations wants USDA's Food Safety and Inspection Service to recognize programs such as good manufacturing practices as components of the hazard analysis and critical control point (HACCP) regulations. They asked that a HACCP system be found inadequate only when adulterated products have been shipped. 

Diet Could Trim Crop Pest Populations. A patent is being sought by USDA scientists on a new insect diet that will make plant bugs and other crop pests unwitting accomplices to their own destruction. However, the key is finding a replacement for the plants on which the bugs now feed.

News Summaries

Cuba Trade Bill Success Seen. Lawmakers pushing to lift a 40-year-old food and medicine sanctions against Cuba predict success amid growing support from food trade groups and agribusiness, REUTERS reports. The legislation already has passed committees in the Senate and House and is popular among farm-state lawmakers because it would open up one of the last large untapped markets for American agricultural exports. It could go to the full Senate in a few days and before the full House later this month. 

Drought Likely to Linger in Midwest. A drought that grips much of the Gulf Coast and Midwest won't go away this summer even though more rain is likely, THE ASSOCIATED PRESS reports. An expected heat wave will evaporate much of the moisture before it can help crops and replenish water supplies, the government says. Severe drought conditions should linger in eastern Nebraska, northern Indiana and most of Missouri, Iowa and Illinois, the heart of corn and soybean production. Although the drought will hurt many farmers, it is not affecting enough of the country to have much impact on food prices, said Agriculture Secretary Dan Glickman. 

Momentum Gained for China Vote. Key Democrats are endorsing legislation for permanent normal trade relations with China, and Republican leaders are nearing agreement on legislation that would monitor Beijing's human rights record. House Ways and Means Committee ranking Democrat Charles Rangel (NY) says he will support the legislation, boosting prospects for passage of the trade bill next week in a bitterly divided House, REUTERS reports. The White House also picked up support from Rep. Xavier Becerra (D-CA) who sits on Ways and Means as well. "From a high-tech point of view, an agriculture point of view, a goods and services point of view, a great deal of them (Ways and Means Democrats) have no choice except to support allowing America access to these (Chinese) markets," Rangel said.
 

May 16, 2000

Wheat Exports Should Increase; Stocks Large. U.S. wheat production could decline this year by about 2 million tons to the lowest level in five years, but stocks are large enough to keep supplies plentiful, says USDA. Wheat exports should increase 1.5 million tons to 30.5 million in 2000-01. 

Corn Production, Exports to Increase. U.S. corn production could increase nearly 8 million tons this year with exports expected to reach 48.5 million tons, 2.5 million more than 1999-2000. That still means carryover stocks in 2001 would increase by 5.1 million tons. Prices should be lower. 

Oilseed Production to Increase, Exports, too. Oilseed production in 2000-01 should increase 9.6 million tons, nearly 12%, to a record 91.6 million tons, says USDA. Soybean production will account for most of that increase, rising 12% to a record 80.4 million tons. Soybean exports should increase to 26.4 million tons with ending stocks next year projected to reach 13.5 million, a 63% increase. 

Sugar Growers Applaud USDA Purchase. Sugar farmers are applauding USDA's decision to purchase 150,000 short tons of sugar to prevent forfeitures of large quantities later this summer. The action is consistent with previous attempts to aid farmers, says the American Sugar Alliance.

News Summaries

Farm Bureau Calls for Death of `Death Tax.' The American Farm Bureau Federation has called on Congress to abolish the federal estate tax, but such efforts should not lead to new capital gains taxes for farmers and ranchers. In a letter to House Ways and Means Committee Chairman Bill Archer (R-TX), AFBF President Bob Stallman commended the Texas Republican for plans to mark up freestanding death tax repeal legislation later this month with a floor vote possibly in June. If a provision known as "stepped-up basis" is not retained in death tax reform legislation, a family member would be forced to pay a steep capital gains tax on an inherited farm, says Stallman. He asked Archer to abandon any provision to eliminate the stepped-up basis. 

Pombo Undecided on China Vote. The chairman of the House Agriculture Subcommittee on Livestock and Horticulture has not decided yet on how he will vote on permanent normal trade relations with China, REUTERS reports. A spokesman says Rep. Richard Pombo (R-CA) says the chairman has not yet made up his mind, despite two major farm groups that now expect him to vote against the legislation. "He has not announced a position on it," spokesman Doug Heye told REUTERS. Pombo may end up voting against PNTR, "but anybody who's saying right now that is what he's going to do is not accurate," Heye added. 

White House Pushes Human Rights Commission. The White House is pressing congressional Republican leaders to get behind legislation to create a commission that would monitor China's human rights record, saying it is the only way to ensure passage of permanent normal trade relations, REUTERS reports. Commerce Secretary William Daley says the White House faces its toughest battle in years convincing Congress to approve PNTR. The trade bill is fiercely opposed by organized labor and its Democratic allies in the House who have demanded that Beijing improve human rights and labor standards before joining the World Trade Organization. "But I am optimistic we will pull it out," Daley said. 

When Tested, Meat Recalls Soar. Increased government testing for a deadly pathogen in hot dogs and other processed meats has led to a sharp increase in recalls of those products even as the incidence of contamination may be declining, THE ASSOCIATED PRESS reports. Meat processors have issued 23 recalls since Oct. 1 for meat products that may have been contaminated by listeria. That compares to 25 for fiscal 1999, five for all of 1998 and three in 1997. USDA, which samples processed meat products for listeria, doubled the testing rate in 1999 and also is using more sensitive methods to detect listeria. But in 1999, 1.8% of the hot dogs and similar products that were tested by USDA contained listeria, down from 3.5% in 1998. Kleckner Criticizes Sugar Purchase. Dean Kleckner, past president of the American Farm Bureau Federation, in a paper to be presented to the Year 2000 Australian Sugar Convention, says USDA's plan to buy sugar rather than let it be forfeited is a stop-gap measure, REUTERS reports from Cairns, Australia. "The main point of all this bobbing and weaving is that only short-term actions are being considered. None of the options discussed to date is a long-term solution," he says. Kleckner also says any decision to use the acquired sugar for international donations would produce market problems, despite AFBF support for using sugar for humanitarian purposes. His comments mirrored those by Australian industry groups that on Friday voiced concern about the possible dumping of the acquired U.S. stocks on world markets.
 

May 15, 2000

Wheat Growers Worry Over Aid Backsliding. The National Association of Wheat Growers is concerned that recent, "limited" gains in commodity futures markets will erode congressional support for a farmer assistance package included in the budget resolution. "A modest, two week gain cannot erase a three year slide in prices," says the NAWG. 

Lugar Calls Sugar Buy a `Sour Plan.' Senate Agriculture Committee Chairman Richard Lugar (R-IN) calls USDA plans to buy 150,000 tons of sugar "a sour plan that would fail to correct the greater problems created by a scandalous federal sugar program." The buy only will stimulate more sugar production, "adding to the problem," said Lugar. 

Kleckner Reflects on Farm Bureau Service. A ride on Air Force One, a town hall meeting on the breakup of the former Soviet Union and a worrisome address to a national farm crisis rally are some of the memories former American Farm Bureau Federation President Dean Kleckner takes into retirement. "It's fun to be a farm leader when prices are good," he reflects. "It's miserable to be a farm leader when prices are low."

News Summaries

USDA, DOC Extend Emergency Radio Service. USDA and the Commerce Department are combining forces to extend emergency radio service to rural areas. USDA's Rural Utilities Service will encourage the installation of emergency radio transmitters by identifying rural utility towers not now receiving the National Oceanic & Atmospheric Administration transmissions. NOAA will work with the utility to install the transmitters to provide the warning signal to that area. Inadequate warnings of approaching floods, tornadoes and hurricanes are acute in rural areas. Once the transmitters are in place, households will be able to receive warnings through NOAA radios, the Internet, pagers and telephones. 

Prescribed Burns Suspended. Agriculture Secretary Dan Glickman and Interior Secretary Bruce Babbitt have suspended for 30 days the federal prescribed fires west of the 100th meridian and are requiring increased levels of approval for such fires. The decision to suspend was prompted by the fire at the Bandelier National Monument near Los Alamos, NM. The suspension may be extended beyond 30 days. Certain exceptions could be granted with national-level approval to address high priority mitigation efforts in very low-risk areas. Prescribed fire is the term used for occasions when a fire is deliberately set, under carefully controlled and monitored conditions, to remove brush and other undergrowth that can provide fuel for naturally occurring fires. 

`Take It or Leave It' Vote on Farm Aid. A new $7.1 billion bailout for U.S. farmers, the third in three years, may be presented to lawmakers as an non-amendable "take it or leave it" package, REUTERS reports. Quoting a House committee spokesman, the article says the outlay must be authorized through legislation by June 29. It could mean a markedly early decision by Congress to funnel aid to farmers even before crops are mature. However, early action could backfire, some analysts say, if a drought scare drives up grain prices and the harvest turns out to be adequate. Farmers then would have large crop revenues as well as a federal cash grant. 

Wheat Gluten Industry Fears Import Surge. The U.S. wheat gluten industry has asked for tougher administration of a quota on shipments from the European Union and other countries to prevent a summer import surge, REUTERS reports. "With the opening of the third quota year on June 1, the market could be immediately inundated with imports as individual producers race to beat the quota limits placed on their respective countries," said Ladd Seaberg, president, Midwest Grain Products Inc., in a statement. Midwest Grain is the largest U.S. wheat gluten producer. Wheat gluten is an ingredient used in bread and baked goods. The Clinton Administration imposed a three-year quota on wheat gluten imports beginning June 1, 1998. On Friday, EU Commissioner Franz Fischler expressed concern that the United States would tighten its wheat import quota in 2000-01 by setting quarterly limits on shipments. 

Smoked Sausages Recalled for Listeria. Polk's Meat Products, Inc., Bay Springs, MS, is recalling voluntarily about 5,900 pounds of ready-to-eat smoked sausage products that may be contaminated with listeria. The products were packaged April 27 and distributed to retail stores in Mississippi, Alabama, Florida, Tennessee, Arkansas, Louisiana and Chicago, IL. 

Corn, Ethanol Groups Support Bond-Durbin Bill. U.S. corn growers and ethanol manufacturers are supporting legislation by Sens. Christopher Bond (R-MO) and Richard Durbin (D-IL) to eliminate the additive MTBE from the nation's gasoline supply, while maintaining a federal oxygen content requirement for clean-burning fuel, REUTERS reports. The Bond-Durbin bill contrasts with separate legislation by Sens. Richard Lugar (R-IN) and Tom Daschle (D-SD) that creates a "renewable fuels" requirement for gasoline but ends current oxygen content requirements. 

Clinton Touts China to Farmers. President Clinton stood in a barnyard near Shakopee, MN, over the weekend to tell farmers how they would benefit from supporting permanent normal trade relations with China, REUTERS reports. Clinton faces an uphill battle in the House to get approval for the legislation. He urged farmers to talk to their senators and representatives and ask them to support the PNTR legislation, scheduled to come to the floor of the House for a vote next week. "The magnitude of the Chinese market (for U.S. farm products) virtually defies the imagination," he said. Agriculture Secretary Dan Glickman noted that opening up China was key for U.S. farmers who have been suffering low prices and sluggish exports. China "is the largest market in the world, and I think it provides a great opportunity," he said.
 

May 12, 2000

Heritage Report Countered by U.S. Cotton. A new report from the Heritage Foundation claims the United States has done "little of substance" to liberalize its textiles and apparel trade. The National Cotton Council strongly counters that position, pointing to the likelihood that quotas will be eliminated on textile imports by 2005.

Sorghum Joins CyberCrop for Internet Trading. The National Grain Sorghum Producers has worked out a deal with CyberCrop.com to allow farmers to sell grain sorghum, along with corn, soybeans and wheat, when the Internet trading site is launched later this month. CyberCrop.com is an e-commerce web site for producers and buyers in agriculture. 

Senators Seek Shad-Johnson Reforms This Year. Three senators, two of them chairmen of powerful Senate committees, are seeking reforms to the Shad-Johnson Accord that prohibits the trading of single stock futures. The prohibition simply prevents the products from trading on regulated markets, they say, since they are being traded, often outside the U.S. regulatory structure on foreign markets. 

USDA Will Buy Sugar. Making official a decision that had been widely rumored for weeks, Secretary of Agriculture Dan Glickman announced that the government will buy surplus sugar in an effort to strengthen domestic prices that have fallen 25 percent. However, the amount was less than expected and Glickman's statement suggested that contrary to earlier hopes, the purchase was unlikely to avoid government takeovers of sugar under the price support program. 

There Will Be No Soybean Referendum. The American Soybean Association says USDA has determined that a referendum will not be held on whether to continue the soybean research and promotion program. From 600,813 qualified producers and others eligible to vote, only 17,970 valid requests were received, says ASA, less than 3% of the total; 60,082 were needed for force a vote. 

Bill Bans MTBE, Promotes Ethanol. A bill has been introduced in the Senate to ban the use of MTBE as a gasoline additive and promote the use of corn-based ethanol instead. MTBE (methyl tertiary butyl ether) would be eliminated in three years and the oxygenate standard of the reformulated gasoline program would be made permanent.

New Bread Helps Reduce Diabetes Risk. An experimental bread of ultra-fine-ground whole wheat flour could help consumers increase fiber intake and reduce the risk of diabetes. The flour, developed by ConAgra, gives the bread a taste and texture similar to white bread but with six times more fiber.

News Summaries

Little Chance Without Rights Commission. The White House warned Thursday there is little chance of passing permanent trading benefits for China without legislation setting up a watchdog commission to monitor Beijing's human rights, REUTERS reports. "Without that, the possibilities of this passing are slim to none in my opinion," said Commerce Secretary William Daley. Legislation has been proposed to set up a commission that would review Chinese policies and could recommend sanctions against China as long as they were consistent with World Trade Organization rules. 

USDA Funds Lamb Promotion. USDA will accept proposals to fund up to $4 million in competitive marketing and promotion projects designed to increase sales of U.S. lamb. New or existing programs that focus on marketing, promotion, merchandising, market feasibility analysis, market identification or value enhancement will be considered for funding. The plan makes $50 million available during the first year and another $50 million during the second and third years for production improvements, market promotion, animal health and domestic purchases. Click here for additional information.
 

May 11, 2000

‘Flawed' Report Encourages Spending. A Heritage Foundation paper says problems from a "flawed" USDA land use survey are encouraging unnecessary federal spending. USDA admitted a "problem" had been discovered in a land use report. The report, says Heritage, caused "dozens of elected officials (to rush) forward with a variety of costly land preservation schemes based on the survey's erroneous data."

House Committee Approves Spending Bill. The House Appropriations Committee approved a bill to fund the Agriculture Department, Food and Drug Administration and other agencies for the coming fiscal year, after defeating an effort by House Majority Whip Tom DeLay to strike a controversial rider that would relax sanctions against Cuba and other rogue nations. 

Food Groups Petition FDA on GMO Labeling. Several food organizations have asked the Food and Drug Administration to require that when companies label foods with or without genetically modified ingredients consumers are informed about what is meant by a "non-GMO" claim. Consumers can be led to understand the non-GMO food is superior to a food with a GMO ingredient when that is not the case, the groups say. 

USDA Announces $45 Million for Mississippi Delta Region. USDA will provide $45 million in loans and grants to projects in the Mississippi Delta region including $30.3 million for clean drinking water and safe wastewater disposal systems. Projects in Illinois, Tennessee, Arkansas, Kentucky and Mississippi are involved.

News Summaries

China Pact in Trouble. Congressional support for legislation to grant permanent normal trade relations with China is in trouble, say House Republican leaders, REUTERS reports. After conducting a tally of the House, Republican leaders were surprised to learn that fewer than 120 Republicans now support the trade bill. House Majority Whip Tom DeLay hopes to increase that to roughly 140 before the House votes the week of May 22. But that's still short of the 150 Republicans that President Clinton's Democratic allies in the trade fight say will be needed to ensure House approval. As few as 70 House Democrats may support PNTR, well below the 80-90 Democrats initially demanded by the Republican leadership. A total of 218 votes is needed for approval. The new count contrasts sharply with the mood of most pro-PNTR lobbyists, including farm group representatives, who appear increasingly confident they will prevail. 

Drought Will Get Worse. Farmers in the key crop-growing states of the Midwest and upper South can expect worsening drought conditions over the next few months because of the troublesome weather pattern known as La Nina, government forecasters said Wednesday, REUTERS reports. Although recent rains raised hopes that the dry spell might be ending, the National Oceanic and Atmospheric Administration said soil moisture was too depleted to be improved by a few storms. Inconsistent rain during the past few months has depleted soil moisture in the broad belt of states throughout the Midwest and some southern states such as Texas and Alabama.
 

May 10, 2000

On-Farm Storage Loan Program Begins. USDA will begin making seven-year, low-cost loans May 30 to farmers to help build or upgrade commodity storage and handling facilities. Farmers who bought or built storage facilities between Feb. 2 and May 30 may apply for a loan as well. 

AFBF, ACGA Speak Out on Biotech. The American Farm Bureau Federation says biotechnology holds too much promise for feeding the world to allow scare tactics to retard advances. The American Corn Growers Association, meanwhile, submits comments on biotech to USDA, urging that the department be forced to spell out the benefits and risks associated with genetically modified crops to farmers and mandate labels on all GM foods. 

Baker: Failed PNTR Will Isolate the U.S. James Baker, former secretary of state, says if Congress fails to approve permanent normal trade relations with China, the action will "more likely" isolate the United States, not China. Baker, former Secretary of State Henry Kissinger and former Presidents Ford and Carter strongly urged an affirmative vote on PNTR in an appearance Tuesday at the White House. 

Mexico Creating Trade Barriers, Say Cattlemen. The Mexican government is abusing a recent antidumping decision to create unjustifiable trade barriers that violate international trade rules, the National Cattlemen's Beef Association says. NCBA, along with other agriculture trade groups, sent letters to government officials Tuesday urging immediate action regarding these trade blocks. The dumping case began after Mexican beef producers claimed the U.S. cattle industry dumped beef in the Mexican market from June to December 1997. 

Refining `Shakes' for Taste and Health. Agricultural Research Service scientists are working to further refine low-fat milk shakes to make them taste better and contribute to healthy eating with higher fiber content and reduced fat and caloric content. Less lactose also is a goal of the research.

News Summaries

Cuba Sanctions Lifted by Money Bill. The Senate Appropriations committee approved a $75 billion-plus spending bill for agriculture that includes a provision to permit sales of food and medicine to Cuba, BLOOMBERG NEWS reports. Senate Budget Committee Chairman Pete Domenici (R-NM) noted that last year farm aid reached a record $23 billion and suggested congressional generosity is nearing an end. "At some point, even for agriculture, enough is enough," he said. This year Congress has already voted to spend $7.1 billion in assistance for farmers because of low prices and natural disasters, and may add that amount to other pending legislation. The full Senate could consider the bill next week, and the House Appropriations Committee will vote on its version of the 2001 spending bill today. 

Protecting Roadless Areas Proposed. Agriculture Secretary Dan Glickman proposes to ban new road building on more than 43 million acres of roadless areas in national forests. The proposal also would require local Forest Service managers to consider additional protections for roadless areas in the future. The ban would apply to roadless lands that the Forest Service already has inventoried and identified as roadless areas. They are large parcels of land that do not contain roads because of their rugged terrain or environmental sensitivity. Glickman said the roadless areas are critical to preserve wildlife and clean drinking water supplies and provide recreational opportunities for hikers, campers, hunters and others.
 

May 9, 2000

High Court Upholds Dairy Compact. The U.S. Supreme Court has ruled against a group of dairy processors who had argued that the Northeast Dairy Compact Commission does not have the right to regulate milk produced outside the compact region but sold within the region. Compact Executive Vice President Kenneth Becker said the ruling should allay any concerns from other regions of the country where similar compacts are being considered.

Chickens With Less Fat. USDA scientists have found a genetic method to help produce chickens with even less fat. The discovery of a protein, called leptin, in chickens, which had been found only in mammals such as pigs, cows, mice and humans, could lead to leaner birds. 

Public Meeting Will Address Listeria Initiatives. USDA's Food Safety and Inspection Service will hold a public meeting May 15 to discuss initiatives on listeria monocytogenes. FSIS will discuss the agency's plans to protect the public from food-borne illnesses associated with listeria.

News Summaries

Black Farmers Resolution Defeated. A House resolution urging the federal government to speed up settlement payments to black farmers in a discrimination lawsuit went down to defeat after opposition fromy black congressional leaders, THE ASSOCIATED PRESS reports. The non-binding resolution failed on a near-party line vote of 216-180; 179 Democrats and one independent opposed it. Opponents accuse Rep. Jay Dickey (R-AR) with playing politics and trying to curry favor with blacks for his re-election bid. Dickey says he has been active in black farmers' issues since coming to Congress in 1993. "I was doing this because it was right, not because I expect anything politically back from it. If they've got an alternative solution, I'll get behind it." 

Black Farmers Arrested at USDA. Thirteen black farmers were arrested Monday outside USDA as they protested alleged racism by government employees, REUTERS reports. They were arrested for blocking the doorway to the main building during a demonstration that attracted about 100 supporters. They were handcuffed, taken away and issued $25 citations, then released. Nearly 20,000 farmers, mostly from the South and Southeast, have applied to receive money under a class-action settlement. More than half have been decided with 8,265 farmers winning their cases. About 40% of the cases have been thrown out for lack of evidence. 

Corn, Soybeans Fall as Rains Come. Corn posted its biggest decline in more than a month and soybeans declined to a one-week low after heavy weekend rains in the Midwest eased the threat of drought damage to newly planted crops, BLOOMBERG NEWS reports. Rains fell in Nebraska and Iowa and were expected to fall in Iowa, Illinois and Wisconsin. Tim Hannagan, grains analyst with Alaron Trading Corp., Chicago, said the rain "will give us some of the topsoil moisture back and will help for good emergence for the freshly planted seeds." 

Former Presidents Back China PNTR. Former Presidents Gerald Ford, Jimmy Carter and George Bush pressed Congress Monday to grant permanent normal trading relations for China, giving the Clinton Administration's top legislative priority a much-needed boost ahead of this month's House vote, REUTERS reports. Administration officials said the letter could help persuade dozens of undecided lawmakers in the House to support the legislation. According to the latest Reuters poll of the 435-member House, 161 members said they would support or were likely to support PNTR for China, 57 short of the number needed for passage.
 

May 8, 2000

Clinton Calls for More Listeria Testing. President Clinton says new regulations will be proposed to require more testing for listeria at food processing plants in place of the present random testing methods. He also called on Congress and the food industry to help strengthen food safety systems.

USMEF Offers Matching Funds for Promotion. The U.S. Meat Export Federation is accepting applications from small companies interested in receiving matching funds for promotion activities overseas for branded U.S. red meat products. Small companies are defined as those with 500 or fewer employees.

Study Compares Food Spending at Home and Away. A new study from USDA's Economic Research Service finds large deviations from the averages in what U.S. consumers spend on food for home consumption and for eating. Mississippi consumers spent 9% more on fast food than did New Hampshire consumers, but New Hampshire residents spent almost 78% more in table-service restaurants than consumers in Mississippi. 

USDA Told to Respond Quickly to Grazing Needs. Sen. Tom Harkin (D-IA) called on USDA to prepare to allow emergency haying and grazing on Conservation Reserve Program acreage. He urged USDA to act quickly on CRP access and to other drought-related matters as the needs arise.

News Summaries

ABA Opposes Proposed FHFB Rule. The American Bankers Association opposes a proposed rule by the Federal Housing Finance Board that would define "core mission assets" held by Federal Home Loan Banks. Congress specifically authorized expanding the FHLBs' ability to make advances, says ABA. The bill also specified that in addition to housing loans, small business and agricultural loans should count for advances. That expansion was premised on Congress' belief that the system would retain its current focus of making lendable funds available to banks in return for those banks' pledging certain types of assets as collateral. The regulation "would radically shift that focus by making it harder for the FHLBs to make advances," says ABA. "It's not appropriate for a regulator to `refine' the mission of the entities it regulates to such an extent that the entire focus of the system changes." 

House Will Consider China Watchdog Plan. Legislation setting up a commission to monitor human rights in China is expected to be introduced this week as the congressional battle over permanent normal trade relations with China enters the final stretch, REUTERS reports. The legislation, proposed by Rep. Sander Levin (D-MI) and supported by the White House, calls for Congress to create a commission to review Chinese policies and possibly recommend enforcement "actions" against Beijing as long as they are consistent with World Trade Organization Rules. The White House sees Levin's proposal as a way of reaching out to Democrats in the House who want a forum to air their concerns about human rights and labor abuses in China in exchange for supporting the PNTR legislation. 

Philippine Farmers Boycott U.S. Soybean Meal. Philippine poultry farmers angry over the amount of chicken leg quarters sent from the United States to the Philippines are set to boycott U.S. soybean meal and veterinary products, THE WALL STREET JOURNAL reports. The Philippine Association of Broiler Integrators and the United Broiler Raisers Association say their members have agreed to stop buying the products in retaliation to U.S. actions that they say have paralyzed the local poultry industry. "The only reason why we have been buying soybean meal from the U.S., even if it is more expensive, is because of the quality. But some countries, like India, have offered to sell soybean meal to us of the same quality but at a cheaper price," PABI President Ronald Mascarinas said in a statement. 

Budget Cuts Not Aimed at Egg Tests. Egg producers and their Senate Republican allies say reductions in President Clinton's food-safety budget aren't intended to block government plans to require more extensive testing of farms and eggs for salmonella, THE WALL STREET JOURNAL reports. The Senate appropriations subcommittee that oversees the Food and Drug Administration budget approved a spending bill last week that would increase FDA funding but at a slower pace than the Clinton Administration requested. Industry officials said they weren't behind the cuts. "We did not lobby to take the money out," said Ken Klippen, executive vice president of the United Egg Producers. Instead, the industry appeals concerned chiefly with influencing the shape of the testing program and having the government shoulder the costs which could run as high as $10 million year, Klippen said.
 

May 5, 2000

Administration Sends Farm Bill to Congress. The Clinton Administration has crafted what basically is a new farm bill for congressional consideration. Although it follows several proposals being talked about in agricultural circles, it's doubtful at best it will be considered by the current Congress. And next year, when a new Congress is sworn into office, a new administration probably will have its own farm bill proposal to Capitol Hill for consideration. 

Glickman Outlines USDA, FDA Roles in Biotech. Agriculture Secretary Dan Glickman sees the Food and Drug Administration developing guidelines for voluntary biotech food labels, while USDA's role will be to help develop testing procedures and quality assurance programs designed "to differentiate non-biotech commodities and to better meet the needs of the market." 

Lugar Daschle Introduce Renewable Fuels Bill. Senate Agriculture Committee Chairman Richard Lugar (R-IN) and Democratic Party Leader Tom Daschle (D-SD) have introduced a bill designed to increase the use of renewable fuels, decrease U.S. dependence on foreign oil and provide "new opportunities" for rural areas. The bill would reduce the use of MTBE and establish requirements for the use of renewable fuels. 

Spending Bills Advance; House Adds Sanctions Bar. Both House and Senate subcommittees approved 2001 spending bills for the Agriculture Department yesterday, and the House panel voted to relax sanctions against Cuba and four other countries. Lawmakers who support the amendment by Rep. George Nethercutt (R-WA) say allowing the sale of food and medicines will give hard-pressed U.S. farmers additional markets.

News Summaries

Support for China PNTR Increases. Support in the House for granting permanent normal trade relations with China has gained six previously uncommitted Democrats who now favor the deal, REUTERS reports. Reps Brian Baird (WA), Charlie Gonzales (TX), Ralph Hall (TX), Darlene Hooley (OR), Eddie Bernice Johnson (TX) and David Price (NC) now say they will support the legislation which is necessary to implement a trade agreement negotiated last year with China. Rep. Robert Matsui (D-CA) said Wednesday that 58 Democrats already supported the agreement and he expected a total of 70-80 to ensure passage if 150 Republicans vote in favor as expected. 

USDA Will Validate Biotech Grains, Accredit Labs. USDA will help standardize the identification of biotechnology-derived grains by accrediting laboratories and evaluating tests used to detect the presence of genetically modified grains. USDA also will seek public comment later this year on other steps that could be taken to help validate voluntary non-bioengineered claims. Upon request, the Grain Inspection Packers and Stockyards Administration will review laboratories testing grains for the presence of biotech-derived grains and accredit those labs that meet performance standards. GIPSA also will evaluate test kits against the manufacturer's performance specifications for determining the presence of biotechnology-derived grains in bulk grain to ensure those tests are accurate and reliable.
 

May 4, 2000

Congressional Panels to Vote USDA Spending Today. Subcommittees on both sides of the Capitol will unveil their 2001 spending plans for the Department of Agriculture today. At 10 a.m., the House Appropriations Committee's agriculture and rural development panel will consider its funding bill, while its Senate counterpart – which normally acts weeks afterward but is moving in parallel this year in hopes of expediting the drawn-out appropriations cycle – will meet at 2:30. 

"Carousel" In, Sugar Out of Final Africa Bill House and Senate negotiators reached final agreement on a bill to extend new trade preferences to African and Caribbean nations, after a weeks-long delay involving arguments over textile trade. Formal approval of the bill by the full House could come as early as today. 

Europeans to Protest U.S. Programs. The European Union may raise questions about U.S. marketing loans and loan deficiency payments as trade-distorting subsidies, CONGRESS DAILY reports. The newsletter says EU agriculture commissioner Franz Fischler's chief of staff raised the prospect of challenges to both marketing loans and export credit guarantees in the next round of world trade talks.

News Summaries

Administration Endorses China Compliance Plan. As expected, five Clinton Administration cabinet officers including Secretary of Agriculture Dan Glickman endorsed a plan to monitor China's compliance with human rights and trade obligations. The plan is similar to proposals by Rep. Sander Levin (D-MI). 

GMO Rules May Change Little. Companies that develop genetically modified organisms may not see life change all that much under new procedures unveiled by the Clinton Administration, REUTERS reports. The administration will require developers to meet with regulators and will publish research and safety data on the Internet. The new initiative does not require labeling of foods that contain GMOs, drawing criticism from some environmental and consumer groups but praise from food and agriculture interests. Secretary Glickman will speak today to a biotechnology panel of the National Academy of Sciences and may comment further on USDA's role in the new GMO rules. 

Cyst Nematode May Be Overcome. The cyst nematode, a pest that causes $1 billion worth of crop damage each year, may meet its match in a new resistant soybean plant, THE ASSOCIATED PRESS reports. A multi-company alliance called Midland Genetics Group is the first to capitalize on work done at Purdue University. 

Ethanol Capacity Could Replace MTBE. In a newly updated study, the Renewable Fuels Association says there is enough ethanol production capacity to replace the fuel additive MTBE quickly in California's huge market. The state is phasing out the additive, which has been found in groundwater. The report says blending with ethanol-based ETBE is cheaper than MTBE at current prices.
 

May 3, 2000

Administration to Propose New Rules for GMOs. The Clinton administration will propose new oversight of genetically modified foods, but the steps appear unlikely to mollify critics of biotechnology, THE WASHINGTON POST reports. 

GOP Leaders May Back China Watchdog Plan. As lobbying intensifies on whether to grant normal trade relations to China, Congressional leaders may approve a monitoring group to keep an eye on Chinese human rights performance, according to REUTERS. The watchdog commission, proposed by Rep. Sander Levin (D-MI), would monitor Chinese human rights violations and could recommend sanctions. 

Drought Commission Nears Recommendations. With a final May 16 meeting approaching, the National Drought Commission will soon recommend ways the government can help farmers and ranchers cope with drought, REUTERS reports. 

Farmers Argue in Court Against Wheat Board. Canadian farmers opposed to the Canadian Wheat Board argued in court this week that they should be able to market crops on their own, and that the CWB violates their rights, REUTERS reports. 

Africa Trade Bill Nears Completion. House-Senate negotiators are near a final deal on legislation to extend new trade preferences to Africa and Caribbean countries, REUTERS reports. Agreements could be completed Wednesday, sources told the news service. 

Farmland Has New Chief Executive. Farmland Industries, the largest U.S. farmer-owned cooperative, named Robert W. Honse as its new president and chief executive officer, succeeding Harry Cleberg, REUTERS reports. 

Surpluses May Grow. The strong economy could bring $64 billion more than officially expected into the government's coffers, swelling the surplus and providing new funds for tax cuts or spending increases, THE WASHINGTON TIMES reports. 

Unilever Offers for Bestfoods. Unilever NV made an unsolicited takeover offer for Bestfoods, THE WALL STREET JOURNAL reports. The move could signal an increased wave of consolidation in the food industry.

May 2, 2000

GPS Enhancement Benefits Agriculture. President Clinton's announcement that the United States will stop the intentional "degradation" of the global positioning system signals benefits agriculture. Precision agriculture technology uses GPS systems for various agricultural practices. 

Ground Broken for Corn-to-Plastics Plant. Cargill Dow is building a manufacturing facility at Blair, NE, to make plastics and natural-synthetic fibers from corn. The facility will use 40,000 bushels of corn per day for an annual use of 14 million bushels. 

Rural Power Systems Get Money Boost. USDA has awarded $354.4 million in loans to help improve electrical service in rural areas. More than $1 billion has been loaned to help provide new or improved electric service to more than 149,000 rural residents. Agriculture Secretary Dan Glickman announced the latest loans at a ceremony celebrating the 65th anniversary of the signing of the Rural Electrification Act. 

Milk's Calcium Better Absorbed than Soy. A new study published in the American Journal of Clinical Nutrition finds that calcium from cow's milk was more efficiently absorbed by the adult men in the study than calcium from soy beverages. Soy beverages naturally contain very little calcium so manufacturers often fortify the beverages with calcium.

Ag News Summaries

Panel Urges Rejection of China Pact. A commission appointed by the White House and Congress urged lawmakers Monday to deny permanent trading relations to China, REUTERS reports. The commission cited China's crackdown on the Falun Gong spiritual movement and other religious groups. The U.S. Commission on International Religious Freedom issued the non-binding recommendation less than a month before the House is to vote on the legislation. President Clinton's allies played down the report, saying they remained confident of rounding up the 218 votes they need to ensure passage in the House. Senate approval virtually is assured. 

EPA Approves Protein as Pesticide. The Environmental Protection Agency has approved a protein product that switches on a plant's natural defenses against disease and insects. The protein, the first of its kind, is considered an alternative to pesticides. It is produced from genetically engineered bacteria and has been shown to increase yields for tomatoes and peppers by up to 22% and make plants more tolerant of drought. Known by the trade name Messenger, it is one of a growing number of "biopesticides" that either trigger or strengthen plants' natural defenses or contain microbes that attack the pests. Another product awaiting EPA approval uses a chemical to trigger plants' resistance. 

Appropriations Panel Mark Up This Week. Both House and Senate panels will consider 2001 agriculture spending on Thursday. The House Appropriations Committee's agriculture subcommittee holds a business meeting – or "markup" – to approve its spending bill Thursday morning, while its Senate counterpart will meet Thursday afternoon. In contrast to last year, most observers expect that the now-annual cycle of emergency farm relief will not be part of appropriations legislation. Instead, Congress appears likely to add the extra spending to a crop insurance bill now in a House-Senate conference. However, the appropriations bills could still be the scene of some farm policy skirmishes.
 

May 1, 2000

Beef, Pork, Poultry Strong; Milk Another Story. Beef demand remains strong given large supplies; hog prices, too, look favorable late into the year; broiler exports soared in February, all of it pointing to favorable prices. However, low milk prices are expected through 2000. 

Ethanol's Future May be Bio-Based. Ethanol costs could be reduced dramatically if production from biomass is successful, says a government agency. Technology suggests that ethanol could compete favorably with other gasoline additives without the benefit of a federal subsidy if certain goals were achieved. 

Fungus for Plastics Holds Promise. A new bioengineered fungus could mean biodegradable plastic milk jugs and soda bottles that don't hang around landfills for ages. The fungus, says USDA, could convert grain and other renewable agricultural resources into environmentally friendly solvents and plastics.

Ag News Summaries

USDA IG Arrests 222 Fugitive Felons. USDA Inspector General Roger C. Viadero says 222 fugitive felons in the Kansas City area have been arrested in a crackdown known as Operation Talon. The nationwide total now stands are more than 6,200 arrests. The Kansas City operation identified 400 food stamp recipients who also were fugitive felons with active felony arrest warrants on file. Warrant squads of local police, deputy sheriffs and agents from USDA's OIG scoured the Kansas City area and surrounding counties in search of the felons. Included in those on the wanted list were food stamp recipients wanted for manslaughter, child endangerment, rape, assault, escape from incarceration, robbery, narcotics and numerous other crimes. Operation Talon was designed to locate and arrest fugitive felons by matching law enforcement agencies' felony fugitive files with the state social services agencies' food stamp recipient files. 

U.S. Team Ends China Visit. A presidential mission to learn more about the impact of permanent normal trade relations with China wrapped up its work Saturday after a visit to Hong Kong. "This is going to be a raw political fight," Rep. Norm Dicks (D-WA) told the American Chamber of Commerce in Hong Kong, REUTERS reports. The delegation was led by Agriculture Secretary Dan Glickman and had been in China since Tuesday. BLOOMBERG NEWS reports Glickman said, afer meeting with Wang Daohan, China's top negotiator on Taiwan, that Wang agreed Taiwan issues should be resolved peacefully. "His rhetoric was actually fine when we met with him," said Glickman. "He didn't use any word like `war.'" 

Drought Threat Hovers in Midwest. The possiblity of another major drought in the Midwest this summer is spurring cities, farmers and businesses to step up plans to deal with the threat, REUTERS reports from Chicago. Some meteorologists have warned of a repeat of major droughts that struck the Midwest in 1988, 1964 and 1934. They say current dry, hot midwestern weather is the result of La Nina, a weather pattern tied to a cooling of surface waters in the eastern tropical Pacific and stronger trade winds. Some of the preventative measures to take are developing multiple sources of water for cities where drinking water supplies are stressed and not using only surface sources. Grants can be provided to cities to improve supplies. So far, the article says, the dry weather hasn't had a major impact on agriculture. 

So Little Time, So Much Money. THE WALL STREET JOURNAL features an article on U.S. consumers and their eating habits. People now eat at least 350 calories more each day than only 15 years ago. "And they're eating worse than ever, too, packing away sugar and carbohydrates at an alarming rate," according to the article. Less free time has led to erratic eating patterns and increased snacking. And a misunderstanding of what categories such as "calories" and "fat" mean has led to camouflaged overeating. People are busier with work, and they have a lot more money to spend – which means they're eating out more and buying more prepared foods than in previous decades. At least one-third of calories now are eaten outside the home, an increase from 18% in the late 1970s, according to USDA. 

Hog Research Center Planned. Oklahoma State University officials say a planned high-tech $3 million hog research facility won't smell – at least not much, THE ASSOCIATED PRESS reports from Warner, OK. The 800-hog OSU Swine Teaching and Research Center will use microbe remediation and "biofilters" made of hay to eliminate most offensive odors from the center. In a few weeks, the university is expected to seek bids for the experimental facility with construction beginning as early as August and finished a year later. The facility will provide instruction, research and ongoing odor-control development. 

Record Sentence in Worker Poisoning. An Idaho businessman drew a record 17-year prison sentence for an environmental crime that left one of his employees permanently brain damaged from cyanide poisoning, REUTERS reports. Allan Elias, 61, owner of fertilizer manufacturer Evergreen Resources and