November 30, 1999

Roberts Calls U.S. WTO Stand 'Disaster' Blueprint. Sen. Pat Roberts (R-KS) warns that controversy over labor and environmental issues at the World Trade Organization talks in Seattle this week can derail the negotiations unless President Clinton backs off that part of the administration's agenda. Using trade to force controversial standards on the rest of the world "is a blueprint for disaster," says Roberts.

Farmer Mac Total Loan Purchases, Guarantees Cross $1 Billion. The Federal Agricultural Mortgage Corporation (Farmer Mac) has completed two transactions that push total agricultural mortgage loan purchases and guarantees for 1999 beyond the $1 billion mark. The transactions are a swap and a long-term stand-by commitment to purchase qualified agricultural mortgage loans involving a combined principal of more than $250 million.

Canada Proposes Poultry Equivalence Program. The Canadian Food Inspection Agency has proposed a new slaughter inspection program for chicken, turkey and fowl in Canadian establishments that process poultry, including those that export to the United States. USDA says it must determine whether the program is equal to U.S. poultry slaughter inspection standards.

FSIS Announces Broad Enforcement of HACCP Rules. USDA's food Safety and Inspection Services has decided it has broad authority to carry out provisions of meat and poultry laws, including virtually shutting down a plant that does not comply with rules for a hazard analysis and critical control point (HACCP) program.

Cotton Council Says Its 'Persistence' Led to Rate Reduction. The National Cotton Council says its "persistence" led to a rate study the helped bring significantly lower federal crop insurance rates next year for many cotton producers. The average rate reduction in the mid-South is about 28% and in the far West about 9%.

Ag News Summaries

Protesters Take Limelight at WTO. Anti-grade protesters seized the limelight Monday ahead of the global trade talks, smashing windows at a McDonald's restaurant, marching through downtown and putting delegates from around the world on the defensive, REUTERS reports. The World Trade Organization meeting was thrown into confusion before it even had started as a security scare kept delegates and reporters out of the cavernous convention center where it was to be held for five and a half hours early Monday. The protesters were part of a group opposed to genetically engineered foods. President Clinton plans to meet with some of the groups protesting the WTO talks. He arrives in Seattle early Wednesday but will not take part directly in the talks.

USDA Again Sued for Race Bias. USDA again faces a discrimination complaint, but this time from American Indian producers, according to a REUTERS report. USDA has settled a multibillion dollar settlement with black farmers. Now more than 200 American Indian farmers have filed a suit in federal district court claiming that for decades they too have been subject to discrimination by USDA employees, lawyers say. 

U.S.-EU Split Imperils WTO Talks. U.S. and European Union negotiators say they are no closer to bridging their differences over aid to farmers, suggesting an impasse on the most important issue at the World Trade Organization meetings in Seattle, BLOOMBERG NEWS reports. Agriculture Secretary Dan Glickman says he's still trying to rally support to pressure the EU for larger reductions in farm subsidies. EU Farm Commissioner Franz Fischler says he will negotiate reductions in export subsidies only if the United States slashes some of its own support programs.
 

November 29, 1999

WTO Opens New Round in Seattle. The World Trade Organization this week opens a new round of international trade negotiations with the United States pledged to an "aggressive reform of agricultural trade." That, says U.S. Trade Representative Charlene Barshefsky, is "at the heart of our agenda."

AFBF's Kleckner Willing to Meet Castro. American Farm Bureau Federation President Dean Kleckner says he's willing to meet with Cuban President Fidel Castro to show that U.S. farmers support lifting the U.S. embargo on the island nation. There has been speculation Castro may attend this week's World Trade Organization ministerial meeting in Seattle.

RMA Approves Satellite Measuring Systems. USDA's Risk Management Agency supports geographic imaging systems-global positioning systems to measure insured acreage. Two crop insurance companies already are using the technology.

Canadian Company Recalls Salami from U.S. Market. Fleetwood Sausage Company, a Canadian meat processor, voluntarily is recalling salami from the U.S. market that may be contaminated with a harmful strain of E. coli.

Dairy Co-ops Explore Joint Venture. Dairy Farmers of America of Kansas City, MO, and Canada's Dairyworld Foods are exploring a joint venture in marketing specialty dairy ingredients. The longer range intent is to form a more permanent joint venture company.

Ag News Summaries

Canada, China Sign Bilateral WTO Deal. Canada and China reached a bilateral agreement on trade Friday, further paving the way for China to join the World Trade Organization. REUTERS reports the deal calls for reduction in tariffs on Canadian exports to China with priority given to telecommunications equipment, aircraft, canola oil and paper products. China still must reach an agreement with other key WTO nations, including the European Union, before it can join the WTO.

USDA Urged to Drop Appeal on Durum Crop Insurance. North Dakota Commissioner of Agriculture Roger Johnson is calling on USDA to reconsider a decision to appeal the verdict in a lawsuit over durum crop insurance, PRO FARMER reports. "Farmers need some certainty from the federal government and they need some hope," says Johnson, in a letter to Agriculture Secretary Dan Glickman. "USDA's decision to appeal this case provides neither and sends the wrong message to our farmers." USDA attempted to pull back on durum policy provisions last winter, and the farmers sued. A federal district court agreed with the farmers, calling USDA's actions "arbitrary, capricious and an abuse of discretion" and ordered USDA to comply with the original terms of the insurance policies.

Protests Mount at Seattle WTO Meeting. Protesters are mounting a campaign in Seattle to demand labor and environmental safeguards in the World Trade Organization talks. Several activists have been arrested for unfurling anti-WTO banners across local landmarks, REUTERS reports, and protesters vow to disrupt the four-day 135-nation summit through escalating acts of civil disobedience. "Our stated goal is to shut down the WTO and to prevent them from having a meeting," says Dennis Moynihan of Direct Action Network, a collection of activist groups. 

ADM Soy Plants Slow Down. Archer Daniels Midland Co. says five of its U.S. soybean processing plants will slow down operations, REUTERS reports from Chicago. ADM's decision comes in the wake of an announcement by Cargill Inc. that several of its soybean processors will slow down operations because of poor market conditions. ADM says further details, such as the location of the plants, are not yet available. The article quotes dealers who say ADM plans to reduce crushings between 6-10% at the five plants, but gave no reason for the action. 

Monsanto Wins Court Ban on GMO Protests. Monsanto Co. has won a permanent court injunction preventing a British environmental group from destroying trial sites of genetically modified crops, REUTERS reports from London. Attacks on GMO crops by the group, GenetiX Snowball, have been one of the more dramatic aspects of opposition to biotechnology from UK environmental groups. A Monsanto spokesman says the injunction should stop the group from damaging and destroying Monsanto's property.
 

November 24, 1999

Crop Disaster Program Announced. USDA says farmers who suffered severe crop losses due to natural disasters may begin signing up for cash grants starting Dec. 13. The sign-up will end Feb. 25. Farmers must have lost at least 35% of their 1999 crops to be eligible.

Senators Call for Scientists at WTO. More than 20 senators have asked President Clinton to put together a team of scientific experts for the World Trade Organization negotiations that begin next week. The experts would be available to respond to "unscientific assertions" about biotechnology, the senators say.

U.S.-China Pact Could Quadruple U.S. Dairy Exports. The U.S. Dairy Export Council believes the U.S.-China trade pact could quadruple U.S. dairy exports to China. Dairy exports could be increased as much as $135 million each year.

Turkey Lifts Ban on U.S. Cattle. Turkey has lifted a three-year embargo on U.S. cattle and will resume importing immediately. Turkey suffered an outbreak of foot-and-mouth disease in August 1996 and banned U.S. cattle to avoid introducing healthy cattle into infected regions.

Harvard Study Hits New Food Regulations. A Harvard University analysis of new federal food safety regulations shows that unintended effects of the rule could be more harmful to public health than the compounds they attempt to regulate. The American Farm Bureau Federation reports that the analysis says countervailing health risks associated with regulatory implementation of the law were not considered or evaluated.

Ag News Summaries

EU Won't Pledge to End Subsidies. The European Union is willing to negotiate further reductions in agricultural export subsidies but will not promise to eliminate them as the United States has proposed, REUTERS reports. Officials at WTO headquarters in Geneva failed to develop a joint declaration for the upcoming meeting, leaving trade ministers from the 135 member nations with a number of difficult decisions. "If they want total elimination of export subsidies in this round, of course we will not agree to that, because we are committed to a long term process" of agricultural reform, the article quotes EU Trade Commissioner Pascal Lamy saying. Separately, industry sources told AgricultureLaw.com that WTO Director General Mike Moore will make one more effort in the coming days to craft a pre-Seattle consensus.

U.S. Corn Sales to Russia Stalled. USDA has doubled the amount of corn Russia can buy with U.S. loans, but a disagreement over how the grain is shipped is stalling sales, REUTERS reports. Under the $1 billion food aid package for Russia, USDA required that three-fourths of the commodities exported be shipped on U.S.-flagged vessels. But the Russians have asked that corn not arrive on tankers, a position U.S. officials are disputing. "It's more difficult for them to handle the grain on the other end," the unidentified official told REUTERS.

Cenex, Farmland Merger Fails. Members of Cenex Harvest States rejected a proposed merger with Farmland Industries, Inc., that would have been the largest combination ever of farmer cooperatives, THE ASSOCIATED PRESS reports. Members of Farmland approved the deal with 89% voting in favor, but the proposal fell just shy of the required two-thirds margin of support needed at Cenex. The two co-ops have nearly 1 million farmer members and own extensive crop supply, grain handling and processing, petroleum refining and meat packing operations in the Midwest.
 

November 23, 1999

Bill Extending CRP to 45 Million Acres Introduced. Sen. Tim Johnson (D-SD) has introduced a bill to enlarge the Conservation Reserve Program to 45 million acres from the current limit of 36.4 million. A similar bill is pending in the House.

Ag Outlook Sees Mixed Financial Future. Farm financial conditions on average remain strong, but regional fortunes vary significantly, depending on the mix of production and local weather, says USDA in its latest outlook report.

Maryland Firm Recalls Sausage. P.J.'s, Inc., Baltimore, MD, is voluntarily recalling about 800 pounds of sausage that may be contaminated with listeria. The product being recalled is "Polock Johnny's Polish Sausage."

Dole Firm Pays $180,000 PACA Fine on Grapes. Dole Bakersfield Inc., also trading as Dole Fresh Fruit of Westlake Village, CA, has settled a USDA action by paying a $180,000 civil penalty and agreeing to a compliance program. The action was filed under the Perishable Agricultural Commodities Act and involves imported grapes that failed to meet U.S. import rules.

Ag News Summaries

Sheep Order Proposals Sought. USDA wants proposals for a national sheep and lamb promotion, research and information order. Proposals may be submitted by any interested person, group or organization. The order will provide for assessments on sales of sheep and lambs and for an industry board to carry out promotion, research and information programs designed to increase sheep and lamb demand. The request for proposals will be published in today"s (Nov. 23) Federal Register.

Lugar Asks for Food Safety Review. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has asked the General Accounting Office to examine and report on the allocation and use of federal food safety resources. The GAO has reported on several occasions that federal food safety allocations could be used more effectively. "The federal government spends more than $1 billion annually to ensure that the United States has the safest food supply in the world," says Lugar. "This study will help identify areas in which these funds can be used more effectively to prevent food borne illness." 

FSIS Schedules Meetings on Sanitation Rules. USDA's Food Safety and Inspection Service will hold public meetings Dec. 8-9 to discuss technical aspects of the agency's final rule on sanitation requirements for official meat and poultry establishments. The rule consolidates sanitation regulations into a single rule, eliminates unnecessary differences between the sanitation requirements for meat and poultry processing and converts many highly prescriptive sanitation requirements to performance standards. The rule becomeS effective Jan. 25. Public meetings will be held at the Double Tree Hotel, 1616 Dodge St., Omaha, NE 68102. An agenda for the meeting is available at http://www.fsis.usda.gov 

U.S. Lawmakers Flock to Seattle. As many as 90 U.S. lawmakers will attend the upcoming World Trade Organization meeting in Seattle, REUTERS reports. About half the members of the Senate and House Agriculture Committees will be part of the congressional delegation attending the meeting. A trade source says the size of the U.S. congressional delegation likely will outweigh by far any other country.
 

November 22, 1999

More on Dairy Section of Budget Bill. As part of Congress' last act before recessing for the year, a massive budget bill was approved that included a controversial section on dairy policy. Although much of the attention has been centered on a change in the milk-pricing system to be used in federal orders, there are three other provisions that apply to the dairy industry.

Milk Processors Will Be in Seattle. The International Dairy Foods Association will send an 11-person delegation to the World Trade Organization ministerial conference in Seattle next week to push for more open agricultural markets that are important to the dairy industry. The Seattle sessions are important, says IDFA, because they affect the "momentum" of subsequent negotiations.

Beef Board Faces Referendum Petition. The National Cattlemen's Beef Board is facing a probable referendum on its continued existence. Petitions calling for a checkoff referendum have been delivered to USDA. The board has made two recommended changes to the marketing and research order that are in the rule-making process at USDA.

‘Multifunctionality' an Issue for Seattle Round. The concept of "multifunctionality" will be part of the continuing discussions of agricultural trade distortions discussed at the World Trade Organization talks in Seattle. Some countries argue that, in addition to the production of food, fiber, hides and timber, agriculture creates joint or spillover (multifunctional) benefits such as open space, wildlife habitat, biodiversity, food prevention, cultural heritage and viable rural communities. Those functions, they argue, justify exemptions for production-related domestic support.

Bill Introduced to Permit Interstate Movement of Meat. Legislation has been introduced to permit interstate and international distribution of state-inspected meat. Sens. Tom Daschle (D-SD) and Orin Hatch (R-UT) introduced the bill that calls for states to use federal inspection standards to allow meat to move in interstate commerce.

Ag News Summaries

WTO Delays Key Meeting. Officials in charge of the World Trade Organization's launch of new global trade talks have delayed a key meeting by 24 hours amid signs of continuing problems, REUTERS reports from Geneva. The decision was made to give delegations time to consider a new draft for a text setting out the round's agenda. Two major problems have dogged the preparations: agriculture and demands by developing countries for more time to implement accords reached in the last round, the Uruguay Round. 

Don't Wait on Seattle, Say Corn Growers. The American Corn Growers Association is telling farmers that the World Trade Organization meeting in Seattle is no reason to wait to purchase seed for the 2000 planting season. Some farmers believe that the WTO meeting will resolve the controversy over genetically modified organisms, says ACGA. "The problem of GMOs will be with us for a long time," says ACGA CEO Gary Goldberg. "Farmers need to plant accordingly. If that means finding alternatives to GMOs, those seeds need to be purchased immediately while they remain available." 

Dairy Battles Will Continue in 2000. BLOOMBERG NEWS reports that Sen. Herb Kohl (D-WI) extracted a pledge from Senate Majority Leader Trent Lott (MS) for hearings and votes next year on getting rid of the Northeast Dairy Compact and more debate on national milk pricing policy. "We should look for a way to get away from compacts, and we should look for a way to get away from government controls," said Lott. Senate Democratic Leader Tom Daschle (SD) also doesn't support the dairy compact. "I do not think it is good government policy," he said.
 

November 19, 1999

House Completes Budget, Senate May Stall. The House brought the first session of the 106th Congress closer to its end Thursday by approving 296-135 a compromise final appropriations bill that includes farm disaster relief and two controversial dairy provisions. The dairy measures threatened to hold up Senate approval of the same bill.

Ag Interests Back Biotech Foods, Consumer Groups Oppose. Agricultural and food interests expressed their support for biotech foods at a Chicago Food and Drug Administration hearing Thursday, but consumer advocates called for their removal from the market and tight regulation.

Scher Calls Export Subsidy Elimination a WTO Priority. Peter Scher, special trade ambassador for the U.S. trade representative's office, says one of "our biggest priorities" in the upcoming World Trade Organization negotiations is to eliminate agricultural export subsidies, 85% of which are being used by the European Union.

Livestock, Feed Disaster Relief Programs Announced. USDA has two programs in place to compensate livestock producers for losses this year due to natural disasters. One is an indemnity program for livestock, the other is an assistance program to compensate for grazing losses.

For the Calendar

The Environmental Protection Agency holds a two-day meeting Dec. 8-9 of the Federal Insecticide, Fungicide and Rodenticide Act Scientific Advisory Panel. The Dec. 8 session will discuss the proposed agency data requirements for protein plant pesticides, including both product characterization and potential effects to non-target organisms. The Dec. 9 meeting will review the cumulative risk assessment methodology of pesticide substances that have a common mechanism of toxicity. The meetings will be held form 8:30 a.m. to 5:30 p.m. at the Sheraton Crystal City Hotel, 1800 Jefferson Davis Highway, Arlington, VA.

Ag People in the News

Paul Fiddick has been named assistant secretary for administration at USDA. He will oversee the policy and coordination of USDA's administrative activities, including human resources, ethics, procurement, small and disadvantaged business utilization, property management, headquarters operations, judicial and administrative law reviews, contract appeals and outreach to populations under-served by USDA programs. Fiddick was the co-founder and president of the Heritage Media Corporation radio group and vice chairman and acting president of RadioWave.com. He served on the boards of the National Association of Broadcasters and the Radio Advertising Bureau.

Ag News Summaries

USDA Announces CRP Rescission. USDA has announced that certain highly erodible land-use restrictions have been rescinded for Conservation Reserve Program participants. A special CRP highly-erodible land provision that applied to participants who entered into CRP contracts after Nov. 28, 1990, is rescinded. It prevents participants from growing certain crops on land acquired after that date unless the land had a crop history. All state Farm Service Agency offices have been instructed to suspend immediately the enforcement of the provision. 

Export Samples Focus of Pilot Program. USDA will enable exporters, through a pilot program, to get samples of their products to foreign buyers. The $2.5 million program will focus on products that are not branded, that benefit whole industries and are unprocessed or semi-processed foods, such as grains or flour, and other products that are not ready to eat. Participants must buy the commodity samples, export them and provide technical assistance on their use to importers. When the project is completed, USDA will reimburse the costs of procuring and exporting the samples. 

WTO Envoys About to Give Up on Trade Round Draft. Negotiators at the World Trade Organization in Geneva are ready to abandon efforts to draft a blueprint for a new global trade round and pass the buck to ministers meeting late this month in Seattle, REUTERS reports. Diplomats say this does not mean the ministers will not be able to reach agreement on the outlines of a new set of liberalization negotiations to be launched in 2000. "I am sure they will be able to get something together that will kick this thing off, and then we'll see how it develops," said one envoy. 

Glickman expects Third Farmer Bailout in 2000. Agriculture Secretary Dan Glickman says Congress probably will have to bail out farmers for a third straight year in 2000 because crop prices are weak and it is unlikely lawmakers will agree on a new farm law. In an interview with BLOOMBERG NEWS, Glickman says, "If the farm economy stays at the current level, if farm prices don't come back up, I think the odds are good that there'll be some further legislative action" on emergency aid. He expects no significant changes in the 1996 farm law because 2000 is a presidential election year, making consensus more difficult and an emergency bailout more likely. 

Iowa Farmers Predict Fewer Farms. Ninety-eight percent of Iowa farmers questioned in an annual survey agree the trend toward fewer, larger farms will continue in the 21st century, and 96% believe farmers will have to take outside jobs just to survive, THE ASSOCIATED PRESS reports from Des Moines. Ninety-five percent say it is likely low farm prices will put many of them out of business. Nearly 2,600 farmers filled out a questionnaire distributed by Iowa State University extension sociologist Paul Lasley. Eighty-nine percent expect the gaps between rich and poor will increase, while 81% say the high cost of living will prevent many people from retiring at age 65.
 

November 18, 1999

Wellstone Moratorium Amendment Defeated. Sen. Paul Wellstone's attempt to get Congress to impose an 18-month moratorium on agribusiness mergers and acquisitions was handed a decisive defeat Wednesday. The Senate voted 71-27 against the Minnesota Democrat's bill.

Daschle Expects Money for Livestock Price Reporting. Senate Democratic Leader Tom Daschle (SD) expects Congress will authorize USDA to use $4.7 million to implement livestock price reporting. The money will come from unspent funds, says Daschle.

New Testing System for Beef Tenderness Developed. Beef carcasses that will yield steaks with above average tenderness can be identified with about 94% accuracy using a testing system developed by Agricultural Research Service scientists. Retailers also will be able to charge prices commensurate with the meat's tenderness; consumers are will to pay more, researchers have found.

Researchers find Less Water Means More Green Bean Calcium. The amount of water flowing through green bean plants can determine the amount of calcium that develops. Green beans are a good source of calcium, but the top bean performer also was the stingiest water user.

Ag News Summaries

Funding Bill Has More Disaster Aid. Congress would provide another $576 million in disaster aid to farmers as part of an omnibus bill ready for a floor vote, REUTERS quotes the House Appropriations Committee as saying. The money would be in addition to the $1.2 billion that was part of the $8.7 billion farm relief package passed last month as part of the agricultural appropriations bill. Most of the money, $198.6 million, would go for disaster assistance with $10 million of that for livestock and $2.8 million for specialty crops; $186 million goes for crop losses. The rest of the funds will be used for guaranteed farm loans, emergency conservation to rehabilitate damaged farm land, the Noninsured Crop Disaster Assistance Program, repairing damage to rivers, streams, reservoirs and waterways and for rural housing needs. Separately, PRO FARMER reports the final budget deal extends the Northeast Dairy Compact for two years and overturns the Agriculture Department's marketing order reform proposals. However, these provisions may stir continued controversy for the bill.

AAM Coming Back from Financial Woes. The American Agriculture Movement that brought the 1979 tractorcade to Washington, then stumbled on its own finances is making a comeback, THE ASSOCIATED PRESS reports from Pierre, SD. Joyce Jobgen, national treasurer of AAM, says the Washington, DC, lobbying office ran up a debt of some $100,000 that nearly ended the organization's existence. Jobgen, who operates a bed and breakfast with her husband, Donald, in the South Dakota Badlands, says AAM debts are nearly paid off, and the group will begin recruiting members early next year.

Senators Call for Speedy Pork Trade Reforms. Farm state senators are urging U.S. Trade Representative Charlene Barshefsky to push for pork and pork product trade reforms as quickly as possible in the upcoming world trade talks in Seattle, reports REUTERS. The senators call for a "zero-for-zero" approach to pork trade negotiations. Under zero-for-zero, an idea supported both by the United States and Canada pork industries, countries would move simultaneously to reduce export subsidies, import barriers and trade-distorting domestic support. Sens. Richard Lugar (R-IN) and Tom Harkin (D-IA), chairman and ranking member of the Senate Agriculture Committee respectively, were among the 26 senators signing the letter to Barshefsky.
 
 

November 17, 1999

Senate Vote on Merger Moratorium May Come Today. An amendment by Sen. Paul Wellstone (D-MN) to mandate a moratorium on certain mergers and acquisitions among agribusinesses could come to the full Senate for action today. Wellstone's legislation would impose a moratorium on mergers and acquisitions if one party to the deal has assets of more than $100 million and the other has more than $10 million. Several food processing organizations oppose the legislation.

Consumer Groups Urge Rejection of Dairy Legislation. Consumers Union and the Consumer Federation of America want Congress to reject any attempts to pass legislation that could enhance dairy producer incomes in many areas of the country and establish dairy compacts throughout the South and New England. The groups call such efforts "anti-consumer, special interest legislation."

Biotech Organization Supports FDA Approach to Oversight. The Biotechnology Industry Organization supports the Food and Drug Administration's approach to oversight of biotech foods. FDA holds three days of public meetings to discuss biotech food issues.

Commission Recommends Beef Group Improvements. A special commission has made recommendations to the National Cattlemen's Beef Association on ways to improve operation. Among the recommendations are stronger producer influence in the national organization and a stronger state-national partnership.

New Study Indicates GMOs May Dominate WTO Talks. A University of Illinois study indicates that the controversy surrounding genetically modified crops and foods will be central in World Trade Organization talks that begin later this month and possibly will dominate the negotiations.

Ag News Summaries

Glickman Urges Farm Trade Not Be Distorted. Agriculture Secretary Dan Glickman says an overemphasis on controversial nontrade aspects of agriculture in the upcoming World Trade Organization talks should not be allowed to distort trade liberalization. KYODO NEWS SERVICE reports from Geneva that Glickman said protecting farmers "is a legitimate aim for every country. What is not legitimate is to use that aim to maintain programs which are trade distorting."

Congress Finds Funds for Livestock Price Reporting. Congressional and White House budget negotiators have found a way to raise $4.7 million to pay for USDA's new mandatory livestock price reporting program that Congress included in the ag appropriations bill, REUTERS reports. Sen. Tom Harkin (D-IA) says talks this week between congressional leaders and the White House put together a massive $400 billion spending bill for the government that will allow USDA to use up to $4.7 million of unused Commodity Credit Corporation funds to carry out the price reporting program." 

White House Objects to Milk Plan. THE ASSOCIATED PRESS reports that the White House objects to Republican leaders using a spending bill to attach a controversial milk pricing scheme. Jake Siewert, White House spokesman, says to attach the provision "might significantly complicate the process," but he stopped short of saying President Clinton would veto the bill over the dairy measure.
 

November 16, 1999

China Should Become More Open from Trade Pact. White House National Security Advisor Sandy Berger believes China should become a "more open and hopefully more pluralistic" country because of the U.S.-China trade pact finalized over the weekend in Beijing. The latest round of talks dealt with issues other than agriculture. Agricultural trade issues were resolved last April. 

Monsanto, Novartis Settle All Lawsuits. Monsanto Company and its seed unit DEKALB Genetics Corporation and Novartis Seeds, Inc., have agreed to settle all pending lawsuits between them. The actions involve contractual and intellectual property rights issues regarding Bt corn. 

Food, Farm Groups Urge Support for FDA Biotech Labeling. More than three dozen food and farm organizations have urged President Clinton to "resolutely support" current biotech food labeling policies of the Food and Drug Administration. Change could affect consumers' perceptions about the safety of biotech foods.

Ag People Making News
James C. Kearney has been named administrator of USDA's Rural Housing Service. He will oversee distribution of more than $4 billion in loans and grants annually to improve housing and community facilities in rural areas. He has worked at USDA for more than 30 years. He served as North Carolina state director for USDA rural development from 1993-98. He began his career with USDA in 1965 as an assistant county supervisor with the old Farmers Home Administration. In 1998 he moved to Washington to become special assistant to the under secretary for farm and foreign agricultural services at USDA.

Ag News Summaries

GOP Reaches Milk-Pricing Deal. Republican lawmakers claim they have reached a tentative agreement on milk pricing, THE ASSOCIATED PRESS reports. The milk-pricing plan embraced by many milk producers is one that most analyses show favors higher milk prices for many producers. The agreement also would allow the Northeast Dairy Compact to exist for two more years. Upper Midwest senators continue to promise to block such legislation, by filibuster if necessary, but the article quotes supporters as saying they have more than enough votes to cut off a filibuster. 

Global Data Needed on Food Contaminated. The World Health Organization should create regional centers to rapidly detect and gather information about outbreaks of contaminated food, said Tom Billy, chairman of Codex Alimentarius. REUTERS reports that the regional centers would act as an "early warning system" for new bacteria and pathogens that make food unsafe. Billy is administrator of USDA's Food Safety and Inspection Service. 

Sheep May Be Killed to Prevent Disease. USDA wants to slaughter 365 sheep that remain under quarantine at two Vermont farms because they may have been exposed to mad cow disease, BLOOMBERG NEWS reports. The Washington Post reported that the sheep, imported from Belgium by two U.S. farmers and monitored by the government since 1996, haven't shown any signs of the disease, and the farmers refuse to sell them to USDA. The Food and Drug Administration in August said it is banning blood donations from U.S. residents who have spent more than six months in the United Kingdom over the past two decades.

November 15, 1999

China Announce WTO Accession Agreement. BLOOMBERG NEWS and REUTERS are reporting that the United States and China have agreed to the conditions under which China may gain entry to the World Trade Organization. The U.S. Embassy and the Ministry of Foreign Trade and Economic Cooperation reportedly made the announcement. It comes after six days of talks in Beijing between U.S. Trade Representative Charlene Barshefsky and Chinese officials. China is to reduce tariffs on agricultural and industrial goods and make it easier for U.S. banks, insurers and telecommunications companies to do business in China. The agreement does not mean China automatically becomes a WTO member; agreements with Canada and Europe are waiting to be finalized. The U.S. Embassy says China will reduce duties to an overall average of 17% from the current 22.1%, according to the news reports.

Dairy Interests Watch for Last-Minute Vote. Proponents and opponents of a controversial milk pricing scheme are watching to see if Congress gives final approval to the legislation and whether dairy compacts will get new life. The National Milk Producers Federation says efforts are being made to attach the milk pricing provisions to one of the remaining appropriations bills.

Members Think USDA Can Fund Price Reporting. Nine House and Senate members believe USDA has the authority and the means to implement the livestock price reporting program immediately. Agriculture Secretary Dan Glickman says he needs another $4.7 million to do it, but the members say he has the authority to find the money within USDA's discretionary budget.

The Right Crop, Right Place and Right Time. The "soybean saga" is the story of the right crop in the right place at the right times, says Worldwatch Institute President Lester Brown. And although the soybean originated in China, U.S. farmers have taken advantage of its potential, and Brown says China "is almost certain" to become more dependent on U.S. soybeans in the years ahead.

Hot Dogs, Sausage Recalled Over Disease Potential. A Hawaii firm is recalling about 300 pounds of hot dogs and a Louisiana firm is recalling about 1,270 pounds of smoked sausage because of fears the meat may be contaminated with listeria.

Deadline Nears for Crop Insurance Sign-Ups. Dec. 1 is the deadline for farmers to sign up for crop insurance and take advantage of a 25% premium discount on 2000 crop production. Dozens of insurance plans have sales closing dates between June 30-Dec. 1, says Risk Management Agency Administration Ken Ackerman. The discount is only for crops harvested in 2000.

Ag News Summaries

EU Nervous Over GMO Specifics at Seattle Talks. The European Union will invoke what it calls the "precautionary principle" at the World Trade Organization talks in Seattle, REUTERS reports. Under this principle, trade restrictions on health grounds need not be based on absolute proof of risk. It is aimed at allowing more latitude in regulating genetically modified foods. "The United States argues that if it accepts something on what it believes is a solid scientific basis, everyone else should accept it," says a senior EU agriculture official. "We say they can't force us to accept products on our market that we don't want to take, because we have reason to believe they may present health problems." 

Espy Denies Tyson's Influence. Former Agriculture Secretary Mike Espy denies that Tyson Foods used a company party he attended to influence new safety rules. Espy adds that the poultry industry knew at the time that the new regulations "were coming and coming fast." THE ASSOCIATED PRESS reports Espy testified Friday on behalf of a Tyson executive who was convicted of giving him illegal gifts, including the 1993 party, and now is seeking a new trial. 

U.S. Decision on Lifting EU Beef Ban Months Away. A U.S. decision on whether European beef now is safe enough to eat after the "mad cow disease" scare is still months away, REUTERS reports. Linda Detwiler, senior staff veterinarian at USDA's Animal and Plant Health Inspection Service, says USDA Is waiting for the Harvard School of Public Health to complete a risk assessment before making that decision. The assessment is due by late spring.
 

November 12, 1999

Senate Ag Committee Members Criticize FAPRI Report. Nine GOP and Democratic members of the Senate Agriculture Committee have written a "Dear Colleague" letter criticizing some of the conclusions in an analysis of crop insurance reforms. The letter comes one day after committee Chairman Richard Lugar (R-IN) wrote senators defending his stand on reform. The back-to-back developments illustrate the rift on the committee over the direction of crop insurance reform. Click here for the full text of the Lugar letter. Click here for the full text of the response from members of the Senate Agriculture Committee.

Durbin Introduces Egg Safety Legislation. Sen. Richard Durbin (D-IL) has introduced egg safety legislation and made another bid for giving all food safety responsibilities to one federal agency, citing inconsistencies in inspection procedures that currently "can mislead consumers."

USDA Issues Computer Model for Less Nitrogen Use. USDA's Agricultural Research Service has released a computer model designed to eliminate uncertainties that lead farmers to over-apply nitrogen as so-called "insurance fertilizer." It could save millions of dollars worldwide in increased crop yields, fewer soil test and less nitrogen use, researchers say.

‘Alternative Rotations' Replace Wheat Fallow Systems. Farmers are finding that "alternative rotations," based on findings of USDA's Agricultural Research Service scientists, can be 20-40% more profitable than the traditional wheat fallow system. A fallow system is one where farmers plant one crop every other year and leave the soil bare for a year to store water.

Ag News Summaries

USDA May Tighten E. Coli Controls. USDA may require meat packers to conduct more testing for E. coli, because research indicates it's more prevalent in cattle than previously thought, according to THE ASSOCIATED PRESS. That doesn't mean E. coli is more prevalent in the grocery store, but the research could give USDA the legal justification to require packers to do more to detect and destroy the bacteria, Thomas Billy, Food Safety and Inspection Service administrator, said in an interview. Scientists had estimated that about 1-3% of cattle were infected, but USDA researchers using new and more sensitive technology find infections occur at a much higher rate.

Italy Sees U.S. Election Impeding Trade Progress. Italian Prime Minister Massimo D'Alema says progress in the next round of international trade talks could be delayed by political uncertainty in the United States during the 2000 election cycle. D'Alema told a conference that trade divisions between the United States and European Union reflected the political rift between a Democrat administration and Republican Congress and the fact that Americans were entering a "delicate electoral period," REUTERS reports from Rome.

Korea Watches for E. Coli in U.S. Beef. South Korea's agriculture ministry says it will intensify tests on imported beef from the United States because of concerns it may be contaminated by the E. coli bacteria. REUTERS reports from Seoul that an official says the government is in "an emergency situation, and we will firm up our regular quarantine on imported beef until everything is clear." South Korea imported 83,600 tons of U.S. beef in 1997 and 48,960 tons in 1998. IN the first 10 months of this year, imports totaled 78,812 tons. 

U.S. Warns Time Short for China. U.S. Trade Representative Charlene Barshefsky says the United States "is discouraged that progress has not been made" in talks with China over that country's accession into the World Trade Organization. Talks Friday lasted little more than an hour, BLOOMBERG NEWS reports from Beijing. U.S. officials warn time is running out for China to agree to terms to join the WTO before the next trade round begins late this month in Seattle, WA.
 

November 11, 1999

Daschle Announces Farm Policy Hearings for January Senate Democratic Leader Tom Daschle (D-SD) says Republican failure to pass "fundamental" farm policy changes this year make it necessary to hold hearings early in 2000 on "urgently needed changes." Senate Agriculture Committee Chairman Richard Lugar (R-IN) also has refused "repeated requests" from Senate Democrats for farm policy hearings, says Daschle.

Kucinich, Metcalf Introduce GMO Labeling Bill. Reps. Dennis J. Kucinich (D-OH) and Jack Metcalf (R-WA) and a bipartisan group of 17 other members of the House have introduced legislation that requires labels on packaged food products that have been genetically engineered, altered or otherwise modified. Environmental and food safety advocates support it, but food processors say it's not necessary.

Cattle Group Petitions USDA for Referendum. Cattle producers who want a referendum held on whether to continue the beef checkoff program have delivered nearly 126,000 signatures to USDA supporting the vote. Ten percent, or 108,000 signatures, are required.

Winter Feed Inventories Could Suffer from Shipping Problems. USDA says feed inventories in the southeast may be insufficient to deal with major snowfalls this winter unless two railroads' operating performance is improved.

USDA Funds Pilot Program to Train Small Producers. USDA will fund a pilot program in Alabama, Georgia and Mississippi to train small and minority producers in export marketing. The goal is to train participants on the basics of international marketing to help them identify, research and take advantage of potential export opportunities.

Ag News Summaries

Dairy Issue Deal Is Sought. CONGRESSDAILY reports that House and Senate leaders are trying to forge a compromise between northeastern and southern legislators who advocate a milk pricing option that promises higher farm milk prices for many dairy farmers and who also want to extend the life and influence of dairy compacts and Midwest dairy interests who oppose both measures. But compromise efforts have been difficult because the Midwest members have no fall back position in case their strategy of stopping votes on the issues fail. 

Midwest Suffering Drought. Drought conditions now plague areas of the Midwest, BLOOMBERG NEWS reports, raising concern about dry growing conditions next year from Ohio to Nebraska. Drought status now characterizes most of Nebraska, Iowa and Illinois. Parts of Ohio, Indiana and Missouri are classified as having "severe" drought. Although arid weather enabled Midwest farmers to make quick work of harvesting corn and soybeans, fields need rain during late autumn and winter to replenish subsoil moisture that crops consume during the following growing season. The winter wheat crop already is showing signs of stress, the report says 

E. Coli May Affect Half U.S. Cattle. The E. coli bacteria is far more common in U.S. cattle than previously thought and may be found in half the animals that are slaughtered for ground beef, steaks and other cuts, REUTERS reports. The surprisingly high rate of E. coli 0157:H7, detected by more sensitive testing techniques used since September, has prompted USDA to take the unusual step of re-evaluating how it regulates the food-borne disease. 

Trade Deal May be Near. U.S. and Chinese negotiators have picked up the pace of discussions in Beijing, and optimism is growing that a deal to gain Chinese membership in the World Trade Organization may be in sight, THE WALL STREET JOURNAL reports. 

Senate Debates Merger Ban. The Senate began debate on a proposal by Sen. Paul Wellstone (D-MN) to place a moratorium on most agribusiness mergers. The amendment, which would exempt mergers among farmer cooperatives, will come to a vote next Wednesday. That vote could be among the last acts of the Congress during 1999, since separate negotiations appeared to be moving toward a final deal that would gain passage of remaining spending bills and send lawmakers home for the year.
 

November 10, 1999

ITC Won't Impose Duties on Canadian Cattle. The U.S. International Trade Commission has determined that the U.S. cattle industry is not materially injured by imports of live cattle from Canada. The decision is a victory for Canada. 

Lugar Questions the `Wisdom' of $6 Billion for Crop Insurance. Senate Agriculture Committee Chairman Richard Lugar (R-IN) questions "the wisdom of providing an additional $6 billion in subsidies to make crop insurance policies more attractive." Risk management is more than just crop insurance, he tells his colleagues. 

Regulators Conclude Derivatives Don't Need CEA Rules. The President's Working Group on Financial Markets concludes that "under many circumstances"financial derivatives trading by eligible swap participants should be excluded from any Commodities Exchange Act jurisdiction. 

U.S. at Odds with EU on EU WTO Objectives. The administrator of USDA's Foreign Agricultural Service says the European Union hasn't adequately defined its objectives yet for the upcoming Seattle round of the World Trade Organization talks, and the United States is dead set against at least one of those objectives.

Ag News Summaries

Hatch Will Hold Concentration Hearings. Senate Judiciary Chairman Orin Hatch (R-UT) will hold hearings next year on consolidation and concentration in the agribusiness and food industries, CONGRESSDAILY reports. Hatch plans to examine "whether existing antitrust statutes are being adequately enforced and whether any changes to federal law are warranted." There "appears to be a trend within the processing industry that may contribute to the difficulties our farmers have faced in recent years," says Hatch. 

U.S. Wants Speedier EU GMO Approval. USDA likely will ask the European Union to negotiate a quicker approval procedure for the sale of genetically modified foods, KYODO NEWS SERVICE reports. The United States thinks the EU may have delayed granting new approvals. If negotiations don't resolve the issue, the United States will urge the World Trade Organization to consider the issue at the upcoming round of international trade talks in Seattle. 

Monsanto, Novartis May Be Talking Merger. Monsanto and Norvartis AG may be involved in merger talks that would form a formidable force in world agriculture markets if such a union could pass antitrust scrutiny, REUTERS reports. In another article, BLOOMBERG NEWS reports that Monsanto has put itself up for sale and is in talks with potential bidders. Monsanto would not comment on the Novartis story, considering it "speculation." Novartis did not comment either. The BLOOMBERG story quotes sources saying Pfizer or Schering-Plough may be interested in Monsanto's drug unit, and DuPont had expressed an interest in the agricultural sector of the business.
 

November 9, 1999

Almost All Supplemental Payments Are Made. More than 96% has been paid of the $5.5 billion provided in the agricultural appropriations bill to supplement farmers who get transition payments under the 1996 farm law.

Congressional Trade Caucus' Goals Outlined. A group of 37 members of the House and Seante have created a trade caucus for farmers and ranchers. The caucus wants U.S. negotiators to pursue actively a positive agenda for agriculture at the international trade meetings in Seattle.

Clinton Willing to Be Patient with EU on GMOs. President Clinton will give the European Union time to study genetically modified foods with an eye toward acceptance of such foods in the marketplace, but the studies have to be done on a scientific basis.

Farm Land Conversion Hasn't Threatened Production. Land continues to be converted to developed uses, such as urban and suburban, but farm land conversion does not threaten the country's ability to produce food and fiber, says a new study from USDA.

Ag News Summaries

USDA Reminds Soybean Producers of Referendum. USDA reminds soybean producers that the chance to request a referendum on the soybean promotion and research order will end Nov. 16. A form to request a referendum may be obtained at local Farm Service Agency offices. To be eligible to request a referendum, a producer must have been engaged in growing soybeans and own or share in the ownership and risk of loss of the soybeans, between Jan. 1, 19997, and Nov., 16, 1999.

Cochran Pushes for Money for Espy. ROLL CALL reports that Sen. Thad Cochran (R-MS) wants taxpayers to cover former Agriculture Secretary Mike Espy's legal expenses that total about $1.3 million. Espy was acquitted last year following a four-year independent counsel investigation into whether he illegally accepted relatively small gifts from lobbyists. "I'm doing it because it's the right thing to do," said Cochran, a senior member of the Senate Appropriations Committee. "He was not guilty. This would be an appropriate response." ROLL CALL says House GOP leaders are "furious" over Cochran's request, vowing to block Espy from getting any funds even if he is a former House member and entitled to full reimbursement of legal funds under federal law. 

EU to Outline Beef Hormone Proposal Soon. The European Union will outline its idea for resolving the dispute with the United States over hormone-treated beef in "a few days," says French Agriculture Minister Jean Glavany. Glavany also says both sides have agreed that nations have a "sovereign" right to subsidize farmers. Glavany says he is not free to discuss details of the upcoming beef proposal, according to a REUTERS report. 

Clinton Will Not Support Merger Bill. President Clinton has not endorsed legislation calling for a temporary halt on mergers and acquisitions within agribusiness, says Agriculture Secretary Dan Glickman. Sen. Paul Wellstone (D-MN) has offered legislation to declare an 18-month moratorium on agribusiness mergers worth more than $10 million. REUTERS reports Glickman said the administration had not taken "a formal position. I think the Justice Department has state that they believe they have the legal tools in hand to deal with problems." The Senate is expected to debate the amendment today.
 

November 8, 1999

Lugar Promises Crop Insurance Action by March 8. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has promised to report a crop insurance-risk management bill no later than March 8. However, he left the door open for quicker action by saying the committee will mark up a bill "as soon as there is agreement on consensus legislation."

Senate to Debate Agribusiness Merger Moratorium. The Senate is scheduled to debate and vote early this week on a moratorium on certain types of agribusiness mergers. The legislation is opposed by nine organizations representing food processors.

U.S. Pork Companies Will Export Pork to Japan. Nearly 100 metric tons a month of U.S. premium pork center loins and other processed pork products will be sold in Japan under an agreement between two U.S. companies and Nichimen Corporation of Japan. The products will be used in restaurants and at retail.

Arkansas Ag Co-op Hailed as Economic Success. President Clinton toured the Hermitage Tomato Cooperative in Hermitage, AR, and pronounced it a model of economic success in a struggling sector of the nation's rural economy. Faced with bankruptcy in 1996, the co-op was rescued in part by $4 million in loan guarantees from USDA.

Ag News Summaries

Clinton Could Support Easing Cuban Sanctions. President Clinton says he could support easing the 37-year-old trade embargo against Cuba under the right circumstances, REUTERS reports, but he also accused Fidel Castro of using the sanctions as an excuse for Cuba's economic problems. Clinton told reporters Friday he had "bent over backwards" to try to reach out to Cuba and its leaders. Still, the President said he could favor a plan "under the right circumstances"similar to legislation considered recently by Congress to exempt food and medicine from U.S. embargoes "but under emergencies." 

EU Official Says Trade Round Differences Can Be Resolved.European Union Trade Commissioner Pascal Lamy says differences among World Trade Organization members over an agenda for a new round of international trade talks can be resolved, REUTERS reports. WTO members meet in Seattle late this month and early December to launch the next round, but differences over politically sensitive issues including agriculture remain major barriers to an agreement. "There is a divergence of views between TWO members on the nature of the round," Lamy said in a speech. "I am today convinced that they are not insurmountable." 

WTO Chief Hints New Round Could Be in Danger. World Trade Organization chief Mike Moore warns negotiators that the launch of a new round of free trade talks could be under threat. In a letter made available Friday, Moore says some three months of discussions in Geneva became bogged down in "a vicious circle" and show few signs of clearing the ground for key ministers for the Seattle meetings, REUTERS reports. "The very short time remaining before the Seattle conference, and the magnitude of the continuing divergences in positions, means that the preparatory process is at a critical point," says Moore. 

Clinton Pledges Farm Program Overhaul. President Clinton pledged Friday to overhaul farm policy to help farmers when commodity prices collapse and to push for new export markets during trade talks in Seattle. BLOOMBERG NEWS reports Clinton told farm broadcasters, "In the short run, we've got to fix the farm bill and deal with emergencies. In the longer run, we've got to have more markets." Clinton urged Congress to revise the 1996 farm law to restore government payments to farmers when prices decline below certain levels. Agriculture Secretary Dan Glickman has promised a detailed administration proposal next year, the article says.
 

November 5, 1999

House Members Urge Senate to Pass Crop Insurance Bill. A group of House members wants the Senate to get busy and agree on a crop insurance reform bill before the end of the current session. Some of their criticism was directed at Senate Agriculture Committee Chairman Richard Lugar (R-IN), who has a bill of his own he's trying to sell to members of his panel.

Combest Wants Clinton Proposals on Farm Policy. House Agriculture Committee Chairman Larry Combest (R-TX) wants President Clinton to spell out his "long-promised proposals" on federal farm policy. In hearings next year, says Combest, he expects "every witness to present specific, detailed policy proposals," and he invited Agriculture Secretary Dan Glickman to testify.

Pork Producers Disappointed that Duty Lifted on Canada. The National Pork Producers Council is disappointed "and surprised" that the Commerce Department will end the countervailing duty on live hog imports from Canada on Jan. 1. With hog prices still at historically low levels, revoking the order now "could not come at a worse time," says NPPC.

Justice Demands Conditions to New Holland-Case Merger. The Justice Department says New Holland must sell some businesses to get Justice approval for its $4.3 billion acquisition of Case Corporation. Case also must sell its interest in a hay tool business.

Judge Orders USDA to Halt Release of Private Information. A federal judge has ordered USDA not to release private information about farmers and ranchers who have used a predator control device to protect livestock. An animals rights group had asked USDA for the names.

Ag News Summaries

Farmers' Benefit Included in Trade Bill. The Senate-passed African trade bill would allow farmers to qualify for up to $10,000 a year from the Trade Adjustment Assistance Program if they show imports contributed "importantly" to a decline in U.S. commodity prices, THE ASSOCIATED PRESS reports. Pork, beef, cotton and some types of wheat qualify under the Senate bill. The House has no similar provision in its version of the trade bill. Payments would be triggered when commodity prices decline 20% below the average price of the previous five years; USDA would decide if imports were an important factor in the decline.

Canada Increases Aid to Farmers. Canada will provide C$170 million in emergency aid to farmers who have been hit by low prices and in some cases by flooding, REUTERS reports form Ottawa. The money will be added to the C$900 million dedicated previously to the two-year Agricultural Income Disaster Assistance (AIDA) Program. Saskatchewan Premier Roy Romanow said the federal government "completely missed the mark" with the announcement. Romanow had asked for C$1 billion in new aid for his province alone. 

U.S. `Hypocrisy' May Undermine WTO Role. As U.S. trade negotiators prepare for international trade talks later this month in Seattle, WA, critics are charging the United States with hypocrisy over its free trade position. The Clinton Administration has used anti-dumping laws and other retaliatory measures in steel, lamb and other import disputes and has approved large financial assistance packages for farmers. Daniel Griswold, trade policy executive at the Washington-based Cato Institute, says that constitutes "a whiff of hypocrisy" about the U.S. position. REUTERS reports that critics say U.S. anti-dumping actions and $14.6 billion in farmer aid were at odds with President Clinton's stated free-market principles ahead of global trade talks.
 

November 4, 1999

USDA Will Loan Money for Farm Storage. USDA is working on a farm storage facility loan program that will provide farmers with low-cost loans to construct on-farm storage. It probably will be several weeks, however, before regulations are announced on the program.

Little Advantage Seen Had ‘90 Farm Law Applied This Year. A co-director of the Missouri based Food and Agricultural Policy Research Institute says any agricultural policy would have been under pressure during the last four years. Had the 1990 farm law been in effect, he adds, prices would have been higher by a few percentage points this year, but set-aside acreage and increasing government-held grain stocks would be the reason.

Environmentalists Plan to Challenge WTO. When the World Trade Organization meets in Seattle, WA, late this month, environmentalists will be on hand, demonstrating against WTO policies on chemicals and food additives as well as food safety and labeling.

Glickman Challenges Consumers to Eat Better. Agriculture Secretary Dan Glickman says consumers must take responsibility for their own health, improve their diets and increase physical activity. USDA will take several actions designed to help people change their dietary behavior.

Peanut Crop Survives Dry Weather, Floods. There should be no shortage of peanuts in the coming months, reports REUTERS from Chicago. Despite a dry August in southern states and floods in North Carolina, an abundant crop coupled with supplies from last year's crop still in storage mean growers will see low prices. Last month, USDA estimated production at 3.82 billion pounds compared with 3.96 billion last year. As of Sept. 30, USDA reported 1.642 billion pounds were in storage from last year compared with 1.018 billion at the same time a year ago.

Altered Corn Safe for Some Monarchs. Genetically altered corn may not pose as widespread a threat to monarch butterflies as previously thought, THE ASSOCIATED PRESS reports. But current research on Bt corn's toxicity is not yet extensive enough to determine any conclusive impact on the monarch, says Richard Hellmich, USDA researcher at Iowa State. Scientists Tuesday released 17 separate studies in response to a May report by Cornell University that linked the deaths of monarch larvae with pollen from Bt corn. The research presented shows that while one Bt corn variety could endanger the butterfly, other types do not.

Barshefsky Faces Tough Odds at WTO. U.S. Trade Representative Charlene Barshefsky has what could be an impossible job, reports REUTERS, and that is to sell the Clinton Administration's agenda for a new round of global trade talks to skeptical trading partners, an increasingly protectionist U.S. public and a hostile Congress. It is far from certain that Barshefsky can achieve her objectives and launch a negotiation focused on the thorny issue of liberalizing trade in agricultural products. If she succeeds, she will leave a lasting mark on U.S. trade policy, give Clinton's legacy a much-needed boost and provide U.S. companies with the expanded access they seek to world markets. If she fails, it could fuel a backlash against free trade in Congress and put Vice President Gore on a collision course with labor, environmentalists and other WTO opponents ahead of the 2000 elections.
 

November 3, 1999

‘Conclave' Planned to Heal Fractured Dairy Industry. The National Milk Producers Federation will begin a process early next year designed to develop consensus among dairy producers who have been divided sharply over policy and economic issues. "We have too little political capital left to squander it on endless debates among producers," says NMPF CEO Jerry Kozak.

Beef Demand Shows Improvement After 20-Year Decline. Consumer spending on beef for January-September improved 4% to $36.7 billion over a year earlier. That could indicate beef demand is stabilizing for the first time in more than 20 years, say beef industry officials.

Sugar Farmers Applaud USDA Import Quota. U.S. sugar farmers support USDA's announced tariff-rate quota of 1.501 million short tons of raw sugar imports in fiscal year 2000. The American Sugar Alliance says producer prices for raw sugar have declined nearly 15% in two months and now are at the lowest level in 14 years; the TRQ should help prices improve.

ABA Forms special Center for Farm Bank Assets. The American Bankers Association has created the Center for Agricultural and Rural Banking to improve bankers' ability to provide customers with credit and agricultural lending expertise.

Ag News Summaries

Step 2 Payments Begin. Restored in this year's appropriation bill, the Step 2 export program for cotton will make payments retroactive to October 1, USDA announced. The Department announced payment rates in a news release that can be found at http://www.fsa.usda.gov/pas/news/releases/1999/11/1639.htm

Senate Votes Trade Aid for Farmers. On a voice vote, the Senate passed an amendment that would make Trade Adjustment Assistance available to farmers in some circumstances. The TAA up to now has benefitted workers displaced by import surges.

Crop Insurance Reform at Senate Impasse. Farm-state senators are at an impasse that will prevent approval of crop insurance reform legislation this year, REUTERS quotes Sen. Larry Craig (R-ID) as saying. Senators met Tuesday to discuss the outlook for action. Senators have been unable to agree on whether to beef up the program or send checks to farmers to use for a variety of risk management activities. "We're just not there yet," says Craig.

Blair Urged to Support Organic Farming. British Prime Minister Tony Blair needs to lead efforts to expand organic farming in the United Kingdom, according to a leading environmental campaigner. REUTERS reports from London that funds to encourage organic farming are limited, so the impetus has to come from the top. "It all depends on what political priority is put on organic agriculture and that ultimately is in the hands of the prime minister," says Patrick Holden, director of the Soil Association.

November 2, 1999

Wisconsin Court Expands Farm Work Regs. A Wisconsin Circuit Court ruling expands federal work place regulations to small farms. A jury found that a small dairy farmer in Wisconsin was strictly responsible for the plaintiff's injuries suffered during work on the farm. The judge had applied a federal requirement from which small farms usually are exempt.

Some Rural Areas Work to Get Adequate Telecommunications. The high-speed, broadband infrastructure needed to take advantage of telecommunications opportunities is not available in many rural communities. To overcome the problem, some local leaders are using a planning process that helps identify which strategies are most likely to meet top-priority goals and attract new telecommunications investments.

FMC, Devgen Collaborate on Research. FMC Corporation's Agricultural Products Group and Devgen will initiate a collaborative research effort to discover novel pesticides. Devgen is a privately held drug and drug target discovery company based in Ghent, Belgium.

Canada Allows U.S. Expanded Ag Trade Opportunities. Canadian officials have agreed to expand the number of states participating in the in-transit rail program that allows U.S. producers to ship grain headed to other export markets through Canada under a certificate of origin rather than a phytosanitary certificate. U.S. producers also will be able to export grain from the port of Vancouver for the first time.

Ag News Summaries
Senate Votes on Trade Bill Today. The Senate today will again attempt to cut off debate on a bill to expand trade with Africa. Among Senators who want to offer unrelated amendments, Sen. Paul Wellstone (D-MN) may propose an 18-month moratorium on large agribusiness mergers. If the motion to cut off debate passes, Wellstone will probably be unable to offer the amendment because it is not directly related to the subject matter of the trade bill.

Sugar Quota Announcement Possible Today. Administration sources said the long-awaited 1999/2000 sugar import quota could be announced today. Officials have predicted the announcement several times in recent weeks and been proven wrong, however. Sources said White House chief of staff John Podesta is pressing for an announcement that would justify non-recourse loans to sugar processors. Such loans tend to keep a floor under prices, compared to "recourse" loans which must be repaid. Domestic sugar prices have fallen in recent weeks to the lowest levels in some time.

US Will End Duty on Canadian Hog Imports. The U.S. Commerce Department has decided to end a 14-year countervailing duty order on live hog shipments from Canada, effective Jan. 1, REUTERS reports. The decision comes as a disappointment to the U.S. hog industry which argued in favor of keeping the order at an International Trade Commission hearing in September. As part of a series of countervailing duty order sunset reviews required by the 1994 Uruguay round, Commerce decided Canada no longer had any hog subsidies that required offsetting U.S. action.

China's Farm Tariffs Seen as WTO Entry Problem. China's attempt to join the World Trade Organization will be plagued by tough negotiations over its tariffs on agricultural imports, REUTERS reports from Bangkok. "Tariffs are still the difficult point in the negotiations," said Guoqian Cheng, director of the Centre for International Agricultural Trade at the Chinese Academy of Agricultural Sciences. Analysts say the average tariff on farm foodstuff imports would have to be reduced to about 17% from 40% now over a period of five years.

UK Hints at Concessions on French Beef Ban. Britain has signaled it would listen with an open mind to measures France required before agreeing to import British beef again. REUTERS reports from London that a spokesman for Prime Minister tony Blair says, "The ball is very much in France's court. But we will listen to what the French have to say and behave fairly and reasonably." Last week, the European Commission's top 16 scientists unanimously rejected French evidence backing its unilateral ban on British beef imports on health grounds after the made cow disease scare.

November 1, 1999

Corn Growers Urge End to `Terminator' Technology. The American Corn Growers Association has urged Agriculture Secretary Dan Glickman to advocate abandoning research and development of the "terminator" technology that renders second generation seed sterile.

Farmers Must Produce 40% More Grain. A new report says farmers worldwide must produce 40% more rice, wheat and other grains to meet the growing population between now and 2020. Sixty percent of the developing world's cereal imports likely will have to come from the United States, the report says.

Plant Components May Help Human Health. A new report says a number of "secondary compounds" found in plants could help reduce chronic or degenerative diseases in humans. But scientists need better tools to develop these components to enhance human health.

Barrett to Retire from House Next Year. Rep. Bill Barrett (R-NE) will not seek re-election next year. He will have served five terms in the House. Barrett is the vice chair of the House Agriculture Committee and chairs the Subcommittee on General Farm Commodities, Resource Conservation and Credit.

Ag News Summaries

Ag Negotiator at USTR Sought by Bill. A bill to amend the Trade Act of 1974 to establish a chief agricultural negotiator at the U.S. trade representative's office has been introduced by Rep. James McCrery (R-LA). The bill has more than 20 co-sponsors and was referred to the House Ways and Means Committee. An agricultural trade negotiator at USTR has been supported by several farm organizations and other agricultural interests.

Purina Files for Protection. Purina Mills Inc., the nation's leading animal feed producer, has filed for bankruptcy protection as it seeks to restructure debt from a failed takeover and reduced feed sales from declining livestock prices, THE ASSOCIATED PRESS reports. Purina Mills Inc., is a 105-year-old company based in St. Louis, MO. It announced it will reorganize under Chapter 11 of the federal bankruptcy code and continue to operate. Officials say livestock prices, particularly in the hog industry, had hurt company sales of livestock feed as farmers reduced herds. Purina Mills had 1998 sales of nearly $1 billion.

Regulators Want Derivatives Unregulated. Regulators will urge Congress this week to exclude form commodities laws the complex financial contracts known as derivatives, BLOOMBERG NEWS reports. The Treasury Department, Securities and Exchange Commission, Federal Reserve Board and Commodity Futures Trading Commission were asked by Congress a year ago to recommend what role the government should play in monitoring the mostly unregulated derivatives. More and more companies are using derivatives to speculate or to hedge risk. BLOOMBERG quotes officials who have seen an Oct. 24 draft of the report saying that institutions and rich investors who trade derivatives don't need new protections.

Farm Relief May Cloud WTO Talks. U.S. officials may face an unpleasant choice: widen the loopholes in world trade rules for large U.S. farm subsidies or risk running afoul of international spending limits, REUTERS reports. The outlays, contained in the fiscal 2000 agricultural appropriations bill, have attracted criticism from Australia and the European Union. The article quotes Tim Galvin, Foreign Agricultural Service chief, saying there is "plenty of room" in the "amber box" category. Amber box spending totals $14 billion and the United States has an amber box ceiling of $19 billion.

USDA Launches Biotech Site. USDA has a new Internet web page on biotechnology issues. The new site is at http://www.aphis.usda.gov/biotechnology/. The new site offers answers to some of the most frequently asked biotechnology questions along with recent speeches by Agriculture Secretary Dan Glickman on the subject. Pages on biotechnology and trade, regulations and research are included. It will be updated regularly as new reports and information are released by USDA.