November 26

• Spending Bill Complete, But Approval Awaits December Session
• Spending Add-Ons Cut Agriculture, Other Departments
• COOL Gets Cooling-Off Period

Spending Bill Complete, But Approval Awaits December Session
House and Senate negotiators finished a mammoth spending measure to fund USDA and several other government agencies, but could not gain final approval of the measure before adjourning for Thanksgiving. The House will reconvene December 8, and the Senate December 9, to consider the conference report on the big appropriations bill. The fiscal year covered by the bill actually began almost two months ago, and unfunded agencies have been operating on auto-pilot through a series of "continuing resolutions" that provide money at last year's levels. The current "CR" extends through January 31, so the government would not shut down even if the Senate failed to act on the appropriation conference report in December. 

Spending Add-Ons Cut Agriculture, Other Departments
All of the agencies funded by the big appropriations bill that's awaiting final Congressional action will take a small 0.59% hit in their budgets, in order to account for additional spending that greased the wheels for completing the bill. Veterans programs, education and even election reform got more money in the bill, according to the House Appropriations Committee. 

The Agriculture Department's total budget for discretionary (annually funded) programs will be $16.943 billion, less than the $17.141 billion that President Bush requested. The total does not include farm programs, food stamps and other "mandatory" or automatic spending - that is expected to total $63.686 billion, somewhat more than the $60.488 billion that the President asked for. 

COOL Gets Cooling-Off Period
Mandatory country-of-origin labeling (COOL) will be delayed until September 30, 2006, under the spending bill that will fund USDA for this fiscal year. The COOL delay was the most controversial issue in this year's agriculture appropriations debates, and applies to all commodities except farm-raised fish and wild fish, according to a summary of the bill posted by the House Appropriations Committee. 

Producer groups are divided on COOL, while packers have opposed the rules. Opponents argued successfully that costs would far outweigh benefits, but supporters challenged the cost arguments. 

November 25

• MTBE Compromise Sought
• Mexico Shuts Down Onion Trade
• Wheat Groups Can't Merge
• Salmonella Rate Declines Sharply
• Australia Insists on Greater U.S. Access
• U.S., China Trade Relations Will Last

Farm Groups Turned Back COOL Labeling Law

However, the WASHINGTON POST reports that efforts to resurrect the bill appear to be finished for this year, with any revival of the bill's prospects unlikely before January. 

Mexico Shuts Down Onion Trade
THE ASSOCIATED PRESS reports Mexico has closed down four green-onion export companies after a hepatitis outbreak in the United States appears to have been traced to imported Mexican onion. Four people have died and more than 900 sickened. The companies, all located in northwestern Mexico close to the U.S. border, were shut down for failing to prove that they "comply with good agricultural and manufacturing practices," the agriculture department announced in a news release issued over the weekend. 

Outbreaks of the disease appeared in Pennsylvania, Georgia, Tennessee and North Carolina have had a devastating effect on agricultural producers in northwestern Mexico. Vegetable sales in Baja California state have fallen by anywhere from 35% to 50%, not only because of the impact on the export market but also because of the concern among local buyers as well, said Salvador Navarro Pulido, president of the Baja California Farming and Livestock Group. 

The full story is at http://pennlive.com/newsflash/pa/index.ssf?/base/news-9/1069721046160322.xml

Wheat Groups Can't Merge
Officers of U.S. Wheat Associates, the U.S. overseas wheat promotion group, have decided they cannot support a merger plan with the National Association of Wheat Growers. The NAWG is a lobbying group on domestic issues, and the Wheat Export Trade Education Committee, a group that analyzes international issues. Last year, the boards of the three groups agreed to consider a merger, but officers of U.S. Wheat Associates said in a letter to its board last week that it finds the plan developed by a consulting firm to be "troubling." 

The plan was presented to the wheat groups in October, but they've all had difficult relations in recent years, particularly over the issue of the commercialization of biotech wheat. NAWG has been more enthusiastic about biotech wheat than U.S. Wheat Associates, whose studies have shown that foreign customers don't want to buy genetically modified wheat. NAWG gets corporate support from Monsanto, one of the developers of biotech wheat. Some wheat farmers have said the merger is an attempt for pro-biotech forces to gain control over all the wheat groups. NAWG CEO Darren Coppock said NAWG's positions are determined only by its producer board. 

For the entire story go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=4&SMContentSet=0 

Salmonella Rate Declines Sharply
Rate of Salmonella in raw meat and poultry in the United States declined by 66% during the last six years and by 16% compared with last year. Agriculture Secretary Ann Veneman said the result "show that we are making progress in our efforts to enhance meat and poultry inspection systems. This is good news for consumers." 

Of the random samples collected and analyzed between Jan. 1 and Oct. 31, 2003, by USDA's Food Safety and Inspection Service (FSIS), 3.6% tested positive for Salmonella, as compared with 4.29% in 2002; 5.03% in 2001; 5.31% in 2000; 7.26% in 1999 and 10.65% in 1998. USDA recently announced data showing similar reductions in E. coli O157:H7 in ground beef and Listeria monocytogenes in ready-to-eat meat and poultry products. 

Australia Insists on Greater U.S. Access
TRUTH ABOUT TRADE reports Australia will stop negotiating a free trade agreement with the United States unless greater access to U.S. agricultural markets is part of the deal. Prime Minister John Howard said Canberra might be willing to agree to a trade-off in relation to local content guidelines covering new technologies in the television industry. His comments came ahead of talks between Australian Trade Minister Mark Vaile and U.S. Trade Representative Robert Zoellick in Washington on Monday. 

The prime minister said Australia's local television content quotas for existing media would be protected, but free-trade-agreement negotiations, which are due to conclude next month, could result in a larger representation of U.S. products for new technologies such as digital television. Now, 55% of free-to-air television programming and 80% of advertisements must be homegrown product. The most substantial and difficult issues are complete access to U.S. agriculture markets, particularly for sugar and dairy products, and Australia's farm-marketing monopolies, including monopoly wheat exporter AWB Ltd. 

For the entire story, go to http://www.truthabouttrade.org/article.asp?id=1072

U.S., China Trade Relations Will Last
REUTERS reports U.S. and China trade relations will outlast the difficulties fueled by last week's announcement of new quotas on Chinese textile shipments. USDA Under Secretary J.B. Penn said China continues to need U.S.-grown soybeans and cotton. "We do think the Chinese need soybeans and cotton, and we think they will be purchasing those commodities," he said. Penn also noted that China "perhaps" had been interested in buying U.S. wheat before the textile trade announcement was made by the United States. Chinese soybean, cotton and wheat-buying teams canceled visits to the United States following the U.S. decision to impose new textile quotas on China. 

The entire story is available at http://www.boston.com/business/articles/2003/11/24/usda_says_china_trade_woes_short_term/

Farm Groups Turned Back COOL Labeling Law
OSTERDOWJONES reports it was strong opposition by farm groups that convinced Congress to agree prevent implementing country- of-origin labeling rules for two years, according to Agriculture Secretary Ann Veneman. But Veneman also admitted final action by Congress remains to be taken. In an interview with the news service, Veneman said lawmakers "are doing this at the behest of the industry." 

She also listed the strong opposition to the labeling law by the National Cattlemen's Beef Association, the National Pork Producers Council and the United Fresh Fruit and Vegetable Association. The law was approved by Congress as part of the 2002 farm law and was scheduled to be implemented in September 2004. Farm groups, Veneman said, told her and Congress that they "don't like this legislation." 

Over the weekend, members of the Senate and House agreed in closed-door meetings to delay the labeling law for two years rather than include it in the agriculture appropriations bill yet to be approved. 

For the full story, go to http://www.hpj.com/dtnnewstable.cfm?type=story&sid=10428 

November 24

• Senate Blocks Final Energy Bill Passage
• USDA Can Assure No GMOs in Wheat Exports
• Forest Bill Goes to Bush
• Bilateral Pacts Seen as U.S. Control Attempt
• 'Harmless' in Florida Can Devastate an Industry
• Organic Gains as Traditional Wanes
• Hepatitis Linked to Onions from Mexico

Republican leaders came up two votes short of the total needed to cut off debate blocking the bill and were forced to search for changes that might keep the measure from going down to defeat. "This will not be the last vote on this bill," promised Majority Leader Bill Frist (R-TN). "We're going to keep voting until we pass it and get it to the president. After the bill sailed through the House earlier last week, it lost momentum in the Senate as a growing number of senators said it was bloated with special favors, was too expensive and threatened environmental protection. 

For the entire article, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=5&SMContentSet=0 

USDA Can Assure No GMOs in Wheat Exports
OSTERDOWJONES COMMODITY NEWS reports USDA now is able to assure foreign buyers that no genetically modified wheat is being sold on the U.S. market even if Monsanto Co. gets approval for its biotech Roundup Ready variety, agency and company officials said. The United States has sought since 1999 to assure foreign officials about the safety of biotech wheat, or wheat made from genetically modified organisms (GMOs). But officials began questioning their ability to continue the practice in December 2002 after Monsanto asked the agency for approval of its biotech breed of hard red spring wheat, said Dave Shipman, deputy administrator for the department's grain-inspection division. Monsanto is the first company to petition the U.S. to approve a biotech wheat variety. 

Until U.S. exporters believe overseas sales won't suffer because of even the perception that commercial biotech wheat crops are being grown, Montana plant breeder Dan Biggerstaff said USDA assurances are crucial for trade. "In trade circles, it's critical," said Mr. Biggerstaff, head of research and development for Westbred Plant Breeders, a company he said has performed field trials for Monsanto's biotech wheat. 

For the full story, go to http://online.wsj.com/article/0,,SB106942850982065200-search,00.html?collection=wsjie%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Forest Bill Goes to Bush
The House has approved the Healthy Forest Restoration Act, sending it to President Bush for his signature. House Agriculture Committee Chairman Bob Goodlatte (R-VA) applauded the 286-140 vote, saying this is a critical first step towards fixing what is wrong with the management of U.S.public lands. 

"After lots of hard work we are sending this historic legislation to the President's desk. This is the first significant forestry legislation to pass Congress in a generation," Goodlatte said. "This bill creates the first real relief from bureaucratic gridlock after over eight years of legislative effort. Final passage sends the unmistakable message that the Congress favors results over process, and that achieving forest management that protects our communities, our watersheds, and the lives of countless people, outweighs partisan wrangling." 

Goodlatte said the legislation seeks to address the issues that have tied the hands of forest managers and seeks to make for smoother court actions that usually stall projects for so long "that areas proposed for treatment frequently are destroyed by fires long before the judicial process concludes," according to Goodlatte. 

"The Healthy Forest Restoration Act will give federal land managers the opportunity to restore our forests to a more natural balance, while maintaining important environmental requirements," ranking Decmoratic Rep. Charlie Stenholm (TX) said. "I commend Chairman Goodlatte for his bipartisanship and leadership on this important issue." 

The Society of American Foresters praised the bill for giving new tools to forest managers to protect forests. The National Volunteer Fire Council praised it for reducing the degree of threat faced by their members when they are on the fire line. The International Association of Fire Chiefs, along with professional wildlife managers, sportsmen, and serious conservation groups all supported the bill. 

Bilateral Pacts Seen as U.S. Control Attempt
A prominent Thai economist is warning the global trade system is moving back toward bilateralism and eventually will move toward unilateralism with the United States making the rules, THE NATION reports. The U.S. wants to sidestep the multilateral system under the World Trade Organization (WTO) because of the growing negotiating power of developing countries, said Professor Rangsan Thanaporn-phan, of Thammasat University. 

"The US is now using divide-and-conquer tactics to break apart the G20 [developing nations] by negotiating bilateral free-trade agreements [FTAs] with them separately," Rangsan said. The G20 includes China, India and Brazil - countries that "revolted" against the WTO at its last round of ministerial meetings in Cancun in September. "For example, [the US] is now offering special benefits to Brazil and Costa Rica, which are active players in the G20," Rangsan said at the public forum "Thai Constitution in a Quagmire" at Thammasat. He and international law expert Jakkrit Kuanpoj spoke on "Thailand under the Influence of Globalisation." 

For the entire story, go to http://nationmultimedia.com/page.news.php3?clid=4&id=104022&usrsess=1 

'Harmless' in Florida Can Devastate an Industry
THE PALM BEACH (FL) POST reports that objects which may seem harmless, like a mango stashed in a suitcase on a flight from Haiti or toys from China packed in wood crates, actually can end up introducing an insect, an invasive plant or the next plant disease that could end up costing the United States and Florida $300 million, like citrus canker has since 1996. 

Expanded trade with the countries involved in the Free Trade Area of the Americas pact, on which negotiations were held last week in Miami, could mean serious risks for Florida. Because Florida and the Caribbean share a common ecosystem, whatever thrives in those countries will thrive in Florida. The pest can take hold far from predators that might keep it under control in its native land, said Mike Shannon, Florida plant health director for the USDA's Animal and Plant Health Inspection Service office in Gainesville. "There is a clear pattern of invasions of Florida from the Caribbean, including Central America, of things getting into those countries first and then coming here," Shannon said. 

"On average, Florida gets 12 new insects a year, plus serious disease and invasive-plant problems," Shannon said. "That's more than any other state. It exemplifies the price being paid for the dependency of Florida on foreign trade. The more trade there is, the more risk there is." As trade and tourism have increased, so has the problem of foreign pests and plant diseases, both unintentionally and by deliberate smuggling. And less than 2% of all goods are inspected, said Marjorie Hoy, a University of Florida entomology professor who discovered that fact while participating in a USDA bioterrorism study. 

To read the entire story, go to http://www.palmbeachpost.com/business/content/auto/epaper/editions/sunday/business_f3dbc727d6c130ba0049.html

Organic Gains as Traditional Wanes
THE DES MOINES REGISTER reports organic agriculture is gaining consumer support as high costs, tight profit margins and increased foreign competition force farmers and suppliers in the United States out of business, experts said last week in Ames. "The opportunities are there," said Neil Hamilton, director of Drake University's Agricultural Law Center and chairman of the Iowa Food Policy Council. 

Expanding organic product popularity involves "recapturing our food system," said Hamilton, who spoke at the third annual Iowa Organic Conference, held at Iowa State University. Organic food sales have grown at double-digit annual rates in recent years in the United States, awakening interest among farmers, food manufacturers and retailers, Hamilton and other participants at the conference said. 

Farmers faced with continual low returns on conventional livestock and crops are changing to organic production. Also consumer demand is growing for food from crops and livestock raised without the use of antibiotics, pesticides or other chemicals. "It's grown to the point now where it is worth being certified organic," said LeRoy Ballard, a Benton County producer who helps run a family-owned business that ships organic herbs throughout the United States and to Europe. 

For the entire story, go to http://www.dmregister.com/business/stories/c4789013/22795425.html

Hepatitis Linked to Onions from Mexico
The NEW YORK TIMES reports recent hepatitis A cases have been linked to contaminated scallions imported from Mexico. Three people have died and hundreds have been sickened. The article says those cases are only the latest in a sharp increase in food borne illnesses from fruits and vegetables. In 2000, the last year for which information is available, there were nearly as many reported cases of food poisoning from produce as from beef, poultry, fish and eggs combined, according to an advocacy group's compilation of government data. 

"It's a huge problem and not one easy to solve," said Dr. Glen Morris, chairman of the department of epidemiology and preventive medicine at the University of Maryland School of Medicine and a former Agriculture Department official. "Produce is emerging as an important cause of food-borne illness in this country." Scientists and some government officials said the increased rate of illness is due to people eating more fresh produce and eatring it year around; that means increased in imports from countries with less stringent sanitary standards. 

The entire story is available at http://seattletimes.nwsource.com/html/nationworld/2001798872_produce23.html

November 21

• Hearing Highlights Food Safety Soft Spots
• Bush Signs Drug User Bill
• Taxpayers, Consumers Victims When Trade Pacts Fail
• U.S. Will Reduce Barriers if Others Do
• More Details on New FTAA Pact
• The Future May Be Made of Soybeans

Collins said an attack on the food supply would spell disaster. "An attack on just one segment of the food supply could cripple our economy, require geographic quarantines, cause massive social upheaval, and of course, produce illness and death," she said. Tom McGinn of the North Carolina Department of Agriculture, in a study of the impact of such an attack on a local community, painted one scenario in which he looked at what would happen if two biological pathogens were introduced into the food supply. "Such a biological attack would create signs both gastric, respiratory and neurological. Anybody who is sick with any kind of disease, whether it is flu or an allergy, or simple stomach virus would think they were infected as well. This would overload our public health system, and the confidence in the government's ability to respond would be called into question, and fear would be widespread," he said. 

Peter Chalk, a researcher with the private nonprofit RAND Corporation, released a report that recommends a series of measures to better protect the agricultural and food industry that include coordination between federal agricultural and intelligence agencies, enhanced law enforcement to determine whether disease outbreaks are deliberate or naturally occurring, and improved quality control and emergency response measures at food processing and packing plants. 

The entire story is at http://www.voanews.com/article.cfm?objectID=424981D6-18BE-4231-992A658ED7960F39

Bush Signs Drug User Bill
FOOD CHEMICAL NEWS DAILY reports President Bush has signed into law the Animal Drug User Fee Act after the bill smoothly made its way through the House and Senate. ADUFA is patterned on user fee programs at the Food and Drug Administration's drug and medical device centers; it allows animal drug sponsors to pay fees in return for the Center for Veterinary Medicine's review of new drug applications within set time frames. CVM said last month that it would issue its 2004 user fee schedule shortly after ADUFA became law and could could send out its first user fee invoices by Jan 1. 

Taxpayers, Consumers Victims When Trade Pacts Fail.
The U.S.NEWSWIRE reports a study shows that taxpayers and consumers worldwide are the real casualties when nations refuse to lower trade barriers; U.S. consumers, even when trade isn't reciprocal, particularly benefit, according to the study from the non-partisan National Taxpayers Union Foundation (NTUF). "Because protectionist trade policies are so destructive, there is simply no reason for Congress to wait for multilateral negotiations before removing subsidies or tariffs," said NTUF director of government affairs and study author Paul Gessing. "When it comes to the global trade war, unilateral disarmament on America's part is both the politically honorable and economically intelligent thing to do." 

On average, the U.S. tariff rate is 1.7% on imported goods, among the lowest in the world, Gessing says. U.S. trade policies still target specific products from certain nations harming U.S. citizens as well as others abroad. Among the reasons Gessing says that U.S. agricultural protectionism (including taxpayer subsidies) cost developing nations more than $8 billion in lost trade revenues. Paradoxically, these subsidy-induced losses in turn leave American taxpayers with a second round of bills to pay more than $1 billion in food aid each year that is sent to many of these same struggling countries. Ironically, U.S. agriculture is a net exporter of goods, making tariffs (whose rationale is to protect struggling industries) an unnecessary as well as costly exercise, he said. 

The entire story is available at http://releases.usnewswire.com/GetRelease.asp?id=131-11202003

U.S. Will Reduce Barriers if Others Do
WALLETWATCH (India) reports a U.S. official says the United States will reduce domestic agriculture subsidies, a key issue that helped end the Cancun meeting of World Trade Organization (WTO) in September, but only if other countries follow suit and work towards eliminating barriers to trade in farm goods. ''We are willing to substantially reduce subsidies and support to agriculture if other counties who provide more support to their farmers follow suit and barriers to trade in agriculture goods are reduced,'' Ashley Wills, US Assistant Trade Representative, said at a meeting organised by FICCI. ''The reduction of barriers to trade in farm goods will benefit all, including developing countries. It is also in India's interests,'' Wills said. 

He said the WTO talks still could be revived. ''We may not agree on all issues but still we can work together. I had discussions with Indian government representatives on this. It is still not late to get the WTO negotiations started,'' Wills said. He said that there was a need to go beyond rhetoric and ceremony and revive WTO talks and take them to conclusion. "We were disappointed that the Cancun meeting (of trade ministers of WTO countries) came unstuck. We would like the trade talks to move forward and succeed,'' Wills said. 

The entire story is available at http://sify.com/finance/fullstory.php?id=13313597

More Details on New FTAA Pact
THE ASSOCIATED PRESS reports a draft text has been approved on a Free Trade of the Americas Agreement that allows countries to opt out of the more controversial clauses of the agreement. The draft was promoted by Brazil and the United States and will be given to trade ministers from the 34 nations in the Americas, excluding Cuba. The ministers will finish the text this week. It includes generalities and does not specify which parts of the proposed agreement countries could opt out of. 

U.S. Trade Representative Robert Zoellick denied that the United States was retreating from a pact to remove all trade barriers from Alaska to Argentina, which was how the FTAA was originally conceived. He called the buffet comparison inaccurate. "I look at it as a full-course dinner, but each country has to decide how much to eat with each course," he told business leaders. Brazilian Foreign Minister Celso Amorim said the draft recognizes that the 34 countries have many different interests in trade and may want to negotiate distinct topics. Canada, Chile, Mexico and several Caribbean countries had wanted a more specific FTAA text. Chilean officials criticized the draft, saying it will reduce the FTAA to a "minimum." 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0 

The Future May Be Made of Soybeans
THE KANSAS CITY (MO) STAR reports on the myriad of future products that likely will be made from soybeans. Carpeting, kitchen countertops and couches are examples. Then parts of cars might be made from soybeans. "We feel the time is coming for bio-based materials," said Zoran Petrovic of the Kansas Polymer Research Center, which is looking at ways that soybean oil can be used to make polyurethane plastic. The center, based at Pittsburg State University in southeast Kansas, has joined Cargill Inc., in an agreement that allows the company to utilize the school's patents for commercial uses. Neither side will say how much the contract is worth. 

Officials have high expectations for soybeans and plastic. They say the science could create major changes for the economy, the environment, agribusiness in the Midwest and even the political landscape in the Middle East. Most polyurethane plastic now is made with petroleum. But properly converted soybean oil - polyols - could do the same job, supporters say. Instead of relying on foreign oil, U.S. industry could turn to a homegrown resource. Also soy is cleaner environmentally, Petrovic said. The crop is renewable. And no one has come up with a way to grow petroleum yet. 

The full story is at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=10&SMContentSet=0 

November 20

• U.S., China Trade Tensions Escalating
• New FTAA Framework Developed
• China Suspends U.S. Farm Purchases in Anger
• Tighten Security, USDA Tells Officials
• Excluding Products Draws Groups' Fire
• Using Canadian Pesticides Put on Hold
• Russia Aims for China's Grain Market
• Voters Can Ban GM Crops

Go to http://online.wsj.com/article/0,,SB106932867094105100-search,00.html?collection=wsjie%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29 for the entire story.  (Subscription Required) 

New FTAA Framework Developed
The DOW JONES NEWSWIRES report officials working on a Free Trade for the Americas have reached a tentative agreement designed to replace the original initiative with a new one. In the backs of their minds is the January 2005 deadline for reaching an agreement to reduce or eliminate commercial barriers in 34 countries stretching from Canada to Argentina. Brazil had been pushing hard for a less ambitious FTAA and hailed the compromise as a way to return from the possible final collapse of the talks, almost a decade old now. "I think it's a victory in that it allows us to move forward, so it's a victory for everyone," Brazilian Foreign Minister Celso Amorim told reporters. 

The entire story is at http://online.wsj.com/article/0,,BT_CO_20031119_010004-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

China Suspends U.S. Farm Purchases in Anger
REUTERS reports China suspended large U.S. agricultural commodity purchases apparently in reaction to the United States imposing new quotas on some clothing from China. U.S. officials insist they are committed to free trade. Tensions mounted after the United States announced the quotas; a delegation of Chinese wheat buyers postponed a trip to the United States planned for late November or early December. The U.S. wheat industry had hoped the visit would mean significant sales after years of being closed out of China's vast grain market. Similar visits by Chinese soybean and cotton buyers also were put on hold. 

Beijing's reaction came the day after the Bush administration said it would impose quotas on China's imports of knit fabrics, dressing gowns and brassieres. Those products and other Chinese textiles, have been flooding into the United States in recent years, causing massive job losses in southern states that are important to President Bush's 2004 reelection. "The administration is committed to free trade," U.S. National Security Council spokesman Sean McCormack told reporters traveling with Bush in London. However, McCormack also said the United States was intent on "fully enforcing our trade laws," an apparent reference to a U.S.-China trade arrangement that allows Washington to set "safeguards" against import surges of specific goods. 

The entire story is at http://www.boston.com/business/articles/2003/11/19/us_wants_free_trade_despite_china_quotas/

Tighten Security, USDA Tells Officials
REUTERS reports USDA investigators are saying the Department of Homeland Security needs to establish strict security guidelines for all government-funded U.S. laboratories that conduct research on deadly viruses, bacteria and chemical agents. The USDA's Office of Inspector General said it found dozens of research labs, most located at public universities, where theft was possible because of lax security and incomplete record keeping. "Without a standard minimum level of security, there is a potential that laboratories could experience unauthorized entries and that the loss or theft of high consequence pathogens could go undetected," the report said. 

Several federal agencies provide grants to many of the same research labs, so the report recommended that the Homeland Security Department create one set of security rules for institutions that handle high risk agents. Between July and September 2002, USDA investigators visited 104 laboratories at 11 sites and found many lacking alarm systems and surveillance cameras. 

The entire story is at http://www.forbes.com/business/newswire/2003/11/18/rtr1152629.html

Excluding Products Draws Groups' Fire
AGWEB.COM reports 23 groups are opposing the exclusion of certain agricultural products from trade liberalization under the U.S.-Central America Free Trade Agreement. Also, more than 35 House members have told U.S. Trade Representative Robert B. Zoellick that they would find it unacceptable to exempt certain agricultural sectors or to have certain Central American countries keep their markets closed to key US agricultural exports. Among the U.S. agricultural products which Central American negotiators had reportedly wanted to exclude from the agreement are corn, beef, pork, dairy and poultry products, dry beans and potatoes. One senior trade official told agriculturelaw.com that Central American countries have now accepted the principle that all commodities must be liberalized. By contrast, U.S. sugar industry lobbyists have continued to press U.S. negotiators exclude sugar - a development not welcomed by the groups who sent the letter. 

"We cannot afford to establish a precedent in this free trade agreement that certain sectors or products can be left out of the agreement," the groups said. "Such a precedent would be used against the United States again and again in future trade agreements to the detriment of the US agricultural sector….[T]his issue affects all of export-oriented US agriculture, because even commodities that happen to be 'safe' in a U.S.-Central America agreement could be in danger of exclusion in future agreements if this precedent is established." 

The entire story is at http://www.agweb.com/news_show_news_article.asp?file=AgNewsArticle_20031119844_412&articleid=103211&newscat=WA 

Using Canadian Pesticides Put on Hold
Sen. Byron Dorgan (D-ND) wanted to allow U.S. growers access to, and use of, Canadian crop protection products that may be priced lower than a similar U.S. registered product. So he offered it was an amendment to a spending bill. If signed into law, growers potentially could save millions of dollars due to the fact that many important crop protection products are priced lower in Canada than in the U.S. 

Dorgan offered his amendment to a measure Agriculture Committee Chairman Sen. Thad Cochran (R-MS) was seeking to include in the bill that provides a pesticide fee registration increase. Dorgan withdrew his amendment after securing an agreement from Cochran that the Senate Agriculture Committee would hold a hearing on the issue early next year when Congress returns from adjournment. 

For the entire story, go to http://www.wheatworld.org/html/news.cfm?ID=466

Russia Aims for China's Grain Market
RIA NOVOSTI reports Russian is seeking ways to make China an important market for Russian grain. Arkady Zlochevsky, president of Russia's Grain Union, made the statement at the union's ninth conference. He said it was "necessary to step up information exchanges, streamline the coordination of issues related to the grain policies and programs for subsequent grain exports to China. Our contacts with China will be playing a tremendous role on the grain market." This year Russia again will export grain, but exports should be less than 6 million tons. 

The entire story is at http://feeds.bignewsnetwork.com/redir.php?jid=40b6d52c173f5035

Voters Can Ban GM Crops
The SACRAMENTO (CA) BEE reports voters in Mendocino County will be able to do something no one else has had the chance to do: ban raising genetically engineered crops. Mendocino elections officials said that supporters of a biotech crop ban have submitted enough valid signatures to earn a spot on the March ballot. That is a victory for a handful of organic enthusiasts who started building support months ago, hoping to energize Northern California anti-biotech activists and to draw out opposition on a topic of worldwide debate. 

It's a largely symbolic initiative since no biotech crops are currently grown in Mendocino, and there are no commercial genetically modified versions of Mendocino's major crops, which include wine grapes and pears. 

The full story is at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=6&SMContentSet=0 

November 19

• House Passes Final Energy Bill
• U.S. Plans Several FTAs in Americas
• Crops Answer to Biotechnology Problems
• Stenholm Says Delay COOL for Years
• California Not Exempt from Clean Air Laws
• Trade Overhaul Necessary, Says Report
• Smithfield Will Keep Farmland Plants Operating
• Dorr Blocked from Office

The vote on the final bill was 246-180, with 46 Democrats joining 200 Republicans. But Democrats in both House and Senate remain irate that Republicans would not permit them to participate in three months of House-Senate conference deliberations that put the final 1,100-page package together. In the Senate, there is the possibility of a filibuster. 

House Minority Leader Nancy Pelosi (D-CA) said the bill was "loaded to the brim with special-interest giveaways" and only "a few table scraps thrown to clean-energy companies." The measure, she added, "throws environmental concerns overboard." 

President Bush commended the House for its vote and urged the Senate to "act expeditiously." He added: "Reliable and affordable energy is critical to our economic security, our national security and our homeland security." The cost again has been increased; now the Congressional Budget Office expects it will cost $25.7 billion in the next decade. 

For the entire Wall Street Journal article go to http://online.wsj.com/article/0,,SB106919278817142700-search,00.html?collection=wsjie%2F30day&vql_string=energy+bill%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Rep. Bob Goodlatte (R-VA)and chairman of the House Agriculture Committee, said the energy bill was a boon for rural areas and would create jobs. The legislation includes provisions crucial to the agriculture sector including the renewable fuel standard (RFS) and renewable energy tax provisions, Goodlate noted. The RFS will increase over time the contribution of ethanol and biodiesel to the nation's fuel supply. By 2012, 5 billion gallons of renewable fuels would be required. The mandate would begin at 3.1 billion gallons in 2005. 

Goodlatte said it is estimated that the renewable fuel standard in the bill will create more than 200,000 new jobs and expand household income by additional $51.7 billion over the next decade. Additionally, the increased use of ethanol will save 1.3 billion barrels of oil by 2016, improve the trade deficit by $28.5 billion over 15 years, add $135 billion to the American economy by 2016 through increased agricultural demand and new capital spending, and generate $32 billion in income for consumers over 15 years. 

The House Committee on Agriculture web site has additional information at http://agriculture.house.gov. 

U.S. Plans Several FTAs in Americas
The VOICE OF AMERICA reports the United States is ready to take on a series of new trade initiatives with several Latin American countries. U.S. officials say the bilateral negotiations will not undermine the proposed Free Trade Area of the Americas which is supposed to take effect at the end of next year. U.S. Trade Representative Robert Zoellick says the United States will seek free trade agreements with Colombia, Peru, Ecuador and Bolivia as part of a strategy to jar loose and give some impetus to broader free trade talks in the hemisphere. The U.S. will begin talks with Peru and Colombia and then follow up with their Andean neighbors, Ecuador and Bolivia.. Late Tuesday, Zoellick also announced the U.S. will seek a free trade pact with Panama. Zoellick says the bilateral talks with Andean countries and Panama are not intended to shut down the process toward the creation of a Free Trade Area of the Americas but are simply a recognition that some countries in the region are more ready than others to move towards free trade. "Now, you might say why the two tracks? First off, some countries are willing to move more quickly and we want to try and achieve that end. In addition, the types of free trade agreements we have done, either NAFTA, or with Chile, or we hope with Central America or with these countries [Colombia, Peru, Ecuador, Bolivia] also seek to have a higher level of ambition," he said. "The level of obligation that all parties cover makes these state of the art trade agreements." 

For the entire story, go to http://www.voanews.com/article.cfm?objectID=6150365D-11A0-443F-8071AAAF162C70A7

Crops Answer to Biotechnology Problems
The BUSINESS WIRE reports transgenic or genetically modified (GM) crops are proving to be the answer to overloaded biologics production capacities in the burgeoning bio-therapeutics industry. GM plants also offer considerable cost savings as an alternative to the existing biologics methods. The report says, however, that increasing environmental concern about the safety of transgenic crops is prompting criticism and a closer look at plant-based pharmaceuticals, and that could pose problems to agro and biotech companies that manufacture them. 

A new analysis from Frost & Sullivan (http://www.biotech.frost.com), U.S. Agriculture Biotechnology Markets, reveals that the GM market had revenue totaling $1.03 million in 2002 and is poised to expand to $5.04 million by 2009. A rapidly increasing world population and more demand for food, plus the ever present problem of less and less arable land, are causing food security to become a major concern for developing countries. A large portion of crops in these countries are being lost to pests and weeds, making it imperative to produce more from the existing cultivable land area. 

"The GM crops marketed by agrochemical and biotech companies have input, output, and stacked traits, which confer them with inert resistance to pests, tolerance to herbicides, and better nutritional value," says Frost & Sullivan Research Analyst K.V. Anantharaman. Agriculture biotechnology will have to assume a larger role in addressing the emerging supply and demand gap for agricultural production. Research is now underway to grow GM crops even on marginalized lands. 

For the entire story, go to http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20031118005070&newsLang=en 

Stenholm Says Delay COOL for Years
REUTERS reports Rep. Charles Stenholm (D-TX), the ranking Democrat on the House Agriculture Committee, wants Congress to delay for several years implementation of a law that requires that meat products be labelled with their country of origin. That would allow more time for the U.S. food and agriculture industries to prepare for it, he said. Stenholm said a temporary delay would help resolve differences over country-of-origin labels for beef, pork and veal. "We got the cart before the horse," Stenholm said in a speech to a commodity group lunch. "Give us a couple of years to develop a voluntary system that works, in which you will have a very high percentage of all food products labeled." The House has voted to prevent USDA from writing rules for the meat labels, which are required by law after Sept. 30, 2004. Senators adopted nonbinding language this month that says the labeling law should take effect as scheduled. 

House and Senate conference committee members hoped to meet this week to reconcile their separate agriculture spending bills. The labeling program, which is currently voluntary, is expected to be the biggest obstacle to an agreement. Consumers and farm groups supported the law last year as a way to distinguish U.S.-grown meat from meat from competing countries at the grocery store. U.S. grocers and meat groups want the law repealed, saying it will be too costly and create a record-keeping nightmare. 

For the entire story go to http://www.forbes.com/markets/newswire/2003/11/18/rtr1152343.html

California Not Exempt from Clean Air Laws
THE ASSOCIATED PRESS reports the Environmental Protection Agency has returned to California control of a program that requires farms considered polluters to apply for permits. That ends the agriculture industry's exemption from clean air laws in the state. State officials estimate farms account for as much as 20% of smog-producing gases in the region. 

It takes effect Jan. 1 and forces farm polluters to comply with the federal Clean Air Act by applying for air quality permits. California farms were exempt from the federal regulation for more than 25 years because California didn't require such permits. EPA began administering the permit program in October 2002 to settle a lawsuit with environmental groups. 

For the entire story, go to http://www.bayarea.com/mld/mercurynews/news/local/7286765.htm

Trade Overhaul Necessary, Says Report
ONENEWS (New Zealand) reports a new study has found that reform of world agricultural trade must be overhauled if it is to provide any real benefits. The Australian Bureau of Agricultural and Resource Economics (Abare) compiled the report that warned the current World Trade Organization (WTO) round of talks could fall apart. Negotiations have been held at a stalemate since a meeting of world trade ministers in the Mexican city of Cancun where developing and developed nations split over proposed trade reforms. 

Most ministers fear the Jan.1, 2005, deadline for the current round of talks will not be met. Abare executive director Brian Fisher said countries may walk away from multi-lateral trade reform because of the failure at Cancun. "It is essential that countries actively re-engage in agricultural negotiations in the WTO so that substantial gains can be achieved," he said in a statement. "Countries need to re-engage quickly if the timeline established at the Doha ministerial meeting has any chance of being achieved." 

The entire story is available at http://onenews.nzoom.com/onenews_detail/0,1227,236896-1-453,00.html

Smithfield Will Keep Farmland Plants Operating
THE ASSOCIATED PRESS reports Smithfield Foods Inc., will keep Farmland Foods Inc.'s pork plants open and bring their maintenance up to date, a Smithfield executive said. Richard Poulson, executive vice president for Virginia-based Smithfield, said his company also hopes to keep about 6,100 Farmland workers. Most of those employees work in livestock production and processing plants in Illinois, Iowa, Kansas, Massachussetts, Nebraska, Ohio and Utah. A Farmland plant in Wichita processes pork for sausage and employs 520 workers. Smithfield is acquiring Farmland's pork division under an agreement. The agreement was worked out in federal bankruptcy court. Smithfield plans to pay $367.4 million in cash for almost all the assets of the Kansas City, MO-based Farmland division. 

"We consider the work force and the management team to be, probably, the most valuable of the assets we acquired,'' Poulson said. He spoke at a public hearing called by three states' attorneys general, Phill Kline, of Kansas; Jon Bruning, of Nebraska, and Larry Long, of South Dakota. They had hearings Monday in Lincoln, NE, and Sioux Falls, SD. 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0

Dorr Blocked from Office
THE ASSOCIATED PRESS reports Senate Democrats have prevented Agriculture Under Secretary Thomas C. Dorr from staying in office next year. Door's opponents say allegedly insensitive racial remarks he made and false documents he filed about his family's Iowa farm disqualify him. On two votes, Democrats sustained what has been essentially a filibuster to keep Dorr from retaining his job as head of the department's rural affairs programs. The action also means he cannot become director of USDA's Commodity Credit Corporation, which provides loans and payments to farmers. 

President Bush used a recess appointment in August 2002 for Dorr, a fund-raiser for the president's 2000 election campaign. Democrats had refused to bring up his nomination for a Senate vote. "It sends all the wrong signals when a person who has falsified documents can be confirmed for one of the highest positions in the Department of Agriculture," said Senate Democratic Leader Tom Daschle (SD). He also cited what he called the "divisive nature of some of his (Dorr's) views." 

Dorr, during a 1999 conference at Iowa State University, said Iowa's most successful rural areas were "not particularly diverse" in their ethnic and religious backgrounds. He acknowledged that "I know that this is not at all the correct environment to say this." 

The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0 

November 18

• Restaurants Source of Hepatitis Probed
• Bilateral Pacts Take on New Allure
• Australia Urges Return to Agricultural Negotiations
• Cotton Prices Still Turn Upward
• Butter Sales Draw Pennsylvania Fire
• Iraqi Farmers Look Forward to Growing Season
• Orange Juice Glut, Low Prices Hit Industry
• Mexican Farmers Hurting from NAFTA
• Vietnam Told to Quicken Farm Projects

However, health officials are trying to assure the public. Dining out generally is safe, and cases of hepatitis A as well as several other food-borne illnesses actually are on the decline, they explain. The incidents have drawn attention to the nation's increasing reliance on imported produce. The severity of the Pennsylvania outbreak also is bringing back the debate over whether children or food-service workers should routinely be vaccinated against hepatitis A. 

The entire story is available at http://online.wsj.com/article/0,,SB106910721875432900-search,00.html?collection=wsjie%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Bilateral Pacts Take on New Allure
DOW JONES NEWSWIRES reports the United States plans to start bilateral free trade talks with several Latin American countries, trying to put new life into a stalled hemisphere-wide pact on its own terms. U.S. negotiators haven't found much progress in three days of multilateral talks with 33 other countries that are designed to create a Free Trade Area of the Americas. 

U.S. Trade Representative Robert Zoellick appears increasingly intent on looking elsewhere for trade deals. Today, he is scheduled to launch bilateral negotiations with Peru and is expected to unveil a similar initiative with Panama. An announcement on Colombia, which has been aggressively lobbying for a trade pact with Washington, is also reported in the pipeline. 

The rest of the story is at http://online.wsj.com/article/0,,BT_CO_20031118_002033-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Australia Urges Return to Agricultural Negotiations
DOW JONES NEWSWIRES report Australia wants the World Trade Organization to return quickly to negotiations on agriculture in order to get talks back on a track toward the deadline for a new international trade deal.

Abare, the Australian Bureau of Agricultural and Resource Economics, issued a report entitled 'WTO Agriculture Negotiations: The Way Forward From Cancun', with its blueprint for achieving substantial liberalization. Abare said the WTO faces the possibility that "progress made to date will be abandoned." "Such an outcome would seriously delay the process of reform," Abare's Executive Director Brian Fisher said in a statement accompanying the report. "This happened after (the WTO's failed 1999 ministerial meeting in) Seattle, and the negotiations were set back years." 

The entire report is at http://online.wsj.com/article/0,,BT_CO_20031117_009181-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Cotton Prices Still Turn Upward
EMERGINGTEXTILES.COM reports cotton prices could continue increasing in the short term, but U.S. futures at least briefly pointed down last week. Futures declined sharply Wednesday before recovering Thursday and Friday. China's large cotton imports could stimulate prices for the coming months, experts warned after USDA again lowered China's expected product6ion total for 2003-2004. 

After a dramatic downturn on Wednesday, US futures rose in the two consecutive days with December finally finishing the week at 74.90 cents per pound, 3.07% lower than the previous Friday. The fall in December contract is partly due to its imminent liquidation while most active March was only 1.25% down in the past week. 

USDA's bullish export data for the week ended Nov. 6 indicated sales reached 448,800 running bales, up 63% from the week earlier, USDA said. More important, China was the largest buyer with 231,000 RBs, followed by Brazil (44,500 RBs), Mexico (32,200 RBs) and Turkey (25,900 Rbs). 

For the entire story, go to http://www.emergingtextiles.com/?q=art&s=111703-mark&r=free&n=1 

Butter Sales Draw Pennsylvania Fire
THE ASSOCIATED PRESS reports Pennsylvania Agriculture Secretary Dennis Wolff isn't in favor of USDA decision to sell 3 million pounds of butter on the open market. Wolff said milk prices have begun to improve, and he believes USDA's decision will depress dairy prices and hurt farmers. He said he would like to see the butter donated through a network of regional food banks and distribution partners. 

For the entire story, go to http://www.thewgalchannel.com/food/2642983/detail.html

Iraqi Farmers Look Forward to Growing Season
The DES MOINES REGISTER reports some Iraqi farmers are hopeful as they plant next year's wheat crop this month in northern Iraq. Farmers believe the fall of former Iraqi President Saddam Hussein's regime and U.S. assistance will revitalize their once-thriving agriculture industry. "This country has been living on its own products, wheat, barley, et cetera, without importing anything from the outside until recent history," Mohammad said. 

Iraq had been the breadbasket of the ancient world with fertile lands stretching from the rolling prairie surrounding Erbil in the north to the Tigris and Euphrates river valleys in the south; Iraqi farmers have produced an abundance of dates, citrus, vegetables, grain and livestock. While most of Iraq is desert, there also is land with rolling prairie that is plowed for planting. 

But dilapidated farm equipment is falling apart. Once-fertile soils in southern Iraq have become salty because of poor irrigation practices. Iraq's wheat fields yield one-third of the grain of a similar-size American farm. Farmers depend on government subsidies, but they are chronically short of pesticides, including badly needed fungicide for wheat, good-quality seed, fertilizer, even tractor tires. 

For the entire story, go to http://www.dmregister.com/business/stories/c4789013/22774754.html

Orange Juice Glut, Low Prices Hit Industry
There once were more than 30 juice plants in the Rio Grande Valley, reports the HOUSTON CHRONICLE, but now there only is one. The industry has become victim of orange juice prices at their lowest in 15 years, plagued international competition and a glut of juice on the market. "I've got orange juice showing in my eyes," said Jimmie Steidinger, chairman of the only surviving juice plant, Texas Citrus Exchange. Low prices have dug into what once would have been $30 million in sales to half that amount for Texas Citrus Exchange in Mission, TX, Steidinger said. And if the United States signs a free trade agreement covering all the Americas, Steidinger predicts even less sunshine for this business. 

"It's going to be devastating to the area," said Steidinger, who represents a company that makes about 16 million cases of Big Tex and other brands of orange juice a year. Steidinger fears a Free Trade Area of the Americas agreement could remove a tariff that has been in place more than seven decades and applies to imports of orange juice. U.S. growers say that would expose them to tough competition from Brazil, where labor costs are less and a devalued currency allows them to sell their juice at a lower price. 

For the entire story, go to http://www.chron.com/cs/CDA/ssistory.mpl/business/2223401

Mexican Farmers Hurting from NAFTA
The TOLEDO BLADE reports Mexican farmers the North American Free Trade Agreement has caused a flood of corn from industrialized U.S. farms to flow south into Mexico and economically affect their already difficult financial conditions. It takes Mexican farmers, an entire day to do what U.S. machinery can do in a couple hours. And without irrigation systems, the corn crop is completely dependent on the weather. 

Mexican farmers told a visiting U.S. congressional delegation that when the final tariffs are lifted for corn in 2008, they fear the Mexican farming community could disappear. The crisis has put a lot of small farmers out of business, causing them to flock to Mexico City or the United States looking for work. They asked the U.S. representatives to make the trade agreement more fair so corn is not imported by Mexico, ruining their business. 

The delegation, led by U.S. Rep. Marcy Kaptur (D-OH), includes members of Congress strongly opposed to NAFTA. They claim it has cost jobs on both sides of the border. "We fought as hard as we could to stop this and prevent the suffering we have created in our country and in your country," Kaptur told the farmers. 

For the entire story, go to http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20031117/NEWS08/111170125

Vietnam Told to Quicken Farm Projects
The VIETNAM ECONOMIC TIMES reports the World Bank wants Vietnam to quicken the progress of rural agricultural projects in order to receive more assistance. World Bank Director Klause Rohland, speaking at a seminar in Ha Noi, said the country's methods for decentralized management was the major reason for delays. Some areas lacked the skilled workers needed to complete projects, he said. 

Mark Wilson, sector director for the World Bank's Rural and Natural Resources Department, said agriculture was important to Vietnam. He said in the next three years, the agriculture sector would receive five projects worth about US$530 million. The projects would focus on irrigation, forests, natural disasters, poor communes and agricultural diversification, he said. Since 1995, the bank has sponsored 11 projects, managed by the Ministry of Agriculture and Rural Development. It has provided loans worth more than $900 million and donations worth nearly $300 million. 

For the entire story, go to http://www.vneconomy.com.vn/en_index.php?action=preview&cat=08&id=031117095328 

November 17

• Brazil Could Blink First at FTAA talks
• China Ready to Buy More U.S. Farm Products
• Japan Acts Further Against Mad Cow
• Women Prosper on the Farm
• Cattle 'Harvested' Younger, Quicker
• Tax Credit Should Help Develop Soy Diesel
• Universities, Ethanol Firm Team Up on Plastics
• California Suddenly Uses More Pesticides

This could give Washington an advantage in its efforts to open the region's economies to U.S. services providers, while slowing the opening of the U.S. economy to politically sensitive products such as Brazilian beef and frozen orange juice. "We hope to go very deeply into agricultural issues and look at some issues that are sensitive to us like services, investments and [intellectual] property rights," Nunes said. While analysts aren't expecting major breakthroughs this week, the turnaround in rhetoric suggests that Washington's strategy of outflanking Brazil by signing bilateral-trade deals with other Latin American countries may be working. Important elements of the Brazilian economy, worried that they could be left behind without needed access to the U.S., have exerted pressure on Brasilia in recent weeks. 

For the entire story, go to http://online.wsj.com/article/0,,SB106902756665431700-search,00.html?collection=wsjie%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

China Ready to Buy More U.S. Farm Products
Chinese trade officials will be in the United States later this week ready to buy more U.S. agriculture products such as soybeans and cotton as well as fertilizer. They will be in the United States for 10 days. The visit is an attempt to narrow the trade gap between the two nations, a government source close to the arrangements said. 

The delegation will include representatives from the Ministry of Commerce, Ministry of Information Industry and the National Development and Reform Commission. China hopes to use these shopping expeditions to counter growing discontent in the U.S. about the size of the trade imbalance between the two countries. The U.S. previously estimated its trade deficit with China would widen to more than $120 billion this year. 

For the entire story go to http://online.wsj.com/article/0,,BT_CO_20031117_001512-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Japan Acts Further Against Mad Cow
THE ASSOCIATED PRESS reports Japan will ban T-bone steaks, bouillon cubes and other beef products from the backbones of cows raised in countries where mad cow disease has been found. The use of spinal cord extracts in such foods has already been prohibited in Japan. Japan is battling a domestic outbreak of mad cow disease and is wary of the fatal human variant it is believed to cause. Officials now believe entire backbones from infected animals pose similar health risks to humans when ingested, Health Ministry spokeswoman Suzuko Tanaka said. 

It's a decision a Health Ministry panel that effectively halts the domestic manufacture and sale of food products containing cattle backbone from Japan and nearly two dozen countries, mostly European nations, affected by the fatal brain-wasting disease, known formally as bovine spongiform encephalopathy, or BSE. 

For the ntire story, go to http://online.wsj.com/article/0,,BT_CO_20031114_000595-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Women Prosper on the Farm
THEDAY.COM reports women are doing quite well making a living on the farm. The National Association of Wheat Growers reports more than 155,000 farms in the United States are owned by women. USDA reports that in 2001, 81% of women on farms were actively involved with the operation and one-third were full partners. Farms operated by a female average 237 acres and $37,000 in annual sales. 

Theresia Gillie is an example. The operator of a 3,700-acre wheat, sunflower and soybean farm in Hallock, MN, she owns the farm in partnership with her husband and mother-in-law. "I farm because I love it," said Gillie, who has an associate degree in accounting and applied science. "There's a smell, a feeling when you're out there. It's quite an accomplishment to put the wheat in the bin." 

For the entire story, go to http://www.theday.com/eng/web/newstand/re.aspx?reIDx=39C28DA7-D8FB-4892-8353-D89E08849D7F

Cattle 'Harvested' Younger, Quicker
THE NEW YORK TIMES REPORTS cattle producers are "harvesting" their cattle younger and faster than ever. "The last two or three years, I lost a lot of money running cattle," said says one Oklahoma cattleman, parking his Lexus SUV to watch his ranch hand chase newly weaned calves from a pen, up a chute and into a trailer to be taken to pasture. "Now we've got the perfect storm. Prices are exploding. They're far beyond anything we have seen in history." 

Droughts in the Midwest and Great Plains, "mad-cow" disease in Canada and shifts in foreign trade and popular preferences have increased the price of U.S.beef. "But the unique thing about 2003," said Gregg Doud, chief economist for the National Cattlemen's Beef Association, "is that all these factors are pulling in the same direction, pulling prices higher. That never happens." 

But the New West isn't that different from the Old West: cattle ranchers still have a major complaint and that is more midnight rustlers running off with calves. Ranchers and the thieves, too, have been getting 90 cents to $1.15 a pound for cattle, often more than $1,000 a head. That is well above the 85-cent peak a decade ago and 30 and 40 cents of about a year ago. But many prices, not believing the prices will last much longer, are slaughtering cattle sooner and depleting their herds of the heifers they would otherwise use to build new herds. 

For the entire story, go to http://seattletimes.nwsource.com/html/nationworld/2001792576_beef16.html

Tax Credit Should Help Develop Soy Diesel
KNIGHT RIDDER NEWS reports the energy bill conferees have agreed to a series of tax breaks that mean a potential bonanza for soybean growers. The agreement augers well for a boom in soybean-based fuels. Republican members of the conference committee agreed to a $1-a gallon tax credit for soy diesel, hoping to jump-start a fledgling industry across the rural Midwest. There were conflicting reports about whether negotiators also agreed to require the use of 5 billion gallons of ethanol and soydiesel, within a decade, which would double current biofuel production. Were both provisions become law, it would be a definite plus for corn and soybean prices, said Mike Schommer, a spokesman for the Minnesota Department of Agriculture. 

Reports of the deal were leaked from a closed, Republican-only conference committee, where Senate and House negotiators were working out the difficult energy bill. But because of the secrecy of the process, details became part of rumors, claims and counterclaims. Sen. Norm Coleman (R-MN) heard the reports from fellow Republicans and proclaimed it a victory for bringing jobs to rural Minnesota and benefits the environment. But aides to Sen. Mark Dayton (D-MN) heard reports far less positive. They were told that negotiators had not reached agreement to require use of biofuels - known as the Renewable Fuels Standard - and had not resolved one of the thorniest issues: how to promote ethanol without also cutting into highway and road construction. 

The entire story is at http://www.montanaforum.com/rednews/2003/11/16/build/ag/soydiesel.php?nnn=2

Universities, Ethanol Firm Team Up on Plastics
NEWSWISE SCIENCE NEWS reports South Dakota State University, Iowa State University and Midwest Grain Processors Corp., an ethanol company, have teamed up to develop environmentally friendly plastics, fibers and films from a corn byproduct. The study is being funded by a $1 million grant from a joint program of USDA and the U.S. Department of Energy. Approximately half of the grant goes to SDSU, and the rest to ISU. The project is one of only 19 selected for funding from among 400 applications. 

Robert C. Brown, director of ISU's Center for Sustainable Environmental Technologies, is the project's principal investigator. Associate professor of agricultural and biosystems engineering James Julson, SDSU coordinator for the subcontract, said the goal is to develop value-added products from distillers' dried grains, or DDG, a byproduct from the production of ethanol from corn. "Development of value-added products from DDG is crucial to the future profitability of the ethanol industry," Julson said. 

"There are potentially high-value oils and proteins which are not converted to ethanol by the yeast. They may provide beneficial nutrition or health benefits for humans," Julson said.. The two-year research project first involves extracting high valued oils and proteins from the DDG. Scientists then will use thermal gasification on the remaining DDG product to produce "syngas," a mixture of carbon monoxide and hydrogen. The syngas serves as feedstock for anaerobic fermentation in which microorganisms feed on the carbon monoxide to produce the biopolymer polyhydroxyalkonates, or PHA. 

For the full story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0

California Suddenly Uses More Pesticides
THE MODESTO (CA) BEE reports pesticide use in California increased 14% last year, reversing a four-year trend of declining use. Higher acreage of several major crops and the use of less toxic pesticides account for the increased levels, the California Department of Pesticide Regulation said. In 2001, California saw the lowest level of pesticide use statewide recorded since the department began keeping track in 1992, said department spokesman Glenn Brank. About 172 million pounds of pesticides were used statewide in 2002, up from 151 million pounds in 2001. "Generally speaking, we saw increased acreage of crops that accounts for the increase in pesticide use," Brank said, adding that some farmers also have turned to using less toxic pesticides. "When you use less toxic pesticides, from a pound standpoint, you tend to use more of it," Brank said. 

November 13

• USDA Increases Wheat Forecast
• Cuba Travel Ban Kept
• Veneman Seeks to Aid Iraqi Education
• New Advisory Council Seen for USDA
• ND, Canada Both Appeal Ruling
• China Wants More Agricultural Companies
• U.S., Mexico Sign Research Agreement
• Ambassador Predicts FTAA Completion on Time

The entire story is available at http://www.abc.net.au/rural/news/stories/s988317.htm

Cuba Travel Ban Kept
THE ASSOCIATED PRESS reports Congress will go along with White House demands that the 40-year ban on travel to Cuba remain in place. Although the Republican-run House and Senate had approved provisions earlier this year lifting the ban, negotiators dropped the language from a compromise bill. 

Sen. Byron Dorgan (D-ND), an advocate of lifting the ban, tried persuading lawmakers to settle for a narrower provision allowing travel to the Communist-run country by farm groups promoting sales of agricultural products. But it died when House bargainers refused to accept it on a voice vote. "It means nothing if this bill is not signed into law," said Rep. Ernest Istook of Oklahoma, the chief House negotiator, referring to a threatened veto by President Bush if the travel ban was lifted. 

For the entire story, go to http://online.wsj.com/article/0,,BT_CO_20031113_000040-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

Veneman Seeks to Aid Iraqi Education
THE ASSOCIATED PRESS reports Agriculture Secretary Anne Veneman met with students and teachers Wednesday in an effort to help Iraq's universities recover from war and economic sanctions under Saddam Hussein. She visited the Baghdad School of Agriculture in the Abu Ghraib neighborhood, a short distance from the prison complex where Saddam's regime tortured political opponents. 

"Agriculture is very important to this country, as it is to our country, and we want to see it rebuilt," Veneman said after meeting the school's faculty. "The people of Iraq need to restore their way of life, and we are ready to help them be a part of the global system." The school, founded in 1952 with the help of Arizona State University, had received two date palm trees brought from the United States. They were planted at the school's complex in the first years of operation. 

Ahmed Al-Zubaidi, dean of the school, recalled the decay and neglect that characterized the school under Saddam. The school suffers from shortages, from textbooks to equipment and laboratory materials. 

For the entire story, go to http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/12/international1200EST0575.DTL

New Advisory Council Seen for USDA
FEDERAL COMPUTER WEEK reports USDA will establish a new advisory council designed to involve citizens and employees in the department's e-government planning. The USDA Technology and eGovernment Advisory Council will include nine members; nominations are due by Jan 15. The department seeks people "who are outstanding in their respective professions and are knowledgeable of the various mission areas of USDA, and on how technology -- both USDA and customer-owned -- can be used to improve productivity and services," according to the Federal Register notice. 

This would be one of the only information technology advisory councils in the federal government. The most high-profile council is the President's Information Technology Advisory Council. President Clinton established that one in 1998, and President Bush renewed its charter through 2005. 

For the entire story, go to http://www.fcw.com/fcw/articles/2003/1110/web-agri-11-12-03.asp

ND, Canada Both Appeal Ruling
THE ASSOCIATED PRESS reports the North Dakota Wheat Commission and the Canadian Wheat Board both will appeal a trade panel's decision that affirmed tariffs on imported Canadian hard red spring wheat but did not recommend penalties for durum. North Dakota farmer Larry Lee, who is chairman of the Wheat Commission, said the federal International Trade Commission was wrong in its conclusion that Canadian durum exports to the United States were not hurting domestic prices. About 28% of the durum used by U.S. mills comes from Canada, Lee said. "The penetration by Canadian durum imports is huge," Lee said. "There's no way that these imports aren't suppressing our prices." 

In October, the International Trade Commission affirmed 14.15% tariffs on Canadian wheat imports but did not rule on a 13.55% preliminary tariff on durum. The hard red spring wheat tariffs could last five years. The Canadian Wheat Board is appealing the federal commission's ruling on hard red spring wheat. The Wheat Board, based in Winnipeg, controls wheat and barley marketing in western Canada's prairie provinces. 

For the entire story, go to http://www.grandforks.com/mld/grandforks/news/7239991.htm

China Wants More Agricultural Companies
XINHUANET reports China wants more companies engaged in agricultural business to spur rural economy, said senior officials of agriculture administration. The government will support these companies, because the industrialization of rural areas is very important in the government's plans for agricultural development, said Du Linqing, minister of agriculture, at the opening ceremony of the First China AG Trade Fair. 

By the end of 2002, about 94,000 agricultural companies that deal with planting, processing, transporting or transaction, were in business in China, a 41.6% increase from 2000. Fan Xiaojian, deputy minister of agriculture, suggested that a comprehensive guideline be developed that would help agricultural companies become established. 

For the entire story, go to http://news.xinhuanet.com/english/2003-11/12/content_1175146.htm

U.S., Mexico Sign Research Agreement
Officials from USDA's Agricultural Research Service and Mexico's National Council for Science and Technology signed an agreement expediting cooperative research to tackle agricultural problems affecting both the United States and Mexico. Under the agreement, ARS will work with CONACyT and Mexican agricultural research institutions to identify opportunities for ARS and Mexican scientists to collaborate on projects of mutual interest and benefit to both countries. 

"The United States and Mexico have a long-standing history of collaboration in agricultural science. The changing face of agriculture and bilateral trade between our two countries provides even stronger motivation for us to partner in identifying problem areas and to resolve them through joint research and the open exchange of information," said Edward B. Knipling, acting administrator for ARS. Knipling signed the memorandum of understanding agreement along with Jaime Parada Avila, director general of CONACyT, Mexico's preeminent funding agency for research and higher education. Efrain Aceves, CONACyT's international relationships director, also attended the signing ceremony. 

For the entire story, go to http://www.ars.usda.gov/is/pr/2003/031112.htm

Ambassador Predicts FTAA Completion on Time
THE ASSOCIATED PRESS reports the U.S. ambassador to Brazil, Donna Hrinak told Brazilian congressmen she was confident a broad Free Trade Area of the Americas agreement would be reached by 2005 even with some differences on issues still pending. "I think we'll have a broad free trade area in the Western Hemisphere after January 2005," shetold the Foreign Relations Committee of Brazil's Chamber of Deputies. "The climate of the talks has been very positive at the latest meetings." 

Negotiating differences have involved mostly the United States and Brazil, the two countries which currently co-chair the 34-nation talks. The United States wants a broad definition of liberalization on issues such as government procurement, services and patent protection but has not agreed to Brazil's demands for more liberal agriculture trade. Brazilian legislators asked Hrinak if the United States will ease its positions to advance the FTAA talks. "Given its economic strength, the U.S. alone has the power to decide whether there will be a greater opening in the hemisphere," said Congressman Luiz Carlos Hauly. "I disagree," said Hrinak. "Brazil has voluntarily assumed a position of leadership. Brazil and the U.S. both have the success of the talks in their hands." 
 
 

November 12

• Chinese Benefit from Soybean Prices
• StarLink Found Allergy Safe
• USDA Pledges Donations to Afghanistan
• Korean President Backs Off Agriculture Pledge
• Minnesota's Livestock Industry in Trouble
• Vatican Conference Mulls Biotechnology 
• Norwegian Farmers Leaving Agriculture

But high prices for farmers means high prices to consumers. Shoppers are discovering that the increasing pork prices, for example, are causedby a shortage of soy meal to feed pigs. The increase in the price of vegetable oil, the result of a scarcity in soybeans for crushing, which has prompted hoarding. At the dumpling shop he opened this fall, Han Fenzhong complains that the rising tab for these staple ingredients is carving into his income. "I can't increase my prices," he says. "People might stop coming." 

When China entered the World Trade Organization, it agreed to open its markets to foreign goods in exchange for the right to sell more of its products around the globe. Now the battle over soybeans illustrates why many countries accuse Beijing of failing to live up to its side of the deal. The case also illustrates Chiuna's protectionism benefitting one group often harms another by limiting the availability of goods at a time when China's relentless growth is causing increased dependence on imports. 

The entire story can be found at http://online.wsj.com/article/0,,SB106857414513162900-search,00.html?collection=wsjie%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29  (Subscription Required) 

StarLink Found Allergy Safe
A report has been released that discredits claims of allergic reactions to StarLink corn. Three years ago, biotech StarLink corn was found in taco shells and other foods, even though it had been approved for animal consumption but not for food consumption. Dozens of consumers claimed they had suffered potentially dangerous allergic reactions after eating food thought to contain StarLink corn. 

The report published this week in the Journal of Allergy and Clinical Immunology reports that one vocal consumer who complained about allergic reactions turns out not to have been allergic to StarLink corn after all. The report casts further doubt on whether StarLink caused any allergies at all. 

National Corn Growers Association Vice President Leon Corzine.noted the Starlink issue is a reminder of the importance of channeling. "It is important we make sure the products we produce stay in the markets where they are approved, and products are kept out of markets where they are not approved, he explained. "This mistake (StarLink) cost literally millions to the American farmer. We must make sure it isn't repeated. 

The entire report is at http://www.ncga.com/news/notd/2003/november/111103.htm

USDA Pledges Donations to Afghanistan
Agriculture Secretary Ann M. Veneman, in a visit to Afghanistan, announced that USDA intends to donate $5 million of U.S. agricultural commodities under the Food for Progress Program to that country. Veneman also announced the first Cochran Fellowship Program with Afghanistan to provide short-term, U.S.- based training for eight Afghan women to study agricultural finance. 

"We recognize the importance of agriculture in the Afghan economy and the need to revitalize the sector as an engine of economic growth and the means to a better life for the people of Afghanistan," said Veneman. "The U.S. Department of Agriculture is pleased to be part of the broader U.S. government and international commitment." 

Veneman said that food assistance is an important part of that effort. In addition to donations under U.S. Agency for International Development programs, USDA has provided $28 million in food assistance for Afghanistan under its 2003 programs. In August, in its first government-to-government grant agreement with Afghanistan, USDA announced the donation of $5 million of U.S. soybean oil which will arrive by the end of the year. Under the Food for Progress Program, the soybean oil will be sold locally with the proceeds used to finance a wide range of rural development projects that will help strengthen and revitalize the country's agriculture. 

In announcing establishment of the Cochran Fellowship Program for Afghanistan, Veneman said this successful 20-year-old program will be used to empower rural Afghan women. They will learn about business plans, financial management, farmers' cooperatives and micro-credit programs to promote food security and income-generating small businesses. 

For the entire story, go to http://biz.yahoo.com/prnews/031111/dctu021_1.html

Korean President Backs Off Agriculture Pledge
DONGA.COM reports Korean President Roh Moo-hyun will not be able to comply with an election pledge of making agriculture 10% of his total national budget. "After serious talks with the various cabinet ministers, I have come to the conclusion that it will be difficult for me to comply with my election pledge," he said. 

At the 8th Annual Farmers' Day Ceremony Tuesday, Roh was asked about the promised budget deal for agriculture. "When I became president, I had to quickly ignore some of the election pledges in order to start working, but unfortunately I would like to erase the 10% pledge today," he said. 

He added, "I had set the pledge at 10% because of my concern of losing the election. But after analyzing the annual national budget once I assumed the presidency, I realized that 10% is too large a figure due to the increase in the national budget itself." Moreover, President Roh added, "It was useless to try to explain and persuade the various cabinet ministers of the situation using plain economic logic. Therefore, the resulting decision was to take into account the minister of Agriculture and Forestry's argument of sticking to the pledge; however, the result did not meet the 10 percent mark." 

For the entire story, go to http://english.donga.com/srv/service.php3?bicode=020000&biid=2003111273058 

Minnesota's Livestock Industry in Trouble
The MINNEAPOLIS STAR TRIBUNE reports Gov. Tim Pawlenty believes the Minnesota livestock industry is in crisis. "We're at a competitive crossroads in Minnesota with respect to animal agriculture, and we're in danger of losing even more of this value-added sector that we should be growing and encouraging in the state," the governor said.

The stakes are high, he added, because livestock represents more than $5.2 billion in economic activity for Minnesota and employs more than 90,000 people. Minnesota's pork and poultry industries are growing and beef is holding steady, but the dairy industry is losing ground, Pawlenty said. He cited a study commissioned by the Minnesota Agri-Growth Council. He spoke to about 350 people at the annual meeting for the council, which unites farmers, businesses, researchers and others who promote the state's agriculture and food-production industry. 

For the entire story, go to http://www.startribune.com/stories/535/4205026.html

Vatican Conference Mulls Biotechnology 
THE ASSOCIATED PRESS reports the Vatican ended a two-day conference on the pros and cons of food biotechnology. There was no pronouncement, but one is expected in the future, based largely on the debate conducted at the conference. 

Supporters of genetically engineered crops said the technology offers promise to mankind and deserves to be encouraged; critics said biotech foods will not alleviate world hunger. The conference was titled "GMO: Threat or Hope." 

Some of those participating in the conference weren't too sure the Vatican got a balanced view of the subjected, because pro-biotech speakers dominated the discussions, reflecting the views of its organizer, Cardinal Renato Martino. Martino has been very vocal about the potential benefits of genetically modified foods in alleviating world hunger - a prime concern of the Vatican - and has said the Vatican's aim was to find some common ground for the benefit of mankind, particularly the poor. 

Two Jesuits, the Rev. Roland Lesseps and the Rev. Peter Henriot, said in a joint paper to the conference that endorsing the use of genetically modified organisms disturbed "the awesome goodness of God's creation." 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0

Norwegian Farmers Leaving Agriculture
M2 COMMUNICATIONS reports Norwegian farmers are leaving the land in ever greater numbers; 4,000 Norwegian farms have been shut down so far this year, the highest figure recorded to date for farmers leaving the land, according to the Norwegian broadcasting corporation NRK. The highest rate of farm closures has been recorded in the Agder counties and in Hordaland. There are now a total of 54,000 farms operating in Norway, compared with 96,000 in 1990. 
 
 

November 11

• EU Postpones Biotech Decision
• FDA Approves New Monsanto Corn
• Farm Bureau Asks to Join Atrazine Suit
• Climate Change May Not Help as Thought 
• Veneman Pledges Help to Uzbekistan
• Domestic Interests 'Killed' Cancun
• EQIP Spending Limit Hog Producers' Hardship
• Consumer Group Targets Food Firms on Obesity

"This was just a first discussion," Gminder told reporters. "They (the panel members) want an opportunity to reflect." Even if approved in December, the corn will not go on sale in Europe before April when new EU-wide legislation allowing biotech foods under strict labeling rules comes into force. EU nations long have not been unified on the subject of genetically modified food. Britain, Spain and the Netherlands want the EU ban lifted. Others, led by France, Italy and Austria, are less enthusiastic. 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0 

FDA Approves New Monsanto Corn
JUST-SITES.COM reports approval has been given Monsanto by the Food and Drug Administration for a genetically modified corn called YieldGard Plus that has the ability to control two different insect groups. The new variety protects itself from both leaf and stalk damage caused by insects such as the European corn borer (a moth), and from root damage caused by the corn rootworm (a beetle). 

The Environmental Protection Agency said had conducted "a thorough investigation" and concluded that the new corn poses no unreasonable risks of harm to human health and the environment. Still approval has been opposed by Greenpeace, which claimed that the regulator had failed to consider all the ecological implications of the product. 

For the full story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0 

Farm Bureau Asks to Join Atrazine Suit
The PAW PAW (MI) COURIER LEADER reports several agricultural groups want full party defendant status in the atrazine case of the Natural Resources Defense Council against the Environmental Protection Agency. The suit is in the U.S. District Court for the district of Maryland in Baltimore. The agricultural groups are asking the court to allow the American Farm Bureau Federation, collectively, to address the claims and relief sought by NRDC that the use of atrazine be prohibited until EPA has studied its effects on endangered species. 

AFBF wants intervention status under federal procedural rules as a matter of right because of interests at stake for its members and the nation's agricultural producers. AFBF claims agricultural interests won't be adequately represented by any of the parties in the case. 

Agriculture relies heavily on atrazine for crop protection. For more than 45 years, the herbicide "has become one of the most important and widely used herbicides in U.S. agriculture production because of its effectiveness in suppressing weeds without injuring the crops themselves," according to the motion. In addition, there are no incidents showing that atrazine has caused harm to fish, birds or other wildlife. 

If atrazine is banned, farmers will lose "hundreds of millions, perhaps close to a billion, dollars," the motion says. USDA says atrazine is the most widely used herbicide in conservation tillage, which helps protect the environment through the reduction of soil loss. Atrazine has undergone a special review process by the EPA over the past nine years and more than 800 scientific studies support its safety to humans and the environment. It could be several weeks before a decision is made on the full party motion. State Farm Bureaus joining AFBF are Michigan, Florida, Illinois, Iowa, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Nebraska, Oklahoma and Pennsylvania. 

The entire article is at http://www.zwire.com/site/news.cfm?newsid=10490148&BRD=2188&PAG=461&dept_id=445633&rfi=6

Climate Change May Not Help as Thought
USZAGNET reports computer-based simulations of U.S. agriculture show that benefits of climate change to crop lands by 2060 could be less than previous studies indicated. Scientists from the National Center for Atmospheric Research (NCAR) and several universities found new simulations that reduce previously expected benefits and increase expected losses for a wide range of crops across most parts of the nation. 

The findings appear in the September issue of Climatic Change. The study team included climatologists, geographers, economists, remote sensing specialists, and statisticians, supported by multiyear grants from NASA and the Environmental Protection Agency. Additional support came from the USDA and the National Science Foundation. 

The entire story is found at http://www.wisconsinagconnection.com/story-national.cfm?Id=1211&yr=2003

Veneman Pledges Help to Uzbekistan
AGWEB.COM reports Agriculture Secretary Ann M. Veneman pledged to continue help for Uzbekistan to meet its food needs. During a visit to Uzbekistan, she met with government officials and said, "Along with the strategic partnership between our two nations, the United States remains committed to assisting Uzbekistan in meeting its food needs and improving food security for its people," said Veneman. "Our meetings today gave me an opportunity to discuss our common interests, ideas for continued cooperation and the importance of progress on political and economic reforms." 

She said USDA would provide a grant of 2,500 tons of nonfat dry milk to the government of Uzbekistan for fiscal year 2004. She said that discussions between the two countries concerning fiscal year 2004 assistance were ongoing. In fiscal year 2003, USDA provided $26 million in food assistance, including $11 million in powdered milk and $15 million in rice and vegetable oil to be delivered early next year. Nonfat dry milk donations went to a school feeding program to improve nutrition and attendance among children, and some of the milk was also sold to provide technical assistance to the dairy industry. 

For the entire story, go to http://www.agweb.com/news_show_news_article.asp?file=AgNewsArticle_200311101036_2212&articleid=102891&newscat=WA 

Domestic Interests 'Killed' Cancun
The FINANCIAL EXPRESS reports World Trade Organization member nations' domestic interests were what killed the talks in Cancun, Mexico, not any particular country. William J. Antholis, director of studies and senior fellow of the German Marshall Fund, a US-based non-government research organization, made the statement Monday at a round-table on 'who killed Cancun?,' organized by the Confederation of Indian Industry (CII). Antholis said that while many countries and groups seemed to have a motive behind making the Cancun talks fail, each had an alibi as well. 

Although the coalition on agriculture of developing countries were insisting that their demands be recognized, they could not be accused of making the talks fail, since they would gain from the talks succeeding, Antholis said. The least developed countries (LDCs) led by the African group, who some blamed for the failure of the talks because they would not compromise, were not the real culprits. "If we think that the LDCs made the talks fail, it would be overstating the ability of small countries," Antholis said. 

For the full story, go to http://www.financialexpress.com/fe_full_story.php?content_id=45933

EQIP Spending Limit Hog Producers' Hardship
A provision to decrease the payment limit for the Environmental Quality Incentives Program (EQIP) from $450,000 over ten years to $300,000 in the Senate agricultural appropriations bill, ties the hand of pork producers attempting to implement costly new technologies to manage nutrients on their farms, said National Pork Producers Council (NPPC) President Jon Caspers. 

"NPPC fought for the higher payment limit in the 2002 farm bill in order to ensure that critical funds would be available for producers to comply with federal, state and local environmental regulations,"said Caspers, a pork producer from Swaledale, IA. "Congress 'decision to change the EQIP rules only a year and a half after the bill was passed is a step in the wrong direction. If the Senate is truly concerned about the environment, they are taking away the one tool that will ultimately assist producers in improving their environmental performances." 

The provision to decrease the payment limitation for EQIP was authored by Sen. Charles Grassley (R-IA) and included in the fiscal 2004 agriculture appropriations bill. Congress will now take both versions of the bill to a conference committee to reconcile differences before final passage. 

For the entire story, go to http://www.nppc.org/news/releases/2003/031107SenatePassesBill.html

Consumer Group Targets Food Firms on Obesity
The Center for Science in the Public Interests believes food marketing aimed at kids undermines parental authority and helps fuel the epidemic of childhood obesity. CSPI issued a report that claims the volume and variety of marketing techniques has exploded as food marketers seek new ways of bypassing parents and directly influencing kids' food choices. Most of the foods marketed directly to children are high in calories and low in nutrition, the group says. 

The entire CSPI story can be found at http://www.cspinet.org/new/200311101.html

For its part, the Grocery Manufacturers of America said, "Food and beverage manufacturers are committed to responsible advertising, especially when it comes to children. We have an important role to play in addressing obesity, and we are doing our part by introducing a growing number of nutritious foods, reducing portion sizes and supporting enhanced nutrition labeling." 

The statement continued, "There is no question that obesity is a serious societal issue with major health implications, but by narrowly focusing on advertising and marketing, CSPI misses the point. Effective solutions must incorporate sound nutrition, increased physical activity, consumer and parent education and community support. Above all, the focus should be on giving parents the information they need to ensure their kids eat a nutritionally-balanced diet and get the right amount of physical activity." 
 
 

November 10

• Cuba May Buy U.S. Sugar
• New Zealand's Green Image Seen As a Plus for Organics
• EU Could Begin to Lift Biotech Ban
• Harbinson Will Step Down
• Grasslands Provision Acceptable to Cattlemen
• Vatican Considers Biotech Foods
• Japan Seeks to Get Stalled Talks Going
• Veneman Travels to Iraq

"If U.S. producers want to sell us sugar and the price is right, why can't we buy it?" Alimport director Pedro Alvarez said this week. He confirmed that talks were still under way. Wayne Carrick, an international trader for PS International who was attending the Havana International Trade Fair here, said Friday that negotiations were still going on for the possible sale of 5,000 to 15,000 tons of sugar. He said a deal might be reached within a few weeks. 

Such a purchase would be unusual, since U.S. domestic sugar sells at a price that is more than three times that of sugar traded in the world market. 

The entire story is available at http://www.miami.com/mld/miamiherald/business/7210324.htm 

New Zealand's Green Image Seen As a Plus for Organics
New Zealand's organic food producers plan to use the country clean green image to develop a $1 billion export industry within the next 10 years. The fruit and vegetable growers, sheep, beef and dairy farmers, exporters and organic standard certifiers have joined with Enterprise NZ and the Agriculture and Forestry Ministry to launch a strategic plan. 

A board has been created to lobby for government funding of $2 million a year for five years and plans to hand over to a producer-elected board within a year. Board chairman Gordon Campbell, a business strategist with tourism industry experience, said the perception of New Zealand fostered by tourism's 100% "Pure" campaign was too good an opportunity to be ignored. "We are very similar," he said. "With tourism, you're going somewhere for an experience; with organics, you're purchasing something known to be a little bit different from the norm. 

For the entire story, go to http://www.stuff.co.nz/stuff/0,2106,2720601a13,00.html

EU Could Begin to Lift Biotech Ban
THE ASSOCIATED PRESS reports the European Union could begin lifting its five-year-old import ban on products that have been subjected to genetic engineering. Pressure is being applied by the United States; the U.S. agriculture community has been pushing for an end to the EU ban. EU officials could start this week by lifting the ban on canned sweet corn, but strong opposition in many countries could mean a delay until next year. Officials at the European Commission said the issue of allowing processed sweet corn imports from seeds developed through biotechnology and supplied by Syngenta would be presented to a committee representing the 15 EU governments for approval today. 

A variety of the corn, known as Bt11, has been imported into the EU for years for use in animal feed. The proposal, however, would allow it to be used for human consumption. The seeds, however, would not be authorized for cultivation in Europe. 

The entire story can be found at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0

Harbinson Will Step Down
M2 COMMUNICATIONS reports Stuart Harbinson, director of agriculture for the World Trade Organization intends to give up the chairmanship of the agriculture negotiations. Harbinson, formerly the permanent representative of Hong Kong, China to the WTO, was chosen by WTO member governments in February 2002 to chair the Committee on Agriculture in Special Session. Harbinson said he recognized the need for continuity and would continue to serve as the agriculture chairman until a successor was selected. 

Chairing the agriculture negotiations has been an extreme challenge for Harbison. He said that WTO negotiations are entering "a new phase ... and I think a new chairperson may be better able to bring the fresh perspective which we now need. I believe I did what I had to do as chairman over the past 18 months given the mandate issued by ministers at the 2001 Doha Ministerial Conference. I have no regrets but it is now time for someone else to take up the banner, he said. 

The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=5&SMContentSet=0

Grasslands Provision Acceptable to Cattlemen
The National Cattlemen's Beef Association (NCBA) and the Public Lands Council (PLC) say they are pleased that the Senate, in the agriculture appropriations bill for fiscal year 2004, included adjustments to the Grasslands Reserve Program (GRP). "This important program was designed to keep large grass landscapes intact for our ranching operations and best conservation priorities," said Jeff Eisenberg, executive director of the PLC and NCBA director of federal lands. "It will be an essential buffer against the loss of grasslands to a variety of sources." 

Especially important to cattle producers, the voluntary program imposes no regulation on grazing and allows private entities, such as rangeland land trusts, to own easements under the program. The ecological status of many existing grassland systems are heavily influenced at the local level by combinations of habitat fragmentation, undesirable habitat changes due to fire exclusion, declining range conditions due to improper grazing management, and loss of habitat values due to the spread of invasive and non-native plants. The GRP will help address these disturbing trends by providing grassland owners with financial incentives to conserve and restore important grassland ecosystems. 

For the entire story, go to http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2330

Vatican Considers Biotech Foods
THE ASSOCIATED PRESS reorts the Vatican has asked scientists, health experts, U.N. officials and farmers' groups to meet today to consider genetically modified foods; some Vatican officials have said genetically modified foods could help alleviate world hunger. The two-day symposium "GMO: Threat or Hope" was organized by the Pontifical Council for Justice and Peace, headed by Cardinal Renato Martino. Martino frequently has spoken in favor of the potential benefits of biotech foods. 

Anti-biotech representatives also have been invited to speak, and say suggestions that GMOs could make a marked impact on alleviating world hunger are exaggerated. "It's one thing to take risks for a technology that is really going to provide miracles, say in the agricultural area," U.S. microbiologist Dr. Margaret Mellon said in an interview ahead of the symposium. "But it's quite another to take risks for what is in essence a technology that will do little more than tinker around the edges of modern agricultural technologies," said Mellon, a director at the Washington-based Union of Concerned Scientists. 

The entire story is at http://aolsvc.news.aol.com/news/article.adp?id=20031110064209990002

Japan Seeks to Get Stalled Talks Going
KYODO NEWS reports Japan's Ministry of Agriculture, Forestry and Fisheries will establish a "strategic headquarters" with instructions to get stalled Japan-Mexico talks on a bilateral free trade agreement (FTA) underway again. Agriculture minister Yoshiyuki Kamei will head the new team, Yoshiaki Watanabe, vice minister of agriculture, said at a news conference. Last month, Japan and Mexico failed to achieve an FTA due largely to differences over the politically sensitive farm sector. The planned headquarters also will develop strategies to promote FTA talks with Japan's other trading partners such as Thailand and South Korea, Watanabe said. 

The entire story is at http://aolsvc.news.aol.com/news/article.adp?id=20031110034809990001

Veneman Travels to Iraq
REUTERS reports Agriculture Secretary Ann Veneman is in Iraq this week for a visit to sites where rebuilding food and agriculture sectors in that war-torn country are underway. Iraq potential is an important market for American commodities. The United States donated grain to Iraq earlier this year, when a U.S.-led war to oust Iraqi President Saddam Hussein created fears of widespread food shortages. 

Also the Bush administration awarded a $36.9 million contract to an American consulting firm to help with reforms in Iraq's agriculture sector. There were no indications that USDA Veneman's trip would result in any announcements of quick sales of U.S.. farm products to Iraq. USDA said Veneman also will visit Afghanistan and Uzbekistan, other recipients of American food assistance. "The visits will provide an opportunity to evaluate the progress being made in the food and agriculture sectors in Iraq and Afghanistan," according to a USDA statement. 

For the entire story, go to http://aolsvc.news.aol.com/news/article.adp?id=20031108143209990002

November 7

• Senate Approves Agricultural Appropriations
• House Hearing Focuses on Eurex Application
• China Supports Crop Prices, More Coming
• Climate Change May Not Help as Thought
• Russia Muddies Poultry Waters Further
• Soybean Study Shows Importers Wrong
• Omnibus Spending Bill Being Prepared

Senate Approves Agricultural Appropriations
The Senate late Thursday approved 93-1 the fiscal year 2004 USDA appropriations bill. The $79.7 billion measure now goes to conference committee where the differences between the House and Senate versions will be reconciled. Text of the bill (H.R. 2673) and report (108-107) may be found on http://thomas.loc.gov/. CONGRESSDAILY reported final passage was preceded by a "struggle" over food labeling. 

The Senate approved the so-called country of origin labeling provision, rejecting a provision in the House version that would halt implementation of the COOL program for red meat for one year.The language supporting continued implementation of mandatory country-of-origin labeling was contained in an amendment offered by Senate Minority Leader Daschle (D-SD) and Sens. Tim Johnson (D-SD) and Michael Enzi (R-WY). The Senate voted 58-36 on a motion not to table the amendment, then passed the amendment on a voice vote.Some features of the bill:--$988.8 million for Farm Service Agency Salaries and Expenses, an increase of $18.4 million over the fiscal year 2003 level. --$3.3 billion for farm loans, $663,585 less than the fiscal year 2003 level. Included in this amount is $1.1 billion for farm ownership direct and guaranteed loans and $2.1 billion for farm operating direct and guaranteed loans. 

For the Food Safety and Inspection Service , $783.8 million, a $28.9 million increase from the fiscal year 2003 level. -Agricultural research and extension programs are decreased $174 million from the fiscal year 2003 funding levels. Appropriations recommended for the Agricultural Research Service total $1.1 billion. For the Cooperative State Research, Education, and Extension Service, $1.1 billion is recommended, including $619 million for research and education activities, $450 million for extension activities, and $46.7 million for integrated activities. --Recommended funding for conservation operations of the Natural Resources Conservation Service is $826.6 million. Watershed and flood prevention operations are funded at $55 million. Watershed surveys and planning is funded at $10 million. The watershed rehabilitation program is funded at $29.8 million. The resource conservation and development program is funded at $51 million. 

An amendment to prohibit USDA from using any appropriations to approve downed animals for human consumption was passed as was one to limit spending on the Environmental Quality Incentive Program (EQIP) to $300,000. 

The downed animal amendment was linked to animals that may be dying from infectious diseases and that present the potential the disease may be spread. Of special concern was bovine spongiform encephalopathy (BSE). 

EQIP payments would be limited to an aggregate of $300,000 for all contrqcts involving an individual, entity or agricultural operation during fiscal years 2002-07. 

House Hearing Focuses on Eurex Application
The House Committee on Agriculture Thursday held a hearing to review Eurex's pending application for designation as a U.S. futures exchange. "Since Eurex US filed this application with the Commodity Futures Trading Commission (CFTC) in mid-September, it has generated a great deal of controversy," Chairman Bob Goodlatte (R-VA) said in opening the hearing. "The application also has generated legitimate questions about public policy in the area of derivatives regulation -- and this comes just three years after the President signed the Commodity Futures Modernization Act (CFMA), which at the time was widely described as a milestone in sensible deregulation; I hope this hearing is not building the foundation for re-regulating the derivatives markets in this country," Goodlatte added. 

Thursday's hearing gave the committee an opportunity "to air legitimate concerns and seek answers to questions about the CFTC's due diligence concerning the application and public interest in keeping the process fair and open and our markets orderly," Goodlatte said. The "hearing allowed the committee to explore important issues that require the CFTC to define and refine key aspects of the Commodity Futures Modernization Act (CFMA) which was enacted nearly three years ago." 

The Eurex US application provides a good opportunity for members to become more familiar with the new regulatory approval process by reviewing the status of this particular application now pending at the CFTC," Rep. Moran, chairman of the General Farm Commodities and Risk Management Subcommittee said. "It is my hope that this hearing will help to clarify whether we have in fact achieved the right balance of self-regulation and government oversight, or whether additional steps are needed to ensure market integrity and the competitiveness of the U.S futures industry." 

China Supports Crop Prices, More Coming
REUTERS reports China's purchases of U.S. soybeans and cotton have helped prices. More demand is likely, says the report, as China tries to dilute its growing trade surplus with the United States, analysts said. Last week alone, the world's most populous nation bought 1.5 million metric tons of U.S. soybeans worth some $500 million, including the cost to ship them to China, whose economy has been increasing at a significant rate in recent years. 

China's demand has pushed U.S. soybean prices to six-year highs even as harvest reached its mid-point. Cotton prices last week hit eight-year highs as China's buying of U.S. cotton drove the increases. U.S. corn and wheat farmers now hope that China will visit their markets, too. Prices of both grains at the Chicago Board of Trade have gained in recent weeks on rumors that China may be switching its policy to holding or importing stocks after several years of actively exporting them. 

The entire story is available at http://www.forbes.com/business/newswire/2003/11/06/rtr1138863.html

Climate Change May Not Help as Thought
ASCRIBE NEWSWIRE reports computer-based simulations of U.S. agriculture indicate that, by 2060, benefits of climate change to crop lands could be less than previous studies indicated. Scientists from the National Center for Atmospheric Research (NCAR) and several universities found that new simulations reduce projected benefits and increase expected losses for a wide range of crops across most parts of the nation. 

The findings appear in the September issue of Climatic Change. The study team included climatologists, geographers, economists, remote sensing specialists, and statisticians, supported by multiyear grants from NASA and the U.S. Environmental Protection Agency. Additional support came from the USDA and NCAR's primary sponsor, the National Science Foundation. 

They used computer models that account for climatic, economic, and agricultural factors and compared present-day conditions to scenarios for a doubled level of atmospheric carbon dioxide, which will occur around 2060 if present trends continue. They then compared the climate expectations of 2060 derived from an Australian global-scale climate model, in which the atmosphere is tracked at points separated by 186 miles, to the results from a regional climate model nested inside the global model, with a resolution of 31 miles. 

The entire story is at http://www.ascribe.org/cgi-bin/spew4th.pl?ascribeid=20031015.160350&time=17%2000%20PDT&year=2003&public=1

Russia Muddies Poultry Waters Further
REUTERS reports USDA finds no reason for Russia to decertify four U.S. poultry plants. The action has brought yet another pebble in the path of the troubled poultry relationship between the United States and Russia. Russian agriculture officials notified USDA in late September that it had found an illegal hormone and salmonella in imports from four U.S. poultry plants. USDA said its investigation turned up no sign of either contaminant. 

The U.S. poultry industry has suggested on several occasions that Russia is more interested in protecting its growing domestic poultry industry with trade barriers than making its food supply safer. Russia is the largest foreign buyer of U.S. poultry and usually buys low-cost chicken legs. During the first eight months of this year, Russia bought 755,900 tons of U.S. poultry. But trade declined in recent years, partly due to an import quota imposed by Moscow this year and partially due to repeated disputes over sanitary standards. 

The entire story is at http://www.forbes.com/business/newswire/2003/11/06/rtr1138584.html

Soybean Study Shows Importers Wrong
DTN reports U.S. companies that are importing "cheaper" Brazilian soybean meal into the Southeast could buy the domestic product at about the same price, according to an industry study. Wilmington Bulk LLC, in the past two years decided to import Brazilian soymeal. The company has listed a lack of rail transportation in the U.S. Southeast and high domestic prices as reasons for the imports. 

As recently as mid-October, reports indicated Wilmington Bulk was planning to import corn, feed wheat, and soymeal. William Kissner, Wilmington Bulk president, announced current import needs amounted to 50,000-75,000 metric tons of soymeal, 100,000 metric tons of corn and 100,000 metric tons of feed wheat, according to a news report quoted by the Soybean Producers of America (SPA). SPA official Dan McGuire, author of the price comparison, has said 48% soybean meal pellets FOB the port of Paranaqua, Brazil, were priced at U.S.$258 per metric ton. When ocean freight to Wilmington, NC, plus discharge, handling and inland freight to feeding operations is added, the price was about $308 per metric ton. "On the same day 48% U.S. soybean meal was priced at $306.03 per metric ton from Raleigh and Fayetteville processors," he said. 

The entire story is at http://www.hpj.com/dtnnewstable.cfm?type=story&sid=10287

Omnibus Spending Bill Being Prepared
CONGRESSDAILYPM reports House Speaker Dennis Hastert, (R-IL) and Senate Majority Leader Bill Frist (R-TN) have directed members of appropriations committees to begin drafting a fiscal year 2004 omnibus spending bill as early as next Wednesday. That gives Senate Appropriations Chairman Ted Stevens (R-AK) until then to move what remaining individual fiscal 2004 spending bills he can through committee. 

"After [Nov. 11] or [Nov. 12] they'll start putting a package together," Hastert said. Stevens will continue to try to get through fiscal 2004 spending bills until next week's deadline, including expected passage of the agriculture spending bill after GOP leaders failed to invoke cloture on the nomination of William Pryor to the 11th U.S. Circuit Court of Appeals. Stevens is aiming to wrap up the VA-HUD and Commerce-Justice-State bills next week as well. 

The Senate also is expected to approve a new continuing resolution to fund the remaining federal agencies whose spending bills have not been enacted, through Nov. 21. Frist said he and Hastert agreed that Congress would adjourn Nov. 21 when the continuing resolution expires and that there would be an omnibus appropriations bill. 

"The size of the omnibus depends on how much the Democrats let us get done," Frist said, noting the Senate has yet to complete work on the fiscal 2004 Agriculture, VA-HUD, and Commerce-Justice-State bills. 

The entire story is at http://www.govexec.com/dailyfed/1103/110603cdpm2.htm
 
 
 

November 6

• China Drives Cotton Prices Higher
• Australian Wheat for Iraq Raises Concern
• USDA Report Shows Brazil's Competitiveness
• U.S. Makes Promises in FTAA Framework
• Korea Finds Diseased Cows in U.S. Shipment
• Draining Wetlands Makes for Colder Temperatures

China Drives Cotton Prices Higher
THE WASHINGTON TIMES reports China's increased demand for U.S.-produced cotton is driving commodity prices higher. That means more money for farmers but harm for domestic companies that have to compete for the raw materials. "It's hard not to notice. The price is up dramatically over the last couple of months," said Van May, president and CEO of Lubbock, TX-based Plains Cotton Cooperative Association, among the largest handlers of U.S. cotton. Plains Cotton also owns denim mills and warehouses. "From the growers' side and the cotton side it's healthy that prices have escalated. On the textile side, it's a killer," May said. 

China may be buying too much from the United States. The cotton situation shows how a fast-growing nation like China can affect world markets by first buying a raw material and driving up prices, then selling a low-cost finished good and driving down prices. Manufacturers of fabrics and clothes are caught in the middle, paying more for basic commodities but unable to pass on costs to retailers. 

Cotton prices on futures markets reached long-term lows in October 2001. However, as of last week prices were the highest since 1994, said Terry Roggensack, agricultural analyst with the Hightower Report, a Chicago publication that tracks commodity markets. 

The entire story can be found at http://washingtontimes.com/business/20031104-110813-1201r.htm

Australian Wheat for Iraq Raises Concern
NATIONAL JOURNAL'S CONGRESSDAILY reports senators have expressed their concern about United Nations' oil-for-food contracts involving Australia and Iraq. Senate Intelligence Committee Chairman Pat Roberts (R-KS) and eight other senators sent Secretary of State Powell and Agriculture Secretary Veneman a letter expressing their "strong concern" considering revelations that contracts between AWB Ltd. -- the former Australian Wheat Board -- and the government of former Iraqi President Saddam Hussein revealed the Iraqi Grains Board paid very high prices for Australian wheat. U.S. Wheat Associates Friday said it has copies of the contacts and will make them available to any interested parties. 

The senators asked Powell and Veneman for a briefing and a report on the rehabilitation of the Iraqi Agriculture Ministry and the Iraqi agriculture sector. They also want answers to a series of questions: "What is the current status of the remaining Oil-for-Food contracts with the Coalition Provisional Authority of Iraq? How will remaining Oil-for-Food contracts be handled by the Coalition Provisional Authority? What steps are under way to transition Iraq from the U.N. Oil-for-Food program toward an independent, Iraqi-run, food- mport system? What steps are planned or are in place to ensure open access to the Iraqi import market?" 

USDA Report Shows Brazil's Competitiveness
DTN reports a USDA study shows Brazil has become a strong competitor with the U.S. soybean industry. That has led Senate Finance Committee Chairman Charles Grassley (R-IA), the American Soybean Association, and other farm groups to target Brazil's World Trade Organization status as a developing country that allows Brazil greater subsidies and higher tariffs than developed countries such as the United States, the European Union and Japan. 

"We do not believe that we can delay pursuing differentiation between truly disadvantaged and advanced developing countries until the final stages of the negotiations," a coalition of 13 farm groups, including ASA, wrote in a letter to U.S. Trade Representative Bob Zoellick and Agriculture Secretary Ann Veneman. Grassley has made the same point to Zoellick in person, an aide said. Grassley also has made the point in correspondence with Brazilian Ambassador to the United States Rubens Barbosa, who disagrees with Grassley's position. 

A farm lobbyist said the question of developing country status poses a shift from the farm groups' original agenda in the Doha Round, DTN reports. He said it has become an issue because WTO-proposed texts would allow more advanced and competitive developing countries to take greater advantage of their status. 

For the entire story, go to http://www.hpj.com/dtnnewstable.cfm?type=story&sid=10267 

U.S. Makes Promises in FTAA Framework
The MERCOPRESS NEWS AGENCY reports the United States wants the weekend Washington meetings on a Free Trade Agreement of the Americas to define a final pact that would become effective January 2005. To make sure other countries feel the same way, U.S. officials have promised bilateral trade agreements with countries in the region who contribute to liberalized trade. 

"It's important when we are reaching the final stages of negotiation that all negotiators have a clear and common idea of the kind of agreement we want at the end of the day," said United States Deputy Trade Representative Peter Allgeier in Washington after a tour of several South American countries. "This is our greatest challenge before the ministerial meeting in Miami next November 20/21." 

All 34 countries of the Americas with the exception of Cuba, are committed to end FTAA negotiations by December 2004 in time for the January 2005 target of a free trade area extending from Alaska to Tierra del Fuego. However agriculture negotiations are not moving as expected, and the recent failure to the World Trade Organization Cancun meeting has opened the possibility of "bilateral agreements with those countries who share our vision of free trade". 

The entire story is at http://www.falkland-malvinas.com/Detalle.asp?NUM=2816

Korea Finds Diseased Cows in U.S. Shipment
REUTERS reports South Korea claims to have found eight diseased cattle in a shipment of 762 live animals imported from the United States. The eight tested positive for blue tongue, an insect-borne viral disease harmless to humans but possibly fatal to cattle. The affected cows have been destroyed. The rest of the cows will be re-examined with their quarantine extended by more than 40 days, the agriculture ministry said. 

"We told the U.S. government about the blue tongue disease case," the ministry statement said. "We emphasized that only disease-free cows would be allowed to South Korean farms via our international-standardized, scientific, thorough import quarantines." The U.S. cows arrived at the Korean ports of Pusan and Inchon between October 21 and 24, departing from the U.S. port of Dalles, Oregon on September 28, the statement said. 

The entire story is at http://edition.cnn.com/2003/BUSINESS/11/05/korea.cattle.reut/ 

Draining Wetlands Makes for Colder Temperatures
THE ASSOCIATED PRESS reports a study claims crop-damaging freezes in south Florida may have been mitigated or avoided if wetlands in those areas had not been drained for farming. The study stresses that land use is one of "a multitude of ways humans are affecting the climate system," said Roger Pielke Sr. of Colorado State University, one of the study authors. 

He and colleague Curtis Marshall report the results in Thursday's (today's) issue of the journal Nature, along with Louis Steyaert of the U.S. Geological Survey. They focused on an unexpected 1997 freeze in southern Florida areas that used to be wetlands. The freeze cost vegetable and sugarcane growers some $300 million. The study contrasted the outcomes under two simulations. 

If the wetlands had not been drained, the results found, temperatures in most of the areas would have remained in the mid- to upper 30s. In other wetlands areas, the freeze would have happened, but it would have been milder and briefer than the outcome calculated with the land switched over to agriculture. 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=3&SMContentSet=0 
 
 
 

November 5

• GM Crop Trial Worries Anti Forces
• Huge Corn Crop Has Ethanol Implications
• Animal Health U.S., Canada Issue
• EU Doesn't Back Off Beef Position
• EU Regions Ask to Be GM Free
• China Should Be Short in Grain Production
• Bishops Advise on Farm Policy
GM Crop Trial Worries Anti Forces
INFOCHOICE reports Monsanto and Bayer are working toward a trial in 2004 of genetically modified canola in New South Wales on 4,000 hectares. That is worrying environmentalists and farmers opposed to GM crops. There is a moratorium on GM crops in New South Wales, but exemptions can be granted for research. This application has nothing to do with scientific research, claimed a spokesman for NSW Greens MLC, Ian Cohen. He said the approval confirms fears that GM crops will be commercialized in NSW and Australia "by stealth." 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=5&SMContentSet=0 

Huge Corn Crop Has Ethanol Implications
With a 10.2 billion bushel corn crop being forecast by USDA, there are concerns within the industry of how that large a crop will affect ethanol production. ProExporter Network's (PRX) Bill Hudson there are a number of factors at work throughout the Corn Belt that both promote and limit ethanol mill profitability. One positive force is slightly lower corn prices this marketing year. 

"Corn is the leading variable cost in ethanol production," Hudson explained. "A surprise in foreign export demand, as from China, could significantly raise U.S. corn farm prices and negatively impact ethanol plant profitability." He added another seemingly unrelated factor driving ethanol expansion is the higher world price of crude oil. "High crude prices equate to higher wholesale gas prices," he said. "While high gasoline prices generally suppress the economy, they make ethanol an even more attractive additive to gasoline." 

But with the forces that promote ethanol profitability come those that are slowing ethanol - the most notable of which is natural gas. "Wellhead gas prices averaged $2 during the 1990s, making it an attractive fuel," Hudson said, adding that all changed in 2000. "Driven by increased consumption and curtailed supply, average gas prices more than doubled in 2000. Those prices fell off in 2001-02, but have spiked again to even higher rates in 2003. PRX estimates each 50-cent increase in natural gas rates equates to a 2-cent per gallon increase in ethanol production costs. 

For the entire story, go to http://www.ncga.com/news/notd/2003/november/110403.htm

Animal Health U.S., Canada Issue
THE WESTERN PRODUCER reports the issue of whether U.S. cattle should more freely into Canada without health tests for four diseases has been a longtime irritant in the United States, according to Arno Doerksen, chair of the Canadian Cattlemen's Association animal health and meat inspection committee. "We have clearly stated we want this resolved," he said. "We're going to see some progress on this. It simply has to happen." 

The CCA and the National Cattlemen's Beef Association in the U.S. have argued that importing brucellosis, tuberculosis, anaplasmosis and bluetongue is an extremely low risk to the Canadian herd. Researchers are testing cattle in northern states for the diseases and Agriculture Canada scientists in Lethbridge have been monitoring insects suspected of carrying bluetongue. Discussions were held throughout the summer as the two countries attempted to achieve trade parity and resolve animal health differences. 

Canada cannot export live animals because of bovine spongiform encephalopathy, but many expect that the United States will allow Canadian cattle to return to the marketplace by the first quarter of 2004. That could restart the market and allow feeder cattle to move freely across the border. 

For the entire story, go to http://www.producer.com/articles/20031030/livestock/20031030ls04.html

EU Doesn't Back Off Beef Position
CROP DECISIONS reports the European Union isn't backing off its claim that it has found new evidence that hormone-treated beef is unsafe for human consumption. EU officials will ask the World Trade Organization to reverse a previous decision against an EU ban of the beef, agriculture Commissioner Pascal Lamy said. Lamy, speaking to the European Institute, further justified EU demands that the United States should lift economic sanctions that were set in retaliation to the EU ban on hormone-treated beef despite the fact that those sanctions were approved by the WTO. 

"In that spirit, we will be going shortly to (WTO) Dispute Settlement Body to ask the U.S. to lift the sanctions," Lamy said in a speech. "The U.S. has made clear that it doesn't agree, but that doesn't change what we have done." The WTO ruled in 1998 there was no legal basis for the EU's long-running prohibition of hormone-treated beef, primarily from the U.S. and Canada, but the EU never lifted its ban. In retaliation, the U.S. has placed 100 percent tariffs on $116.8 million in EU goods each year. 

For the entire story, go to http://www.cropdecisions.com/show_story.php?id=22101

EU Regions Ask to Be GM Free
THE ASSOCIATED PRESS reports from Brussels that six regions - including Tuscany and the Basque country - are demanding that the European Union allow them to become free zones from genetically modified products. The alliance called for the EU to protect small farmers and determine liability before lifting its five-year ban on genetically modified organisms. 

"We would like our regions to be free of GMOs,'' said Tito Barbini, Minister of Agriculture in Tuscany, at a news conference. The pledge, signed by authorities from 10 agricultural districts in Britain, Austria, France, Spain, Germany and Greece, comes as the 15-nation EU considers whether and how to lift its ban on genetically altered foods. The United States filed suit with the World Trade Organization in June against Europe for violating free-trade rules. "The issue of GMOs is transnational," said Roxanne Feller, a spokeswoman for COPA, a consortium of more than 7 million European farmers. 

Go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=4&SMContentSet=0 for the entire story. 

China Should Be Short in Grain Production
AFX-ASIA reports China should undergo at least a 40 million ton shortfall in grain production this year. That will be the sixth consecutive year in which production has declined, AGENCE FRANCE-PRESS reported. Grain prices have increased dramatically, forcing officials to consider importing supplies, the news agency quoted the official publication OUTLOOK WEEKLY in its current edition. 

China's grain production declined from a record high of 512 million tons in 1998 to 457 million tons last year as the government tried to bring down stockpiles and free up farmland for more lucrative cash crops. Official statistics show that recent prices for paddy rice in east China's Anhui province reached 1,050 yuan per ton, up 80 to 120 yuan over the same period last year. The purchase price for wheat in northeast China's Heilongjiang province rose by 32% to 1,100 yuan per ton, while the price of maize in Hebei and Shandong provinces went up by 50 to 70 yuan per ton. 

The entire story is available at http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=7&SMContentSet=0 

Bishops Advise on Farm Policy
The CATHOLIC NEWS SERVICE reports U.S. bishops will consider making a statement on agriculture this month, the first in 14 years. They will review a new document called For I Was Hungry and You Gave Me Food during their fall general meeting Nov. 10-13. Subtitled Catholic Reflections on Food, Farmers and Farm Workers, the proposed document outlines principles on agriculture policy and domestic and international trade issues. 

It suggests targeting crop subsidies to small and moderate-sized farms, monitoring the use of genetically modified crops, and increasing the pay of farm workers, most of whom are immigrants. 

The draft document observes that the "increasing concentration and growing globalization" of agriculture are having the effect of "pushing some ahead and leaving others behind. They are also pushing us toward a nation and world where the powerful can take advantage of the weak, where large institutions can overwhelm smaller structures, and where the production, marketing and distribution of food and the protection of land lie in fewer hands." 

For the entire story, go to http://www.dio.org/catholictimes/archive/11_2_03/cnsnaw.html

November 4

• Japan, Mexico Talk Free Trade
• Canada Pays Farmers, Welcomes U.S. Move
• Hog Producers Divided on COOL Requirements
• Serbia Welcomes Trade Decision
• Birds Welcomed for Insect Control
• Appeals Court Stays Beef Order
• Efforts Made to End Sweetener Dispute with Mexico
Japan, Mexico Talk Free Trade
DOWJONES reports two days of lower level talks get underway today between Japan and Mexico toward a free trade agreement. The two days of meetings will be held in Las Angeles. KYODO NEWS reports they are trying to break an impasse. But the two countries are not expected to have clear sailing into substantial negotiations; they failed to reach an agreement for an FTA on Oct. 16 ahead of a summit meeting between Japanese Prime Minister Junichiro Koizumi and Mexican President Vicente Fox in Tokyo. 

Japan's Forestry and Fisheries Minister Yoshiyuki Kamei has said the Los Angeles meeting is aimed at confirming what the two countries had discussed at ministerial talks in Tokyo last month. KYODO that a senior official at the Ministry of Agriculture , Forestry and Fisheries also was pessimistic. "It is unlikely that an agreement will be hammered out by the working-level meeting as even all-night negotiations by ministers (last month) did not succeed," he said. 

The entire story is at http://online.wsj.com/article/0,,BT_CO_20031104_001603-search,00.html?collection=autowire%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29 (Subscription Required) 

Canada Pays Farmers, Welcomes U.S. Move
Canada's Agriculture Minister Lyle Vanclief says the government is "very close" to paying farmers $100 million in aid just as USDA has announced a willingness to loosen the rules on Canadian live cattle imports, CTV.CA NEWS reports. USDA proposed to allow live cattle under the age of 30 months to be imported from countries where bovine spongiform encephalopathy (BSE) is minimal risk because of prevention and detection procedures. 

FOOD NAVIGATOR.COM quotes Vanclief saying, "It is a key step towards further opening the border and demonstrates forward momentum. That said, we are not out of the woods yet and I remain committed to working closely with US officials to ensure the process moves as quickly as possible. At this point, it is difficult to predict when the US border will be reopened to live cattle but I am optimistic the ban will be lifted soon after the comment period." 

The full stories are avialable at http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1067795383828_27/?hub=Canada and http://www.foodnavigator.com/news/news.asp?id=8681. 

Hog Producers Divided on COOL Requirements
Hog producers are divided on regulations derived from federal law that require labels identifying the country of origin for farm products sold in the United States, reports THE ASSOCIATED PRESS. USDA issued the new labeling regulations last week for pork, beef, lamb and other agricultural products. The new labels are to be used beginning Sept. 30, 2004. The Iowa Pork Producers Association supports the requirements. The National Pork Producers Council is opposed. 

Labeling is required by the 2002 farm law and includes pork, beef, lamb, fish, fresh fruits and vegetables and peanuts. It does not apply to processed meats, such as bacon. Once the new rules are published this week, the public will have 60 days to comment. USDA has forecast costs of up to $4 billion to implement the law during its first year. Jon Caspers, a hog producer from Swaledale and president of the National Pork Producers Council, said the agriculture department's cost-benefit analysis reinforces the pork council's position that the program is all costs and no benefits for hog farmers. Tim Bierman of Larrabee, former president of the Iowa Pork Producers Association, said the organization's policy favors labeling, but the issue probably will be revisited when the association meets in January. 

For the entire story, go to http://www.siouxcityjournal.com/articles/2003/11/03/news/regional/44024f9992ad548286256dd300181075.txt

Serbia Welcomes Trade Decision
SRNA.BETA reports Serbian Prime Minister Zoran Zivkovic welcomes a U.S. decision to normalize trade relations with Serbia-Montenegro. Zivkovic said that the decision would reduce customs duties on products entering the United States from Serbia-Montenegro by 20%. "I also expect this to affect and encourage further American investment in our country", he told reporters. Serbia's privatization minister, Aleksandar Vlahovic, confirmed the Bush administration's decision and said that it would be of particular significance for the metal and agriculture industries in Serbia-Montenegro. Those industries have been the country's largest exporters to the United States. 

The entire story is at http://www.b92.net/english/news/index.php?&nav_category=&nav_id=25345&order=priority&style=headlines

Birds Welcomed for Insect Control
RESOURCE reports farmers are welcoming birds to fields where insects feed on crops. "We have found an environmentally friendly way that may help control insects that feed on crops, and it's literally for the birds," says Kathryn Sieving, an associate professor with the University of Florida's Institute of Food and Agricultural Sciences. "By planting sunflowers near valuable crops, we can attract birds that feed on insects." 

Planting sunflowers near crops may attract birds that feed on damaging insect pests, according to researchers. Although many growers believe that birds are a source of major crop damage, that's not always the case, Sieving says. "More than 200 species of non-game birds are found on farmlands in the United States, and only about 10 of them cause major crop damage, which leaves 190 species that are potentially very helpful," she says. 

For the rest of this story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=9&SMContentSet=0 

Appeals Court Stays Beef Order
The 8th Circuit Court of Appeals has granted a stay for the beef checkoff, allowing collections in the 17-year-old national $1-per-head checkoff program to continue while the Justice Department and the Cattlemen's Beef Promotion and Research Board take their case for protecting demand-building programs to the Supreme Court. 

Board officials say beef demand has been increasing since 1998. Consumers are remembering, and embracing, the "Beef. It's What's For Dinner.®" campaign. New beef products - many of them created through the checkoff - are finding fans among consumers and marketers. They say that food safety has improved, and consumer confidence in U.S. beef products has remained high. "The industry's detractors know they are facing a strong, committed and unified industry when they try to attack beef's increasingly important role in the diet," say supporters of the checkoff. 

For the entire article, go to http://www.beef.org/dsp/dsp_content.cfm?locationId=45&contentTypeId=2&contentId=2315 

Efforts Made to End Sweetener Dispute with Mexico
Efforts continue aimed at resolving the long-standing sweetener trade dispute with Mexico. Last week, letters were sent to U.S. Trade Representative Robert Zoellick and Mexican Foreign Minister Luis Ernesto Derbez and a statement was issued by a Combined Sweetener Task Force. The dispute began in January 2002 when Mexico imposed a 20% tax on all soft drinks containing high fructose corn syrup (HFCS), which has shut down U.S. exports for nearly two years. 

House Agriculture Chairman Robert Goodlatte (R-VA) has urged Zoellick to find a "commercially viable solution that re-opens the Mexican market to U.S.HFCS exports immediately. Mexico's lack of a solution or willingness to quickly address this matter should be met with a strong counter response from our government, including retaliation if necessary." 

Sen. Richard Lugar (R-IN), chairman of the Senate Foreign Relations Committee, sent a letter to Derbez claiming, "It is unacceptable that this issue has deteriorated to the point wherein U.S.corn farmers and refiners, including those in my home state of Indiana, have lost access to their top export market, Mexico, for nearly two years." 

The Combined Sweetener Task Force, made up of representatives from the Mexican and U.S. private sector, corn and sugar growers and processors, issued a statement on Friday seeking resolution to the dispute. The task force has reached an agreement on principles for settling the sweetener dispute between Mexico and the U.S. "We are confident that these principles can lead to resumption and NAFTA trade in sugar and corn sweetener in the near future," the statement said. 

For the entire story, go to http://www.ncga.com/news/notd/2003/november/110303.htm

November 3

• Canadian Beef Imports Could Resume
• China's Policies Are Costly
• U.S. Asked Not to Ship Canadian Beef
• Utah Agriculture in Trouble
• U.S. Farmers Don't Want an Australian FTA
• No Irradiated Beef for Iowa Kids
• FTAA Talks Move to Florida
• China Is Threat to U.S. Agriculture
• Fertilizer Prices Are Squeezing Farmers
• Nebraska Commission Warns about Grain Fraud
Canadian Beef Imports Could Resume
USDA is proposing to amend its bovine spongiform encephalopathy (BSE) regulations to establish a new category of regions. That category, which includes Canada, recognizes those that present a minimal risk of introducing BSE into the United States through the importation of certain low-risk live ruminants and ruminant products. USDA's Animal and Plant Health Inspection Service is seeking public comment on the proposal to allow the importation of certain live ruminants and ruminant products and byproducts from minimal risk regions under specified conditions. USDA says this proposed rule would place Canada on a list of countries considered a minimal risk for BSE, thus making Canada eligible to export certain live ruminant and ruminant products. 

A proposed minimal risk region would include regions in which an animal has been diagnosed with BSE but in which specific preventive measures have been in place for an appropriate period of time that reduce the risk of BSE being introduced to the United States. Based on a comprehensive risk analysis and review, USDA believes that the surveillance, prevention and control measures implemented by Canada are sufficient to be included in the minimal risk category. 

The proposed rule has a 60-day comment period. Once this period closes, USDA will consider the comments as it makes any final decisions on the importation of certain live ruminants and ruminant products from Canada and other minimal risk regions for BSE. 

For the entire story, go to http://www.usda.gov/news/releases/2003/10/0372.htm

China's Policies Are Costly
THE WALL STREET JOURNAL reports China has in place several policies that are proving costly. The first policy has an impact on domestic grain and oilseed prices: actions by the government to limit soybean imports, through delays in granting the necessary quarantine approval. This is clearly contrary to World Trade Organization rules, says the WSJ. And so, Chinese soybean crushers now are unable to secure enough supplies from the world market to operate their factories at normal levels. That in turn leads to a decline in soybean oil and meal supplies and consequently an increase in prices. The rally in edible oil and soybean meal prices is clearly telling the government it has tightened import restrictions too much, and it is time to start allowing more soybean imports, according to the WSJ analysis. 

A second policy causing a price increase is the continued subsidization of grain exports, most notably corn, which led to a record 16.8 million short tons of corn exports in the past 12 months. The WSJ says the rally in domestic corn prices is now telling the government that it has allowed too many corn exports, especially when demand for domestic feed and usage of industrial corn is growing so strongly, and that it is time for subsidized corn exports to end. 

For the entire story, go to http://online.wsj.com/article/0,,SB106781424914203300-search,00.html?collection=wsjie%2F30day&vql_string=agriculture%3Cin%3E%28article%2Dbody%29 (Subscription Required) 

U.S. Asked Not to Ship Canadian Beef
KYODO NEWS reports Japan's farm ministry will ask the United States not to allow local meat processors to export Canadian beef to Japan; the fear is mad cow disease. The Agriculture, Forestry and Fisheries Ministry will ask the United States to make sure the U.S. domestic meat processing industry does not export any Canadian beef. The ministry will make the request in response to a recent U.S. decision to resume import of veal early next year from Canada. 

For the entire story, go to http://news.xinhuanet.com/english/2003-11/02/content_1155176.htm

Utah Agriculture in Trouble
THE ASSOCIATED PRESS reports Utah's agriculture is an industry in trouble. Crop production has declined in all areas. Fruit production was 20% of what it was in 1977, the base year for the study. Small grain was at 65%, and cattle and calves on Utah farms reached a six-year low. ''This year and last year were the worst in recent memory, going back 10, 20, 30 years,'' said Larry Lewis, spokesman for the Utah Department of Agriculture and Food. ''The soil moisture is being depleted. In the past, we've had dry years, but the moisture was under the soil at depths where crops could still reach it. This one is so bad because there is no moisture for the roots to reach. Plus, many of the irrigation reservoirs have been drawn down to where they're unable to supply water.'' 

Drought, extreme heat, late spring frost and insect infestation are blamed for the situation, the study said. In particular, it was frost that so damaged alfalfa crops that farmers cut early in order to clear the field and get the second crop growing. Frost also hit fruit trees during bloom season and caused heavy damage to a large portion of the fruit crop, the report said. Drought caused farmers to harvest small grains and corn for hay or silage instead of for grain or seed. 

For the entire story, go to http://www.trib.com/AP/wire_detail.php?wire_num=306587

Some U.S. Farmers Don't Want an Australian FTA
THE AGE reports some U.S. farmers are making it know they don't want a free trade agreement with Australia. U.S. wheat producers want the Bush administration simply to walk away from a FTA unless AWB Ltd, Australia's monopoly wheat exporter, is opened to competition. 

There are also concerns in Congress about the FTA and what it might mean for U.S. farmers. And in Australia, Labor has signaled it will oppose a deal that has phase-in periods of more than five years for agricultural tariff cuts or one that hits the Pharmaceutical Benefits Scheme (PBS). FTA negotiations were conducted last week in Canberra; a final round of talks is scheduled for early December in Washington. 

For the entire story, go to http://www.theage.com.au/articles/2003/11/02/1067708064365.html

No Irradiated Beef for Iowa Kids
THE ASSOCIATED PRESS reports irradiated beef won't be part of Iowa school lunch programs, at least for now. Jeff Weaver, the Clinton school district's food service director, said the Department of Agriculture wanted to allow the use of irradiated ground beef in school but would leave the final decision up to individual districts. But a letter received last week from Dean Flaws, food distribution consultant for the Department of Agriculture, indicated there are no plans to buy irradiated beef for Iowa schools this year. 

The controversy surrounding irradiated foods and the extra cost is what caused the state decision, said Flaws. Irradiated ground beef can cost 10 to 20 cents more per pound. Weaver said that even if the irradiated ground beef would have become available, the Clinton school district would not have introduced it without more discussion with district residents. "The public perceives the meat to be radioactive. Some people believe it is altered in its makeup and that it could form cancers and growth," said Weaver. "It is not radioactive. It is just another method of preserving food." 

For the entire story, go to http://www.siouxcityjournal.com/articles/2003/11/02/news/education/d152152ddfdbae5186256dd2001205bc.txt

FTAA Talks Move to Florida
The PALM BEACH (FL) POST STAFF reports Palm Beach will be the site of the next round of talks on a Free Trade Area of the Americas (FTAA). Some believe the outcome could decide the future of Florida orange juice. From Nov. 16-21, ministers and other officials from 34 Western Hemisphere nations will come to South Florida to discuss the proposed no-tariff trading bloc designed to change the way goods move between the nations of the Americas and the Caribbean. 

"Free trade always benefits the consumer," said Peter Quinter, a trade attorney at Becker & Poliakoff in Fort Lauderdale and Miami. "The lowest-priced producer will make the product, and the consumer pays the lowest price." Orange growers have been able to keep a lid on competition from the world's largest orange producer, Brazil, through a tariff of nearly 30 cents on every gallon of Brazilian orange juice that comes into the United States. That, of course, is just what Brazil wants to see negotiated out of existence. 

For the entire story, go to http://www.palmbeachpost.com/news/content/auto/epaper/editions/sunday/news_f34a0983463e328100d1.html

China Is Threat to U.S. Agriculture
OSTERDOWJONES reports the American Farm Bureau Federation wants the Bush administration to be ready to defend U.S. farmers, industries and businesses against "unfair practices" by China. Testifying last week before the House Ways and Means Committee on behalf of the Farm Bureau, Charles Kruse, president of the Missouri Farm Bureau and a member of the AFBF Board, said China presents a great opportunity for U.S. agriculture. But, he added, China also can become a significant threat to American producers of corn, vegetables, fruits, nuts, soy meal, pork, sugar and confections, food ingredients and rice. 

"In many respects China is a developing country, yet, it has become a dominant producer and a world-class exporter of many agricultural products ..." Kruse said. "Moreover, it has established or is in the process of establishing preferential or free-trade agreements with several current and very important customers of U.S. agricultural products in the Asia- Pacific region." He added that China has the ability to have an impact on more than $16 billion of annual U.S. agricultural exports - more than 29% of the U.S. total. Kruse noted that China now pegs the yuan to the dollar, and that hurts U.S. agriculture. He said AFBF strongly supports negotiations that urge China to reform its monetary policy to be more market- driven. If negotiations do not work, however, Kruse said AFBF would support imposition of import duties on Chinese products, especially if "it is determined that China's system of monetary management is non-compliant with its obligations as a member of the World Trade Organization." 

The entire story may be found at http://www.hpj.com/dtnnewstable.cfm?type=story&sid=10246 

Fertilizer Prices Are Squeezing Farmers
The TULSA (OK) WORLD reports increased cost of natural gas, a key component, is forcing an increase in prices of fertilizer. And that is squeezing farmers financially. In some parts of Oklahoma fertilizer prices have increased more than 40% from last year, experts say. One of the most heavily used fertilizers in the state is anhydrous ammonia. In some parts, the cost of anhydrous ammonia has increased from $210 to $295 per ton, said Terry Detrick, vice president of the Oklahoma Farmers Union. Detrick runs a farm southwest of Enid. Detrick said because commodity prices have remained flat, the increased production cost will affect significantly farmers' pocketbooks. 

For the entire story, go to http://www.progressivefarmer.com/farmer/news/article.html?SMContentIndex=0&SMContentSet=0 

Nebraska Commission Warns about Grain Fraud
THE OMAHA (NE) WORLD HERALD reports Nebraska farmers and grain warehouse operators are being warned to watch out for potentially fraudlent grain buyers. The warning comes from the Nebraska Public Service Commission. Reports have reached the commission about an unlicensed grain dealer from a neighboring state. The dealer receives grain in Negraska, but then defaults on promises to pay, said Jerry Vap, a public- service commissioner from McCook. "I can't emphasize too much that anyone selling grain in Nebraska should be careful about whom they are doing business with," Vap said. "A transaction through a grain dealer licensed in another state is not protected in Nebraska unless the grain dealer has a Nebraska license." 

Companies and individuals who do business as grain dealers must be licensed by the state through the Public Service Commission. Grain warehouses either must have a federal license or a Nebraska license. Most transactions by grain dealers are covered by a required bond, and state help may be available if a dealer fails to pay.