November 30, 2000

Glickman Calls for Biotech Comment.  Agriculture Secretary Dan Glickman Wednesday asked the public to comment on what, if any, additional steps USDA should take to facilitate the marketing of biotech crops and help segregate these products from non-biotech products. A notice was to be published in today's Federal Register inviting public comment on how USDA should help facilitate the marketing of grains, oilseeds, fruits, vegetables and nuts in today's marketplace that includes biotech and non-biotech crops. 

Corn Growers Fault USDA on River Improvements.  The National Corn Growers Association (NCGA) publicly chastised USDA Wednesday for inactivity on improving the transportation infrastructure on the upper Mississippi River. Addressing the USDA's Agricultural Transportation Summit in St. Louis, Tim Burrack, a corn grower from Arlington, IA, and a member of the NCGA Production & Stewardship Action Team, rebuked the USDA for its failure to fulfill commitments made two years ago.

News Summaries 

Biotech Licensing Guidelines Coming.  BLOOMBERG NEWS reports that Agriculture Secretary Dan Glickman soon will draft guidelines for licensing technology that genetically engineers crops to make plants' seeds sterile, according to a department official. Keith Pitts, a special assistant to Glickman, said the secretary wants to outline terms and conditions on how the government will license the technology before he leaves office in January. USDA shares a patent on the so- called ``terminator gene'' with U.S. cotton-seed maker Delta & Pine Land Co. The gene, which will prevent farmers from replanting seeds, is designed to protect patented technology developed by biotechnology companies. Despite controversy over the technology, the government and Scott, Mississippi-based Delta & Pine say they will sell the technology. The BLOOMBERG article says the leading producer of genetically engineered crops, St. Louis-based Monsanto Co., has said it won't commercialize the technology because of opposition from groups such as Rockefeller Foundation. The charity, which fights poverty and hunger worldwide, opposes use of the terminator gene, contending it will hurt farmers in developing countries who regularly save and replant seeds from their crops. 

Kentucky Looks to New Beef Facility.  THE ASSOCIATED PRESS reports that University of Kentucky officials are looking to a new beef research facility to enhance the state's growing cattle industry and perhaps strengthen the agricultural base, weakened by the decline of tobacco production. The 700-acre Animal Research Center Beef Unit in Woodford County includes an intensive research center complete with surgical suite and laboratory space, a nutrition center and feed-mixing facility that can provide nearly 2,200 tons of silage capacity, and 32 pastures with high endophyte grasses, mixed grasses and clover for grazing studies. "This facility will have a tremendously positive impact on Kentucky agriculture," said M. Scott Smith, associate dean for research in the school's College of Agriculture. Nationally, cattle-raising is the single largest source of farm cash receipts. In Kentucky, beef cattle production accounts for more than $600 million in farm income and adds about three times that amount to the state's economy each year. 

Brazil Adds U.S. Wheat to Import List.  REUTERS reports that Brazil has added two more types of wheat eligible for import from the United States. That could mean sales of more than 500,000 tonnes a year, the Agriculture Ministry said on Wednesday. "The phytosanitary prerequisites for imports of red wheat are approved -- soft winter (SRW), hard red spring (HRS) and hard red winter (HRW) from the United States,'' a ministry spokeswoman told the news agency. Brazil had banned soft wheat imports from the U.S. for three years but previously used to buy around 600,000 tonnes a year. Despite being South America's agricultural leader, Brazil currently ranks as the world's largest importer of wheat and is likely to buy some 7.7 million tons in the 2000-01 marketing period. In recent years, the United States has been able to ship only hard red winter wheat to Brazil because of Brazilian concerns about TCK smut, a fungus often found in the Pacific Northwest crop.
 

November 29, 2000

USDA Issues Rule on Livestock Price Reporting.  Agriculture Secretary Dan Glickman Tuesday announced a new rule that requires large cattle, swine and lamb packers and importers to provide contract information, including pricing, for public dissemination. The new reporting should provide information on 80-95% of all cattle, boxed beef, slaughter hog, sheep, lamb meat, and imported lamb meat transactions. 

USDA Issues Advice on Safe Holiday Food Shipping.  USDA officials have issued safety tips on food gifts for the holidays. About $5.8 billion in food gifts will be ordered from catalogs and the Internet, most of which will reach its destination in a safe condition. However, if mail order foods are mishandled, many recipients could also be subject to a food-borne illness. 

U.S., EU Again Differ, Now on Global Warming Solutions.  Two weeks of negotiations among 160 countries at the recent United Nations global climate change summit in The Hague concluded Sunday with no agreement on how to tackle the problem. Frustrated negotiators vowed to reconvene in a few months to try again. Many blame the U.S. proposal for the breakdown in the talks. 

Pork Board Adopts 2001 Industry Budget.  The National Pork Board has approved a spending budget of $51.4 million for checkoff-funded programs in fiscal year 2001. The action came during the board's fall meeting in Des Moines. Pork checkoff funds research, promotion and education programs that are designed to build a future and create opportunities for pork producers. 

Corn Growers Call for EPA 'Sound Science' Decision.  The National Corn Growers Association is urging the Environmental Protection Agency to make a decision based on "sound science" on whether StarLink corn should be used in food. The EPA Scientific Advisory Panel held a hearing Tuesday to discuss Aventis' application for a temporary exemption for StarLink in food.

News Summaries 

AMS Clarifies Phone Numbers in Pork Balloting.  USDA's Agricultural Marketing Service (AMS) announced that it will issue a clarification in a Federal Register notice stating that the ballots of persons voting in the pork referendum will not be invalidated solely because voters did not include their telephone numbers on the registration and certification form. Kenneth C. Clayton, acting administrator of AMS, said the requirement that a person's telephone number be on the registration and certification form for in-person voting, absentee voting, and importer voting was an administrative convenience for Farm Service Agency county office employees in case they had to contact voters. "It was never AMS' intent to invalidate an otherwise complete ballot because of a missing telephone number," said Clayton. FSA county offices will count the ballots today. The notice was published in the Federal Register on Tuesday. 

FSA Wants Peanut Comments.  Farm Service Agency (FSA) Administrator Keith Kelly says FSA is seeking comments on the quota determination for peanuts. Comments must be submitted by Dec.11 to the Director, Tobacco and Peanuts Division, FSA, United States Department of Agriculture, STOP 0514, 1400 Independence Avenue, S.W., Washington, DC 20250-0514. The Secretary of Agriculture must announce the 2001 national poundage quota for peanuts by Dec. 15. USDA expects the 2001 national poundage quota for peanuts to range between 1.18-1.204 million short tons. The 2000 quota was 1.18 million short tons. The quota formula specified in the Agricultural Adjustment Act of 1938, as amended by the Federal Agriculture Improvement and Reform Act (the 1996 Act), requires that the national poundage quota be established at a level that is equal to the quantity of peanuts (in tons) that the Secretary estimates will be devoted to domestic edible and related uses. Also, the 1996 Act removed seed peanuts from the formula calculation of the national poundage quota. The potential increase in the national poundage quota reflects anticipated increased use of peanuts and peanut products during the August 2001 through July 2002 marketing year. The 2001 crop national poundage quota will be allocated to each state, based on the state's share of the 2000-crop quota. All written submissions will be made available for public inspection from 8:15 a.m. to 4:45 p.m., Monday through Friday, except holidays, in Room 5750-South Building, 1400 Independence Avenue, S.W., Washington, DC 20250-0514. For further information contact Kenneth M. Robison, Tobacco and Peanuts Division, FSA, USDA, STOP 0514, 1400 Independence Avenue, S.W., Washington, DC 20250-0514, telephone: 202-720-9255, E-mail: Kenneth_Robison@wdc.fsa.usda.gov. 

Cost-Share for AGR Announced.  Risk Management Agency (RMA) Administrator Ken Ackerman announced the 2001 Cost-Share Program for the pilot Adjusted Gross Revenue (AGR) program in 11 under-served states located in the Northeast, as authorized by Section 133(b) of the Agricultural Risk Protection Act of 2000 (2000 Act). "Because producers in the Northeast tend toward multiple, nontraditional crops, many haven't been able to take advantage of crop insurance programs," Ackerman said. "The AGR Cost-Share Program will provide added incentive to these producers to protect their income by purchasing the new pilot AGR insurance policy." AGR is the first whole farm revenue crop insurance product available to U.S. farmers and the first insurance that protects revenue from livestock--up to 35% of the expected allowable revenue total. AGR provides an incentive for diversification because the more diversified the producer's farming operation, the higher the coverage levels that are available. Since AGR is a new program concept, the cost-share will provide farmers with an incentive to try the program in 2001 at a very low cost to determine how well it meets their needs. Coverage is based on a producer's historic Schedule F tax form information rather than production to determine coverage. To be eligible for the program, producers must meet the qualifications for AGR insurance and apply for new or modified coverage under AGR by Jan. 31, 2001. 

Japan Queries on Corn Illnesses.  REUTERS reports from Tokyo that Japan's Health Ministry is seeking more information from U.S. officials about some Americans who claim they became ill after eating food containing gene-spliced StarLink corn. "We are seeking more details on this news from the U.S. government, including the U.S. embassy in Tokyo and the U.S. Food and Drug Administration," the ministry said in a statement. A REUTERS report, quoting U.S. federal officials as saying 44 Americans had complained they became ill after eating food containing StarLink but that investigators may never be able to pinpoint whether the genetically modified maize was to blame. The claims of illness were reported by the U.S. Food and Drug Administration (FDA) to a U.S. panel looking into potential allergies caused by StarLink. 

Little Corn Affected by Ban Lifting.  Only about 7 million bushels of the 2000 U.S. corn crop will be affected if the Environmental Protection Agency lifts its ban on StarLink bio-corn for use in the human food supply, a USDA official said on Tuesday. REUTERS reports that Steve Gill, an official with the USDA's Farm Service Agency, said the 7 million bushels represent all varieties of corn that left U.S. farms this year and are at risk of being contaminated with small amounts of StarLink corn. The article notes that although the amount of StarLink corn grown is less than 1% of total U.S. corn, some of the crop was accidentally commingled with other varieties by farmers, grain elevators, shippers and foodmakers. That led to the recall of some 300 kinds of chips, taco shells, corn meal and other foods during the past two months. Gill, who compiles a weekly report on U.S. corn in storage, said a total of 82.6 million bushels of American corn was "at risk" from StarLink contamination this year. Of that amount, 75.6 million bushels can be easily accounted for in storage on U.S. farms. 

Australia Seeks FTA with U.S.  THE WALL STREET JOURNAL reports that Australia wants to negotiate a free trade agreement with the United States once the U.S. presidential election is formalized. A spokesman for Trade Minister Mark Vaile said Wednesday the U.S. elections meant "we haven't been able to rush out and get the deal signed with the U.S. But now the election is over. We can get on and talk to whoever is in power seriously about this proposal," which was floated by President Bill Clinton's administration, he said. Asked about a timetable for negotiations or an agreement, he replied, "As soon as possible." The United States is Australia's second-largest trading partner with two-way trade for the fiscal year that ended June 30, of 32.76 billion Australian dollars (US$17.27 billion). Australian exports totaled US$9.60 billion, with big ticket items being beef, crude oil, and a range of metals and manufactured products.
 

November 28, 2000

Harkin Calls for StarLink Compensation.  Sen. Tom Harkin (D-IA) called on the White House and other executive branch departments and agencies to "do all that they can" to make sure farmers, grain elevators and merchants, the food industry and other "potentially affected parties" are compensated for any economic losses from StarLink corn. 

Monsanto CEO Outlines New Biotech 'Pledge.'  Monsanto Company President and Chief Executive Officer Hendrik A. Verfaillie Monday outlined what he called the "New Monsanto Pledge" -- principles outlining the company's policy for the development, use and stewardship of products from new agricultural technologies. It includes five areas: dialogue, transparency, respect, sharing and delivering benefits. 

AFBF Lists Congressional Accomplishments.  Bob Stallman, president of the American Farm Bureau Federation, believes the 106th Congress accomplished legislative goals that involve "immediate quick fixes" as well as other achievements that "offer hope for improvement and stability."

News Summaries 

Supreme Court to Hear Mushroom Case.  The U.S. Supreme Court announced yesterday that it will consider a potentially far-reaching case involving the constitutionality of the federal research and promotion program for mushrooms. The court accepted the case – United Foods vs. United States – at the urging of the Agriculture Department, which administers the mushroom and other checkoff programs. The Sixth Circuit Court of Appeals ruled that mandatory assessments for mushroom advertising and promotion violate First Amendment free-speech rights. The lower court decision is in tension with a 1997 Supreme Court ruling which found that mandatory promotion assessments did not violate free speech guarantees. But in the current mushroom case, an appeals court said the two cases were different, asserting that the tree fruit promotion programs in the earlier case were part of a broader industry regulatory scheme, and the mushroom program was not. USDA strongly disagreed with the ruling and urged the Justice Department to launch its appeal to the high court. 

Secretary Glickman Will Continue to Serve if Asked.  Yesterday's edition of the NATIONAL JOURNAL'S CONGRESS DAILY reports that Ag Secretary Glickman would not "rule out" a job in a Gore administration, if he were asked to stay on as Secretary of Agriculture. He also stated that "I hope he calls somebody else first" and "it is time for somebody else to come in." The news service reported that Secretary Glickman believed that his successor should not be someone whose sole focus was production agriculture, and should be somebody with a broad, "multifunctional, multidisciplinary" view. 

U.S. Safe from Mad Cow Disease.  Agriculture Secretary Dan Glickman said Monday USDA officials are monitoring the mad cow disease scare in Europe, REUTERS reports. He reiterated that the U.S. food supply was safe and would not be affected by the outbreak. Glickman told REUTERS in an interview that the department was closely monitoring the mad cow outbreak in Europe but has not sent any USDA officials to assess the situation. "We've already taken regulatory steps in terms of feed use for animals," Glickman said. The European Union has been shaken by fresh outbreaks of bovine spongiform encephalopathy (BSE) -- better known as mad cow disease -- in Germany and Spain over the weekend. Beef sales in France have declined almost by half since major supermarkets said last month they might have sold potentially tainted meat. 

Voluntary Labeling Should Increase.  REUTERS reports that regardless of how the StarLink bio-corn safety debate develops, more U.S. food companies likely will voluntarily label products from biotechnology to provide consumers more information. Labeling is a key issue in the battle between U.S. environmentalists and agribusiness over regulation of bio-foods. Many European and Asian nations already require labels on foods containing genetically modified corn, soybeans, tomatoes and other crops, the article notes, but U.S. industry groups oppose mandatory labeling in the United States because of the cost and the worry that consumers may interpret it as a warning that a food is less safe. 

Glickman Calls for More Farmer Supporting 'Tools.'  USDA needs more tools to reduce price-depressing crop surpluses that have cost U.S. taxpayers billions of dollars over the past few years, U.S. Agriculture Secretary Dan Glickman said on Monday, according to REUTERS. "When you're dealing with very, very large surpluses, I think the Secretary of Agriculture needs a variety of tools," Glickman told the news agency. Congress went too far in the 1996 farm bill when it restricted the agriculture department's ability to control supplies, he said. Until 1996, the agriculture secretary had authority to order farmers to idle a percentage of their corn, wheat, cotton and other acreage in order to qualify for government farm program payments. "We don't want to just pick up what we used to do," Glickman said. "Farmers like the idea of planting flexibility and we don't want the government micromanaging every farmer's planting decision." But Congress and the next administration should consider expanding conservation programs to idle some farm land, Glickman said. 

Scientists Studying Biotech Corn Safety.  REUTERS reports that a panel of independent physicians, biologists and other scientists is to begin the process today to decide whether StarLink corn is safe enough to allow in the human food supply. The article says at stake is "the credibility of U.S. regulations governing gene-spliced foods as well as tens of millions of dollars in legal liability for StarLink maker Aventis SA," according to food industry experts. Following a one-day public meeting, the 16-member science panel appointed by the Environmental Protection Agency has until Friday to give its recommendation to the agency. 

Glickman: 'Gimme a Break.'  Agriculture Secretary Dan Glickman Monday "hotly defended" an increase in U.S. food aid in recent years and said the European Union should be "embarrassed" for criticizing the action. "I'd say to the Europeans, 'Give me a break,"' Glickman told REUTERS. "The fact is our food assistance has prevented famine from occurring in the Horn of Africa and that's been acknowledged by the United Nation's World Food Program." The EU has launched a series of attacks on U.S. food aid programs in recent months in an apparent effort to shore up its negotiating position in world farm trade talks, according to REUTERS. Last Thursday, while the United States was celebrating Thanksgiving, the EU's executive body accused the U.S. of abusing its food aid programs by dumping surplus crops on poor nations to keep prices high at home. In an interview, Glickman sharply rejected that criticism and said he had no intention of recommending that the United States scale back its future food assistance. "We're not dumping anything. We're providing food assistance to people who need it, who are starving, who are hungry," Glickman said. 

U.S. Farm Exports Increase.  BLOOMBERG NEWS reports that U.S. farm exports increased in the recent fiscal year for the first time since 1996, much of the increase from an unexpected demand for meat, a statistician at the U.S. Department of Agriculture said. An estimated $50.9 billion in U.S. farm goods was sold for export in the year to Sept. 30, up $400 million from what the government had forecast in August, said Ernest Carter, a USDA statistician who helps compile the figures. Sales increased 3.7% from a five-year low of $49.1 billion in fiscal 1999.
 

November 27, 2000

Farm Worker Housing Grants Announced.  Agriculture Secretary Dan Glickman says $1.35 million in grants will be provided to encourage the development of housing for farm workers. "There is a desperate need for housing for farmworkers in many parts of the country, both permanent housing and accommodations for seasonal workers," said Glickman. 

Seed Drill Attachment Aids No-Till Planting.  A new attachment designed by Agricultural Research Service scientists can improve performance of seed drills for growers who want to use no-till planting techniques. No-till--placing seeds into soil through the leftover plant stalks, known as crop residue-- improves water use and reduces erosion. But even drills designed for no-till are not without problems. 

USDA, NASDA Join in Animal Health System.  USDA and the National Association of State Departments of Agriculture will cooperate in a nationwide animal health safeguarding review to assess the performance and efficacy of veterinary services' safeguarding system for preventing, testing, and responding appropriately to adverse animal health events. 

Electoral College Benefits Farmers.  Getting rid of the Electoral College, an idea being touted in the wake of one of the nation's most contentious national elections, might not be a good idea for people living in rural America. "I think it would be a catastrophe for rural voters, particularly for farmers," according to Hyde Murray, a retired Farm Bureau lobbyist and historian, who also had a distinguished career of more than 30 years in federal government. 

FDA Warns of Soups from Canada.  The Food and Drug Administration (FDA) is warning consumers not to purchase or consume various canned soups imported from Canada, because they have the potential to be contaminated with clostridium botulinum, a bacterium which can cause life-threatening illness or death. Consumers are not to use the products even if they do not look or smell spoiled. 

Corn Group Calls for StarLink Suspension.  American Corn Growers Association (ACGA) President Keith Dittrich is urging EPA to suspend the temporary approval of StarLink corn for human consumption until production issues are addressed. The comments are being made to the Environmental Protection Agency (EPA) in a public meeting scheduled for Tuesday on issues surrounding the contamination of unapproved corn into the food system.

News Summaries 

UN Behind on Goal to Halve Hunger.  The international community is behind the United Nations' goal to halve world hunger by 2015, U.S. Agriculture Undersecretary Gus Schumacher said on Friday. REUTERS reports Schumacher told a news conference, "Are we behind (target)? I believe that we are," when asked whether the world would be able to achieve a goal set at the 1996 World Food Summit in Rome to halve the number of chronically undernourished to 400 million by 2015. "We have work to do. The short answer -- a lot of work to do." Schumacher added: "I think that next year there is going to be another FAO conference to really push harder at this (goal), five years after the Food Summit." U.N. officials said the conference was expected to take place in Rome. Schumacher was speaking to reporters after attending a meeting last week of the Council of the Rome-based U.N. Food and Agriculture Organization (FAO), which considered progress to achieve the goal to halve world hunger by 2015. 

French Beef Processors Want More Subsidies.  BLOOMBERG NEWS reports the French beef-processing industry, currently hit by mad cow disease fears, needs more government subsidies. Luc Guyau, president of France's main farmers' union, made the statements in an interview with daily La Tribune. Only 300 million francs ($38 million) of a 3.2-billion franc government aid package for the industry can be considered "fresh money," Guyau, the head of the FNSEA union, said. More than half is made up of advances and loans, and the rest is mostly taken from other budget lines of the Agriculture Ministry. Guyau said he will ask the government for direct subsidies and ``compensation'' for beef farmers to make up for cash shortages and loss of revenue when he meets Agriculture Minister Jean Glavany Wednesday, according to the paper. He called for other steps to prevent the market from collapsing. 

Farming Still Risky Business.  Despite advances in equipment and safety education campaigns, farming does not appear to be any safer than it was a decade ago. Farmers still get caught in augers, which transfer grain to bins, still get pinned under heavy equipment that tips over and still fall into grain bins and suffocate. THE ASSOCIATED PRESS reports that farming ranks "a close second" to mining as the most dangerous occupation, according to Sam Steele, director of the National Education Center for Agricultural Safety, a division of the National Safety Council. In most agricultural states, farmers are five times more likely be killed in a work-related accident than people in most other industries, he said. Some insurance companies are considering offering farmers price incentives on their policies if they have their farm certified as "safe," Steele said. 

Warming Conference Yields Failure.  THE ASSOCIATED PRESS reports from The Hague that a worldwide effort to start attacking global warming ended in failure Saturday, "a setback to nearly a decade of coordinated action to curtail greenhouse gas emissions." Negotiators pledged to meet again. But deep divisions between the two main bargaining blocs - the United States and the European Union - cast doubt on the prospects for a later agreement, according to the AP article. Europe blamed the United States for holding to a position that was bad for the environment, while the United States accused the Europeans of being unresponsive to repeated U.S. concessions. Conference chairman Jan Pronk decided not to close out the meeting, but instead suspended it, saying it would resume early next year. "We did not succeed," said Pronk, the Dutch environment minister. "Looking back, I think it's better to say perhaps we did not yet succeed."
 

November 22, 2000

Insurance Program Expanded.  USDA has announced new and expanded revenue programs approved by the Federal Crop Insurance Corporation. The pilot Adjusted Gross Revenue (AGR) program, also known as whole farm revenue insurance, is being expanded into 126 counties and independent cities in eight states-Delaware, Maryland, Michigan, New Jersey, New York, Oregon, Virginia, and Washington. 

New Hunger-Fighting Web Site  The Miller Brewing Company and Second Harvest Food Banks in North Carolina have joined with government agencies and non-profit groups to develop the Fighting Hunger in North Carolina Web Site, www.fighthungernc.com which features the state's first on-line directory of hunger-relief agencies. 

Attorneys General Asked to Develop Farmer Liability Programs.  Family farm groups participating in the Farmer-to-Farmer Campaign on Genetic Engineering are calling on their state attorneys general to fill what they consider to be a policy vacuum caused by national inaction and that leaves farmers unprotected and liable. Farmers point to StarLink as a prime example of how our current regulatory segregation and marketing systems are not able to deal with the complex issues that genetic engineering pose.

News Summaries 

StarLink Test Finalized.  REUTERS reports that USDA and Japan's Health Ministry have finalized an agreement to test corn shipped to Japan as food to ensure it does not contain the genetically modified StarLink strain of grain. Under the final agreement, Japan will randomly monitor samples sent by the USDA to confirm the consistency of tests performed both by the U.S. government and in Japan. A protocol has not yet been reached for testing animal feed-use corn shipments, which fall under the jurisdiction of Japan's Agriculture Ministry. But the U.S. Embassy official said the protocol agreed for food-use could be applied as well to animal feed. One officials said, "We've heard from some feed suppliers in Japan who are concerned that often a shipment will come in and they will decide at the point of importation whether to distribute that corn for feed or food purposes." He added in order to ensure their corn imports intended for feed do not contain StarLink, importers could declare them as food-use corn so that they would be tested in the United States before shipment. 

EU's WTO Proposal at Odds with U.S.  FEEDSTUFFS reports that the European Union's World Trade Organization agricultural proposal is a "Seattle replay" in that it calls for farm subsidy reductions but only if the current green and blue boxes are maintained. That's at odds with the U.S. position which calls for eliminating the blue box in the belief that Europe uses it to dodge subsidy reductions. The EU asks for concessions from the United States on export credit guarantees and "abuses" of food aid before reducing its export subsidies. "Multifunctionality," a concept that allows government payments for conservation, open space and water quality, is endorsed in the proposal; that, too, remains controversial in the United States. The proposal also seeks to adopt the controversial precautionary principle in food safety issues. 

Japan's Doubts Grow with New StarLink Discovery.  The discovery that StarLink corn contaminated another variety of corn in 1998 has "deepened doubts" in Japan over U.S. assurances that its corn supply is Starlink-free, REUTERS reports traders said on Wednesday. Aventis SA said Tuesday it had found some Cry9C protein -- the key component of StarLink corn -- in a variety of 1998 corn seed produced by Garst Seed Co of Iowa. Aventis said it did not know how the contamination occurred. Garst said in a statement that the Cry9C protein was found in "limited quantities" of a single, corn hybrid produced by the company in 1998. The Cry9C protein was engineered into StarLink to protect the young corn plant from destructive pests. REUTERS says the discovery came after some Japanese importers resumed U.S. corn buying for first-quarter shipment early this week, ending a four-week standstill in domestic corn trade after the discovery of traces of StarLink corn by a local consumer group last month in food and animal feed, according to traders. 

USDA Doesn't Know How StarLink Got into 1998 Corn.   In a separate report, REUTERS says USDA thinks StarLink corn that crept into the 1998 supply may be due to either drifting pollen in the field or careless handling of the seed. The latest revelation prompted USDA to call a special meeting on Monday with department scientists, economists, policymakers as well as representatives of the U.S. food and grain industries, the article says. Since StarLink was discovered in taco shells in late September, more than 300 kinds of chips and flour have been recalled, food processors' production lines have been disrupted, and Japan and other key buyers of U.S. corn have put purchases on hold, REUTERS adds. 

Crop Insurance Education Announced.  USDA has announced a five-year, $25 million initiative to increase risk management education and crop insurance products available to farmers in 15 under-served states. The plan encourages increased crop insurance participation by enhancing risk management education in states with traditionally low levels of federal crop insurance participation. For example, in New Hampshire, about 10% of the eligible acres were insured in 1999, while in North Dakota about 90% of eligible acres were insured. In keeping with USDA's efforts to support family farms, special emphasis will be to small and limited resource farmers. USDA will work with local groups around the country - including universities, lenders, insurance providers, and farm lenders - to sponsor seminars, training sessions, and research. Participating states are Connecticut, Delaware, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York., Pennsylvania, Rhode Island, Utah, Vermont, West Virginia and Wyoming. Further details are available on the web at http://www.act.fcic.usda.gov/news/pr/2000/001120.html 

Climate Conference Gets Serious.  THE ASSOCIATED PRESS reports from The Hague that negotiators worked late into the night at a U.N. climate conference to begin serious negotiations over the rules governing the monitoring and accounting of greenhouse gases, and what steps should be taken against countries that fail to curb their emissions. The article says delegates Wednesday believed the European Union would take a strong stand against a U.S. proposal at the heart of efforts to count greenhouse gas emissions - whether forests and managed agricultural land that absorb carbon dioxide can offset a country's obligation to reduce emissions. After a night of negotiation, British Environment Minister Michael Meacher said "we are still at the very early stages."
 

November 21, 2000

Bioenergy Program Sign-up Announced.  The sign-up for a bioenergy development program announced last month has been announced by USDA to begin Dec. 1 for fiscal year 2001 payments. Some $150 million will be paid to commercial bioenergy – ethanol and biodiesel – producers who increase production between Dec. 1 and Sept. 30, 1002. Payments will be based on bioenergy production increases from eligible commodities compared to the same time period a year earlier. 

Baltic Trade Mission Scheduled.  U.S. agribusinesses wishing to explore investment and business opportunities in the Baltic countries will be able to explore the opportunities in a trade mission, sponsored by USDA, and scheduled for Feb. 3- 12. There are 10 openings, and the deadline for applications is Jan. 12. The trip will include Estonia, Latvia and Lithuania. 

Beef Demand Continues Upward Swing.  Demand for beef continues to show strength, according to preliminary Beef Demand Index figures and other research. The preliminary figures show that demand increased 6.17% during the third quarter of 2000, as compared to the third quarter of 1999.

News Summaries 

Cautious Optimism Over U.S. Corn to Japan.  Grains analysts Monday were "cautiously optimistic," says REUTERS, that U.S. corn sales to Japan would continue uninterrupted despite the current StarLink corn controversy. Export sales and inspections reports released by USDA have given no indications that sales or shipments have diminished. But the market remains aware that the United States and Asia are monitoring the situation on a day-by-day and indeed load-by-load basis, according to REUTERS. "I think all systems are go but cautiously because they've started the inspection program now," said Shawn McCambridge, analyst for Prudential Securities. U.S. federal grain inspectors last week began testing U.S. corn bound for export markets to detect any StarLink bio-corn contamination. StarLink corn contains a gene that protects corn from destructive pests and has been approved for use in animal feed in the United States but not in Asia. "You can't really say everything is settled, but at the same time they need the supplies," McCambridge said. 

Environmentalists Sandbag Climate Talks.  Environmentalists by the thousands laid siege to climate change talks on Saturday to push for curbs on greenhouse gas emissions, building a sandbag wall at the venue to warn of the risk of flooding posed by global warming, REUTERS reports. "The coming week in the Hague may prove to be one of the most important in the three and a half billion-year history of life on earth,'' British campaigner Tony Juniper told the 5,000 demonstrators from around the world. Minor scuffles broke out when a handful of protesters splashed green paint on windows of a building next to where the talks were being held and where 180 countries are working out how to implement an international treaty on climate change. 

Glickman Doubts StarLink Negatives.  Agriculture Secretary Dan Glickman said Monday he did not think the current controversy over Starlink corn would have a long-term negative effect on the use of bio-engineered grain seed in the United States, REUTERS reports. Glickman said the problems with Starlink and related fears about the growing use of genetically modified seeds could be overcome with proper testing and full disclosure about test findings. "The most important thing we need to have is good testing and good disclosure to the farmers and to the public," Glickman told a REUTERS reporter. "If we base this on sound science, the market will continue to expand for bio-engineered seeds and foods." The comments followed an address to the Kansas Association of Conservation Districts annual meeting in Wichita Monday. 

Pennsylvania Promotion Program Begins.  Pennsylvania will distribute almost $1 million to 22 organizations that promote the state's agricultural products. The $860,000 in grants -- from the 2000 PA Agricultural Product Promotion Matching Grants Program -- are offered to qualified Pennsylvania nonprofit agricultural product promotion and marketing organizations to increase consumer awareness and sales of Pennsylvania agricultural products. The 2000 grants will be matched by the organizations for a total of more than $1,720,000 for product promotion. One of every five Pennsylvania residents is employed in an agriculture-related field. And agriculture generates $4.2 billion in annual cash receipts, as well as $44 billion in related economic activity. 

U.S. Agrees to Credit Reduction.  THE WALL STREET JOURNAL reports the United States, in an effort to bridge a major dispute blocking completion of an international treaty to curb climate change, has agreed to reduce significantly the amount of credit it might get for forest practices and farmland management that tend to absorb carbon dioxide. The European Union had objected to the level of credit sought by the U.S. for carbon dioxide "sinks" -- ways to keep more man-made emissions from reaching the atmosphere. The United Nations conference to complete the Kyoto Protocol enters its final days here, but it was not clear if the new U.S. offer would answer the Europeans' objections. New scientific evidence shows that management of forests and the use of "no till" methods of agriculture that don't disturb the soil can store more carbon dioxide in soil and trees. U.S. experts have calculated that the nation stores as much as 310 metric tons of carbon dioxide a year using such methods. A metric ton is equal to 2,204.62 pounds. That level alone gets the U.S. almost halfway to its target, under the treaty, of reducing emissions by 7% from 1990 levels. The treaty says industrial nations must achieve their cuts between 2008 and 2012. 

Florida Farmers Fear Cuban Competition.  THE ASSOCIATED PRESS reports that some Florida farmers and agriculture experts are fearful that an end to the economic embargo of Cuba could harm or help the state's agribusinesses. Some, like Tony DiMare, one of the state's largest tomato growers, fear that if Cuba could trade freely with the U.S., competition from the island nation would take too big a bite out of Florida's share of the market. "Trading with Cuba would be the stake in the heart of winter vegetable production in Florida," DiMare said. But Bill Messina, an agriculture economist with the University of Florida, sees Cuba as a place desperate for improvements in farming where American businesses can profit by helping. "I would expect multinational companies to move in quickly when they are allowed to," Messina said. "Of course, the question is when." DiMare compares the situation to when the North American Free Trade Agreement allowed cheap Mexican vegetables to compete with Florida produce. After NAFTA, tomato revenues declined 43%, according to the Florida Tomato Committee. Tomato acreage in Florida decreased 20%.
 

November 20, 2000

EU Moves on FSC Retaliation.  The European Union has asked that the World Trade Organization dispute settlement body consider the EU request for the authority to impose sanctions on U.S. products entering EU member nations. The European Commission reportedly has itemized 46 categories of products of which half are food and agricultural items including livestock, meat and dairy products. 

U.S. Tables WTO Proposal.  The United States Friday presented a proposal at the World Trade Organization (WTO) agriculture negotiations in Geneva that is designed to open foreign markets for U.S. agricultural exports. The proposal to reform tariff rate quotas (TRQs) focuses on one element of the comprehensive U.S. WTO proposal submitted in June. TRQs are import policies that allow a specified quantity of imports of a product at a relatively low tariff and subject all other imports of that product to a higher tariff. 

STB Hears USDA's Rail Consolidation Concerns.  USDA has submitted comments to the Surface Transportation Board (STB) regarding its proposal to require consolidated financial reporting by commonly controlled U.S. railroads and railroad-related affiliates and while agreeing that consolidated reporting would have some benefits, Michael V. Dunn, Under Secretary for Marketing and Regulatory Programs, expressed concern that consolidated financial reporting could have adverse effects on smaller railroads serving rural areas. 

Thanksgiving Dinner Costs Less in 2000.  Americans will have a little more to be thankful for this Thanksgiving Day, as the price of the traditional Thanksgiving Day dinner has declined, according to the American Farm Bureau Federation (AFBF).

News Summaries 

U.S. Lets EU Deadline Slide Again.  U.S. trade officials said on Friday they would once again let a deadline pass without taking "carousel"trade action against the European Union in a pair of disputes involving beef and bananas, REUTERS reports. "On a day when both sides were trying not to inflame trade tensions, U.S. officials said they remained focused on resolving the two long-standing disputes without rotating $308.2 million in trade retaliation to a new set of EU goods," according to the article. By coincidence, both the United States and the EU faced key retaliation decisions against each other on Friday. New legislation requires the Clinton administration to change its retaliation in the beef and banana disputes every six months to keep pressure on the EU change its policies. But the United States let the first deadline pass on Saturday without taking action, the officials said. 

Clinton Wants Food Stamp Changes.  President Clinton announced "new steps" Saturday to allow workers eligible for food stamps easier ways to get the stamps. Clinton would allow states to provide recipients with an automatic three-month food stamp benefit as they make the transition from welfare to work. Recipients would be allowed up to six months to report income changes, reducing the amount of time they spend in food stamp offices. The action also "will make it easier for food stamp recipients to own a dependable car without having to sacrifice proper nutrition for their children," Clinton said. "To ensure that the families who need assistance get it," he added, the administration will require states to let recipients know that they're still eligible for food stamps when they start to work again. 

Meat Bans Favor Soy Meal Demand. &nbspFrench and Italian bans on meat and bone meal significantly could increase demand for soy meal and rape meal especially if the other countries of the European Union join the ban, analysts said on Monday. "Should it come to a Europe-wide ban -- which may not be necessary but cannot be excluded on emotional grounds -- that would entail extra soy and rapemeal demand of 500,000 tons in Germany alone, and between three to four million tons in Europe," Karl-Joseph Gross, expert at German oil mills' association VDO told REUTERS. Italy on Friday banned the use of meat and bone meal as animal feed for herbivores in response to fears over mad cow disease and links to a fatal brain-wasting disease in humans.
 

November 17, 2000

Sheep, Lamb Promotion Funded.  Agriculture Secretary Dan Glickman is providing 15 grants totaling nearly $3.85 million to fund marketing and promotion projects to help increase sales of U.S. lamb as part of a three-year $100 million assistance plan to help sheep and lamb producers. Last year, the U.S. International Trade Commission ruled 6-0 that the recent surge of low-priced imported lamb meat threatens to injure U.S. producers. The assistance package will help the U.S. lamb industry achieve sustained competitiveness, while respecting international trade obligations. 

Prairie Display at Smithsonian Opened.  Agriculture Secretary Dan Glickman Thursday helped open a new Smithsonian exhibition about the North American prairie -- from its unique mix of flora and fauna to its huge agricultural output. 'Listening to the Prairie: Farming in Nature's Image,' which opens to the public on Saturday, describes the evolution of the vast grasslands region as well as the progressive prairie farmers and ranchers who have found innovative new ways to farm the land and protect the environment. 

Farm Bureau Has New Water Quality Program.  The American Farm Bureau Federation has introduced a new grassroots water quality initiative that highlights and encourages positive roles for farmers in protecting the nation's water resources. The "Proud Water Partners" program includes insights gleaned from successful state Farm Bureau water quality efforts. Proud Water Partners encourages cooperative leadership from farmers regarding water quality issues, but also recognizes the supportive roles of other groups, government agencies and researchers who are interested in agriculture's success and water quality. 

Scientists Claim Biotech Feed-Fed Products Safe.  Scientists at the Federation of Animal Science Societies (FASS), a federation comprising over 10,000 animal, dairy and poultry scientists, claim food products from animals fed biotech feeds are safe for human consumption. FASS scientists have reviewed all of the data available worldwide from research studies in which results have been published in refereed, peer-reviewed journal articles. 

Senator Says Move Forward on Sheep Support.  Australia and New Zealand sheep producers have gained an unfair competitive advantage over U.S. producers and U.S. programs to combat the problem should move forward despite World Trade Organization "questions," according to U.S. Senator Mike Enzi (R-WY). Enzi, who chairs the Senate Banking Subcommittee on International Trade and Finance, submitted testimony Thursday to the U.S. International Trade Commission (ITC) as part of an evaluation of the U.S. Department of Agriculture's 201 sheep assistance program.

News Summaries 

Canada's Farmers Ignored.  REUTERS reports that the "threatened collapse" of Canada's agriculture industry "has left grumbling farmers agog at aspiring prime ministers who act as if nothing is wrong." Canadians will vote for a government on Nov. 27, and producers who farm the western Prairie provinces have told potential leaders who stop by on the campaign trail that they can no longer afford to make a living. "The leaders come into western Canada and talk about health care and hardly gave agriculture a mention," said Don Dewar, president of the Keystone Agricultural Producers in Manitoba, a major farm province along with Saskatchewan and Alberta. "People are getting desperate," he said by telephone, echoing warnings of a countryside devoid of people because farmers have gone bankrupt or left the land to make a living in the city. But the political response to farmers' concerns has been as flat as the wide prairies which feed Canada's livestock and grow its bountiful harvests of wheat, canola and barley. Agriculture is now one of the top five industries in Canada. Even 50 years ago it took a bigger share. 

EU Rejects U.S. Proposal.  The European Union rejected a proposal Thursday from the United States, Japan and Canada on how to cut levels of greenhouse gases that are raising the earth's temperature, according to THE ASSOCIATED PRESS. The U.S.-led plan, which environmental groups also harshly rejected, suggests using so-called carbon "sinks" - forests and lands that absorb carbon dioxide pollution - to help meet targets of carbon dioxide reduction agreed to under the 1997 Kyoto Protocol. The 15-nation European Union said it opposes the proposal because it "does not ensure the environmental integrity of the Kyoto Protocol." The EU statement added that the U.S. proposal was too vague, "open ended" and overly focused on short-term measures and "does not solve remaining problems for the future." 

Iowa May Sue Aventis.  Iowa would consider legal action against the U.S. unit of European life sciences company Aventis SA if talks on compensation for farmers incurring losses over the company's gene-altered corn failed, the state attorney general said on Thursday, according to REUTERS. "That prospect is certainly in our minds and strategy. If the negotiations do not succeed, we will consider taking consumer fraud action," Iowa Attorney General Tom Miller told the news agency in a telephone interview. Miller, who is leading the charge by attorneys-general from 16 states to get Aventis to compensate farmers and grain handlers hurt by StarLink corn, said the company has shown willingness to negotiate on the farmers' losses. "Currently, indications are Aventis will negotiate some resolution regarding the discount losses," Miller said. 

Japan Should Restart U.S. Corn Buying.  A REUTERS article reports the likelihood is increasing that Japan, the world's largest corn importer, will resume buying U.S. corn for feed and industrial-use next week as stocks decline at home. "Japanese importers have just started market checks, asking for market price levels. This suggests they are preparing to resume buying U.S. corn for feed use next week," said one trader. "They have been staying on the sidelines for the past three weeks because of the StarLink controversy but they will have to resume buying because inventories held by domestic formula feed makers are declining," he said. Japanese formula feed makers were estimated to be holding stocks equivalent to four weeks consumption before a consumer group discovered unapproved gene-spliced StarLink traces in feed and food shipments from the U.S. in October, he said. Another trader said he expected Japanese buying to resume before next week's Thanksgiving Day holiday in the United States, but it was unlikely that importers will rush to buy. "I don't think corn inventories in Japan have fallen to a critical level because end-users are seen having secured their requirements until the end of February. But buying will resume slowly before the Thanksgiving as Japan must buy U.S. corn sooner or later," he said. 

UK McDonald's Wants no GM Products.  The British arm of McDonald's Corp. said on Thursday it had asked its suppliers to find sources of animal feed that did not contain genetically modified products, according to REUTERS. Officials said, however, it would be impossible to demand a complete ban on GM feeds since non-GM corn and soya meal was not available in sufficient quantities. "McDonald's in the UK has taken the decision to move away from the use of animal feed containing genetically modified ingredients. We have therefore requested that our suppliers seek non-GM sources of feed," the company said in a statement. A McDonald's spokeswoman said the company's UK chicken supplier already used feed of Brazilian origin, which was "principally" not genetically modified.
 

November 16, 2000

Farm Groups Ask Income Protection.  Seven major dairy and farm organizations have asked USDA not to adjust the dairy price support program in a way that would negatively impact income for dairy farmers, who are suffering from the lowest prices in a generation. The letter was cosigned by the National Milk Producers Federation, the Alliance of Western Milk Producers, the American Farm Bureau Federation, the National Council of Farmer Cooperatives, the National Farmers Organization, the National Farmers Union, and the National Grange. 

Grassley Calls for Smithfield Monitoring.  Sen. Charles Grassley (R-IA) has urged Attorney General Janet Reno and Federal Trade Commission Chairman Robert Pitofsky to exercise "vigorous scrutiny" of Smithfield Foods' proposal to acquire meat giant IBP. Grassley said, "It is imperative that the appropriate federal regulators pay heightened attention to any possible negative horizontal and vertical integration implications of agribusiness transactions." 

'Tripartite Exercise' Ends.  The Tripartite Exercise 2000, a foot-and-mouth disease outbreak simulation involving Canada, Mexico, and the United States, has ended. From Nov. 6-9 the three countries tested plans and other documents that developed jointly including the tripartite animal health emergency communications plan; the protocol for the FMD vaccination program; the decision tree for FMD vaccine use; and the contract of the North American FMD vaccine bank. 

Economic Hardship from Warming Treaty.  An American Farm Bureau Federation official says the roles of forestry and agricultural lands will have to be considered if the United States is to ratify a controversial global warming treaty developed in 1997 but never ratified by the United States. Jon Doggett, an AFBF senior director of governmental relations, said without that consideration "there is no possible way the United States can meet its reduction limit" without dealing a major blow to the U.S. economy. 

Biotech 'Promising Tool.'  Biotechnology offers "one of the most promising tools for meeting future demand for an abundant, affordable, nutritious, and safe global food supply," according to James Schroeder, deputy under secretary for farm and foreign agricultural services at USDA. Speaking at the African Biotechnology Conference's closing session in Accra, Ghana, Schroeder said that "until now, biotechnology breakthroughs in agriculture have primarily benefitted farmers and consumers in developed countries." But now, "it is time to focus on research breakthroughs that benefit African farmers and consumers. There are a host of traditional African crops that stand to benefit from biotechnology and genetic improvement."

News Summaries 

U.S. Denies Lifting Argentine Beef Restrictions.  BLOOMBERG NEWS says the United States denied it lifted restrictions on Argentine beef after the South American country said it was declared clear of foot-and-mouth disease and expected shipments to the United States to resume as soon as this month. Argentine agricultural officials had made statements about the end of the restrictions, which were put in place because of concern about the potential outbreak of the disease in Argentina. A report Argentine officials referred to had not been released, U.S. officials said. The article notes Argentine agriculture officials said they expected the U.S. to begin to allow shipments from the country to begin as soon as the end of this month after the U.S. declared the country free of the disease. "The U.S.D.A. released a favorable report on the sanitary situation in Argentina, which means the U.S. upholds the declaration of Argentina as free of foot-and-mouth disease without need for vaccination," said Mariano Rodriguez, a spokesman at Argentina's agriculture department. 

Fly May Prove Fire Ants' Demise.  A tiny Brazilian fly whose larvae literally eat the heads off of fire ants will be unleashed across the South under a government program to control the vicious ants that are a spreading menace to homeowners, farmers and wildlife, THE ASSOCIATED PRESS reports. USDA says the gnat-like phorid fly is of no danger to anybody or anything other than fire ants and said Wednesday hundreds of thousands of them would be released in the South and possibly in California, where the ants have now spread. "It is a self-sustaining biocontrol," said Richard Brenner, who leads a USDA research team in Florida. "Twelve sites per state could blanket the state within five years." Fire ants can make life miserable for homeowners and gardeners and cause billions of dollars in damage every year to air conditioners, electrical equipment and farms, experts say. The ants can blind and even kill livestock and wildlife, and the sting is occasionally fatal to humans. The ants, which are native to South America, have no natural enemies in the United States. Chemical treatments are effective only temporarily. 

Avemtis' UK Setback.  BLOOMBERG NEWS reports that Aventis SA suffered a setback, in England when a hearing adjourned amid concerns the company didn't conduct adequate studies, according to the Financial Times. The hearing into the company's Chardon LL corn started last month after environmental groups questioned including the corn in the official list of seeds available in the U.K. In a study, Aventis planted the crop for only a year, not the two years required by European law, and the U.K. agricultural ministry is considering whether that should affect the French company's ability to sell the product, the newspaper reported. The government asked for the hearing to be postponed while it consulted lawyers, the paper said. 

South Korea Wants U.S. to Pay.  South Korean corn processors want the U.S. government to pay to ensure its exports are free of genetically modified grain. Otherwise U.S. exporters will not sell again to the world's second-biggest corn buyer, BLOOMBERG NEWS reports. Corn declined to its lowest level since Nov. 2 yesterday in Chicago after Korea bought 20,000 tons of maize from China instead of the U.S. because the cost of screening the U.S. grain made it too expensive. Korea and other buyers want U.S. imports checked after gene-altered U.S. corn called StarLink was discovered in shipments to Japan late last month. The Korea Corn Processing Industrial Association, South Korea's largest importer of corn for processing into food ingredients, told U.S. Grains Council representatives in Seoul that they expect the U.S. to pay the $3 per ton cost of ensuring corn shipments aren't gene-altered, said J.B. Yoon, Kocopia's procurement manager. 

Dairy Farmers Will Ask for More Money.  THE ASSOCIATED PRESS reports that California dairy farmers now face the lowest milk prices in 25 years and likely will ask state regulators for an emergency increase in the price they are paid by cheese and butter makers. Western United Dairymen asked the California Department of Food and Agriculture last week to schedule a hearing on the farmers' request to change the way milk prices are established in the state. A hearing date was expected to be announced next week. "If you have to sell milk for less money that it takes to produce it, then you kind of wonder how long you can continue to do this," said Bram Vantzelfde, who emigrated from Holland to operate a 1,000-cow dairy near Visalia. "How long are your suppliers willing to carry you? Two months, three months?" 

Science Panel Chief Announced.  The Environmental Protection Agency says Stephen Roberts, a University of Florida toxicologist, will head a 15-member science advisory panel to analyze whether StarLink bio-corn can cause allergic reactions in people, according to a REUTERS report. The panel will give its recommendation to the EPA by Dec.1 to help the agency determine whether Aventis SA will be granted a four-year approval for the gene-spliced corn to be used in human food. In 1998, the EPA approved StarLink for animal feed only because of lingering concerns over whether it might cause rashes, diarrhea, respiratory problems or other allergic reactions in people. The panel will study new data submitted last month by Aventis, which the company contends shows the bio-corn is completely safe. It will also hold a public meeting on Nov. 28 to hear suggestions from consumer groups, environmental activists, the biotech industry and other interested parties.
 

November 15, 2000

House Passes Stand-Alone FSC Bill.  The House Tuesday approved a bill to repeal and replace the Foreign Sales Corporation, sending the measure to President Clinton for an expected quick signature. U.S. trade officials believe the bill should forestall punitive duties on U.S. goods exported to European Union member nations, but the EU appears determined to go ahead with the retaliation. 

Glickman Touts USDA's Urban Record.  Agriculture Secretary Dan Glickman, in an address to the Ecological Cities 2000 Conference in Boston earlier this week, credited his department with helping implement "three important components to liveability and improving the ecological health of cities" over the last eight years. 

USDA Extends Supplier Credit Guarantees to Russia.  USDA has authorized $10 million in supplier credit guarantees for sales of U.S. agricultural commodities to Russia under the Commodity Credit Corporation's Supplier Credit Guarantee Program (SCGP) for fiscal year 2001. According to Richard Fritz, general sales manager for USDA's Foreign Agricultural Service, exporters may apply for credit guarantees on a first-come, first-served basis to cover sales of any of the commodities specified in the GSM list of commodities published in FAS program announcement PR 0240-00, issued June 12 or as superseded. 

Republicans Control Congress, but Barely.  As the nation still awaits the outcome of the presidential election, Republicans will control both houses in Congress even with two races still undecided. However, the Republican edge in both Senate and House is wafer thin. 

Wheat Supply Reduced from Earlier Report.  U.S. wheat production is expected to total 2.2 billion bushels this year, 16 million less than the earlier forecast released in the small grains 2000 summary Sept. 29. The wheat yield is forecast at 41.9 bushels per acre, down 0.2 bushel from last month and 1.3 bushels below the record established in 1998. Imports are forecast at 95 million bushels, down 5 million from last month. 

Feed Grain Supply Declines from October.  Feed grain production this year should total 276 million metric tons, 1% less than a month ago but 5% more than 1999, according to USDA. Production of all feed grains is down. Feed grain supply in 2000/01 is forecast at 328 million tons, also down 1% from last month but up 3% from 1999-2000. Supplies are greater than last year because of larger production.

News Summaries 

USDA Will Discuss StarLink Buyback.  REUTERS reports that USDA's advisory panel on biotech issues will hold a two-day meeting this month to discuss the buyback of StarLink corn and what role the department should play in monitoring the environmental impact of all transgenic crops. The session will be held Nov. 29-30 and follows a separate public meeting planned by the Environmental Protection Agency on Nov. 28 to consider whether StarLink gene-spliced corn is safe for human consumption. The article notes that while the EPA has been the lead government agency in deciding what to do about the StarLink corn contamination, USDA has assisted corn maker Aventis SA in buying back as much of the current harvest as possible. The USDA has gathered the corn into strictly segregated storage facilities and moved it into animal feed production or ethanol plants. 

Australia Wants End to U.S. Lamb Restrictions.  Australia will ask Thursday for an end to the tariff-quotas on lamb at a U.S. International Trade Commission (ITC) hearing in Washington, Trade Minister Mark Vaile said. REUTERS reports the ITC is conducting its mid-term review of the restrictions placed on lamb and is considering whether the U.S. domestic industry has taken advantage of the safeguards put in place to allow it to adjust to import competition. In a statement issued on Tuesday Vaile said Australia had lodged a pre-hearing submission with the ITC last week arguing for the immediate end of the restrictions imposed on unsubsidised exports of Australian lamb. "From the outset the federal government has maintained that the U.S. restrictions were unfair and inconsistent with WTO rules,'' Vaile said. "Continuation of the import restrictions is only harming unsubsidized Australian and New Zealand exporters, importers, retailers and consumers.'' 

Cairns Offers Trade Proposal.  The Cairns Group has proposed World Trade Organization (WTO) talks that call for greater market access for agricultural goods through cuts in all tariffs, officials said. A REUTERS report says 16 of the 18 farm exporting alliance members, including Argentina, Australia, Brazil, Chile, New Zealand and South Africa, supported the proposal. But Canada stood by its own proposal on market access, which was presented last June. Fiji did not sign it either. The Cairns proposal said countries that had liberalized economies could not compete in distorted world markets against "heavily and unfairly subsidized producers in other countries." Average tariffs on agricultural products were more than eight times higher than on industrial products, it said. Tariffs of more than 300% were not uncommon. "These disparities and high rates must be redressed if there is to be vastly improved market access opportunities for all agricultural and agri-food products," Australian Trade Minister Mark Vaile said in a statement. The article says the latest Cairns plan builds on its proposals on export subsidies and domestic support measures of earlier this year.

November 13, 2000

Indonesia's Poultry Import Ban Being Investigated.  Foreign Agricultural Service officials in Jakarta, Indonesia, are investigating a directive by the Indonesian government banning imports of chicken cuts. The directive does not specify a date of implementation or duration, but reports from the trade indicate that it was implemented as early as July. 

Cotton Exports Feared Jeopardized by GSM Changes.  The National Cotton Council fears proposed changes to the GSM export credit guarantee program will "seriously jeopardize" the program's usefulness to cotton exports. In a letter to USDA, NCC officials urged the consideration of three issues they considered necessary to protecting cotton interests in the GSM program.

News Summaries 

Pope Urges GMO `Balance.'  THE ASSOCIATED PRESS reports from Vatican City that Pope John Paul II urged those who are developing new biotechnologies to maintain a "healthy balance" with nature to avoid putting people's lives at risk. Tens of thousands of farmers and their families, most of them from Italy and throughout the world, crowded into St. Peter's Square on a chilly, overcast day to attend Mass celebrated by the pope on the steps of St. Peter's Basilica. The Mass was part of a Holy Year tribute to the world of agriculture. The AP report says John Paul didn't cite any specific kind of biotechnology Sunday. But his words echoed a speech he gave Saturday evening in which he urged rigorous scientific and ethical controls to avoid possible "disaster for the health of man and the future of the Earth" from new agricultural technologies. On Sunday, he told the farmers in the square that "if the world of most refined techniques doesn't reconcile itself with the simple language of nature in a healthy balance, the life of man will run ever greater risks, of which already we are seeing worrying signs." 

Election May Cloud WTO Trade Talks.  BLOOMBERG NEWS reports from Beijing that the U.S. presidential election stalemate may hinder World Trade Organization efforts to further liberalize world agricultural trade. The U.S. and European Union are divided on proposals to eliminate agricultural export subsidies, while some developing countries are unhappy with high levels of domestic support for farmers in developed countries, said Dale Hathaway, director of the U.S.-based National Center for Food and Agriculture Policy. Such contentious issues can only be resolved by strong leadership, not likely from the U.S. following the presidential race, in which a winner has yet to be named, Hathaway said. "The election result will continue to have the U.S. unable to play the role that it must play in order to have a successful broad-based trade negotiation," Hathaway told the industry-funded International Policy Council on Agriculture, Food and Trade. 

Grassley in Line for Senate Finance.  Sen. Charles Grassley (R-IA), long a Senate voice in agriculture, is in line to take control of the Senate's powerful Finance Committee in January. Grassley, 67, gets the opportunity because the panel's current chairman, Sen. William V. Roth Jr., (R-DE) lost his re-election bid Tuesday. The Finance Committee controls tax laws, trade policy, Medicare, welfare and Social Security. BLOOMBERG NEWS reports that Grassley brings to the job a reputation for plain speaking, independence and bipartisanship, analysts and lobbyists said. In recent years, he has worked to reform the Internal Revenue Service and uphold taxpayer rights while advancing farm issues such as ethanol subsidies and a repeal of the estate tax. "We probably don't have a better friend in the whole Senate than Chuck Grassley," said Mary Kay Thatcher, deputy director of governmental affairs for the American Farm Bureau Federation. "He has been a real champion for us on probably 10 different agricultural tax matters this year," she said. 

U.S. Corn Positive for StarLink in Japan.  Two-thirds of samples of U.S. corn, imported for animal feed in Japan, tested positive for StarLink, a genetically altered variety banned in Japan, the farm ministry said Monday. KYODO NEWS reports that the Ministry of Agriculture, Forestry and Fisheries said it has found that 10 of the 15 samples it chose from the imports tested positive for Starlink that has stirred concern among consumer groups. In the tests from April through June, the samples were taken from freighters carrying the U.S.-grown corn and animal feed factories, it said. The article says the ministry now will try to verify the results by comparing the sequence of the 300 base pairs of corn genes found in the imported corn with that of corn produced without applying biotechnology, adding it will announce final test results later this week. 

Smithfield Bids for IBP.  THE WALL STREET JOURNAL reports that Smithfield Foods Inc., moving to break up a highly criticized buyout of IBP Inc. with a rival offer, made an unsolicited bid to acquire the nation's biggest meatpacker for $2.7 billion in stock, plus the assumption of $1.4 billion in debt. The JOURNAL, quoting sources close to the developments, said Smithfield, based in Smithfield, VA, submitted a "bear hug" letter written by company Chairman and Chief Executive Joseph Luter III to the special committee of IBP's independent directors, proposing $25 a share in Smithfield stock for each share of IBP. "That is 12.4% sweeter than the $22.25-a-share cash bid the board accepted six weeks ago from management and a private-equity fund controlled by Donaldson, Lufkin & Jenrette Inc., IBP's longtime investment banker," the article says. IBP, based in Dakota Dunes, SD, has been castigated by investors for selling out at too cheap a price and not soliciting competing offers. When the deal was announced, IBP's chief financial officer was quoted in THE WALL STREET JOURNAL, stating, "If a competing bid shows up, we'll consider it." 

No Luck Selling to Cuba.  THE ASSOCIATED PRESS reports that the first U.S. farmers to visit Cuba since passage of a new U.S. law allowing them to sell food to the island say they failed to convince communist officials to buy their products. "We need the Cuban government to take a more positive position on the opportunity provided by the legislation," Jack Laurie, president of the Michigan Farm Bureau, told a news conference. "We would hope to persuade them to look more positively at what we have accomplished, than what we have not," said Laurie, who was flanked by other officials of the farm bureau and the Michigan Dry Bean Commission. The Cuban government insists it won't buy any U.S. food under the legislation that would allow U.S. agricultural sales to the island for the first time in about 40 years.
 

November 10, 2000

Rootworm Resistance Slowed.  Corn rootworms may develop insecticide resistance more slowly now with new technology that's designed to avoid using the same insecticides year after year and to control adult beetles instead of larvae. Agricultural Research Service scientists, working with industry, have found ways to attract the beetles to any of at least three types of insecticides strategically sprayed on plant leaves at about 1/10th the rate normally buried into soil. 

Stallman Calls for Bipartisanship Given Close Election.  American Farm Bureau Federation President Bob Stallman says the close election underscores the need for a bipartisan approach to legislation in Congress. "The message of this race is that there is not a clear mandate for either party, and that makes it even more important to come together and work for all citizens of this country," he said. 

Farm Bureau Lists Issues Yet to Be Resolved.  In an effort to move key legislative priorities through Congress by the end of the session, whenever that may be, lawmakers put together a package of assorted measures on trade and tax relief. The trade measure would reform Foreign Sales Corporation (FSC) rules to comply with a recent World Trade Organization mandate. It's needed to derail European Union threats of trade sanctions if the changes are not made. Supporters say the agricultural tax relief, which includes farm, fish and ranch risk management (FFARRM) accounts, would provide a long-term economic boost to farmers and other rural residents.

News Summaries 

Huge Soybean Crops Seen.  Farmers in the United States, Argentina and Brazil are ready to harvest record soybean crops at a time when world grain supplies are already overflowing, USDA reported. REUTERS reports that USDA's latest assessment of global crops sent soybean futures traded in Chicago skidding by as much as 7 cents a bushel. The November contract fell 5-1/2 cents to $4.68-1/2 a bushel in midday trading. USDA's latest projected price farmers will receive is an average $4.70 per bushel for their crop, down 20 cents from last month's forecast. But that price is still about 5 cents a bushel higher than what growers received last year. In its latest assessment of crops, the USDA slightly trimmed its previous forecast of American soybean production by 2% to 2.78 billion bushels. But even with that adjustment, the crop will be larger than the 1998 record of 2.74 billion bushels. 

Aventis Sees StarLink Costs Less Than $1 Billion.  Aventis CropScience believes the cost of recovering this year's StarLink corn crop will be "significantly below" $1 billion. Aventis, a unit of France's Aventis SA, is reimbursing USDA for the cost of buying and handling the corn to make sure it goes to livestock or industrial uses. The corn, known as StarLink, was not approved for human consumption because of questions about its potential to cause allergic reactions. THE ASSOCIATED PRESS reports that USDA initially estimated the cost to Aventis at $100 million. However, StarLink corn has been widely mixed with other corn in Iowa and other states, leading to demands for compensation from grain elevators. Farmers also are concerned about legal liability for contaminated corn. The AP article says Aventis issued a statement saying it is "assessing the degree of shared responsibility of the different actors" in the agricultural and food business "as well as insurance coverage for such costs." The company said "it is not possible to determine today the entire costs related to StarLink." 

Comments Sought on Cherry Marketing Order.  USDA is accepting written comments on recommended amendments to the federal marketing agreement and order for sweet cherries grown in designated counties of Washington state. The recommended decision is based on the record of a USDA hearing held in Yakima, WA, on Nov. 16, 1999. The proposals were submitted by the Washington Cherry Marketing Committee which administers the order locally. The committee's proposals would increase the production area to include the region of Washington east of the Cascade mountain range and allow special purpose shipments of cherries to packing operations outside the production area. Other proposed amendments would: increase representation on the committee by one additional handler; authorize collection of late payment charges and/or interest on handlers' late payments of assessments; add authority to establish container marking requirements; and simplify the filing process for committee members and alternates seeking committee positions. USDA's Agricultural Marketing Service is proposing a tenure limit for serving on the committee and holding periodic referenda to confirm continued grower support for the order. The amendments would become effective only if approved by at least two-thirds of all growers voting in the referendum, or by growers producing at least two-thirds of the volume of sweet cherries represented in the referendum and grown during a period set by the secretary of agriculture. Authority for the order rests in the Agricultural Agreement Act of 1937. The recommended decision was published in the Nov. 9 Federal Register. Copies may be obtained from Kathleen Finn, USDA STOP 0237, 1400 Independence Ave. SW, Washington, D.C. 20250-0237; tel. (202) 720-2491 or fax (202) 720-5698. 

Hearing Set for Pear Amendments.  USDA will hold a public hearing on proposals to amend the federal marketing order for winter pears grown in Oregon and Washington state. The hearing will be held at 9 a.m. on Nov. 29 at the Sheraton Portland Airport Hotel, 8235 NE Airport Way, in Portland, OR. The proposals were submitted by the Winter Pear Control Committee, which administers the order locally. The proposals request that the order be amended to authorize container and marking requirements that could specify size, capacity, weight, dimensions, or pack used in packaging or handling of pears. Adoption of this proposal would provide authority to establish and regulate standards throughout the Washington and Oregon winter pear industry. Also, it is proposed that maturity be added to the list of pear quality attributes that may be regulated; an allowance be made for additional alternates to serve when a member and that member's alternate are unable to attend a committee meeting; the additional alternate would be from the same district and group of growers or handlers. If evidence submitted at the hearing favors these proposals, and if USDA agrees that the amendments would improve the order's operation, winter pear producers in the Oregon and Washington production area - estimated at 1,800 participants - would vote in a producer referendum. The proposals and the hearing notice will be published in Thursday's Federal Register. Copies may be obtained from Melissa Schmaedick, USDA STOP 0237, 1400 Independence Ave. SW, Washington, D.C. 20250-0237; tel. (202) 720-2491 or fax (202) 720-5698; or Teresa Hutchinson, USDA Northwest Marketing Field Office, Room 369, 1220 S.W. Third Avenue, Portland, Ore. 97204; tel. (503) 326-2724 or fax (503) 3226-7440.

U.S. Corn Sales to Japan Down, StarLink Blamed.  Japan continues to buy U.S. corn but concerns that the genetically modified StarLink variety could be found in shipments appears to have caused less to be bought than in previous years, REUTERS reports. "Usually they are in for a mid-200,000 to low 300,000 tons per week this time of year,'' said Joe Victor, vice president of marketing for the grain research firm Allendale Inc. "StarLink must be an issue because they are buying a little bit less.'' USDA's weekly export report released on Thursday showed Japan bought 164,700 tons of U.S. corn during the week ended Nov. 2. StarLink, developed by European firm Aventis SA, has been approved for feed use in the United States but not for food use because tests indicate it may trigger allergic reactions in humans. In Japan, StarLink is not allowed in either food or feed.
 

November 9, 2000

Farm Groups Want Quick EU Retaliation.  Four U.S. farm-related organizations say the beef industry is willing to consider "any reasonable compensation package" from the European Union for the EU's import ban on hormone-treated beef, but they doubt any such compensation will be forthcoming. Instead, they urged the Clinton Administration to rotate the list of EU products subject to retaliation, the so-called "carousel" approach. A total of $116.8 million in retaliatory duties is involved. 

FAO Suggests African Hunger Program.  A strategy to combat chronic hunger in the Horn of Africa was presented recently by Jacques Diouf, Director-General of the UN Food and Agriculture Organization (FAO), showing that 45% of the total population in the Horn, some 70 million people, live in a state of chronic food insecurity. That's apart from the 19 million or so who currently find themselves threatened by famine.

News Summaries 

EPA Schedules StarLink Meeting.  The Environmental Protection Agency will hold a one-day meeting Nov. 28 to consider information on whether StarLink corn should be allowed in food. The meeting will be conducted by the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and Food Quality Protection Act (FQPA) Scientific Advisory Panel (SAP). The meeting will be held from 8:30 a.m. to 5:00 p.m. at the Holiday Inn Rosslyn Hotel, 1900 North Fort Myer Drive, Arlington, VA 22209. For more information, contact Paul Lewis, Designated Federal Official, Office of Science Coordination and Policy, (7101C), Environmental Protection Agency, Ariel Rios Bldg., 1200 Pennsylvania Ave., NW., Washington, DC 20460; telephone number: (703) 305-5369; fax number: (703) 605-0656; e-mail address: lewis.paul@epa.gov. 

ConAgra Buys Marburger Foods.  THE ASSOCIATED PRESS reports that ConAgra Foods Inc., Omaha, NE, has purchased Marburger Foods of Indiana, a company that makes pre-cooked bacon bits, slices and chips. The price was not disclosed. ConAgra said Tuesday that Marburger would become part of its ASE Foodservice Co., headquartered in Downers Grove, IL. Peru, IN-based Marburger supplies foodservice operators and distributors. ASE Foodservice President John Stephens said Marburger has a customer list that complements ASE's customer base and adds production capacity. 

New Reps Have Farming Backgrounds.  Three new representatives elected to the House on Tuesday have agricultural backgrounds, according to the FARM JOURNAL. They are all Republicans. Dennis Rehberg of Montana, is a 45-year-old rancher. His political experience includes being a legislative assistant to former Rep. Ron Marlenee (R- MT) from 1979-1983; a state representative, 1984-1990; lieutenant governor, 1991-1996; and candidate for the U.S. Senate, 1996. Sam Graves of Missouri is a 36-year-old farmer. His political experience includes being a state representative from 1992-1994 and a state senator from 1994 to present. Adam Putnam of Florida is a 26-year-old rancher. His political experience includes being a state legislator from 1997 to present. He will represent the state's 12th District. Putnam, from a well-known Polk County agricultural family, will be the youngest representative in Congress, barely meeting the federal requirement that House members be at least 25 years old. As a state legislator, Putnam supported efforts to return hundreds of thousands of wetlands to private landowners. 

Rice Prices Subject to Decline.  REUTERS reports from Indonesia that world rice prices are likely to decline next year due to an anticipated worldwide oversupply and lukewarm demand. "There is nothing out there that can make prices go up. Rice prices are going to fall next year," said Mamadou Ciss, managing director of Geneva-based Ascot Commodities NV. Speaking to REUTERS on the sidelines of the Fifth Asia International Rice Conference in Bali, Ciss said India -- which plans to export three million tons from its stockpile -- would likely add to the downward pressure. The 25 percent broken rice price is expected to decline by $30-$40 a ton from the current $150-$160/ton free-on-board. Rakesh Sodhia, managing director of Bangkok-based G. Premjee Ltd. said 25% broken rice would be most affected by a price decline next year from huge stocks in exporting countries, particularly Vietnam. 

China Support Being Sought.  BLOOMBERG NEWS reports from Beijing that agribusiness executives from around the world hope to obtain China's support for talks in the World Trade Organization on freer global food trade. Chinese officials will meet executives from Archer-Daniels- Midland Company, Monsanto Company and Cargill Inc., said Peter Lacy, executive director of the industry-funded International Policy Council on Agriculture, Food and Trade. The WTO is preparing for talks on liberalizing global farm trade next March, Lacy said. He said the council wants WTO members to improve market access for farm products, reduce domestic farm supports and eliminate export subsidies. "China's position on the next trade round is not well defined; it's still evolving," said Lacy. "We support a free and open global food system and we very much want to see China brought into that." 

Aussies' Hopes on Bush.  REUTERS reports that Australia and its farmers believe a victory by George W. Bush in the U.S. presidential election could inject new life into stalled world trade talks. Australia's conservative government, led by Prime Minister John Howard, sees the Republican as marginally more free trade oriented than Democrat Al Gore and hopefully more sympathetic to Australia's calls for lower trade barriers. Australian Foreign Minister Alexander Downer said on Thursday that he believed both Bush and Gore would be committed to free trade and security in the Asia-Pacific region -- Australia's two main concerns. "There is an argument that a Bush administration would be a little more pro-free trade than a Gore administration," Downer told Australian television.
 

November 8, 2000

IRS Amends Farmer Income Averaging.  Sen. Chuck Grassley said Tuesday a change he and other senators sought in the Internal Revenue Tax Code to help protect farmers and ranchers from paying a higher tax rate than other taxpayers has been made by the Internal Revenue Service. The new 2000 IRS publication 225, "Farmer's Tax Guide," says that farmers and ranchers will be able to average their losses and gains over a three year period. 

U.S., Japan Agree on Testing Corn.  The National Corn Growers Association (NCGA) welcomed a report that USDA and Japan's Ministry of Health and Welfare have agreed on a standard method of testing and exporting of U.S. corn for food to Japan. Under the agreement, Japanese importers will accept U.S. corn that has met quality assurance guidelines for testing, handling, transportation and identity-preservation from elevators to export ships. 

Senate, House Agriculture Leadership Returns.  As a hard-fought presidential election of historic proportions continued to unfold early Wednesday, one thing was certain: the chairmanships of the Senate and House Agriculture Committees were intact.

News Summaries 

Canadian Duty Hurts U.S. Corn Famrers.  REUTERS reports that the U.S. corn industry believes a Canadian provisional duty of $1.58 per bushel imposed on U.S. corn shipments will hurt both Canadian and U.S. farmers. But they're unsure how to respond. The Canada Customs and Revenue Agency imposed the duty late Tuesday, after the country's International Trade Tribunal issued a preliminary ruling stating that U.S. corn shipments were harming Canadian corn producers. The article says the duty would apply to imports of grain corn, used primarily as a feed corn, to areas west of the Manitoba/Ontario border, the Canada Customs and Revenue Agency said. The U.S. corn industry said the duty would depress corn prices in western Minnesota and the Dakotas, and at the same time raise prices for livestock feeder in Canada. "Farmers on both sides of the border are going to be hurt by this decision, said Stewart Reeve, spokesman for the National Corn Growers Association. 

Japan Creates GM Study Panel.  KYODO NEWS reports from Tokyo that the Ministry of Agriculture, Forestry and Fisheries will create an in-house panel of experts to discuss the safety of genetically modified (GM) types of animal feed. The ministry announcement came amid furor over the discovery in foods put on sale in the market of a genetically modified variety of corn -- ''StarLink'' -- the safety of which has not been confirmed. The article says the panel of about 15 experts, will discuss how the safety of animal feed can be ensured while studying the distribution of animal feed corn. The panel plans to compile an interim report early next year and submit it to the animal feed section of the Agricultural Materials Council, where the safety of animal feed is screened.
 

November 6, 2000

Poultry Plant Size Won't Shrink.  A new report from USDA's Economic Research Service projects that poultry plant size will continue to increase caused by "substantial unexploited scale economies (that) exist in both chicken and turkey slaughter." When product mix is considered, "very strong scale economies become evident." 

GIPSA Expands Wheat Certification.  USDA's Grain Inspection, Packers and Stockyards Administration will begin certifying wheat protein content results on any specified moisture basis requested by applicants, in addition to the current 12% moisture basis, effective May 1, 2001. 

Study Could Increase Certain Beef Values.  The final report on a checkoff funded "muscle profiling" study that should increase the value of beef from the chuck and round was presented recently to more than 100 major U.S. beef industry end-users and suppliers in Lincoln, NE. Coordinated by the National Cattlemen's Beef Association for the Cattlemen's Beef Board, the study helps "open the door to new, higher-value marketing opportunities for the chuck and the round," officials say.

News Summaries 

USDA Will Test for StarLink.  USDA will begin testing in mid-November shipments of corn bound for Japan to check for the presence of gene-spliced corn banned for human consumption, according to KYODO NEWS SERVICE. The testing, to which Japan agreed, is intended to prevent the variety StarLink from entering the food market there, officials said. In October, six corn-based products that a Japanese consumer group bought from supermarkets were found to contain StarLink corn, a variety of corn not approved for human consumption. Corn bound for Japan will be tested when it is loaded on barges and rail cars. The transports then will be sealed until the grain is loaded onto ships, the officials said. The Japanese government will select random samples to confirm the testing. 

No Plans to Reduce Loan Rates for 2001.  THE ASSOCIATED PRESS reports that Agriculture Secretary Dan Glickman has no plans to reduce federal crop loan rates next year, which would decline if he followed a formula established in the 1996 farm law. The government guarantees are for corn, wheat, soybeans, rice and cotton. When market prices are below the loan rate, as they are now, farmers are paid the difference between the loan rate and the market price. The AP article says the 1996 formula calculates the subsidy rate based on fluctuations in market prices. Under that formula, the rate for corn would decline from $1.89 per bushel to $1.76, the wheat rate from $2.58 to $2.43, and the soybean rate from $5.26 to $4.92. "Unless market conditions improve dramatically in the coming weeks and commodity prices go up, I intend to use my full statutory authority to keep loan rates at their maximum levels," Glickman said in a letter to Senate Minority Leader Tom Daschle (D-SD). 

Congress Goes Home; Lame Duck Session a Must.  The House left for the campaign trail Friday after laying aside partisan animosity for a moment and passing an Everglades restoration bill that both sides hailed as a bipartisan achievement, THE ASSOCIATED PRESS reports. After the 312-2 vote on the Everglades bill, one of the largest environmental restoration projects ever, lawmakers quickly agreed to recess and streamed for the exits. "Their departure assured there would be a sixth lame-duck session of Congress in the past three decades and left undecided tax and spending issues that have defined their differences in the coming election," the article said. The House and the Senate, which recessed Wednesday, are scheduled to return on Nov. 14, a week after the election. 

Farm Policy Back-Burner Issue.  Lawmakers will find few clues in tomorrow's election for revising farm subsidies, but REUTERS reports other agricultural issues are emerging in a few close races that could determine control of the House. The article notes that about 2% of Americans live on farms and ranches, "potentially a decisive bloc in a close election" between presidential candidates Republican George W. Bush and Democrat Al Gore. Farmers face the lowest corn and soybean prices in years. Congress has enacted more than $24 billion in farm bail-outs since October 1998 to shield growers from low prices and crop disasters. But presidential candidates have had little to say about the "big issue looming over farm country -- the fate of the Republican-drafted 1996 law that deregulated farming and phased out most subsidies," the article says. 

Consumers Urge GM Regulation.  Eighteen Japanese consumers from throughout the country compiled a proposal Saturday urging the government to regulate genetically modified (GM) farm products, according to KYODO NEWS. They attended a series of meetings sponsored by the Agriculture, Forestry and Fisheries Ministry for a sampling of public opinion. In the proposal, they demanded the government "disclose all information concerning safety screenings for GM crops and the amount of GM ingredients in food products," the article says. The group, who included company workers and housewives, also sought a long-term follow-up study on GM food consumers to determine possible adverse health effects and allergy development. They also want a panel established to discuss the necessity and inevitability of certain GM technologies before they are fully developed. However, they failed to reach a consensus on such basic issues as whether there is a need to develop GM products. 

China's Oilseed Crushers Expanding.  THE WALL STREET JOURNAL reports that China's oilseed crushers are trying to build new plants before the country enters the World Trade Organization. A key issue is whether the plants will be competitive after WTO membership is a reality and import barriers are reduced. "If the answer is yes, it would be a vindication for China's tough pre-WTO protections, reduce the need for oil and meal imports down the road, and offer a rare point of light among China's beleaguered agricultural industries," the article notes. "I think they can do it," said one Western diplomat, adding that some plants feature state-of-the-art technology. "Some of these new plants are filled with German and Japanese equipment. They're good." China suffers inefficiencies in areas such as transportation, but it still can manage through its lower labor costs, industry watchers say.
 

November 3, 2000

FSIS Wants More Microbiological Sampling.  USDA's Food Safety and Inspection Service is encouraging producers of ready-to-eat meat and poultry products to use microbiological sampling in their food safety plans. Federal testing will be focused on companies that do not have such sampling as part of their plans. Ready-to-eat products such as hot dogs, luncheon meats and certain kinds of sausages, must be free of illness-causing microbial hazards. 

Canadian Potatoes Banned.  USDA is prohibiting the import of potatoes from Prince Edward Island due to an outbreak of potato wart, or canker disease, in that area. Potato wart was eradicated from the United States in 1992. If the disease were to reappear, it could be devastating to the U.S. potato industry because of potential losses in production, lost export markets, and the spores of the fungus can remain in contaminated soil for many years. 

Pseudorabies Program Hailed.  National Pork Producers Council (NPPC) President Craig Jarolimek has praised the announcement of $56 million to continue the accelerated pseudorabies (PRV) eradication program (APEP). Jarolimek, a pork producer from Forest River, ND, said the disease costs pork producers $30 million each year and severely limits the opportunity of U.S. producers to market their hogs in Canada, complicating export efforts. 

Corn Growers Like Expanded Biofuels Program.  The National Corn Growers Association (NCGA) applauded Wednesday's announcement by USDA of a two-year, $300 million incentive program to increase production of biofuels such as ethanol. Under the program the Commodity Credit Corp. will pay cash incentives to bioenergy producers who increase their purchases of eligible agricultural commodities such as corn and convert that commodity to ethanol or other biofuels. Most of the incentives will be to farmer-owned cooperatives and small energy plants. 

Dairy Processors Like Trade Barrier Study.  The International Dairy Foods Association (IDFA) praised a request sent Monday by the House Ways and Means Committee to the International Trade Commission (ITC) for a study on tariff and non-tariff barriers to trade in U.S. processed foods and beverages. Committee Chairman Bill Archer (R-TX) sent the request letter on behalf of the committee and asked the ITC to complete this report by Oct.1, 2001.

News Summaries 

GAO Faults USDA on Russian Aid.  USDA did not adequately monitor $1.1 billion worth of food aid given to Russia last year and did not carefully monitor how Russia used the funds it collected from selling the commodities, according to a new government report, REUTERS says. The General Accounting Office, the investigative arm of Congress, said its analysis of the huge food aid package given to Moscow in 1999 turned up no evidence of fraud or abuse, however. The aid package, one of the largest ever by the United States to a single country, was designed to help Russia survive a record-low grain harvest and its lack of hard currency to buy food imports. A total of 3.7 million tons of U.S. wheat, corn, soybeans, rice, beef, pork, poultry and dry milk were donated to Russia for the government to sell and generate cash for its depleted pension fund and for agricultural projects. Investigators urged the USDA to tighten its financial controls and monitoring for any future aid packages to Russia to ensure the food reaches needy recipients. "We found that for most of the commodity distribution plans, less than one-quarter of the targeted regions received a tonnage amount that was equivalent to or near their planned allotment," the GAO report said. 

Farm States May Be Pivotal.  Several farm-state races could help determine if Republicans retain control of the House of Representatives or if Democrats gain a majority on the Nov. 7 election, REUTERS reports. Among them:

• Washington's 5th District where Republican George Nethercutt, leading advocate of exempting food and medicine from the U.S. embargo on Cuba, is challenged by Democrat Tom Keefe in his quest for a fourth term. Nethercutt is criticized for breaking a pledge to serve only three terms.
• California's 20 District where five-term Democrat Cal Dooley, a centrist and senior member of the House Agriculture Committee, is challenged by TV newscaster Rich Rodriguez, who has drawn farm group support in the heavily agricultural Central Valley.
• Montana, at large seat where Democrat Nancy Keenan, the state school superintendent, and former lieutenant governor Dennis Rehberg vie for Montana's sole House seat. Democrats say Keenan is better known statewide and gives them a chance to take the seat being vacated by Republican Rick Hill. Republicans say momentum is shifting toward Rehberg.
• Illinois's 17th District, where Republican Mark Baker, a former TV newscaster, is making a third run against nine-term Democratic veteran Lane Evans in west-central Illinois, whose fertile farmland is dotted with small industrial cities. Arizona Senator John McCain, a star of the Republican Party, was to campaign for Baker.
• Michigan's 8th District is where two state senators, Republican Mike Rogers and Democrat Dianne Byrum, seek the seat being vacated by Debbie Stabenow, a Democrat on the House Agriculture Committee. It has been a close race from the start.
• Missouri's 6th District is where Democratic businessman Steve Danner, son of retiring incumbent Pat Danner, is opposed by state lawmaker Sam Graves in grain and livestock farming district in northwest Missouri.
• Arkansas's 4th District: Four-term Republican Jay Dickey, elected in 1992 to represent long-time Democratic district, is challenged by Democratic businessman Mike Ross in a district covering southern Arkansas, a poultry and grain farming region.

More U.S. Beef Access to EU Coming.  REUTERS reports that an agreement to provide U.S. cattle producers with more access to the European market for hormone-free beef could be reached by the time U.S. and EU officials meet Dec. 18. Jean-Francois Boittin, minister for economic affairs at the French embassy, said the details of an agreement appeared to be in place. That would resolve temporarily a dispute over the EU's ban on beef from cattle raised with growth hormones by providing more access for U.S. hormone-free beef. U.S. Trade Representative Charlene Barshefsky and EU Trade Commissioner Pascal Lamy are likely to discuss the issue when they meet in Washington this week, Boittin told reporters after addressing a trade conference. In exchange for increasing a quota for hormone-free beef and lowering a 20% tariff, the EU may require some immediate reduction of the $116.8 million in retaliatory duties that Washington imposed on European goods in the beef hormone dispute, he said. 

Commodities Bill Mired in Gridlock.  THE WALL STREET JOURNAL reports that a rewrite of U.S. commodities laws "remains mired in political gridlock." A key senator has declared the bill dead, another prepared to circumvent his objections and a budget battle "arrested nearly all action in both chambers until after Tuesday's elections," according to the article. Negotiations stalled this week after Senate Banking Chairman Phil Gramm told lobbyists and administration officials that the legislation was largely dead for the year. "Gramm has essentially pulled the plug on major parts of the bill," said one congressional aide. In an unconfirmed call to U.S. Treasury Secretary Lawrence Summers Monday, Gramm (R-TX) reportedly asked Summers if he would support passing a piece of the broader bill that clarifies the legal standing of over-the-counter (OTC) derivatives transactions, according to interviews with several lobbyists and congressional aides. The article says Summers advised Gramm to continue working on the entire bill as a budget impasse has again delayed Congress' adjournment, giving banking and agricultural lawmakers unexpected bonus time to work out a deal on the commodities bill. The legislation would free OTC derivatives from commodities laws, streamline regulations of futures exchanges and lift the 18-year ban on single-stock futures. The article says Gramm has "fundamental differences of opinion" with Democrats, the House and Senate agriculture committees and the administration over how markets should be deregulated and over what the legislation would accomplish. Gramm believes that the legislation as currently written opens loopholes that give the Commodity Futures Trading Commission authority over certain swaps contracts done by banks, according to industry lobbyists and aides.
 

November 2, 2000

Healthier Soybean Oil Sought.  The United Soybean Board (USB) has approved funding for the Agricultural Research Service (ARS) to accelerate development of a soybean variety that will produce a healthier soybean oil. The new oil, which will be ready for food companies to test within the next two years, will be lower in saturated fat and will reduce or eliminate the need for hydrogenation in many applications. The project enables USB to work with ARS to achieve their goals of creating soybean oil with enhanced compositional traits. 

Disaster Designations Made for Three States.  USDA has named 37 Michigan counties as eligible for USDA emergency farm loans because of losses caused by excessive rainfall, flash flooding, hail, and high winds, that occurred this spring. In addition, the entire states of Arkansas and Wyoming also were designated disaster areas. 

Dairy Farmers Agree on Legislative Issues.  The nation's dairy farmers appear to have formed enough of a consensus to forge nine issues for congressional consideration next year. Many of them will be proposed as part of the new farm bill debate. The issues are the result of nearly a year of deliberation led by the National Milk Producers Federation with the support of several other farm organizations.

News Summaries 

Growth Hormone Approved for Pigs in Mexico.  Alpharma Inc. says its Animal Health Division has received approval for Reporcin(R) (Porcine SomatoTropin -- PST) in Mexico. The product is a naturally occurring protein that is given by a daily administration to pigs during the finishing stage. It allows the animal to convert nutrients into lean muscle rather than fat, producing meat lower in saturated fat and with fewer calories. Alpharma acquired the exclusive global marketing rights to the porcine somatotropin technology, and the only manufacturing facility located in Australia, in the third quarter of 1999 from Nantinco, a European investment company. It remains the only product of its kind commercially available. Each pig consumes less feed to produce the same amount of lean meat. Less feed means less animal waste to be treated, the company says, and it also means less feed crops need to be grown, and that results in fewer crop chemical applications. 

UK Farmers Want Tighter BSE Controls.  Animal feed producers and farmers have given support to a call by Britain's food watchdog for tighter controls to halt "mad cow" disease, which devastated the UK beef industry and has so far killed at least 85 people, according to REUTERS. The Food Standards Agency (FSA) on Tuesday urged a complete ban on feeding animal remains to other animals, like pigs, poultry and fish not yet covered, to prevent the spread of bovine spongiform encephalopathy (BSE). The FSA also called for urgent screening of sheep to make sure they had not been infected with the disease, which has similar symptoms to scrapie, a disease from the same family as BSE and common to sheep. 

California Leads and Follows.  THE ASSOCIATED PRESS reports that California researchers are in the forefront of agricultural biotechnology, but the commercial use of genetically modified crops "is sparse in the state compared with the widespread use in the Midwest." "That's kind of the paradox," said Kent Bradford, director of the seed biotechnology center at the University of California, Davis. California's agriculture covers more than 250 crops compared to the Midwest's reliance on corn and soybeans, said Judith Kjelstrom, associate director of the biotechnology center at UC Davis. UC Davis officials estimate that within the nine-campus system there are 200 invention disclosures, the first step toward a patent, on agricultural biotechnology. About half of those are from UC Davis, said school spokeswoman Pat Bailey. The international environmental group Greenpeace warned last week that if California farmers jump into genetically modified crops, it could harm the state's $26.8 billion agriculture economy, the article noted. 

Indians Sue USDA.  B