October 29, 1999

FAPRI Releases Short Working Paper on Risk Management Bills The Food and Agricultural Policy Research Institute released a brief study, "Net Farm Income Impacts of Alternative Risk Managements Bills," at the request of Senate Agriculture Committee Chairman Richard Lugar. 

CFTC 'Must' Change Regulation Policies. The chairman of the Commodity Futures Trading Commission says the agency "must embark on a process that may result in major deregulation of the financial futures markets." All CFTC contract markets would benefit from a "Lighter regulatory hand," says William J. Rainer. 

U.S. Food Supply Vulnerable to Terrorism. The "strength and value" of the U.S. food and agricultural system makes it "a vulnerable terrorist target," says the chief of USDA's Agricultural Research Service. Agricultural "bioterrorism" could specifically target key animal or plant commodities and possibly do so successfully, adds Floyd P. Horn. 

USDA Officially Announces `Lock-In' for Repayment Rates. USDA officially has announced changes in the procedure to lock in repayment rates for marketing assistance loans. Although one lock-in of the posted country price will be allowed during a 60-day period, a farmer can obtain multiple lock-ins on different portions of a commodity. 

Goodlatte Criticizes EPA on Livestock Waste Policy. Rep. Bob Goodlatte (R-VA) criticizes the Environmental Protection Agency for using "unscientific methods" to develop new regulations for concentrated animal feeding operations and nonpoint source water pollution problems. EPA created "its own conclusions based on faulty assumptions," says Goodlatte. 

Burns Critical of Glickman's Call for Price Reporting Money. Sen. Conrad Burns (R-MT) says it "really boils my blood" that Agriculture Secretary Dan Glickman says there is no money to implement the livestock price reporting section of the agricultural appropriations bill. Glickman says $4.7 million is needed; Burns says Glickman easily can find the funds within the USDA budget.

Ag News Summaries

Harkin Assured EU Will Reduce Barriers. Sen. Tom Harkin (D-IA) says he was assured by European Union President Romano Prodi that the EU will work to reduce trade barriers to pork and agricultural biotechnology products entering member countries. The EU is working to establish an independent, central agency to review food safety, health and environmental issues and address biotechnology and agriculture, according to Harkin. EU officials also said they would abide by the veterinary equivalency agreement with the United States that began on Aug. 1, says Harkin. Under that agreement, the EU will recognize the validity of the U.S. meat inspection and safety standards.

House Panel Passes Water Products Improvement Bill. The House Agriculture Committee passed legislation aimed at maintaining and improving more than 10,000 small flood prevention dams. Most are located in Iowa, Oklahoma and Texas and provide conservation and other economic benefits. The infrastructures of many, however, are at or near their designated life spans and need to be rehabilitated. The bill authorizes $60 million a year for 10 years and requires the Secretary of Agriculture to establish a system of ranking and approving rehabilitation requests on need and merit.

New Health Claim Could Double Soy Protein Consumption. The American Soybean Association says approval by the Food and Drug Administration of a new soy health claim could double soy protein consumption. FDA published the final rule Tuesday that soy protein included in a diet low in saturated fat and cholesterol may reduce the risk of coronary heart disease by lowering blood cholesterol levels. "If the 54 million people with high blood cholesterol consumed the recommended 25 grams of soy protein each day, the ASA estimates the demand for soybeans would grow by more than 55 million bushels annually," says ASA First Vice President Tony Anderson, and nearly double the soy protein consumed.

EU Scientists Meet for Second Day in Beef Row. European Commission scientists met for a second day, still seeking a verdict on whether France has new evidence to support a ban on British beef despite a previous decision to lift the embargo, REUTERS reports from Brussels. The 16 members of the Scientific Steering Committee are going through 600 pages of French evidence and are expected to issue a technical opinion later today. That should allow the commission to decide what action to take in the cross-Channel dispute that has become highly politicized.

Canada Farmers Demand Relief. Farmers and politicians from Canada's prairie breadbasket want the federal government to provide $2.8 billion to relieve what has been called the worst farm crisis in Canada since the Great Depression, REUTERS reports. "If we don't get (needed relief) over the next 18 months, we're going to see hundreds of family farms go under," says Manitoba Premier Gary Doer.

Crop Insurance Reform Hits Snag. PRO FARMER reports prospects for Senate action on crop insurance legislation deteriorated this week. The news service says disagreements continue between Senate Agriculture Chairman Richard Lugar (R-IN) and advocates of a bill led by Sens. Pat Roberts (R-KS) and Bob Kerrey (D-NE).
 

October 28, 1999

Farm Aid Being Distributed, More Will Be Needed. Agriculture Secretary Dan Glickman says money is on the way to farmers from the income relief portion of the aid package in the agricultural appropriations bill. He told reporters he's certain more will be needed next year because of continued low commodity prices, but he's determined to pressure Congress to change the way the money is distributed.

Food Grading Bribery Scheme Nets 21. Twenty-one people, including eight USDA employees, have been arrested in a bribery scheme at a Bronx, NY, wholesale produce market. The investigation was conduced by USDA's office of inspector general.

Corn Growers Urged to Plant Non-Bt `Refuges.' The National Corn Growers Association is urging its members to plant non-BT "refuge" if they plant Bt corn. Planting a refuge is a requirement when Bt seed is purchased, says NCGA.

New Jersey Company Recalls All Beef Franks Fearing Listeria. Marathon Enterprises, Inc., East Rutherford, NJ, is recalling voluntarily all its skinless beef frankfurters produced at one of its three plants. The products were distributed nationwide.

** The following story is being reposted from yesterday afternoon.**
USDA Announces FY 2000 Payments; Supplemental Payments Are Being Made. USDA will make fiscal year 2000 production flexibility contract payments totaling $5.1 billion. The payments are part of the 1996 farm law. Eligible farmers may choose to receive their payments all at once or in two equal payments at any time during the fiscal year. Click here for the Farm Service Agency's Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Act, 2000 Fact Sheet.

Ag News Summaries
U.S., EU Will Narrow Trade Agenda Gaps. The United States and European Union will bridge their differences on transatlantic commerce in time to salvage the upcoming World Trade Organization meetings in Seattle, says European Commission President Romano Prodi. BLOOMBERG NEWS reports Prodi says the U.S. and EU agreed on a "common agenda" for the meetings. Differences over farm subsidies, food safety and rules for global competition and investment have crated such a deep rift between the EU and United States that the WTO's top official warned last week the talks could fail. That prompted Prodi to seek a meeting with President Clinton that was held Wednesday.

Britain Seeks Support on Beef Ban Stance. Britain has stepped up pressure on Brussels to take its side and begin legal action against France in an escalating cross-channel beef war, REUTERS reports from London. "This is war," declared the country's best-selling tabloid newspaper, the Sun, calling on Prime Minister tony Blair to "start kicking backsides" in Paris and Brussels. Top scientists were to meet in Brussels to assess if France has new evidence to justify its ban on British beef, but the outcome may not be clear-cut and could bring major political fallout in both countries.

USDA Urged to Abandon Terminator Gene Technology. USDA is being urged to abandon its support for so-called "terminator" genes that prevent plants from producing fertile seeds that can be used to sow the next year's crop, REUTERS reports. The department has helped develop the technology through a cooperative research agreement with Delta and Pine Land co., a cotton seed breeder. It also holds a joint patent with Delta on a technique for genetic seed sterilization. The idea behind terminator genes is to allow a seed company to protect its investment in new varieties by requiring farmers to buy new seeds each year. That approach is at odds with a long-standing tradition of farmers holding back some of their grain from harvest to plant the following year.

Many Firms Not Separating Modified Grain. As the debate over genetically modified food rages in Europe and Asia, many U.S. grain handlers in the midst of billion-bushel harvests told REUTERS they are not segregating GM grains from non-GM grains this year.

October 27, 1999

Senators Urge Clinton to Push EU on Biotech.Senate Agriculture Committee Chairman Richard Lugar (R-IN) spearheaded a letter to President Clinton signed by more than two dozen senators urging Clinton to press for a European Union biotechnology approval process based on sound science. Clinton meets today with EU President Romano Prodi. Lugar also is scheduled to meet with Prodi.

USDA Continues Moratorium on Hog Building Loans. USDA is continuing a moratorium on loans for building new or expanding existing hog-raising facilities. To lift the moratorium would mean contributing to the current oversupply of hogs, says Farm Service Agency Administrator Keith Kelly.

Most Small Meat Plants Ready for HACCP. Meat and poultry plants with fewer than 10 employees or less than $2.5 million in production must meet hazard analysis and critical control point (HACCP) regulations by Jan. 25. USDA says the vast majority of them will be ready.

Legislation Aimed at Building Farm Workforce. Legislation scheduled to be introduced today in the Senate is aimed at providing an adequate workforce to U.S. farmers. The bill would reform the H-2a temporary farm worker program to make it more attractive for farmers to use.

Some Cotton Crop Insurance Rates May Be Halved. USDA has announced a new cotton rating plan that could lower crop insurance rates by half for some farmers. The new rating system was introduced recently in the insurance industry.

Clarification

An article in Tuesday's report regarding a change by USDA in allowing farmers to lock in the posted county price implied the lock-in had to occur at the time a crop loan was taken out. A farmer may lock in the PCP at any point during the nine months of the life of the loan up to 14 days before the loan is due. The reason for the 14 days is to discourage forfeitures.

Ag News Summaries

USDA Near Russian Aid Decision. USDA is to decide soon the U.S. response to a request from Russia for 5 million tons of food aid in the coming year, REUTERS reports. Alexei Gordeyev, Russia's food and agriculture minister, says the "sooner the better" for a U.S. decision. He also points to the "strict joint control" over this year's aid package as a means of discouraging abuse of the aid. Agriculture Secretary Dan Glickman says USDA and other U.S. agencies and departments are reviewing the Russian aid request and will try to make decisions "as quickly as possible." Gordeyev also says Russia won't turn down meat products if they are included in the aid package even though Moscow has not requested meat or poultry.

ustralia Urges U.S. to Set Sugar Quota. Australia has turned up the pressure on the Clinton Administration to announce the 1999-2000 refined sugar quota. Australian officials sent a letter to Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky, REUTERS reports. Each year the United States announces a tariff rate quota for U.S. sugar imports, then divides the quota among exporting countries. The announcement usually comes at least a week before the start of the fiscal year on Oct. 1.

Lugar Named "Most Effective" Legislator. Congressional Quarterly magazine will recognize Senate Agriculture Committee Chairman Richard Lugar (R-IN) as one of the most effective legislators in the current Congress. The announcement is scheduled to be made at a 4 p.m. news conference today in the First Amendment Room of the National Press Club. Lugar's effectiveness will be recognized not only for agriculture but for building bipartisan consensus in ridding the world's stockpile of nuclear, chemical and biological weapons and providing domestic preparedness against terrorist attacks.

No Deal Yet on Seattle Agenda. THE WALL STREET JOURNAL reports that ministers have instructed their working-level negotiators to be more flexible in order to reach consensus on an agenda for new trade talks set to commence in Seattle. However, there is no deal yet, and time is running out. As usual, agriculture is one of the issues proving difficult to resolve. The dispute seems likely to be resolved in time for the early-December meeting in Seattle, and may reflect the normal brinksmanship that often characterizes international talks. At this point, the negotiators are basically arguing about what they should argue about for the next three years. This preparatory stage does not involve real negotiations, which are likely to prove more difficult.

October 26, 1999

Corn Growers Ask Chairman Lugar to Move on Crop Insurance Reform The National Corn Growers Association is urging Chairman Richard Lugar (R-IN) and the Senate Agriculture Committee to take action on crop insurance reform as soon as possible, preferably prior to the expected adjournment of Congress in a few days.

USDA Ends Multiple PCP Lock-Ins. A practice some farmers have used to gain a few more cents per unit on their marketing loan gain or loan deficiency payment has been ended with a new rule from USDA. USDA now will allow a producer only one chance to lock in the gain or LDP for 60 days. It will be up to the farmer to decide at what point in the marketing year the lock-in should occur to give the farmer the widest margin between the loan rate and the posted county price.

Farm Bureau Bank Will Serve 39 States. A new farmer bank has been formed with a potential market of more than 3 million Farm Bureau member families in the 39 states it initially will serve. Known as the Farm Bureau Bank FS, the bank is opening with assets in excess of $130 million and already is providing consumer banking services to about 100,000 Farm Bureau members and their families.

Lowest Seasonal Butter Prices Since 1996 Expected This Year. The lowest seasonal butter prices since 1996 should greet consumers who will be doing their own holiday baking. The wholesale butter price, which as recently as last year reached a record $2.81 per pound at the Chicago Mercantile Exchange, has declined below $1 a pound for the third time this year.

Ag News Summaries

Sugar Group Criticizes Quota Delay. A group representing U.S. sugar refiners says the federal government is costing them money and disrupting the market by delaying an announcement of how much sugar can be imported, BLOOMBERG NEWS reports. Shipments from suppliers such as Queensland Sugar Corp., the world's second largest sugar exporter, are piling up at ports as USDA holds up a decision on sugar import quotas, usually set in mid-September. The delay forces importers to pay extra at ports when they can't unload sugar. Dave Williams, an assistant in sugar programs at USDA, says he doesn't know when the program will be announced.

New Milk-Pricing System on Hold. USDA may wait until early in 2000 to change the federal milk marketing order system even if it wins a series of lawsuits challenging the new policy, THE ASSOCIATED PRESS reports. The USDA plan is supported by consumer groups, dairy processors and farmers in the Upper Midwest but opposed by producers elsewhere who fear their milk prices will suffer unless the milk pricing system in the final version of USDA's reforms is changed. A federal judge in Vermont blocked USDA from implementing the new policy Oct. 1 as scheduled. Court hearings are scheduled for December. A federal judge in Washington, DC, is considering another set of lawsuits. "Even if all the court decisions were in the department's favor, it wouldn't take effect until next year," says Kathleen Merrigan, Agricultural Marketing Service administrator.

China to Export Cotton Next Several Years. China likely will be a net cotton exporter for the next three to four years, weighing heavily on cotton prices worldwide, USDA officials say. A REUTERS reports China is expected to nearly double its cotton exports to 1.2 million bales compared to 680,000 bales during 1998-99. That trend should continue for three to four years and perhaps longer, USDA officials said in Charleston, SC, at the International Cotton Advisory Committee meeting.

Electronic Bacteria Killer Tested. Titan Corp. unveiled a new electric pasteurization process Monday at a test facility in Sioux City, IA. The process uses electricity to process meat, vegetables, fruits and other foods to determine they are free of food-borne bacteria, reports THE ASSOCIATED PRESS. "What this does is eliminate 99.99999% of harmful bacteria, of food pathogens," says Gene W. Ray, president, chairman and CEO of the San Diego, CA, company.. The Food and Drug Administration has approved the process and USDA should do the same by year's end.

Progress Reported on Crop Insurance. Senate Agriculture Committee Chairman Richard Lugar (R-IN) cited "excellent progress" toward a committee consensus on crop insurance, PRO FARMER reports. But Lugar is also quoted as saying resolving all differences before Congress adjourns will be "very difficult."

October 25,1999

Reactions to Clinton Ag Appropriations Bill Signing. Republicans and Democrats alike react to the signing of the fiscal year 2000 agricultural appropriations bill Friday by President Clinton. For Republicans, the general theme is, "It's about time!" For Democrats, the prevailing wisdom is, "Fix the 1996 farm law and quickly!" Here are some samples.

Pork Producers Urged to Discover, Report Prices. Pork producers are being urged to negotiate sale prices with several packers and report the resulting price offers to USDA's Agricultural Marketing Service's Livestock Market News. A negotiated price is defined as a cash or spot market sale price determined by an interaction and agreement between a seller and buyer on a given day.

US-EU Ag Policy Differences Will Continue. A USDA report says the United States and the European Union will continue to have different agricultural policies for the foreseeable future because of historical, political and agronomic conditions and circumstances. But the EU's Common Agricultural Policy "must answer to an alarmed consumer constituency and a strong environmental movement that often have different concerns and rely on different institutions and history than U.S. consumers and environmentalists," the report says.

ARS, CGIAR Sign Research Agreement. USDA"s Agricultural Research Service and the Consultative Group on International Agricultural Research (CGIAR) have signed a formal agreement designed to help secure the world's agricultural and food needs through cooperative research and information.

Ag News Summaries

Diet Change Seen Helping E. Coli Illness. A short-term tactic that shows promise in keeping the deadly microbe E. coli out of meat involves a simple change of diet, THE ASSOCIATED PRESS reports. Researchers at Cornell University found that E. coli in a grain-fed cow's digestive tract is resistant to strong acid like that in the human stomach. But when the cow's diet was switched to hay, the bacteria became acid-sensitive so they would die if eaten by a human. If cattle are switched to a hay diet about five days before slaughter, E. coli in fresh feces that might contaminate the carcasses would be less likely to cause human illness, says James Russell, a USDA microbiologist and Cornell professor. However, once manure is outside the cow and exposed to oxygen, the E. coli become acid-resistant and thus able to cause illness no matter what the cow was fed.

Seed Companies Confront GMO Butterfly, Health Issues. About 20 scientists will meet Nov. 2 in Chicago to discuss research into whether genetically engineered crops post risks to the environment or human health, BLOOMBERG NEWS reports. Novartis, Monsanto and DuPont plan to reveal research that shows the technology is not harmful either to the environment, the monarch butterfly or humans. The article says this is part of the companies' efforts to convince U.S. consumers that crops with genes modified to increase resistance to pests or tolerance to weed killers are safe and beneficial.

Britain Seeks Stricter Beef Labels. Britain's Agriculture Minister Nick Brown says he will order stricter labeling on meat following a European Union report that accuses French rendering plants of using sewage in livestock feed. Brown says it is "a pretty horrible and disgusting thing" to use human and animal excrement in animal food. "I am going to tighten up the labeling rules...to be more explicit than we are now," says Brown.

Glickman Confident of a New Trade Round. Agriculture Secretary Dan Glickman says he is confident a new round of trade talks will begin as scheduled this year, despite European suggestions the initiative could collapse, REUTERS reports. "I just look at that as pre-positioning talk that occurs before any negotiations. I'm confident there will be a round," he says. French Prime Minister Lionel Jospin has accused the United States of pursuing too narrow an agenda for the talks. "The desire of the United States to limit the Seattle agenda to a few preferred subjects is unrealistic," says Jospin. "If they persist too much in their approach, the United States could even throw into question the launch of a new round."

USDA Sets Loan Repayment Rules. The Agriculture Department set new procedures for "locking in" repayment rates on marketing loans, PRO FARMER reports. Producers will be able to make a one-time request to lock in a rate for 60 days.

October 22, 1999

Clinton Signs Ag Appropriations Bill. President Clinton today signed the agriculture appropriations bill into law, including the $8.7 billion farmer relief portion, the largest farmer assistance packages ever that swells to $22 billion the amount of direct payments farmers will receive from the government. Included in the bill are provisions to supplement eligible farmers' Freedom to Farm payments, $5.5 billion, and another $1.2 billion in disaster aid.

House Members Ask for Crop Insurance Reform in Senate. Fifteen members of the House Agriculture Committee, led by Earl Pomeroy (D-ND), have urged the Senate leadership to consider crop insurance reform legislation before Congress adjourns this fall. The necessity for the Senate to act "could not be more urgent," they told Senate Majority Leader Trent Lott (R-MS) and Senate Minority Leader Tom Daschle (D-SD).

Week Lost for Farmers Needing Relief. House Agriculture Committee Chairman Larry Combest (R-TX) says producers could have been halfway toward receiving checks for financial relief had President Clinton signed the agriculture appropriations bill when it arrived at the White House. Reports are that Clinton may sign the bill today or over the weekend. USDA has said it takes two weeks to process checks for the $5.5 billion in aid to farmers. Those checks effectively double a farmer's 1996 farm law payment.

Production Tax Credit for Energy Extended. The Senate Finance Committee has extended to Dec. 31, 2002, a production tax credit for wind and biomass energy. The tax incentive expired June 30.

Ag News Summaries

More Hardship Predicted Without Farm Law Changes. Agriculture Secretary Dan Glickman says farmers will face continued "hardships and uncertainty" unless there are significant changes in the 1996 freedom to farm law. REUTERS reports that in a letter to a Kansas newspaper editor, Glickman says the additional farm aid from 1998 and 1999 was necessary. The Clinton Administration wants to retain planting flexibility "without demanding a phase-out of income supports," Glickman says, and will work toward that goal next year – two years before the current farm law expires.

Judge Will Hear Black Farmers' Plea. U.S. District court Judge Paul Friedman says he is "disinclined" to grant a blanket extension that would allow black farmers more time to apply for a share of a multibillion dollar settlement with USDA over discrimination. But Friedman says he will hold a hearing Nov. 8 after receiving requests from groups representing black farmers, lawyers and individual farmers who are seeking more time to file applications to join the settlement. About 15,000 black farmers already have applied to participate in the massive settlement to compensate them for years of discrimination, allegedly at the hands of USDA employees.

Japan Jeopardizing Talks, U.S. Says. Japan is jeopardizing a new round of global trade talks before they even start by pursuing a self-serving strategy of protecting existing barriers, the Clinton Administration told Congress Tuesday. THE ASSOCIATED PRESS reports that Commerce Under Secretary David Aaron says Japanese officials, as far as he could tell, had "no positive objectives" they were pursuing in a proposed new round of talks. Aaron testified before the Senate finance subcommittee on trade.

France Criticizes U.S. Ahead of Seattle Talks. REUTERS reports from Paris that France has launched a verbal assault on the United States ahead of trade talks next month. "The desire of the United States to limit the Seattle agenda to a few preferred subjects is unrealistic," Prime Minister Lionel Jospin told a news conference. The United States has put European Union export subsidies at the top of the hit list for trade talks. Jospin urged EU negotiators to dig in their heels and defend the bloc's farm policy.

EU Moves Toward Labeling. European Union governments on Thursday backed plans for compulsory labelling on foods where at least one ingredient contains more than one percent of genetically modified (GM) material, a European Commission spokesman told REUTERS. Approval by the European Commission is the next step.

October 21, 1999

USDA Farmer-Related Decisions Expected Soon. A decision on the use of generic certificates by major crop producers is expected to be issued quickly, once President Clinton signs the agricultural appropriations bill.

Glickman, Barshefsky Talk Trade, Mostly Biotech and the EU. Two of the thorniest issues with which the next round of international trade talks will deal are the acceptance of biotechnology and import problems with the European Union. Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky made that clear Wednesday when they testified before the House Agriculture Committee.

Organic Growers Seek More Crop Varieties. More than 200 organic seed farmers are growing 800 breeding lines of traditional crop plants in an effort to provide farmers and gardeners with a wide selection of crop varieties than they can obtain commercially. The effort is being conducted in conjunction with USDA's Agricultural Research Service.

FSIS Adopts Rule on Sanitation Requirements. USDA's Food Safety and Inspection Service has published a final rule on updated sanitation regulations for official meat and poultry establishments. The rule converts many highly prescriptive sanitation requirements to performance standards while streamlining and consolidating sanitary regulations that apply both to official meat and poultry plants.

Two-Thirds of Farmers Entered 1999 with Favorable Finances. USDA reports that only 5.1% of commercial farm businesses entered 1999 in a vulnerable financial position based on combined net farm income and debt-asset ratios. That was a similar percentage to 1998 when 5.6% were considered financially vulnerable.

Ag News Summaries

Administration Defends Mergers. THE ASSOCIATED PRESS reports the Justice Department believes existing antitrust laws are adequate to protect the interests of farmers and consumers as agriculture and food processing companies go through a wave of mergers and acquisitions. The regulations provide the "appropriate framework for policing and enforcing our nation's concerns about the ability of markets to operate competitively," said John Nannes, deputy assistance attorney general for the antitrust division. Any significant mergers "are going to get a very careful look" from Justice, he told the House Judiciary Committee Wednesday.

More Legislation Sought for Merger Delays. Reps. David Minge (D-MN) and Earl Pomeroy (D-ND) plan to introduce legislation soon aimed at imposing an 18-month moratorium on large-scale agribusiness mergers and a study of the situation, REUTERS reports. Similar legislation is pending in the Senate. "We are rushing to disaster," says Pomeroy. "We need to stop it." He criticized the vast power of large firms being formed by consolidations in agribusinesses while farmers found fewer outlets for their products. Minge says government antitrust regulators are "so poorly funded" that they cannot be as vigorous in enforcement as they want to be.

Monsanto Reaches Agreement in Seed Cases. Monsanto Co. has reached agreements with Pioneer Hi-Bred International Inc. and Cargill Inc., resolving disputes from Monsanto's purchase of Cargill's international seed business a year ago. THE ASSOCIATED PRESS reports from St. Louis, MO, that Monsanto resolved the lawsuit filed by Pioneer, alleging that Monsanto had purchased germplasm from Cargill that had been taken improperly from Pioneer. Under the settlement, Monsanto said the genetic materials improperly obtained from Pioneer are being destroyed. Other terms were not disclosed.

Crop Insurance Fraud Charge Dismissed. U.S. District Judge Oliver Wanger as dismissed charges against three men accused of swindling $10 million from the federal government in a crop insurance scheme, THE ASSOCIATED PRESS reports from Fresno, CA. Prosecutors had called it the biggest crop insurance fraud case in the country. The three were accused of lying to USDA about how much rain damage their raisin grower clients suffered in 1994. Wanger dismissed charges against Guri S. Bhangoo of Fresno and Avtar S. Gill of Caruthers, CA. Charges had been dismissed earlier against Frank T. Fujikawa of Selma, CA. Elliot Peters, a lawyer for Bhangoo, said a re-examination of the entire case showed "that these men had never done anything wrong."

October 20, 1999

USDA Considers Details on Certificates. Officials at USDA are working on ways to implement two provisions in the agricultural appropriations bill dealing with the use of certificates. The bill calls for marketing certificates to be used under the cotton Step 2 program and also the use of generic certificates by farmers, a provision that may be up to the Secretary's discretion.

Bill Expected on Ending All Food, Medicine Sanctions. A group of senators is ready to introduce a bill that would exempt food and medicine from all current and future U.S. economic sanctions. One major farm organization says enactment would improve economic conditions in agriculture.

New Energy Supplies Subject of House Hearing. Finding ways to provide the nation with fuels from biomass technology is necessary to supply future energy needs, says a House subcommittee chairman. A bill is pending to spur the technology and construct a pilot plant for corn-based ethanol research.

Lugar Looks for Another Bailout Next Year. Senate Agriculture Committee Chairman Richard Lugar (R-IN) believes that more farm assistance will be needed next year if low prices continue for the major commodities.

USDA Hopes to Speed Crop Insurance Payments. Agriculture Secretary Dan Glickman says USDA is working to speed payments to insured farmers whose crops were damaged or lost by floods from recent hurricanes. Counties in North and South Carolina are affected.

Ag News Summaries

Pessimism Over China's WTO Membership Bid. David Aaron, under secretary of commerce for international trade at the Commerce Department, is pessimistic about China's entry into the world Trade Organization before the start of a new trade round in late November, KYODO NEWS SERVICE reports. "I think it's very, very difficult," he says. China's bid to enter the world trade group is approaching the "midnight' hour, he told reporters after attending a business conference. In New York Tuesday, U.S. Trade Representative Charlene Barshefsky also indicated it has become difficult for Beijing to conclude WTO talks with the United States before the start of the new round in Seattle.

Glickman Says WTO Success Depends on Agriculture. Agriculture issues will determine whether the upcoming World Trade Organization talks will be successful, says Agriculture Secretary Dan Glickman. THE ASSOCIATED PRESS reports that Glickman says agriculture probably is "the most sensitive issue" in the round. "But it will determine whether the next trade round is successful." The stakes for agriculture "are enormous," Glickman said in Spokane, WA.

`Sensible Proposal' Sought on Biotech Foods. The Clinton Administration says it is waiting for a "sensible proposal" from other nations to address genetically modified food issues at the world trade talks in Seattle in late November, REUTERS reports. U.S. officials maintain that scientific studies show biotech foods are safe, but European Union and Asian consumer resistance could jeopardize U.S. exports of genetically modified corn, soybeans and other crops.

October 19, 1999

Ag Groups Want FQPA Panel Extended. A coalition of more than 200 food and agriculture associations has called on Vice President Gore to extend the life of a committee that contributes to the process of implementing the Food Quality Protection Act. The Implementation Working Group is chaired by the American Farm Bureau Federation. The Tolerance Reassessment Advisory committee (TRAC) could be disbanded after a final two days of meetings this week.

USDA Assessment Team Reports on Russia. An interagency technical-level team reports that Russia, with a poor harvest again this year, could face a shortfall of 2.0-3.5 million tons of food grains, 5.5-6.0 million tons of feed grains, 500,000 ton of protein meals and 250,000 tons of meat in the coming year. Without more imports, that could mean food shortages in certain regions and feed shortages that could lead to distress slaughter of animal herds.

Soybean, Corn, Hog Farmers Hit Most Hard by Income Declines. USDA says reductions in 1999 income will fall most heavily on farmers who specialize in soybeans, corn and hogs. Net cash income should decline more than 20% from a year earlier for soybean farms. Hog farm income should decline 18% and corn farm income 17%.

FDA Will Hold Meetings on GMO Foods. The Food and Drug Administration will hold a series of meetings in three major cities in November and December on the issues of bioengineered foods. FDA officials will outline the agency's policy to ensure the safety of biotech foods, and the public will be asked if this policy should be changed.

Combest Will Lead Ag Delegation to Seattle. House Agriculture Committee chairman Larry Combest (R-TX) will lead a delegation of 14 members of the committee to Seattle Nov. 3–Dec. 3 for the opening sessions of the World Trade Organization international trade talks. A committee hearing will be held Wednesday to review the government's plans for the Seattle negotiations.

Ag News Summaries

Envoys Say New Trade Round Not Certain. Senior envoys say the launch of a full scale round of global trade negotiations next year is far from certain given major differences between key trading powers on just what should be included, REUTERS reports from Geneva. The envoys says high pressure discussions at the World Trade Organization over the past few weeks are still a long way from producing a declaration for ministers to issue at the end of the meeting in Seattle. "Right now it doesn't look too good," said one diplomat closely involved in the haggling over a text for the declaration which would normally set out the areas to be included in the talks.

Central America Gets $110 Million in Credits. USDA has allocated $110 million in GSM-102 export credits for Central America during fiscal 2000, the current fiscal year. It was the same amount Central America received in fiscal 1999. Exporters registered $64.1 million in GSM-102 sales last year, reports REUTERS, including $17.4 million in cotton, $22.1 million in feed grains and $17.3 million in protein meals.

Clinton Likely to Sign Farm Appropriations This Week. President Clinton likely will sign into law this week the record $8.7 billion farm rescue package that is part of the agricultural appropriations bill. REUTERS reports the bill seems secure from budget skirmishing between the White House and Congress. During his daily briefing, White House Press Secretary Joe Lockhart said agriculture was exempt from the clash.

October 18, 1999

Congressional Trade Caucus Is Formed. With the appropriations bill and its massive farmer relief program behind them, members of the Senate and House are turning their attention to trade. Seventeen senators and 22 members of the House have formed a "WTO Trade Caucus for Farmers and Ranchers." The World Trade Organization talks begin in Seattle Nov. 30.

National Grange Plans Presidential Forum. The National Grange plans a presidential candidates' forum at its Nov. 8-14 convention in Portland, ME. Trade and farm policy also will be high on the 133rd national convention agenda including assessments of the performance and future of the 1996 farm law.

Sun Is Used as Methyl Bromide Substitute. USDA researchers are using the sun as a substitute for methyl bromide, a fumigant scheduled to be discontinued in 2005. Last fall, yields from solarized fields ranged from 96-123% of yields from methyl bromide-treated fields on three commercial farms.

Ag News Summaries

Australian Grains Group Criticizes U.S. Rescue Plan. Australia's main grains industry group has criticized the U.S. plan to provide $8.7 billion in farm aid. Grains Council of Australia President John Lush says the council strongly supports criticism of the U.S. effort made by Australian Minister for Trade Mark Vaile and Minister for Agriculture Warren Truss. Lush says, "The hypocrisy shown by the U.S. in supporting this package is appalling." The decision to send the legislative package to President Clinton for his signature sends the wrong signal barely six weeks in advance of the World Trade Organization ministerial meeting in Seattle, he adds.

Brazilian States May Export Beef to U.S. Two Brazilian cattle-ranching states may win approval for exports to the United States. BLOOMBERG NEWS says the WALL STREET JOURNAL interactive edition reports the two states, Rio Grande do Sul and Santa Catarina, were declared free of hoof and mouth disease in May 1998, and neither has had a recorded outbreak of the virus since 1993. That should allow the states to win export approval.

Britain Says Will Win Beef Battle. British Foreign Secretary Robin Cooks insists that France "cannot sustain" its refusal to allow British beef into the country in defiance of the European Union and predicts Britain will win if the dispute goes to court, THE ASSOCIATED PRESS reports from London. The 15-nation EU ruled in August that beef from Britain was safe again for international sales after the scare over mad cow disease. On Oct. 1, France announced it would continue to ban the imports based on a recommendation from the French foods safety committee.

U.S. Attacks on EU Farm Policy Criticized. Europe's Agriculture Commissioner Franz Fischler says recent U.S. criticism of the European Union's farm policy are "totally unfounded and grossly misleading. These attacks on the Common Agriculture Policy are reminiscent of the rhetoric pumped out during the Uruguay Round (of trade talks)." REUTERS reports the transatlantic war of words over agriculture is expected to heat up ahead of talks on a new global trade round in which farm policy will be a major stumbling block.

October 15, 1999

USDA Defends Civil Rights Actions Against Charges. The National Black Farmers Association characterizes the relationship between black farmers and USDA as "tattered." USDA's pattern of racial discrimination of black farmers is "so severe that many farmers will not return" to farming. USDA defends its discrimination policies with new management, a better organizational structure, more than three dozen new policies and procedures, additional resources and new legislative language.

Question Is Not Whether but How. Providing financial assistance to farmers for risk management "is a sensible" option, says Bruce L. Gardner of the University of Maryland. The question then, he adds, is how to establish policies to permit maximum flexibility for farmers and not distort their incentives. Gardner testified Thursday before the Senate Agriculture Committee.

Hunger Continues, USDA Reacts. Hunger continues to be "a widespread problem" in the United States, says Agriculture Secretary Dan Glickman, and he announced new anti-hunger efforts by government, non-profit groups and the business community.

High Court to Hear Grazing Case. The Supreme Court will hear a case that livestock producers say seeks relief from "onerous Interior Department regulations that have rocked the stability of western family ranches."

Ag News Summaries

EU Criticizes U.S. WTO Agenda. The European Union lashed out at President Clinton's trade agenda Thursday, saying it could poison the next round of World Trade Organization talks, says REUTERS. The major sticking point is agriculture. The United States wants Europe to slash agricultural tariffs and eliminate export subsidies. The two also are at odds over genetically modified foods, hormone-treated U.S. beef and other issues. Deputy U.S. Trade Representative Susan Esserman says, "There is a give and take in all negotiations. We, of course, will pursue our national interest as we expect other countries to pursue their national interests."

FAO Sees GM Crops as Possible Hunger Weapon. United Nations experts are monitoring developments in genetic engineering to see if the new corps can play a major role in alleviating world hunger, reports REUTERS. "They have potential but they also have risks," Dr. Hartwig de Haen, assistant director general of the Economic and Social Department of the UN Food and Agriculture Organization, said in a REUTERS television interview. "It is a matter of informing the general public, which is concerned about the safety risks."

Russian Terms for Taking U.S. Aid. Russia needs food aid from the United States next year but should only accept livestock feed as a gift, says Viktor Semyonov, deputy head of Russia's Agrarian Party and a former agriculture minister. REUTERS quotes Semyonov saying, "Unfortunately I have to say that food aid is necessary, but under certain conditions. First the aid should consist only of feed grains – corn, soy meal and soybeans – to guarantee jobs and the future development of the livestock sector and the domestic meat processing industry. Second, the aid must be given not in the form of credit but for free."

October 14, 1999

Senate Approves Ag Appropriations; Glickman Sees Delays. The Senate cleared the agricultural appropriations bill for the President's signature Wednesday on a 74-26 vote. Secretary of Agriculture Dan Glickman said "some of these payments" included in the $8.7 billion farm aid package may not get to farmers "as quickly as I would like" because of changes in programs "Congress insisted on making."

WTO Upholds Decision Against Canada's Dairy Export Scheme. The World Trade Organization again has ruled that Canada's dairy export-pricing system is an export subsidy program and subject to limitations spelled out in a 1994 WTO agreement. It is a victory for U.S. dairy interests who had challenged Canada on its export policies.

Accelerated Pseudorabies Eradication Gets NPPC Nod. Vice President Al Gore says $40 million has been made available for the voluntary destruction of hogs infected with pseudorabies. The National Pork Producers Council calls it a "tremendous step forward in our continuing drive to eliminate once and for all a disease that costs pork producers $30 million each year..."

Rural Study Center Launched by Federal Reserve Bank. The Federal Reserve Bank of Kansas City has formed the "Center for the Study of Rural America," designed to help all rural areas of the country experience greater economic growth. Four in ten rural counties have captured nearly all the economic growth, the center's director, Mark Drabenstott, says.

Ag News Summaries

Conservation Issue Forums Will Be Held. USDA will hold a series of regional forums late this month to discuss conservation issues affecting farms, forests and ranch lands. Officials hope the forums will provide USDA with new directions on conservation. The forums will be held Oct. 20 in Portland, OR; Oct. 21 in Denver, CO; Oct. 22 in Sacramento, CA; Oct. 26 in Syracuse, NY; Oct. 27 in Atlanta, GA, and Dec. 14 in Ames, IA. For more information, contract Scott Hoag Jr. at USDA, 202-690-4979.

EU Will Be Pressed for Trade Reform. U.S. Trade Representative Charlene Barshefsky says the European Union and Japan will face tremendous pressure in the upcoming trade round to reform their agricultural policies. Barshefsky says the United States has worked closely with countries in Latin America, sub-Saharan Africa and elsewhere to develop an aggressive agricultural agenda for the World Trade Organization talks, REUTERS reports. Barshefsky also says the United States will not be rushed into a trade pact with China, even if that means no deal this year. "What must come first (before WTO membership) is a commercially meaningful, highly substantive agreement...it's the substance that will govern their accession, not other considerations."

October 13, 1999

Senate Snips Filibuster, Moves to Appropriations. After ending a filibuster Tuesday 79-20, the Senate neared final approval of the $8.7 billion emergency farm aid package and the rest of the agricultural appropriations bill. The vote is expected this afternoon.

Grain Trade Opposes OSHA Proposal. The National Grain and Feed Association opposes a proposal from the Occupational Safety and Health Administration that would expand a provision that now allows employees' involvement in evaluating work place hazards.

Dairy Grazing Program Has Benefits. An ongoing project in Pennsylvania, conduced by USDA, the American Farmland Trust and others, shows that grazing dairy cows on pasture, instead of using confinement facilities only, can increase net income per cow.

Ag News Summaries

More Black Farmers Joining Suit. About 15,000 black farmers have applied for a multimillion dollar settlement of a racial discrimination lawsuit against USDA, reports THE ASSOCIATED PRESS. The total could reach 18,000 if a judge agrees to extend the deadline for filing claims to Oct. 29. Farmers in North and South Carolina who were victims of Hurricane Floyd haven't had time to file yet, and large numbers of last-minute filings in Alabama and Mississippi have delayed claims as well. Eight members of the Congressional Black Caucus joined in asking for the extension.

USDA May Make Preliminary Disaster Payments. USDA likely will make a preliminary round of disaster aid payments, Agriculture Secretary Dan Glickman says. Glickman met with several northeastern senators to discuss how USDA would administer disaster aid this time, and he told the senators he would try to make advance payments on crop losses, REUTERS reports. A fnal round of payments then would be made after USDA tallied claims and completed an assessment of agricultural disasters after harvest is completed. Some $1.2 billion disaster aid money is part of the agricultural appropriations bill.

Australia Says U.S. Proposal Inadequate. A U.S. proposal to limit the term of government agricultural export credit guarantees does not go far enough, says Paul Morris, agricultural counselor at the Australian Embassy in Washington, REUTERS reports. "We would like to see much tighter disciplines on export credits," he says. From Australia's perspective, the U.S. proposal "is very much equivalent to the status quo," says Morris. Australia long has argued that export credits such as those under the GSM-102 export credit program, are a type of subsidy that should be disciplined under the World Trade Organization.

October 12, 1999

Change Allows Cotton Farmers Price Option. Upland cotton farmers now can lock in a price prior to ginning that will be used to calculate loan deficiency payments. The new provision is available for cotton pledged as collateral for a seed-cotton recourse loan.

Cattlemen Oppose Korea's New Import Guidelines. The National Cattlemen's Beef Association opposes new guidelines issued by the Korean government to expand that country's beef import system. The guidelines increase government control over beef imports and maintain retail distribution restrictions and beef pricing.

CFTC Urged to Make Changes in Proposed Rule. The National Grain and Feed Association has urged the Commodity Futures Trading Commission to make further changes to a proposed rule to amend the agricultural trade options program to "improve the chances of securing reasonable participation and a meaningful project."

U.S. Aquaculture Faces Challenges into New Century. The U.S. aquaculture industry faces competition within the seafood market, competition from other protein sources and changing consumption patterns in many of the world's economies going into the 21st century, USDA reports.

Ag News Summaries

A Group of Activists Plot Revolt Against Genetically Altered Foods in US. THE WALL STREET JOURNAL reports an international group of activists, attorneys and scientists met last week in Blue Mountain Lake, New York to plan campaigns against foods made from genetically modified crops in the US.  The group contains several individuals who were instrumental in the successful campaigns that have already been mounted in continental Europe, the UK, and elsewhere.  Now that the group has been successful in galvanizing public opinion abroad, they plan on a similar effort in the US.    They will attempt to gear up public sentiment and target certain corporations.  The JOURNAL points out that while some US food companies have already begun switching ingredients, a backlash of the magnitude seen in Europe has not materialized in the US yet.  However, there is cause for concern in the food industry since half of the nation's soybean crop and a third of its corn crop contain transplanted genes.  Among genetically altered fruits and vegetables targeted by the activists are canola, cotton, corn, papaya, potato, radicchio, soybean and squash.

Big Farms Benefit from Aid Package. Some of the largest, most profitable farms in the country are among the largest beneficiaries of the $8.7 billion agricultural assistance package, because the legislation loosens rules that were intended to target government payments to family sized operations, THE ASSOCIATED PRESS reports. An individual farm could claim up to $460,000 in subsidies, double the current restriction, and the legislation creates a new way for producers to get around even that limit. The new limit would be high enough to cover a 6,000 acre corn farm in the Midwest or a 3,000 acre cotton farm in Texas. The average farm in the country is fewer than 500 acres.

Russia Reluctant to Take U.S. Meat Aid. Russia is reluctant to accept meat in an aid package from the United States, says a deputy prime minister. Instead, Russia prefers to take feed graqin and increase its own meat industry, says Vladimir Shcherbak. He has overall responsibility for the farming sector. "We are going to take only products of which we face an evident deficit," he says, according to REUTERS. "So we would like to get feed grain on a donation basis in order not to import meat but to produce it here."

British Farmers Protest Beef Ban. About 500 of England's farmers rallied at Millbay Docks in Plymouth Monday night, demonstrating their anger at a French ban on British beef. France has refused to life its ban, THE ASSOCIATED PRESS reports. They persuaded drivers of two trucks that came off a ferry not to deliver goods brought from France. Both Britain and the European Union have threatened legal action against France for refusing to lift the ban.

October 11, 1999

Bradley Outlines Agricultural Policy. Democratic presidential candidate Bill Bradley unveils his agricultural policy and calls for $1.32 billion in new spending on farm programs. "First-year costs" include spending $5.5 billion to improve farm income, the same amount being spent now on transition payments under the freedom to farm law.

NGFA Generally Supports FDA Rules on Vet Feed Drugs. The National Grain and Feed Association generally supports the Food and Drug Administration's proposed regulations to implement the veterinary feed directive drugs section of the Animal Drug Availability Act.

Fitzgerald Wants Electronic Food Stamps Nationwide. Sen. Peter G. Fitzgerald (R-IL) wants to expand the use of electronic food stamp accounts so that program participants are able to use their cards anywhere in the country. Now participants who cross state lines to buy groceries have a difficult time using the cards.

Grange Urges Jeffords on in His Filibuster. With a vote on cloture coming late Tuesday afternoon, the National Grange has urged Sen. James Jeffords (R-VT) to filibuster the agricultural appropriations bill. Jeffords and other northeastern senators are working to stall the bill because it does not contain dairy provisions they believe should be included. The Grange agrees.

USDA Proposes New Pest Risk Protection Rules. USDA is taking a look at its commodity pest risk analysis process to see if risks to plants and plant products that are imported and exported can be better protected.

People in the News

Andrew Solomon has been named press secretary and director of public affairs at USDA. He will be the chief spokesman for Agriculture Secretary Dan Glickman and USDA. Sedelta Verble has been named director of the Office of Communications at USDA, replacing Tom Amontree who leaves USDA to become director of strategic communications for the American Trucking Association.

Ag News Summaries

IRS Proposes Farm Income Averaging Rules. The Internal Revenue Service has proposed rules for averaging farm income. The regulations apply to farmers who elect to reduce their regular tax liability by treating all or a portion of the current year's farming income as if it had been earned in equal proportions over the prior three years, reports PRO FARMER. IRS will hold a public hearing on the proposed rules Feb. 15.

North Dakota Farmers Want $300 Million. The North Dakota Grain Growers Association has asked Agriculture Secretary Dan Glickman for $304.5 million in disaster assistance, PRO FARMER reports. The aid will help producers with quality problems from this year's durum, spring wheat and barley crops. Rains during harvest "seriously affected the quality" of the crops, says the association.

EU Criticizes U.S. Promotion of GMOs. The Clinton administration is supporting U.S. farmers and biotechnology companies faced with mounting worldwide resistance to gene-alter food, reports BLOOMBERG NEWS. The administration will organize "outreach activities" overseas to convince consumers in key export markets like France, Brazil and Japan there's no health risk in genetically modified soybeans, corn and other products. The European Union's ambassador to the United States, Hugo Paemen, says scientists, not consumers, should be weighing the facts. "We are very much in favor of a good discussion on (the issue), but we want this to be de-politicized."

First Estimate of GM Crops Issued. USDA reports more than half the U.S. soybean crop this year was planted with genetically modified seeds; corn and cotton were not far behind, reports RETUERS. The new data, collected from interviews with farmers during the summer, were in line with seed companies' estimates of how much land had been planted to GMO crops. USDA says 30% of corn planted this year was the Bt variety, and about 27% of the cotton also was of the Bt variety.

Brazil Won't Reduce Soybean Acreage. A partial recovery in soybean prices due to a lower than expected U.S. harvest is expected to spur more planted acreage in Brazil, REUTERS reports from Sao Paulo. Brazilian farmers are expected to plant rough the same amount of land as last year. "Producers are much more enthusiastic than they were several months ago due to this recovery in prices (in Chicago)," says Airton Camargo Pacheco, chief soybean analyst for the Brazilian government.

October 8, 1999

Tuesday Is Filibuster Deadline. Senate Majority Leader Trent Lott (R-MS) has set Tuesday at 5:30 p.m. for a vote to cut off a filibuster by northeastern Senators against the agricultural appropriations bill.

Canada Opens Market to U.S. Hogs. Canada has opened its market to U.S. hogs effective immediately. The Canadian Food Inspection Agency issued a directive that amends Canadian regulations on how U.S. hogs are to be imported.

Glickman Touts Success of New Salmonella Prevention System. Agriculture Secretary Dan Glickman says a new, science-based inspection system has reduced the prevalence of potentially dangerous salmonella in raw meat and poultry by as much as 50% in small plants. That matches the gains reported earlier in larger plants.

‘Erroneous Questions' Plague `Promising' Biotechnology. Biotechnology is one of the most promising technologies to meet the challenges of the 21st century, yet there is "a rising clamor on the part of some who would raise often erroneous questions" about the technology. A Commerce Department official also finds it "curious" that much of the clamor is coming from Europe.

Biotech Substances Equal Regular Additives. A Food and Drug Administration official says substances intentionally added to food through biotechnology are "functionally very similar" to other proteins, fats and carbohydrates safely consumed in the diet.

Ag News Summaries

Failure to Join WTO Gives China Opportunities. China's likely failure to enter the World Trade Organization in time for the start of the next round of talks next month will give Beijing time to soften the economic shocks that WTO membership would bring, KYODO NEWS SERVICE reports form Beijing. Laurence Brahm, a leading investment adviser based in Beijing, says China's WTO bid involves a balance of advantages and disadvantages. If China doesn't enter the WTO this year, it will have time to address the minuses, he says.

Growing Anti-Americansim Seen in France. France is becoming more nervous and anti-American, taking a harder line on globalization and making dialogue with Washington more difficult, U.S. ambassador to France Felix Rohatyn says in an interview. REUTERS reports Rohatyn told the daily Liberation that some popular French charges against the United States simply are false, such as the argument that U.S.-based pension funds forced French firms to fire workers to ensure high returns for "pensioners in Florida." Protests against U.S. businesses have been mounting in France in recent months, especially the farmers' attacks on McDonald's restaurants after the World Trade Organization ruled Europe no longer could block imports of hormone-treated U.S. beef.

Kucinich to Introduce Genetic Food Label Bill. Rep. Dennis Kucinich (D-OH) says he will introduce legislation to require labels on U.S. foods made with genetically modified corn, potatoes and other crops to give consumers a choice at the grocery store. The bill should be introduced by the end of this month. REUTERS reports this will be the first piece of U.S. legislation to take up the controversial issue of whether GM foods are sufficiently different from conventional products to warrant special labels. Most observers rate the bill's chances as remote. At a hearing Thursday, Clinton Administration officials from three agencies strongly defended their current regulatory structure, which generally does not require labeling.

Crop Insurance Hearing Slated. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has called a hearing on risk management proposals for Thursday. With time running out in this year's Congressional session, the House of Representatives has passed crop insurance reform legislation by voice vote, but the Senate has not acted on the bill. The Senate committee has several risk management bills before it, including proposals by Lugar, Pat Roberts (R-KS) and Thad Cochran (R-MS).

October 7, 1999

Senate May Be Poised for Cloture. It appears likely the Senate will make the attempt later today or Friday to invoke cloture on a filibuster by senators from the Northeast who are unhappy that the agriculture appropriations bill does not include an extension of the Northeast Dairy Compact. If the necessary 60 votes develop for cloture, the Senate will take up the Appropriations Conference Report.

Groups Criticize Article Critical of Biotech Procedures. The Biotechnology Industry Organization and Grocery Manufacturers of America say an article in Nature, "Beyond substantial Equivalence," is "an unfounded attack on the concepts underpinning scientific safety review of biotech foods and ignores the record of rigorous safety testing applied to those products on the market."

NGFA Wants Tests to Detect Biotech Products. The National Grain and Feed Association wants seed companies to take the lead to develop tests that will help grain handlers and processors detect biotechnology-enhanced commodities. Biotech products may be approved by U.S. regulators, but NGFA says some customers have "additional preferences" that must be addressed.

Lugar Seeks `Logic' and `Balance' to Biotech Debate. Proponents of biotechnology have not informed the public sufficiently about the new technology or convinced consumers of the benefits from it; opponents have voiced fears without considering the advantages, says Senate Agriculture Committee Chairman Richard Lugar (R-IN). "Informed, logical and balanced public discussion" is needed, he says.

Trade Disruptions, Russian Farmers Are Concerns. Agriculture Secretary Dan Glickman says U.S. aid packages to Russia must not disrupt international markets or reduce incentives for Russian farmers to produce food. In testimony before the House Agriculture Committee, he said USDA will move "as quickly as possible" to meet the latest Russian request for U.S. food aid.

Ag News Summaries

Monsanto Wants GM Dialogue with Greenpeace. Monsanto Co. chairman Robert Shapiro pledged openly to discuss genetically modified crops but the company remains convinced that biotechnology is a promising and safe tool, REUTERS reports from London. Shapiro told a Greenpeace business conference in a video link from Chicago to London, "We are no longer going to engage in a debate. We are now publicly committed to dialogue with people and groups who have a stake in this issue."

UK Experts Urge Better GM Food Safety Tests. British scientists called for better tests Wednesday to assess the safety of genetically modified foods, REUTERS reports. They say the standard measure known as "substantial equivalence," that shows a GM food is chemically similar to its natural equivalent, should be scrapped, because it is not accurate enough to prove safety for human consumption. "If policymakers are to provide consumers with adequate protection and genuinely to reassure them, then the concept of substantial equivalence will need to be abandoned," Erik Millstone, food safety policy expert at the University of Sussex, said.

October 6, 1999

Appropriation Bill Awaiting Senate Action. The Senate has not yet taken final action on the 2000 agriculture spending bill approved by the House of Representatives last week. Majority Leader Trent Lott (R-MS) said yesterday he hopes to see a vote on the measure this week, but acknowledged there would be some debate. On Friday, Lott said he hopes the agriculture conference report could be approved Monday or Tuesday.

Canadian Ambassador Says Wheat Retaliation Unfounded. Canada's ambassador to the United States, Raymond Cretien, says there is no reason why the United States should take any negative trade action against his country over wheat exports to the United States. Any such action will be "perceived (to be) extremely negative" by the Canadians.

Rice Genome Project Gets $12.3 Million. USDA, the Energy Department and the National Science Foundation have awarded $12.3 million to map and sequence the genome of the rice plant, research that may lead to increased uses of rice as well as improved quality and crop yields.

Milkweed, of All Things, May Become Cultivated Crop. Milkweed, a nasty perennial weed that grows wild along roadsides and in fields, could become a new cultivated crop. Industry has know the value of the milkweed fiber, but now is learning the value of its meal and oil.

Ag News Summaries

China Optimistic on WTO Entry. China's Minister of Foreign Trade Shi Guangsheng says he is optimistic China can enter the World Trade Organization this year, but he admits negotiations will be tough, REUTERS quotes state media reports from Beijing. "Negotiations will be very difficult," the China Daily quoted Shi as saying. "Now the key issue remains how we should balance our obligations and rights after China's accession." To join the 134-member WTO, China must win U.S. support as well as the support of the European Union and other countries. The deadline for China's accession is seen as late November when WTO ministers begin the next round of global trade talks in Seattle. Any delay could leave China out of the talks, which could last for several years.

EU Blasts France's Ban on British Beef. France faces possible European Union legal action over its refusal to lift a three-year-old ban on British beef imports, BLOOMBERG NEWS reports. EU Consumer Affairs Commissioner David Byrne told the European Parliament there is insufficient evidence to support he embargo on health grounds, and he had given France until the end of the week to justify continuing the ban. France says it will keep the ban because of concern British meat is still unsafe to eat because of possible bovine spongiform encephalopathy, or mad cow disease, contamination.

California Resists Ethanol. California's top air quality official urged Congress not to force the state to use ethanol to replace a clean burning fuel additive that has contaminated water supplies, REUTERS reports. The official said current requirements for oxygen content in reformulated gasoline should be eliminated instead.

October 5, 1999

CRP Payments Total $1.3 Billion-Plus. USDA is making more than $1.3 billion in payments on more than 400,000 contracts and to 270,000 farms under the Conservation Reserve Program. The program will pay an average of $5,000 per farm and $45.15 per acre.

Senators Urge Glickman to Send Russia Pork. Some 35 senators are urging Agriculture Secretary Dan Glickman to include pork and pork products in any U.S. food assistance package to Russia. But, says one news report, Russia may not want pork. Russia didn't ask for pork in the last food aid package but wound up taking 50,000 tons anyway.

EU Criticizes U.S. Controls of Animal Hormone Industry. A draft report from the European Union accuses the United States of not following good veterinary practices when growth hormones are used in food animal programs. Regulatory controls over hormone residues in meat are deficient in the United States, says the EU. The claims have upset U.S. officials.

House to Consider Bankruptcy Bill. The House is expected to consider this week legislation that extends for nine months the bankruptcy chapter designed for family farmers and ranchers. The Senate approved the bill last week. The extension would be effective from Oct. 1.

For the Calendar

The Senate Agriculture Committee holds hearings Wednesday and Thursday on biotechnology. The hearings will be held in Russell 328A.. The subject is "the science of biotechnology and its potential applications to agriculture."

Ag News Summaries

Torrecilli Says Ag Bill Biased Against East. Sen. Robert Torrecilli (D-NJ) says President Clinton should veto the $8.7 billion farm assistance package because it doesn't have enough money in it for disaster relief in the East, REUTERS reports. The Senate has yet to pass the measure which is part of the agricultural appropriations bill. "I am deeply concerned that this will be the last remaining vehicle to provide desperately needed relief to farmers hit by the drought, not to mention damage caused by widespread flooding from Hurricane Floyd," Torrecilli told Clinton in a letter. "I strong urge your veto of this legislation." Separately, PRO FARMER reports House leaders are promising East Coast members they'll get to vote on extending the Northeast Dairy Compact by year's-end.

Monsanto Will Not Develop `Terminator' Gene. Monsanto says it will not commercialize the controversial "terminator" gene technology that sterilizes seeds. In a letter to the Rockefeller Foundation, obtained by REUTERS, Monsanto Chairman Robert Shapiro says the company decided not to develop the gene after seeking comment from the Rockefeller Foundation and other groups. The technology, which Monsanto says is still several years from any possible commercial production, prevents plants from producing fertile seeds, forcing farmers to buy more seed rather than using seed from the previous year's crop.

October 4, 1999

Bill Includes Price Reporting, Omits Credit Item. Senate Agriculture Committee Chairman Richard Lugar's livestock price reporting measure was included in the agricultural appropriations conference report, but another proposal, vigorously opposed by rural commercial bankers, was not included. The bankers say the provision would have greatly expanded the lending authority of the Farm Credit System. The House approved the conference report, and the Senate is expected to act on the measure this week.

Just to Make a Point. Sen. Pat Roberts isn't letting up on Agriculture Secretary Dan Glickman. Roberts led a group of 53 senators who wrote Glickman a letter urging him to support the ag appropriations bill's method of distributing supplemental income checks for farmers. Roberts and Glickman have been conducting a very public debate over payment methods.

Combest, Stenholm Propose 'Carousel Retaliation.' House Agriculture Committee Chairman Larry Combest (R-TX) and ranking Democrat Charles Stenholm (TX) are proposing legislation that requires changing products on a trade retaliation list every six months. The process is nicknamed the "carousel" approach to retaliation. Using a carousel approach, more people would be affected as more products are subjected to import duties.

More States, Counties Added to Crop Insurance Programs. USDA has added more states and counties to the adjusted gross revenue and crop revenue coverage crop insurance programs. Coverage levels also are increased up to 85% for selected crops and counties.

Ag News Summaries

Refined Sugar Quota Announced; Raw TRQ Coming. USDA has announced the fiscal year 2000 sugar tariff-rate quota (TRQ) for refined and specialty sugar. However, the TRQ for raw sugar was not announced. REUTERS reports the raw sugar quota is being held up by an internal debate within the Clinton Administration. Tim Galvin, Foreign Agricultural Services administrator, told REUTERS that "it's ideal to have the new TRQ announced before" the quota year begins Oct. 1, but this year several factors complicated the process, including a provision that prevents USDA from offering non-recourse loans to sugar processors if the quota is below 1.5 million short tons. The refined sugar TRQ is set at 60,000 metric tons for entry of sugar of which the sucrose content by weight, in the dry state, corresponds to a polarimeter reading of 99.5 degrees or more. The specialty sugar allocation, a subset of the refined sugar TRQ, is set at 14,656 metric town raw value.

ACGA Wants Universal Certificates for Non-GMOs. The American Corn Growers Association is working with congressional leaders to introduce legislation to develop a universal certificate form for non-GMO crops. The certificate would be provided by the first purchaser of grain and verify that the corps being delivered to a local elevator were planted from non-GMO seed. The form also would relieve farmers from any liability if they purchased, planted and harvested non-GMOs in good faith.

USDA's Computer Systems Y2K Compliant. All 344 of USDA's computer systems are now Y2K compliant. The systems, which support some $55 billion annually in USDA programs, have been "remediated," tested and deployed, says Chief Information Officer Anne F. Thomson Reed. She calls it "an important victory for USDA agencies."

Canada Protests U.S., EU Farm Subsidies. Canada took the United States and the European Union to task for high levels of farm subsidies. "We have great issue with the level of subsidization and support that some of the other countries in the world, especially some around the table today, are providing to their industry and the effects that very well has on distorting markets and production," Canada's Agriculture Minister Lyle Vanclief told REUTERS. The comments came in Montreal where the United States, EU, Japan, Canada and Australia are meeting to set their positions ahead of the World Trade Organization meeting next month in Seattle.

Mother Nature's Trick or Treat. THE ASSOCIATED PRESS reports from Austin, TX, that the states's pumpkin crop could be smaller than normal. In some Texas fields, production is down 25-30%. About 95% of the state's pumpkin crop is sold for jack-o'-lanterns and other Halloween decorations. Some fields that were planted early had to be replanted because of hail and wind damage. Those pumpkins may mature late and not reach full color.

USDA Decides to Hold Up Final Milk Rule. USDA has decided not to implement the final rule on milk marketing orders. The current 31 orders will continue to operate as in the past until pending court actions can be settled. The announcement came from Kathleen Merrigan, Agricultural Marketing Service administrator. A Vermont federal judge issued a temporary restraining order against the final rule, and other cases seeking the same action are pending.

October 1, 1999

Conferees Send Appropriations Back for Final Okay. Sen. Thad Cochran (R-MS) made it official late Thursday: enough signatures had been obtained to send the agricultural appropriations bill back to the Senate and House for final approval. Action on the bill could come today. When it is signed into law, USDA can begin sending $5.5 billion in checks to farmers to shore up incomes stunted by low commodity and livestock prices. Another $1.2 billion is authorized in disaster aid payments. At least in theory, farmers could begin receiving those checks by mid-month. 

Lugar Says Administration Not Interested in Fast Track. Senate Agriculture Committee Chairman Richard Lugar (R-IN) says the Clinton Administration apparently isn't interested in getting congressional approval for fast-track authority to negotiate trade treaties. Yet, he adds, the administration wants to complete the upcoming World Trade Organization talks in three years. Without fast track, "there seems to be a contradiction inherent in these two positions," says Lugar. 

Biotech Research Gets $1.3 Million from USDA. USDA will provide grants totaling $1.3 million for research on the environmental effects and risks associated with agricultural biotechnology. Seven universities will receive the grants to study such subjects as the effects of transgenic insect resistance on wild sunflowers, the risk of bollworm adaptation to Bt crops and "gene flow from transgenic cucurbits into the wild." 

Forest Service Will Involve Public More in Managing Forests. USDA has issued proposed rules to manage the nation's forests. One goal is to involve the public more in defining the issues and goals of individual national forests. Agriculture Secretary Dan Glickman calls it "a fundamental change in philosophy." 

New Genes Can Kill Garden Vegetable-Eating Worms. USDA's Agricultural Research Service believes a protein can help keep tiny fall army worm larvae from developing into fat caterpillars that eat corn and other vegetable crops. The research also has potential to help commercial vegetable producers and home gardeners control caterpillars that eat such crops as broccoli, cauliflower and other vegetables.

Ag News Summaries

Roberts and Glickman Spar Over Payment Schemes. Several news reports in recent days have focused on an often heated disagreement between two former House colleagues – both from Kansas: Sen. Pat Roberts (R), considered the "father" of the 1996 freedom to farm law, and Agriculture Secretary Dan Glickman (D), former member of the House when Roberts, too, was in that chamber. Their disagreements center on two major issues: how to distribute emergency income loss payments under the fiscal 2000 agriculture appropriations bill and new or revised directions for future farm policy.

THE ASSOCIATED PRESS quotes Roberts in a speech on the Senate floor: "With all due respect, I don't think we should be in the business of changing horses after the stage left," a reference to Glickman's preference for paying farmers only if they produced a crop on the land. Roberts prefers the payments be based on the market transition payments being made under the current farm law. "We should use the current system where producers and their lenders know exactly what their payments will be, and they can plan accordingly," Roberts added.

Glickman spokesman Andy Solomon told the AP that Glickman "can certainly sympathize with Sen. Roberts when the senator is forced to watch his progeny (the 1996 farm law) fail miserably. And this emergency assistance bill is proof that freedom to farm is an inadequate response to the problems facing American farmers." The entire AP story is on the Internet through The Wichita Eagle

Click here for a copy of Senator Roberts'statement.

Farm Ministers Meet in Montreal. Agriculture ministers from Japan, the United states, Canada, Australia and the European Union meet for two days (Sept. 30-Oct. 1) in Montreal to discuss issues including genetically modified crops and domestic subsidies, reports the KYODO NEWS SERVICE. The meeting will serve as the basis for farm trade negotiations in the new trade round in Seattle Nov. 30-Dec. 3.

Thai Minister Wants WTO Rules Modified. Thailand's deputy prime minister, Supachai Pantichpakdi, wants World Trade Organization rules clarified for countries wanting to join the WTO. REUTERS reports the deputy minister cites China as a case in point. "I would suggest have definite guidelines, definite time frames; do not allow for excessive demands going beyond the existing WTO agreements, do not let goal post shifting be the order of the day," he says.

China Talks Still Lag. REUTERS reports U.S.-China talks on terms for Chinese World Trade Organization membership may not get serious till mid-October. That would all but eliminate any possibility Congress could make China's normal trade relations permanent before year's end.