October 31, 2000

Biotechnology Has Bright Future.   Biotechnology will become this century's most dynamic industry -- affecting disciplines from agriculture to chemicals, drug discovery to computer nanotechnology -- creating platforms for new products and markets according to a just released report. The report is titled "Convergence: Ernst & Young's Biotechnology Industry Report, Millennium Edition." Ernst & Young LLP will unveil the new study at the CALBIO Summit today in San Diego, CA. 

Koreans To Study U.S. Cotton Industry.  Textile manufacturers in Korea - one of U.S. cotton's most significant Asian markets - are coming to the United States to learn more about this country's cotton and strengthen relationships with cotton shippers here. The COTTON USA special trade mission from Korea, Sunday through Nov. 8, is sponsored by Cotton Council International (CCI) and USDA's Foreign Agricultural Service. 

Pork Referendum Costs Will Be Paid by USDA.  Legislation Congress passed for grain standards also contains language ensuring that the Secretary of Agriculture will keep his commitment to pay all costs associated with the recent pork checkoff referendum. The bill, the Grain Standards and Warehouse Improvement Act (H.R. 4788), passed both the House and Senate unanimously. The president has expressed reservations with other sections of the bill, but has not threatened a veto. 

EPA Will Review StarLink Data.  EPA will review new information submitted by Aventis and the food industry on StarLink corn. EPA is making available the information and starting a 30-day public comment period. After that, a formal scientific peer review will begin. 

Survey Finds Fewer Dairy Farms.  U.S. milk production is increasing, while the number of dairy farms is heading in the opposite direction, according to a report released by the American Farm Bureau Federation. In July the number of dairy farms in the United States declined 5.1% compared to the previous year. 

House Approves Farm-Related Tax Relief.  It's now up to the Senate to approve a tax relief bill passed by the House late last week. Among the provisions: producers, as self-employed workers, would be able to take a full deduction on the cost of their health insurance premiums in the next tax year and could invest and save with tax-free withdrawals from interest-bearing accounts, and benefit as well from income-averaging of poor crop years against the bumper crops.

News Summaries 

StarLink Unlikely to Hurt Exports.  Controversy over StarLink biotech corn is unlikely to hurt U.S. corn exports, despite concerns raised by Japan, the biggest buyer of American corn, a top Agriculture Department official told REUTERS on Monday. Tim Galvin, administrator of USDA's Foreign Agricultural Service, said in an interview he did not foresee even a slight decline in U.S. corn exports following contamination of American supplies with the StarLink corn variety. "At this point, I don't anticipate that," Galvin said. "That is my current assessment." The U.S. government last week sent a team to Japan to address concerns raised by the government about Aventis SA's StarLink corn -- a biotech variety not approved for human consumption because of questions about whether it can cause allergic reactions. The article says some Japanese importers have considered buying corn from other countries such as China, South Africa or Argentina amid increasing pressure from the country's food makers for StarLink-free supplies. 

Fischler Doesn't Like U.S. Aid.  REUTERS reports that European Farm Commissioner Franz Fischler severely criticized new U.S. farm aid bill on Monday. The bill includes market-distorting elements with "serious consequences for world markets." President Bill Clinton signed the $78 billion 2001 fiscal agricultural spending package on Saturday, a deal which Fischler said would give farmers $23 billion "in the form of direct and production-linked subsidies" next year. The article suggests the new legislation coincides with Washington and Brussels both gearing up for more potentially bruising farm negotiations. Fischler recently announced the EU's draft negotiating proposal at the World Trade Organisation. He said the EU would be prepared to discuss reductions in its export subsidies only if they were matched by similar U.S. moves on export credits. 

USDA Faces `Mad Cow' Sheep Settlement  USDA has until Nov. 17 to pay two Vermont sheep owners up to $2.4 million to compensate them for flocks destroyed that may have carried mad cow disease. REUTERS reports, however, that the two Vermont shepherds - Larry Faillace of East Warren and Houghton Freeman of Stowe - say they won't accept the department's offer. "This isn't about money. It's about the fact that there's nothing wrong with our sheep,'' Faillace said. A federal judge ruled in July that USDA could go ahead with the seizure and slaughter of Freeman's and Faillace's 350 sheep. The decision was appealed, however, and the two sides have since been wrangling over which documents related to the case USDA should be required to make available. The article says tests conducted earlier this year on four sheep culled from Freeman's flock revealed they had a brain disease. The test cannot determine, however, whether the ailment is scrapie, which affects only sheep, or a variant known as mad cow disease, which can be transmitted to humans.
 

October 30, 2000

President Signs Farm Spending Bill. As expected, President Clinton signed a $78 billion bill to fund the U.S. Department of Agriculture for the fiscal year that began October 1. Highly critical of several key provisions, the President still said he found more good than bad in the bill, which became the focal point for fierce partisan debates over Cuban economic sanctions and imported prescription drugs. 

Cuba Criticizes Sanctions Change The Cuban government kept up its fierce criticism of a new law aimed at allowing U.S. food and medicine sales. REUTERS says Vice President Carlos Lage told reporters his government would "totally reject this measure." 

U.S. Exporters Relieved StarLink Exports Will be Allowed. U.S. grain exporters are relieved that the government will allow exports of corn tainted with the controversial bioengineered StarLink variety, REUTERS reports. The Agriculture Department announced last week that corn that was inadvertently commingled with traces of StarLink could be exported under certain conditions, including the requirement that it be used only for feed or non-food industrial uses. 

Mad Cow Toll Will Grow. The British government said the number of people who die from the human variant of "mad cow" disease could grow, REUTERS reports. The news service quotes Agriculture Secretary Nick Brown as denying that "powerful public protection measures" were being dismantled.

News Summaries

Uruguay Will Slaughter 15,500 Animals. The Uruguayan government will slaughter thousands of sheep, cattle and pigs to halt the spread of foot-and-mouth disease, REUTERS reports. The animals are in the country's northern department close to Brazil. Although foot-and-mouth disease is not a danger to humans, it is highly infectious among cloven-footed animals. The discovery of infected livestock caused the U.S. Department of Agriculture to place a temporary ban on Uruguayan beef exports. 

Japan May Challenge U.S. Law. The Japanese government is considering a formal challenge to a new U.S. law that will give anti- dumping duties to injured U.S. companies, REUTERS reports from Tokyo. President Clinton signed the measure, an amendment sponsored by Sen. Robert C. Byrd (D-WV), as part of the 2001 Agriculture Department funding bill. Normally anti-dumping duties flow into federal coffers, but the amendment would divert them to the domestic industries that filed the complaints. Supporters, including the steel industry, say the funds will help offset damage from dumping, which is the practice of selling a product in a foreign market at less than its home-market value or cost of production. Opponents say domestic industries already benefit from anti-dumping duties because they tend to raise domestic selling prices, making the new law a double benefit – or perhaps a subsidy.
 

October 30, 2000

U.S. Lost WTO Lamb Case, Official Says.  The U.S. Trade Representative's office confirmed the United States lost a preliminary ruling in a case involving import curbs on Australian and New Zealand lamb, REUTERS reports. 

Congress Strolls Toward Adjournment.  Congress continued moving slowly toward adjournment, as new veto threats against tax and spending legislation threatened lawmakers' plans to go home for the final days of pre-election campaigning. Although the agriculture spending bill has been passed and sent to the White House, where a presidential signature is expected, some agricultural issues remain alive. 

French Report More Mad Cow Problems.  The French government said 10 companies that make tripe and animal feed received meat products from a herd of cattle in western France that contained a cow suffering from mad cow disease, REUTERS reports.

News Summaries

Cuban Disdains U.S. Purchases.  A Cuban diplomat rebuffed a U.S. farm leader's call for his country to begin buying American agricultural products, REUTERS reports. Gustavo Machin Gomez, first secretary of Cuba's mission in Washington, said that under legislation that partially lifts sanctions, "there is no room for real trade ... For Cuba, it is restrictive and discriminatory." 

German Industry Slams Protection.  Germany's major foreign trade lobby called on the European Commission to abandon its hard-line positions on several transatlantic disputes, REUTERS reports. An official with the trade group said the EU stance on bananas, hormone-treated beef and foreign sales corporations was hurting German industry. 

Kelloggs to Buy Keebler.  Kellogg Co. will buy Keebler Foods Co., the nation's second-largest cookie and cracker maker, in a transaction valued at $3.86 billion, THE WALL STREET JOURNAL reports. Kellogg's move beyond cereals will mean taking on a large debt load, and reflects increasing consolidation in many segments of the food and agriculture industry. 

FDA Will Ban Two Poultry Drugs.  The Food and Drug Administration will ban two drugs widely used in the chicken and turkey industries, THE WASHINGTON POST reports. The drugs, known as fluoruquinolones, are used to treat respiratory problems and have been suspected of contributing to increased antibiotic resistance, with potential human health implications.
 

October 26, 2000

Combest May Want Particulars.  House Agriculture Committee Chairman Larry Combest (R-TX) says he may call more hearings next year on new farm policy but this time he'll want specific proposals. So far, says Combest, he has no agenda of his own to promote for new farm policy directions, but he did indicate to reporters he is concerned that there is no consensus within the production agriculture community for the next farm law. 

Tax Issues for Farmers Still Pending.  As Congress worked to wrap up the 106th session by week's end, the American Farm Bureau Federation published a list of tax-related priorities the organization supports. Earlier this week, AFBF said Congress still had time to "help farmers and ranchers with a $2.1 billion agriculture tax package that includes a number of Farm Bureau tax priorities." 

FTA with Jordan Finalized.  President Clinton and King Abdullah II witnessed the signing of a free trade agreement (FTA) between the United States and the Hashemite Kingdom of Jordan which was signed by U.S. Trade Representative Charlene Barshefsky and Jordanian Deputy Prime Minister Mohammad Halaiqah. It is only the fourth free trade agreement the United States has negotiated, after Israel, Canada and Mexico, and the first ever with an Arab state. Agriculture provisions are included. 

Commodity Classic Scheduled for San Antonio.  Corn and soybean farmers from throughout the country will meet in San Antonio, TX, for the 2001 Commodity ClassicSM, Feb. 25-27. Located on San Antonio's famous Riverwalk, San Antonio's Henry B. Gonzalez Convention Center will host the combined convention and trade show of the National Corn Growers Association (NCGA) and the American Soybean Association (ASA).

News Summaries

Lab Service Fees Increased.  USDA will increase laboratory service fees for testing agricultural commodities. USDA says the increase is needed to strengthen the program's operating reserve and to alleviate the increased costs associated with analytical testing services. Major factors contributing to the need for the fee changes include increased employee salaries and supply costs. Current fees have been in effect since April 1998. All tests listed in the fee schedules will increase by 24.1%. In addition, the hourly rates for analyses not listed in the fee schedules will increase from $36.26 to $45.00. Laboratory fees for aflatoxin analysis will be adjusted according to the procedure used. The final rule for the fee increase will be published in the Federal Register today (Oct. 26), and the increase will become effective Friday (Oct. 27). Copies of the fee schedules will be posted on the Internet website at http://www.ams.usda.gov/science.htm. Hard copies of the fee schedules are available from: James Falk, Science and Technology Program, AMS, USDA, Rm. 3521-S, P.O. Box 96456, Washington, DC. 20090-6456. For further information telephone (202) 690- 4089 or e-mail james.falk@usda.gov. 

New Poultry Trade Standards Proposed.  USDA has proposed new trade standards for ready-to-cook poultry products produced in the United States. The U.S. Trade Descriptions for Poultry were developed in response to the poultry industry's interest in voluntary standards that simplify wholesale trading. The standards consist of word and picture descriptions of poultry products and a coding system. This code will allow high-volume domestic and international buyers to communicate product and packaging characteristics for the products to be traded. The tentative standards appeared in the Federal Register on Wednesday. The tentative standards may be used beginning Wednesday, Oct. 25. Comments on the effectiveness, ease of use, and technical accuracy of the standards are welcome and should be mailed to the office of the Standardization Branch Chief, Poultry Programs, AMS, USDA, 1400 Independence Avenue, SW, STOP 0259, Washington, D.C., 20250-0259; or faxed to (202) 690-0941, on or before April 23. After the comment period closes, the agency will evaluate received comments and other information to determine if the tentative U.S. Trade Descriptions for Poultry should become official. Once determined, the decision will be published as a notice in the Federal Register. Interested parties can obtain copies of the tentative U.S. Trade Descriptions for Poultry through the Internet at http://www.ams.usda.gov/poultry/regulations/rulemaking/index.htm or by writing the Standardization Branch Chief at the address above, by faxing (202) 690-0941, or by phoning (202) 720-3506. A fee may be charged for color copies of the standard to recover the cost of printing and distribution. 

Soybean Order Amended.  USDA is amending the Soybean Promotion and Research Order to adjust representation on the United Soybean Board. As a result of the latest three-year review, board membership will remain at 62. However, due to changes in production levels, effective with the Secretary's 2001 appointments, Kansas would gain one member and Maryland would lose one member. The Agricultural Marketing Service has oversight and regulatory responsibilities under the order. The board administers activities of the Soybean Promotion, Research, and Consumer Information Act. To fund the program, producers pay assessments of one-half of one percent of the net market value of the soybeans they market. The proposed amendment was published in Wednesday's Federal Register. For more information contact Ralph L. Tapp, Chief Marketing Programs Branch, AMS Livestock and Seed Program, USDA STOP 0251, 1400 Independence Ave. SW, Washington, D.C. 20250-0251; tel. (202) 720-1115, e-mail Ralph.Tapp@usda.gov, or fax (202) 720-1125. 

Green Groups Claim More StarLink Taco Shells.  REUTERS reports that StarLink corn which sparked a series of recent recalls of taco shells and widespread food testing has been discovered in Western Family brand taco shells. A coalition of green groups made the disclosure. The finding came as the U.S. food industry prepared to submit new scientific data to federal regulators in an effort to show that flour made from the corn is safe for eating. Genetically Engineered Food Alert, whose members include Greenpeace USA and Friends of the Earth, said it discovered the contamination in private tests of Western Family tacos purchased from a grocery store in Eugene, Oregon. REUTERS said the company, based in Portland, said it recalled its Western Family brand taco shells and Shur Fine brand tortilla chips on Oct. 12 and 13. "As a precautionary measure, we issued a notice to withdraw these products," a Western Family spokeswoman said. 

Craig Urges Potato Buy.  REUTERS reports that Sen. Larry Craig (R-ID) has urged USDA to buy potatoes for domestic and international food aid programs. A huge harvest is expected this fall. "Low (potato) prices are putting more strain on Idaho's already weakened economy," Craig said in a statement. "I urge USDA to take immediate action to assist the potato producers in my state and across the country." Idaho is the leading potato-producing state. Last year, it harvested more than 133 million pounds of fall potatoes, accounting for about 28% of the total U.S. harvest. USDA makes its first forecast for 2000 fall potato production on Nov. 9.
 

October 25, 2000

Economists Call for More Government in Agriculture.  Two well known agricultural economists have called for counter-cyclical payments to farmers to offset low prices but targeted to support farm families and "not guaranteed regardless of market conditions or financial position." 

India Relaxes Import Restraints.  After years of isolation, India has slowly begun opening its doors to the world market, according to a report by USDA. "In a major policy shift, the second largest country in the world has been removing many licensing and quota restrictions on agricultural imports since 1997," according to the report. 

Scientists Search for 'Take-All' Take-Back.  Agricultural Research Service scientists have screened hundreds of different bacterial strains to find potential natural biological controls for take-all, a fungal disease that demolishes wheat harvests around the world. The fungus Gaeumannomyces graminis var. tritici (Ggt) spreads take-all, which causes wheat roots to turn black and die. The disease can reduce yields by 50 percent or more, costing U.S. wheat growers millions of dollars in bad year. 

California Teens Get Chance to Get Milk.  The California Milk Processor Board, fighting to lure kids from soft drinks to milk, has invited teens across the state, especially those interested in visual arts, television, cinema and advertising, to participate in the 'GOT MILK? Home Video Commercial' contest. The contest was launched Monday and will conclude Dec. 4. Winners will be announced early 2001. 

Senators Urge CFTC Bill Approval.  A group of senators has called on the Senate leadership to approve a bill to reauthorize the Commodity Futures Trading Commission. Led by Sens. Richard Lugar (R-IN) and Tom Harkin (D-IA), the top members of the Senate Agriculture Committee, they told Senate Majority Leader Trent Lott (R-MS) the bill "is essential if our laws are to meet the challenges and fit the realities of 21st century financial markets." 

Dairy Farmer Relief `On the Way'.  Faced with persistent and historically low milk prices, Agriculture Secretary Dan Glickman told America's dairy farmers that significant new assistance is on the way. Glickman said the agriculture appropriations bill that President Clinton is expected to sign provides an estimated $667 million to help dairy farmers cope with the low milk prices, which have declined for three consecutive years, and are now at their lowest level since 1991.

News Summaries

StarLink Found in Japan.  REUTERS reports that a Japanese consumer group claims it has found StarLink, a bio-engineered variety of corn not approved for human consumption, in some food and animal feed in the Japanese market. The Consumers Union of Japan says the corn was found in tests on imported meal that was a called "Homemade Baking" sold by Kyoritsu Shokuhin. The group is asking the health and agriculture ministries to recall the food. It also will seek a suspension of imports of genetically modified (GM) crops, union officials said. StarLink and another variety of corn not approved in Japan were also found in a test on April 20, it said. The StarLink in that test was found in Kashima, near Tokyo, in poultry feed. 

Data on StarLink to Be Submitted.  The U.S. food and biotech industry will submit new scientific data today to regulators in an effort to have StarLink biotech corn approved as a safe ingredient for human food, REUTERS quotes government officials as saying. Scientists with the Environmental Protection Agency will review the data, taking several weeks to solicit comments from green groups, grain merchants, foodmakers and others about the whether enough evidence is yet available to determine if StarLink can cause allergic reactions. "We understand the urgency of the situation as expressed by those people in the grain and food industry," a high-ranking EPA official told the news agency. "But we cannot let the urgency overtake the need for scientific integrity. We need to make sure we have a process that provides for thorough scientific review as well as public comment," he said. 

Meatpacker Bill Gets Final Approval.   Legislation to require USDA to use more legal expertise in regulating cattle and hog markets was given final congressional approval from the Senate on Tuesday. USDA would have to follow recommendations of a recent General Accounting Office report that said the department was better suited to doing economic analysis than deciding whether meatpackers had violated antitrust laws, according to THE ASSOCIATED PRESS. USDA also would be required to work with the Justice Department and the Federal Trade Commission to "identify and investigate complaints of unfair and anti-competitive practices" in the meatpacking industry. The provisions were included in a bill to reauthorize USDA's grain inspection services and passed the Senate on a voice vote and now goes to President Clinton for his signature. The White House says the legislation goes too far, but it did not threaten to veto it. In the statement, the White House said the legislation could force the Agriculture Department to consult with the Justice Department and the FTC in every case USDA takes, "thereby creating a barrier to USDA's enforcement activities." Sen. Charles Grassley (R-IA), a supporter of the measure, said, "There is no legitimate reason for the administration to oppose legislation that says USDA should do its job. During the last nine years, despite recommendations from the General Accounting Office and the Inspector General for USDA, the agency has abandoned its responsibility to help ensure competition in the meatpacking and livestock industry." 

Harl Comments on Biotech Outlook.  BLOOMBERG NEWS reports that Neil Harl, agricultural economist and lawyer at Iowa State University in Ames, says the "world is watching" how the United States handles the problems that have erupted over biotechnology in agriculture. Harl said, referring to StarLink corn mixed up in the U.S. food supply, "This is one the regulators have to watch very carefully. The consumer is king. The processor looks after the king. Processors are not risk-takers. Never have been. They're in the business of protecting brands. They're going to take the least risk solution, probably." Harl said biotechnology's fate will be decided based on economic issues.
 

October 24, 2000

USTR Will Investigate Canadian Wheat Board.  U.S. Trade Representative Charlene Barshefsky will initiate a Section 301 investigation of certain trade practices of the Canadian Wheat Board. The decision is in response to a petition filed last month by the North Dakota Wheat Commission under section 301 of the Trade Act of 1974, alleging that the Canadian Wheat Board engages in unreasonable trade practices that have resulted in economic harm to U.S. wheat growers. 

Ethanol Interests Call for California MTBE Leader.  The ethanol industry wants someone to step forward from within the oil industry to stop the use of toxic MTBE in northern California. MTBE is the oxygenate of choice in southern California, but – excepting the Sacramento region – northern California has no requirement for an oxygenate, like MTBE, in gasoline. MTBE has been found in numerous California water systems and has caused major drinking water problems at Santa Monica and Lake Tahoe. 

Insurance Option Given Apple Growers.  Apple growers in six states will have a new quality option for insurance protection. The option is available immediately. Growers in California, Michigan, New York, Pennsylvania, Virginia and Washington have until Nov. 20 to consider purchasing the option.

News Summaries

Wool, Mohair Payments Announced.  The wool and mohair market loss assistance program now is available to producers who produced and sheared wool or mohair from Jan. 1-Dec. 31, 1999. Signup began Oct. 10 and will end Dec. 29. No late filed applications will be accepted. Eligible wool or mohair must have been shorn in the United States, and livestock must have been owned for 30 days or more prior to shearing. The wool or mohair must have been produced during the 1999 marketing year. The payment rates are 20 cents per pound for wool; 40 cents per pound for mohair. Other requirements apply. Producers should contact local Farm Service Agency county offices or Department of Agriculture Service Centers for more information. 

Wall Street Sees Little Good in Cuba Vote.  REUTERS reports that Wall Street economists are "flummoxed" that the U.S. government thinks it is passing a bill that eases sanctions against Cuba, when they say the legislation could actually "push the Communist-led island further into the economic abyss." The U.S. Senate last week approved and sent to the president for his signature a partial lifting of 38-year old sanctions, allowing U.S. companies to sell food and medicine to Cuba. But the legislation does not allow U.S. financing of these sales as well as U.S. tourism -- "clauses that economists say effectively negate Cuba's ability to buy U.S. goods and block the circulation of much needed U.S. dollars in the faltering Cuban economy," according to this article. "The bill was intended to assuage U.S. agriculture interests so that they could export farm products to Cuba, but the reality is you can't export without financing," said David Roberts, international economist at Bank of America. And since the bill also included a ban on American tourism to Cuba, the island may lose an important source of foreign exchange. Furious Cubans say the bill is a sham that actually bolsters the embargo. "On the whole the fundamental effect is not positive and in fact decidedly negative," said Vincent Truglia, managing director of the sovereign risk unit at Moody's Investors Service. 

Citizens Group Calls for Agriculture Bill Veto.  Thomas A. Schatz, president of Citizens Against Government Waste (CAGW), has urged President Bill Clinton to veto of the agriculture appropriations bill. The bill is "overladen with pork-barrel spending, and for that reason alone should be vetoed," he said. In addition, the bill includes "various unjustified increased farm subsidies" that are not justified, and "there is an anti-trade provision that would still call out for your veto." Schatz's letter to Clinton added, "In violation of World Trade Organization rules, the legislation takes millions of dollars of anti-dumping penalties assessed against foreign companies, which now go into the U.S. treasury, and turns them over to private industry. The possibility of monetary compensation provides a much stronger incentive to file antidumping cases, launching actions of questionable merit that might not be brought under current law. It also undermines the credibility of U.S. negotiators in future trade talks." 

Steps to Segregate Corn Urged.  Responding to concerns about genetically modified corn reaching the food supply, industry officials say farmers and operators of grain elevators can take steps "as simple as improving their communication to keep separate the grain's varied strains," according to THE ASSOCIATED PRESS. That could help better serve consumers "who demand specific types of a grain and reduce the chances of a situation like the one encountered recently when a prohibited genetically modified variety of corn found its way into food items such as tacos," this article says. Mark Lambert, spokesman for the Illinois Corn Growers Association, said the farming and grain-handling industries are currently evolving as the demand for nongenetically modified and so-called ``specialty'' grains increases. He said the arrival of genetically modified strains, or GMOs, is taking farming from the days when most producers grew essentially the same thing into new territory where different varieties should be kept separate to maintain their "identity" from field to market. "We're still learning," he said. "It becomes more important now that the biotech curve ball is thrown into the mix." 

EU Says StarLink May Be in Stores.  BLOOMBERG NEWS reports that a European Union official believes U.S. officials can't say for sure whether a variety of gene-altered corn grown in the U.S. has seeped into food products that have been exported to Europe. John Richardson, deputy chief of mission at the EU's delegation in Washington, said after meeting with U.S. officials that some gene-spliced corn could be part of products on EU grocery store shelves. The gene-spliced StarLink variety corn was created to resist an insect that devastates crops. The grain can be used to feed livestock but hasn't been approved for human consumption, because of U.S. Food and Drug Administration concerns that it might cause an allergic reaction in some people. Its use in Europe hasn't been approved for human or animal consumption. "The U.S. authorities have not been able to give us the reassurances that there's no such corn products exported to Europe," Richardson said. "We remain concerned about the situation." 

EPA Won't Grant StarLink Approval for Food.  REUTERS reports that the Environmental Protection Agency will not grant temporary approval to allow a bio-engineered corn variety known as StarLink in human food "despite grocery store recalls and production line disruptions." Government officials told the news agency, "We're not planning on granting any sort of temporary exemption or changing our position on this. The agency is on record with our concerns about potential allergenicity." The article says the food industry is expected to submit new human health data to the EPA later this week to make its case that the StarLink variety of yellow corn is safe for human food, said a second government source. The ideal solution -- from the perspective of publicity-conscious food makers -- would be for the government to grant temporary approval of StarLink for human consumption, according to the article.
 

October 23, 2000

Bush, Gore Respond to Cattlemen's Queries.  Texas Gov. George W. Bush prefers to work with local and state authorities on federal land management, but Vice President Al Gore emphasizes the need to recognize the not all fedral land is "appropriate for grazing." Gore also stresses the need to protect water, fish and wildlife as well as recreational uses of federal lands. Their responses came from questions submitted to the candidates by the National Cattlemen's Beef Association. 

Greater Refuge Requirements Mean Less Cotton Returns.  A National Cotton Council (NCC) economic analysis shows that increasing the refuge requirements for Bt cotton would reduce the net returns to U.S. cotton growers by about $25 million. "In a year with high (insect) pressure, the losses could easily approach $50 million," NCC economist Dr. Kent Lanclos told an EPA Science Advisory Panel (SAP) on Bt technology in Washington. 

North Dakota Meat Inspection Equal to Federal System.  North Dakota has implemented a state meat inspection program that includes requirements at least equal to those of the federal meat inspection program, USDA announced. However, USDA's Food Safety and Inspection System will continue to inspect poultry products in the state. 

State Court Requires Farmland Approval Process.  The Supreme Court of Pennsylvania affirmed the order of the Commonwealth Court which had ruled that PennDOT is required to get approval from the state Agricultural Land Condemnation Approval Board (ALCAB) before condemning farmland in an agricultural security area. Guy F. Donaldson, president of the Pennsylvania Farm Bureau, praised the court action. The Farm Bureau had expressed that opinion in its "friend of the court" brief submitted to the court in support of farmers Lamar and Lois White of Franklin County. 

Suspect Feed Offers Found on Internet.  The Washington State Department of Agriculture has found companies selling horse feed on the Internet, making "outright or implied drug claims" that "may not have been licensed" by the Food and Drug Administration. Seven of the nine companies surveyed were not licensed to do business in Washington.

News Summaries

Bio-Pesticide Developed for Locusts.  BLOOMBERG NEWS reports that scientists have developed a naturally occurring bio-pesticide to kill crop- ravaging locusts and grasshoppers that have plagued farmers since biblical times. Biological Control Products of Durban, South Africa, a closely held company, is the first company licensed to produce and market the product. It uses a naturally occurring fungus as an alternative to more expensive and risky chemical pesticides. "We now have a tool that's environmentally safe, and it's non-toxic to humans," said Jurgen Langewald, an entomologist who headed a global team of scientists working on the project since 1989. "The use of chemical pesticides will be largely reduced for desert locust control," he said in an interview. Scientists with the Nigeria-based International Institute of Tropical Agriculture developed the pesticide and will report their findings during a World Bank conference in Washington. 

EU Questions U.S. Regulations.  REUTERS reports that the European Commission Friday questioned whether U.S. regulations are adequate to stop bioengineered grains from getting into exports to nations concerned about gene-spliced foods. John Richardson, deputy chief of the EC delegation in Washington, said there were new questions about U.S. regulations following the recent U.S. recall of taco shells and flour containing a variety of biotech corn which had not been approved for human consumption. The EC is concerned whether any U.S. foods exported to Europe contain the same type of yellow corn, known to farmers by its brand name StarLink. Britain, France, Italy and more than two dozen other nations around the world prohibit the sale of foods containing biotech ingredients unless they are clearly labeled for consumers. U.S. environmentalists want similar regulations in the United States, saying not enough is known yet about the long-term effects of gene-spliced foods. 

Fungus May Be Pesticide Alternative.  REUTERS reports that a fungus called "Green Muscle" that kills crop damaging locusts and grasshoppers might work as a cheaper and safer alternative to chemical pesticides, according to Nigerian researchers. Although it does not kill the crop-destroying insects as quickly as chemical pesticides, the fungus lasts longer and kills them over a sustained period of time, said the team at the International Institute of Tropical Agriculture (IITA) in Ibadan, Nigeria. "Because locust outbreaks can cause significant economic damage to crops, governments often react with application of chemical pesticides when locust populations start building up," Ian Johnson, chairman of the Consultative Group on International Agricultural Research, which helps fund the IITA, said in a statement. "In turn, such reliance on chemical control raises a range of environmental and health issues," added Johnson, who is also World Bank vice president for Environmentally and Socially Sustainable Development. 

Kellogg Suspends Plant Operations.  Cereal maker Kellogg Co. said operations at its Memphis, TN, plant were disrupted temporarily while a grain supplier conducted tests to keep out StarLink corn. StarLink is the feed-approved biotech corn that last month forced a recall of taco shells. "While our supplier was putting these steps in place, we experienced a minor disruption at one of our plants. We expect to be back in full operation early next week," Joseph Stewart, senior vice president, corporate affairs and chief ethics officer, said Saturday in a statement. The location of the plant was not in the statement but was revealed by a spokeswoman when REUTERS called the company. THE WASHINGTON POST reported Saturday that Kellogg had shut down one of its plants because the company could not find corn guaranteed to be free of StarLink corn. 

Tyson Won't Feed StarLink.  Tyson Foods Inc. has stopped feeding its chickens StarLink corn that is approved only for animal feed but that turned up in taco shells and flour. Tyson, based in Springdale, AR, is believed to be the first food company to stop the use of StarLink corn as an animal feed, as concerns emerged that the corn has spread through the U.S. food chain. "Tyson has elected to stop acquiring corn that we know is StarLink corn," Tyson spokesman Ed Nicholson told REUTERS. He said the company did not plan to carry out independent testing but will leave to its suppliers to ensure corn it purchases is free of StarLink. "This is basically a precautionary move to avoid confusion among consumers, although to my understanding, there has been no links of the protein in StarLink transferring to products."
 

October 20, 2000

House Approves CFTC Measure.  The House voted 377-4 Thursday to modernize futures industry regulations, establish legal certainty for the financial derivatives industry and reform outdated restrictions to allow U.S. futures exchanges to trade single stock futures instruments while retaining all current consumer protections. The measure was brought to the House floor by agriculture Risk Management Subcommittee Chairman Tom Ewing (R-IL). 

EPA Says Biotech Crops Have Little Effect on Monarchs.  The Environmental Protection Agency (EPA) says a review of all available scientific information indicates that monarch butterflies are at very little risk from Bacillus thuringiensis (Bt) corn products and in fact, could benefit from the widespread cultivation of Bt crops. The report represents a preliminary draft risk assessment to evaluate the health, safety and environmental risks, as well as benefits of Bt corn, cotton and potato plants.

News Summaries

Dietitians Give Cattlemen Foundation Award.  The National Cattlemen's Beef Association has received the Corporate Award for Excellence 2000 from The American Dietetic Association Foundation. The award recognizes the organization's support of, and work with, registered dietitians, the ADA and the ADA Foundation. The award was presented at an ADA Foundation dinner attended by leaders from the nutrition community. The dinner, which featured beef sponsored through the checkoff, was held in conjunction with the Food & Nutrition Conference & Exhibition of The American Dietetic Association, held earlier this week. Among checkoff-funded events at the conference were a workshop that helps nutrition professionals understand the special needs of women, and a booth at which the thousands of attendees of the Exhibition could learn more about the nutritional value of beef and sample new beef products currently on the market. 

Five More 'Challenge Days' Give in Pork Vote.  Kathleen Merrigan, administrator of USDA's Agricultural Marketing Service (AMS), says the additional five-day period for challenging absentee ballots in the pork checkoff program referendum will be Oct. 23 - Oct. 27. AMS issued a news release Oct. 13 which announced amendments to the final rule on the conduct of the referendum to clarify requirements for counting absentee ballots and establish the additional five-day period for challenging those votes. Farm Service Agency (FSA) county offices will have until Oct. 31 to notify challenged producers. Producers challenged during this period will have five business days, but not later than Nov. 7, to provide documentation of eligibility. FSA will then have until Nov. 9 to make a determination of eligibility and notify voters. If a voter wishes to appeal FSA's determination to the AMS administrator, he or she will have until Nov. 17 to file an appeal at the FSA county office. The ballots will be counted as previously announced on Nov. 29, 2000. The rule was published in the Federal Register on Thursday and will be on the web at: http://www.ams.usda.gov/lsg/mpb/pork/pkrefrule.htm.

Bill Would Give Farmers $50,000 a Year for Conservation.  REUTERS reports that farmers would be eligible for up to $50,000 a year under legislation unveiled by two dozen U.S. lawmakers. The money would be paid if farmers adopted soil- and water-saving tillage practices. The proposal "should be a centerpiece" for the new farm policy law that Congress must write next year or in 2002, said Ferd Hoefner of the Coalition for Sustainable Agriculture. Under it, growers could sign contracts running five to 10 years with the federal government to carry out conservation practices, according to the article. Payments would be possible for practices already in use and be funded automatically, similar to crop subsidy payments. The article says further that sponsors had no immediate estimate of the cost of the program. Sen. Tom Harkin (D-IA) and Rep. David Minge (D-MN) filed companion bills in the Senate and House. 

Barshefsky Blasts Anti-Dumping Provision.  U.S. Trade Representative Charlene Barshefsky Thursday blasted new legislation that would allow American steelmakers and other companies to collect the proceeds of anti-dumping duties imposed on their foreign competitors, REUTERS reports. "I won't go into the reasons why it is a bad idea, but it is," Barshefsky said in remarks at the National Press Club. If the measure becomes law, as expected, the administration will enforce it, Barshefsky said. But she seemed to encourage the next Congress, which will convene in January, to overturn the provision. Sen. Robert Byrd (D-WVA) attached it to a broader agricultural spending bill that the Senate approved on Wednesday 86-8. It was passed by the House of Representatives on Oct. 11. The article says the White House opposes the provision, because it could spark trade disputes. The European Union has warned that the payments would constitute a prohibited subsidy that could be "actionable" under World Trade Organization rules. 

Entire StarLink Crop Probably Not Retrievable.  THE ASSOCIATED PRESS reports that genetically engineered corn linked to a nationwide recall of taco shells may have spread farther than expected into the human food supply. The grain's developer said Thursday it was uncertain of ever retrieving the entire crop, the article says. The corn was not approved for human consumption. Some was mixed with other grains and sold to food processors. About 9 million bushels, or about 10% of the 2000, have not been accounted for, said officials with Aventis CropScience, which developed the grain. 

Kucinich Tries to Tighten FDA Food Embargoes.  Rep. Dennis J. Kucinich (D-OH) will introduce a bill to grant the Food and Drug Administration the authority to quickly "embargo" adulterated food products. Kucinich says that would better equip FDA to handle such developments as the StarLink corn controversy. FDA now may seize adulterated foods only after a lengthy court process but has no authority to take immediate steps. FDA, under Kucinich's bill, could seize food temporarily until a court determined if a permanent seizure was justified; would be required to disclose all necessary information without regard to confidentiality if disclosure is needed to embargo, seize or recall any adulterated food and would require registration of grocery stores with FDA to expedite recalls, embargoes and seizures.
 

October 19, 2000

Educate Producers for Bt Resistance Management.  Farmers, scientists, public interest groups and the agricultural biotechnology industry are concerned that the widespread planting of crops improved through biotechnology could hasten the development of resistance to plant protectant Bt endotoxins. And although effective insect resistance management can reduce the risk of resistance development, farmers are going to have to be educated in the most effective means to comply with resistance management techniques. 

USDA, Interior Seek Water Quality Protection.  Agriculture Secretary Dan Glickman and Interior Secretary Bruce Babbitt have agreed on a policy to protect water quality and aquatic ecosystems on federal lands. The policy will serve as a framework for land and resource management focused on watersheds. 

Winter Weather to Return to 'Normal.'  The Commerce Department's National Oceanic and Atmospheric Administration sees an end to the recent string of record warm winters with a return to "normal" winter patterns for the 2000-01 season. NOAA Administrator D. James Baker said, "With La Niña and El Niño out of the way, normal (defined as the period 1961-1990) winter weather has a chance to return to the U.S. this year." 

Senate Approves Spending Bill.  The Senate overwhelmingly approved the conference report on fiscal year 2001 agricultural appropriations. The bill now goes to the White House where President Clinton is expected to sign it. The bill includes disaster relief for crop losses and a host of other producer-related spending provisions. It also allows restricted sales to Cuba of food and medicine.

News Summaries

Pork Producers See Benefits in Appropriations.  The agriculture appropriations bill that President Clinton is expected to sign once it clears the Senate has several items pork producers consider important. The National Pork Producers Council cites several issues in the bill: $5.9 million for mandatory price reporting; $1.3 million for a new research program into hog cholera; $9 million to begin a 10-year, $380 million renovation of the animal research and diagnostics facility at Ames, IA; $10.2 million for improvements to the foreign animal disease research center at Plum Island, NY; $4 million for the PRV eradication effort; and $2.9 million for the National Animal Health Emergency Management Systems (NAHEMS), a coordinated effort designed to respond to an outbreak of a foreign animal disease. 

No Consensus, Only Desire on WTO Negotiaitons.  The 28th North American-European Union Agriculture Conference wrapped up on Wednesday with no consensus but a desire from participating nations "to move forward toward a comprehensive World Trade Organisation round of negotiations," REUTERS reports. Export subsidies in Europe and domestic farm support in the United States are seen as key elements of future world trade talks, said Laurent Pellerin, head of the Quebec Farmers Union and host of the Quebec City conference. "Domestic financial support will be a crucial element of the next round of negotiations," said Pellerin. "The question will be how we limit that so we don't have a free-for-all. What has been announced during the U.S. election campaign is making Europeans and Canadians jump," Pellerin said. "For the first time, we feel a shared intention by Americans, Europeans, Canadians and Mexicans to have more established and forward-looking stands. The next step will be to defend those opinions," he told REUTERS in an interview. 

Stress Hitting Financially Strapped Farmers.  THE ASSOCIATED PRESS reports that farmers and ranchers need help not only in improving national farm policy but also coping with the stress caused by disastrously low prices. Iowa farmer and psychologist Michael Rosmann, director of Sharing Help United Awareness Network in Harlan, IA, says farmers in financial trouble often develop anxiety, depression or even feelings of worthlessness because of conditions that are beyond their control. "When we're out there on the tractor, men and women, what we're thinking about is `I don't know how much more of this I can take,'" Rosmann said at a workshop for mental health workers and others who work with farmers and ranchers. Rosmann said counseling, support groups and other mental health services should be made available to farmers and ranchers, who frequently do not tell anyone they are suffering from anxiety, depression and other problems caused by financial trouble and the uncertainty of agriculture. The AP article also notes that farmers have a suicide rate that is six times the national average, and authorities often cannot tell whether some farm accidents are actually suicides, he said. 

Tougher Clean Wheat Standards Announced.  Agriculture Secretary Dan Glickman has further toughened standards for the cleanliness of U.S. wheat exports destined for overseas food aid. He lowered the maximum acceptable dockage level for wheat purchased by USDA's Commodity Credit Corporation and used for international food assistance from 0.8% to 0.7%. He also said USDA is planning to further tighten the acceptable dockage level to 0.6 percent in fiscal year 2002 and to 0.5% in fiscal year 2003. Dockage includes all matter other than wheat that must be removed prior to milling the wheat into flour. USDA's Grain Inspection, Packers and Stockyards Administration measures and reports dockage on each export shipment. Purchases for government donation programs historically have been at the 1% dockage level, the level often used in U.S. commercial purchases. In June, Glickman announced that the U.S. would require a dockage level of 0.8% or less for future wheat purchases for foreign food assistance.
 

October 18, 2000

GAO Believes FCA Initiative Subject to Rule Making.  Rep. James A. Leach, chairman of the House Banking and Financial Services Committee, says the General Accounting Office (GAO) has concluded that the Farm Credit Administration's (FCA) "national charter" initiative is subject to rule-making and congressional review. Leach called on FCA to withdraw the initiative and suspend all action on pending applications. 

FDA Awards Food Safety Grants.  The Food and Drug Administration is awarding grants for innovative food safety projects to 13 state and local regulatory agencies to "complement, develop or improve state and local food safety programs that may also be used or transferred to other state or local jurisdictions." The grants total more than $530,000 and are for a one-year period. They were awarded in two key areas: inspection techniques and education/health information dissemination. 

Systems Research Looks for Key Yield Factors.  Results of a study now in progress through USDA's Agricultural Research Service should help farmers determine which variables limit their yields and whether precision agriculture techniques could improve their profitability. ARS scientists in Ft. Collins, CO, are measuring all possible environmental conditions and farming practices that could affect yields on two commercial farms.

News Summaries

Farmers Claim No Warning on StarLink.  BLOOMBERG NEWS reports that some Midwest farmers claim they weren't adequately warned about the restrictions on how Aventis SA's Bioengineered corn, StarLink, was to be planted, stored and sold, according to an artilce in the New York Times. The French drug-maker's subsidiary, Aventis Crop-Science, and seed companies vending StarLink say farmers were told the corn hadn't been approved for human consumption and that the corn should be grown 660 feet from other corn to prevent accidental cross-pollination. Aventis and Garst Seed Co., the largest StarLink vendor, didn't return calls for comment, the paper said. StarLink corn is altered to produce a protein that kills the corn borer caterpillar, the paper said. It's been limited to use in animal feed and industrial products because the Environmental Protection Agency couldn't rule out a link between the protein and food allergies. 

Bestfoods Goes Up for Sale.   CBS MARKET WATCH reports that "as expected," Unilever Plc is selling Bestfoods Baking Co., the U.S.-based baked-goods arm of the global consumer products concern. "There will be no shortage of bidders," says CBS. Bestfoods Baking's bread box includes the premium brands Entenmann's, Thomas' English muffins and bagels, and Oroweat, Brownberry and Arnold brands. Last year, the Bay Shore, N.Y.-based company cooked up sales of $1.7 billion. "It's long been assumed that Unilever (UL: news, chart) would divest the Bestfoods' baking concern in keeping with its `Path to Growth' strategy of unloading non-core brands and categories." In a news announcing the plans, Unilever said the business "is in a category (that) does not exist elsewhere" in the company. 

IBP Reports Record Export Sales.  Continued strength in consumer demand for proteins, along with record export sales, contributed to another strong quarterly earnings performance by IBP, Inc., according to company officials. Third quarter 2000 net earnings totaled $83.9 million or $.79 per diluted share compared to $96.6 million or $.90 per diluted share before a $13.8 million nonrecurring reduction of income tax expense during the same period in 1999. Actual third quarter 1999 net earnings totaled $110.4 million or $1.03 per diluted share. Third quarter sales grew 9% to $4.2 billion versus $3.8 billion in 1999. Prior year results have been restated to reflect the acquisition of Corporate Brand Foods America, Inc. (CBFA), which was accounted for as a pooling of interests. Export sales reached the highest level for any quarter in the history of the company. Sales for the period totaled $511 million, up 15% from the third quarter of 1999, while export volumes were 10% greater than the same period last year. Meanwhile, export dollar sales were up 19% on a year-to-date basis, while volumes were 5% higher. The strongest gains continue to occur in the Far East, especially in Japan and Korea. Sales into Mexico also increased substantially, according to the company. 

Senate Cuba Vote Today?  REUTERS reports that the Senate is expected to approve legislation today allowing food and medicine sales to Cuba. That will give farm groups "a foot in the door" for trade with Castro's island country even if U.S. financing is not allowed. The article notes that Cuba has denounced the proposal as a sham that, it claims, actually tightens the embargo. A protest march on the U.S. diplomatic mission in Havana by up to 800,000 Cubans was called to coincide with the Senate vote. Language included in a $78 billion agriculture funding bill holds that food and medicine would be exempt from unilateral U.S. embargoes. Cuba was the target of the bill but it also would affect Iran, Sudan, Libya and North Korea, where sales are allowed on a case-by-case basis. No public or private U.S. financing would be allowed on food sales to Cuba and rules that generally bar U.S. travel to Cuba would be written into law -- provisions that Cuba condemns as strengthening the embargo. A new category of permitted travel would be created, to pursue agricultural sales. 

Brazil Agrees to More U.S. Wheat Imports.  Brazil has agreed to re-open its market to imports of U.S. hard red spring wheat and soft red winter wheat. Currently, Brazil only allows imports of hard red winter wheat. "Brazil is expected to be the world's largest wheat importer this year," said Agriculture Secretary Dan Glickman. "So this new market holds significant potential for American farmers needing every possible venue to sell their wheat during these times of record production." In 1996, before Brazil imposed import restrictions on wheat, it purchased roughly 760,000 tons of U.S. wheat, worth $174 million, including 85,800 tons of soft red winter and 42,300 of hard red spring wheat. The latest agreement came after a meeting between Glickman and the Brazilian Minister of Agriculture and Food Supply, Pratini de Moraes. Brazil is expected to publish official notification of its decision by Nov. 15, 2000.
 

October 17, 2000

Meat Industry Sees Rosy 2000. The export value of livestock, meat and related products totaled $8.7 billion in 1999, and strong beef, pork and broiler export sales so far this year point to an increase in total industry export value in 2000, according to Meat and Poultry Facts 2000, released by the American Meat Institute (AMI). 

Bovine TB Emergency Declared.  Agriculture Secretary Dan Glickman Monday signed a declaration of emergency, authorizing the transfer of $44 million this year to expand the bovine tuberculosis eradication program in the United States. This is an initial payment on what is expected to be a multi-year effort. Glickman said the spread of the disease in this country could compromise international and domestic trade of U.S. animals and animal products and threaten producers with losses and consumers with price increases. 

Fertilizer Prices Will Increase from Oil Prices. Farmers can expect to pay more for fertilizer products as gas and oil prices continue to rise. According to The Fertilizer Institute, the cost of production of many fertilizers has increased significantly in the past months as a result in the sharp increase in natural gas prices. Natural gas is the "major cost component" in making all basic fertilizer products. 

Candidates Reply to Agriculture Questions. The American Farm Bureau Federation has published a list of questions and answers from Democrat Al Gore and Republican George W. Bush on agricultural issues they'd have to face if elected to the White House next month. On farm policy, Gore favors a counter-cyclical program of direct farmer payments when prices or income decline to a certain level, while Bush prefers to continue a more free- from-government approach but still with assistance in tough times. Both support further crop insurance program reforms.

News Summaries

Dubious 'Facts' about Air Quality Cited. A group calling itself Americans for Balanced Energy Choices (ABEC) cautioned the news media and Illinois public not to attribute undue significance to alarmist reports about air quality health hazards that are distributed by what it called "outside-the-mainstream" environmental groups. ABEC said that certain environmental and health activists may use scientific evidence of dubious origin or validity to frighten the public about air quality. ABEC recommended that Americans turn to an authoritative source on the subject -- the U.S. Environment Protection Agency -- which said recently that Americans now breathe air that is remarkably improved in quality in recent years. In its August 2000 annual air quality survey, the EPA documented steady progress in reducing pollutant emissions and improving air quality. ABEC supports the development of a national energy policy to improve America's reliance on a diverse range of fuels, including coal, gas and solar and seeks to educate the public about coal as an affordable, abundant and increasingly clean fuel source. 

Stallman Meets Cool Response in Canada.   The president of the American Farm Bureau, Bob Stallman, tried to put a friendly face on the U.S.-Canada farm trade relationship on Monday but Canada's agriculture minister was "distinctly cool," according to a REUTERS report. In an interview with REUTERS at the 28th North American/European Conference on Agriculture, Stallman said the two countries have a good agricultural trade relationship despite some hot issues. Among those issues, he said, were North Dakota accusing the Canadian Wheat Board of dumping wheat in the United States and the province of Manitoba accusing the U.S. of dumping corn in Canada. Beef and apples are also a contentious matters, he said. "We need to continue talking and trying to work out our differences. Agriculture trade between Canada and the U.S. overall is fairly balanced," he said. The article notes that Canadian Agriculture Minister Lyle Vanclief, however, said no solutions are in sight as the United States keeps pouring out subsidies to individual producers. "There are not many solutions in sight unless we can move them to the World Trade Organization," he said in an interview after a speech before Canadian, American, Mexican and European delegates. Vanclief said U.S. support for wheat was eight times higher than Canadian support last year. "It is now nearly at the same levels it was back in the 1980s at a time where countries including the U.S. said this had to be stopped," he said, adding the United States flip-flopped in the issue since the mid-1990s. 

House Vote Coming on Commodities Changes. THE WALL STREET JOURNAL reports that the House of Representatives is scheduled to vote today on a "complicated rewrite of U.S. commodities laws," but agriculture committee members circumvented many other key lawmakers to get the bill to the floor, and "support for this version of the bill is questionable." The WSJ article says House Republican leaders have decided to use a voting procedure reserved for noncontroversial bills that limits debate but requires a two-thirds vote for final passage. The House Commerce Committee and Senate Banking Committee didn't participate in negotiations this weekend that resulted in the legislation that's going to the House floor, according to this article. One House aide said that the legislation would have difficulty attaining the necessary two-thirds vote. However, CONGRESS DAILY reports that House Banking Committee Chairman Jim Leach (R-IA) will support the bill
 

October 16, 2000

Lugar Supports 'One-Liner.'  Senate Agriculture Committee Chairman Richard Lugar (R-IN) is willing to offer a "simple one line" reauthorization of the Commodity Futures Trade Commission, since it appears highly unlikely more broad legislation can be approved in this Congress. "The relevant parties were continuing to meet, and progress was being made. Unfortunately, negotiations have appeared to stall," he said. 

Congressional Unfinished Business.  The third week-long continuing resolution has been approved by Congress. The House returns to work Tuesday afternoon with the Senate expected to vote on the agricultural appropriations bill Wednesday morning. Of the 13 appropriations bills that make up the federal budget, three have been signed by President Clinton, several others are ready for his signature and a few are stalled over policy disputes. 

Changes Made in Pork Referendum Rules.  USDA will amend the final rule on the conduct of the pork checkoff program referendum. An interim final rule will clarify requirements for counting absentee ballots and establish an additional five business days for challenging absentee votes. In-person voting took place Sept. 19-21 at Farm Service Agency (FSA) county offices; absentee voting was conducted Aug. 18-Sept. 21. 

Ethyl Parathion Uses Canceled.  The Environmental Protection Agency and the manufacturer, Cheminova, have signed an agreement to cancel all remaining uses of the organophosphate pesticide ethyl parathion. EPA classifies it as one of the most acutely toxic pesticides still registered for use in the United States.

News Summaries

Hispanics Sue USDA.  REUTERS reports that Hispanic farmers and ranchers filed a class-action suit against USDA Friday claiming racial discrimination, lawyers for the farmers announced. The suit, filed in U.S. District Court, asks for $20 billion in damages. It alleges the department systematically denied loans to Hispanic farmers and ranchers on racial grounds and failed to investigate complaints of bias. Alexander Pires, one of the lawyers handling the case, said the department would be asked to stop all pending foreclosures on Hispanic farmers and ranchers, according to REUTERS. The department declined to comment on the lawsuit until it had more time to review it. A similar lawsuit by black farmers has resulted in more than $390 million in payments to 7,803 farmers who provided substantial evidence of credit discrimination. More than 23,000 claims have been filed. 

Texas Firm Recalls All Yellow Corn Products.  BLOOMBERG NEWS reports from Irving, TX, that Gruma SA's Mission Foods, the Texas company that made taco shells later recalled because they contained traces of unapproved, genetically engineered corn, will recall all its yellow-corn products. Instead, Mission will make its products using only white corn to avoid mixing any more genetically engineered StarLink corn. StarLink is approved in the United States only for animal feed, not for use in food, said spokesman Peter Pitts. Mission, the largest maker of tortillas in the United States, made taco shells for both Philip Morris Cos.' Kraft Foods and Safeway Inc. that are being recalled. Pitts said Mission, a unit of Mexico's Gruma, has begun telling its customers about the recall. The company hasn't estimated the size or the cost of the recall, he said. 

Frazier New Agriculture Negotiator.  President Clinton will nominate Gregory M. Frazier as the U.S. trade representative's special trade negotiator for agriculture and food policy. Frazier, of Abilene, KS, joined USTR in March after serving for five years as chief of staff for Agriculture Secretary Dan Glickman. Prior to that, he was a staff member for the House of Representatives Permanent Select Committee on Intelligence and staff director for the House Subcommittee on Wheat Soybeans and Feed Grains of the Agriculture Committee. From January 1977 until December 1986, Frazier served in several capacities for then-Congressman Dan Glickman. 

EU Consumers Need More GMO Information.  European consumers will require more information about genetically modified (GMO) crops and foods before they will accept the technology, German Agriculture Minister Karl-Heinz Funke said on Friday, according to REUTERS. Funke was attending a Des Moines, IA, symposium on GMO crops. He claimed there still is considerable uncertainty about GMO foods in Europe, even though the gene-splicing technology has been used in the United States, Canada, Argentina and other countries for several years. Funke cited a recent public opinion poll which found that just 34% of Germans thought genetic engineering was useful in agriculture and the food industry. Another survey found that 54% of Europeans said GMO technology was dangerous, he said. 

Indonesia's Recovery Shaky.  THE WALL STREET JOURNAL reports that the World Bank has painted a "stark picture of Indonesia's recovery." Although the economy has shown signs of growth beyond consumption, "it isn't enough to help large segments of the population still reeling from the 1997 financial crisis," the article says. Moreover, the annual report to World Bank donors says the recovery is made more difficult by political obstacles -- including the sluggishness of President Abdurrahman Wahid's government in implementing reforms. "It's hardly surprising, then, that the economic recovery is still far from secure," the report concludes. The report will be presented to World Bank donors who will meet Tuesday in Tokyo to decide whether to grant Indonesia's request for up to $5 billion in aid to cover part of a 3.7% deficit in next year's budget.
 

October 13, 2000

Aventis Cancels StarLink Registration.  At the strong urging of the Environmental Protection Agency, Aventis is canceling the registration of StarLink corn. "This means that Starlink corn can no longer be planted for any agricultural purpose," says Stephen Johnson, EPA deputy assistant administrator for pesticides. The EPA-Aventis agreement will ensure that in the future no new StarLink corn will be grown and none will find its way into processed foods like taco shells, Johnson said. 

Good and Bad News in Wheat Harvest.  Newly harvested wheat generally is not infested with insects, an Agricultural Research Service scientist reports. But the bad news is that insects immigrate into grain bins within 30 days after harvest. And the researcher, in Manhattan, KS, is counting insects immigrating into grain bins from the outside. 

FDA Makes Two Health Claim Decisions.  The Food and Drug Administration (FDA) has made two decisions on health claims that were the subject of a court decision. One proposed claim that stated 0.8 mg of folic acid in a dietary supplement was more effective in reducing the risk of neural tube defects than a lower amount in foods was not authorized. Although FDA determined that this claim could not be appropriately qualified without being misleading, the agency did provide examples of appropriate qualified claims. 

Montana Ranchers Told to Pay Penalty in Beef Checkoff Case.  Judicial Officer William G. Jensen has denied a request to reopen a case against Montana ranchers Jeanne and Steve Charter and instead found they willfully refused to pay the beef checkoff. They were ordered to pay past assessments, late payment charges and $12,000 in civil penalties within 60 days. 

Hunger More Urgent than Global Warming.  The American people believe that hunger and malnutrition are more urgent global problems than disease, pollution and global warming, according to a new poll released today at the World Food Prize awards in Des Moines, Iowa. According to the survey of 1,000 adults, conducted for the Alliance for Better Foods, hunger and malnutrition are considered an urgent problem by 75% of American adults, compared with the 68% who feel disease and epidemics are urgent problems; 66% for pollution and environmental damage, and 43% for global warming. 

Teams to Review USDA Civil Rights Complaints.  Three firms will create impartial, outside "accountability teams" to review USDA offices where a large number of employee and customer civil rights complaints have been found. All three contracts were awarded to small, disadvantaged firms under the Small Business Administration's section 8(a) program, according to Agriculture Secretary Dan Glickman.

News Summaries

Information Aide Admits Accidental Report Release.  REUTERS reports that an information official in USDA has admitted that her office was responsible for the accidental early release of crop forecasts for five key countries. "It was our office. We did it and it was in error," said Maureen Quinn, director of information for the Foreign Agricultural Service. On Wednesday, more than 12 hours before the official release of its monthly world crop report at 8:30 a.m on Thursday, the department surprised reporters by distributing a two-page news release with revised production estimates for key crops in China, Brazil, Argentina, Australia and Pakistan. "This was an honest mistake," said Mary Beth Schultheis, a spokeswoman for USDA "But we take this very seriously and we're going to take all steps necessary to ensure that this doesn't happen again." 

Drought Barely Dents Corn, Soybean Crops.  A searing late-summer drought "put only a scratch on record-large U.S. corn and soybean crops," REUTERS reports. USDA says it means another year of sour prices and large crop subsidies. USDA pared its estimate of the soybean crop by 3% to 2.82 billion bushels, and corn by 2% to 10.19 billion bushels, due to dryness in the South and the Plains. The report says they still would be "the largest ever, pushing up U.S. stockpiles, although not quite as much as earlier thought, and keeping prices under pressure for the fourth year in a row." 

Cairns Wants Agriculture on the Agenda.  REUTERS reports that the Cairns Group will insist agriculture be on the agenda of a new round of global trade talks even if separate negotiations were progressing well in Geneva. Australian Trade Minister Mark Vaile said, "Look, unless agriculture is included in a new round, there won't be a new round." He made the statements in a telephone interview with REUTERS from Banff, Canada, where the Australia-led farm exporting group wrapped up its annual strategy session. "Just like the European Union and the Americans and the Japanese are keying on specific issues to be on the agenda of a new round of negotiations, we are also anxious and absolutely focused that agriculture be part of that agenda," he said. 

Official Sees Progress with EU on GMOs.  The United States is making progress against European resistance to genetically modified (GMO) crops and food, Alan Larson, U.S. Under Secretary of State for Economic, Business and Agricultural Affairs, said on Thursday. REUTERS reports Larson told a luncheon audience at a symposium in Des Moines, "I think we're at a pivotal moment." The symposium is by the World Food Prize Foundation. "We see on the one hand more initiatives to regulate biotech in a way that isn't scientifically sound," Larson said. "On the other hand, I think responsible people who a year ago felt that biotech agriculture was unnecessary and should be stopped now are thinking differently." Larson said he now senses a growing unease in Europe with groups like Greenpeace which he said are pressing European governments to make "hasty, unscientific decisions about the food supply," according to the article. Larson's view was shared by others attending the conference, including Klaus Ammann of Berne, Switzerland, director of the local university's botanical gardens where some trans-genic research is being conducted. "It's turning around now," Ammann said. "In many respects, the food legislation of the United States is much stricter (than Europe's)."
 

October 12, 2000

Oilseed Payments Announced.  USDA will begin sign-up on Monday for the 2000 oilseeds payment program. A total of $500 million in payments will be made available to producers of the 2000 crops of certain oilseeds, as provided for by the Agricultural Risk Protection Act of 2000. 

Stallman Wants `Meaningful' Trade Reform.  If U.S. farmers and ranchers are to benefit from an ever-expanding world market, the World Trade Organization is going to have to develop meaningful trade reform in the coming months, according to American Farm Bureau Federation President Bob Stallman. Stallman, who just returned from informal meetings with WTO and foreign trade officials in Geneva, Switzerland, said many hurdles remain before America's food producers can take advantage of new and increasingly wealthy world markets. 

Officials Disappointed Over Canada's Corn Decision.  U.S. Trade Representative Charlene Barshefsky and Agriculture Secretary Dan Glickman say they are disappointed that the Canadian government has made a preliminary decision that U.S. corn exports are injuring Canadian corn producers. "The Canadian government's finding that U.S. corn shipments have depressed Canadian corn prices is completely unsupported by the facts,"

News Summaries

Highlights of Final Agricultural Appropriations.  Here are some highlights from REUTERS of final totals for several USDA programs as contained in the final appropriations bill approved by the House and expected to be approved by the Senate next week: Export Enhancement Program, $478 million; Market Access Program, $90 million; Conservation Reserve Program, $1.74 billion; emergency aid, $3.5 billion. Total budget authority is $78.1 billion. THE ASSOCIATED PRESS reports that a logjam on several appropriations bills was broken Wednesday after Republicans conceded defeat in a dispute over the Missouri River that has prompted a presidential veto and become a Midwestern issue in the presidential race. The House overrode the veto, but the Senate does not have the necessary votes to do the same, said Senate Majority Leader Trent Lott (R-MS). 

French Decide Against Cows' Intestines.  The French government will ban the use of cows' intestines in all food for humans and in animal feed in an effort to eliminate the risk of transmission of so-called ``mad-cow'' disease, BLOOMBERG NEWS reports. The country's food safety agency said "the entire intestine can be considered at risk in animals that carry" bovine spongiform encephalopathy, or BSE, according to a spokesman of the Agriculture Ministry. France has been among the countries most concerned about the spread of the disease that leads to fatal brain damage in humans, according to the article. "It is the only European Union member state that maintains an embargo on U.K. beef imports, even after the European Commission ruled last year to lift the worldwide ban in place since 1996," the article adds. The government decision on cow intestines will affect the producers of some of the country's favorite foods. In some French sausages, such as the andouillette, cow intestines are used as the wrapping or skin. 

Delaware Corn Crop too Large to Store.  THE ASSOCIATED PRESS reports that a record corn crop on the Delmarva Peninsula has posed a problem for farmers looking for storage space to keep their corn until it can be milled. Ray Burton, an inspector with the Delaware Department of Agriculture, said the situation is nearing a crisis. "There will be a critical storage problem before the corn harvest has been completed," Burton said. The article says Delaware could harvest 24.6 million bushels of corn this year - an 80% increase over last year and a new high over the previous record set in 1996 of 22 million bushels. Farmers on Maryland's Eastern Shore are expected to see similar record yields. The article also says that despite the large corn crop, Delaware and the Eastern Shore of Maryland still may have to import approximately 20 million bushels of corn to feed the region's poultry. 

USDA Accidentally Releases Crop Forecasts.  In what REUTERS calls "a surprising breach of government secrecy," USDA apparently accidentally released crop forecasts for five key countries one day ahead of schedule. The possibly illegal action will be investigated, a department spokeswoman said. A paper distributed to news services with offices at the department projected the 2000-01 Argentine soybean crop at a record 22.6 million ton, up from the September estimate of 21.5 million. The document reduced the forecast for the 2000-01 China corn crop to 105 million, a decline of 10 million from last month, and raised the forecasts for Brazil's soybean crop and Pakistan's cotton crop, while lowering the outlook for Australian wheat production. REUTERS says all five countries are closely watched by commodity traders, who normally would not see new forecasts before the department released its monthly World Agricultural Supply and Demand Estimates (WASDE) report at 8:30 a.m. (1230 GMT) today. The article says Richard Fritz, general sales manager in the department's Foreign Agricultural Service (FAS), was at a loss to explain how the paper came into reporters' hands. "We don't know how it got stuck under your door and what the numbers represent at this time," Fritz said, adding he could not vouch for the accuracy of the forecasts. If department forecasts have been released ahead of schedule, that "is a violation of the law," said USDA spokeswoman Mary Beth Schultheis. "We will be referring the matter to the proper authorities." 

Pumpkins: Demand Peaks as Supply Wanes.  BLOOMBERG NEWS reports that pumpkin growers in the Northeast say a wet, cool summer decimated their crops, reducing supply and raising prices as demand peaks before Halloween. "The shortage makes pumpkin shopping an unexpected challenge for parents like Peter Varrick, a commercial real estate agent who took his sons, ages 6 and 10, to a pick-your-own farm near their Danbury, Connecticut home," the article says. "The place I usually take my kids didn't have very many pumpkins, and the ones they had weren't very, good," Varrick said as he shopped for a pumpkin near his office in New York City. "I thought I'd find something to take home for them, but the selection doesn't look much better here." Bob Stuart, owner of Stuart's Fruit Farm, a five-acre, pick- your-own pumpkin patch in Somers, NY, 30 miles north of New York City, had some simple advice: "I wouldn't wait until the end of the month to shop."
 

October 11, 2000

Ethanol Has Public Support.  A nationwide public opinion poll shows strong public support for a larger role for domestic ethanol in the nation's energy policy. By wide margins, the public supports ethanol over foreign oil; requiring ethanol-blended gasoline instead of allowing the oil companies to choose whether to use ethanol; and, candidates who support the increased use of ethanol. 

'Mad Cow Disease' in U.S. Unlikely.  A new report characterizes the overall U.S. risk for the occurrence of bovine spongiform encephalopathy (BSE), commonly called "mad cow" disease, as extremely low. The findings are considered timely since France reported two new cases of BSE last week and an Englishman's death was blamed on the human variation of the disease. 

Clinton Signs China PNTR.  President Clinton signed the legislation that establishes permanent normal trade relations with China. The White House said PNTR with China will open markets for U.S. goods and services and strengthen U.S.-China relations, "continuing to pave the way toward economic freedom for the Chinese people." 

Beef Producers Plan Presence at Food Conference.  Beef producers say they will be well represented when The American Dietetic Association (ADA) holds its Food & Nutrition Conference & Exhibition in Denver Oct. 16-19. They hope the industry's checkoff-funded "Everyday Heroes" campaign will impress the organization's members and other nutrition authorities attending the event. 

Scientists Join to Study Irradiation, Food Safety.  Scientists at the research arm of the U.S. Department of Agriculture (USDA) will work with one of the food industry's top irradiation experts, Ion Beam Applications (IBA), to further study irradiation and food safety in order to help guarantee the quality of America's food supply.

News Summaries

California Rice Under Strict Guidelines.  California's $500-million-a-year rice industry is developing strict growing guidelines to prevent the import of disease-ridden varieties and improve marketing of its product, The ASSOCIATED PRESS reports. Plans include an advisory board of growers, researchers, and handlers to establish the criteria which state agriculture officials will approve. "Eventually all farmers will have to undergo certification to determine if their crops have a commercial impact, meaning the way the rice is grown affects how it is marketed. Rice grown using pesticides could not be labeled organic, for example," the article says. The advisory board is called for in a new state law that comes two years after a disease called ``blast'' threatened $120 million in damage. Blast is a fungus that plagued paddies in the southern United States, and it is believed farmers' experiments with new varieties brought the disease to California, where crops had not been bred to resist infestations. 

Cuba Embargo Easing Ready.  A "long-debated easing" in the U.S. embargo on Cuba to allow food and medicine sales could be passed by Congress and sent to President Bill Clinton before week's end "if all goes well," REUTERS reports. Farm and business groups have argued for three years for permission to sell food and medicine to the island, the article adds. The House could vote as early as today on the proposal as part of a $75 billion agriculture funding bill, leaders said. Senators were alerted they might vote on the measure in the next day or two as well, the article noted. It must be signed by Clinton to become law. White House spokesman Jake Siewert said on Tuesday that the administration had not taken a position on the bill yet. 

Cattlemen Want New EU Offer.  REUTERS reports that U.S. cattle producers have asked the Clinton administration to make a new offer in the trade dispute with the European Union over hormone-treated beef. Julie Quick, a spokeswoman for the National Cattlemen's Beef Association (NCBA), said the group has suggested reducing U.S. trade retaliation on $116.8 million of EU gourmet food and other products in exchange for Brussels eliminating a 20% tariff on imports of U.S. hormone-free beef. The article notes that while such a move would not end the dispute over the EU's decade-old ban on beef from cattle raised with artificial growth hormones, replacing U.S. retaliation with EU "compensation" would at least allow some beef trade to occur, Quick said. 

ELS Rates Announced.  Keith Kelly, Executive Vice President of USDA's Commodity Credit Corporation, announced that the competitiveness payment program payment rate in effect from 12:01 a.m. today through midnight Thursday, Nov. 2, is zero. The next ELS payment rate announcement will be made on Thursday, Nov. 2. The ELS competitiveness payment program rate had been calculated from Wednesday-through-Tuesday average prices. However, effective Sept. 27, average data from a Friday-through-Thursday week are being used. ELS competitiveness payments are provided whenever, for four consecutive weeks, the lowest Friday through Thursday average adjusted price quotation for foreign growths (LFQ) is less than the Friday through Thursday adjusted average domestic spot price quotation for U.S. Pima cotton, grade 3, staple 44, micronaire 3.5 or higher, uncompressed, F.O.B. warehouse; and the LFQ has not exceeded 134% of the current crop year loan level for ELS cotton grade 3, staple 44, micronaire 3.5 or higher (77.35 cents per pound).
 

October 10, 2000

Conference Includes CRP Pilot Program.  The final agricultural appropriations bill includes a six-state pilot program for small farmed wetlands and adjacent buffers. The provision calls for 500,000 acres of environmentally sensitive wetlands and upland buffers in North and South Dakota, Minnesota, Iowa, Nebraska and Montana. 

Web Site Integrity Sought on 'Surf Day.'  The Washington State Department of Agriculture is among several interests participating Wednesday in "Surf Day," an effort to identify animal feed Web sites that promote products for unapproved purposes or that make false or misleading health claims.

News Summaries

Cuba Won't Buy Unless It Can Sell.  REUTERS reports from Havana that Cuba believes that "plans to allow it to buy U.S. food and medicine are inadequate and says the Caribbean island will not buy goods from the United States unless it can sell products to its northern neighbor in return." The report quotes a U.S. farm official visiting Havana. The delegation leader, Georgia State Agriculture Commissioner Tommy Irvin, told REUTERS Monday that this was the message he had received during a meeting on Sunday at his Havana hotel with Cuban Vice-President Jose Ramon Fernandez. One of the topics discussed was a bill before Congress that would modify U.S. economic sanctions against Cuba by allowing food and medicine sales but under certain conditions. One condition would be to prohibit public or private U.S. financing for the sales. "He (Fernandez) said it didn't go far enough," Irvin said. "He made it plain there would not be trade unless there was dual trade," he added. Irvin and more than 20 executives from Georgia-based American agribusiness companies arrived in Havana Saturday for a five-day fact-finding visit. The article also says that Cuba publicly rejected the proposed U.S. legislation last week, with the Foreign Ministry condemning it as a "publicity maneuver" aimed at trying to convince the world that U.S. sanctions against the Caribbean island were being eased. After weeks of wrangling, Congress is expected to vote on it this week as part of an agriculture funding bill. 

Grain analysts see record USDA crop estimates.  U.S. corn and soybean crops this year are seen at record levels, REUTERS reports from Chicago, but the federal government is expected to trim its forecasts slightly from last month's projections, analysts said ahead of Thursday's USDA crop production report. A poll of analysts put U.S. corn production at 10.183 billion bushels, below USDA's September projection of 10.362 billion but far above 1999- 2000 production of 9.437 billion. The record U.S. corn crop was 10.1 billion bushels in 1994. The article says analysts believed U.S. soybean production would be at 2.816 billion bushels, below the USDA's September forecast of 2.9 billion but also above the U.S. 1999-2000 production of 2.643 billion. The record U.S. soybean crop was 2.74 billion bushels in 1998. "Our reductions came mainly out of Nebraska, Kansas and Arkansas for both corn and beans," said Roy Huckaby, director of research for The Linn Group. "Arkansas was hit hard and the double-crop soybeans following wheat didn't have time to get established," said Bill Nelson, analyst for A.G. Edwards. "Every farmer I've talked to said their soybean yields aren't as good as they expected so I lowered my bean yields one bushel per acre across the board," said Steve Freed, analyst for ADM Investor Services. In the REUTERS survey, the average estimate for this year's corn yield was 139.43 bushels per acre, below the USDA September estimate of 141.80 but above the 1999-2000 yield of 133.80. The average trade estimate for this year's soybean yield was set at 38.40 bushels per acre, less than the government's September estimate of 39.50 bushels but above last year's 36.50 bushels. 

Different Farm Politics for 2000.  To farmers and agricultural groups watching the 2000 presidential and congressional races, Republicans and Democrats "seem a world apart," according to THE ASSOCIATED PRESS. "The groups say a lot is at stake - the next Congress likely will work on a new farm bill, and the fate of the `freedom to farm' policy, enacted four years ago, will depend upon who gets elected both to Congress and the White House this November," the article says. Republican and Democratic leaders are offering dramatically different views on the policy - the national Republican Party platform defends freedom to farm, while Democrats, including President Clinton, consider it a failure, the AP article continues. "It's crucial," said Jamie Clover Adams, the Kansas agriculture secretary, said of the Nov. 7 election. "The bulk of the policy is hashed out in Congress, but it's going to take the cooperation of the USDA." Sen. Pat Roberts (R-KS), who helped write the law in 1996 as chairman of the House Agriculture Committee, said, "The big question is: Should freedom to farm be fixed or replaced?" 

Clinton Signs China Bill Today.  REUTERS reports that President Bill Clinton will sign landmark legislation today granting permanent normal trade relations to China. The bill is to be signed at a White House ceremony attended by House and Senate Republican leaders and top Democratic supporters of the measure, White House spokeswoman Nanda Chitre said. The article said the bill had yet to be formally sent to the White House as of Monday afternoon. But a White House official said, "We have been guaranteed we will have the bill." The speaker of the House, Republican Dennis Hastert, and Senate Republican Leader Trent Lott are scheduled to attend the ceremony as are New York Democratic Sen. Daniel Patrick Moynihan and Democratic Rep. Charles Rangel.

October 9, 2000

Clinton Vetoes Water Bill.  President Clinton vetoed the energy and water appropriations bill, saying it "threatens major environmental harm by blocking our efforts to modernize operations on the Missouri River." Agricultural interests had supported that provision, saying the "spring flood" proposed by the federal government would have harmed production agriculture in the area. 

USDA Expands Storage Loan Program.  USDA has expanded the farm storage facility loan program which offers low-interest loans to farmers building on-farm storage facilities; it now will include loans for structures designed to store silage. In addition, the required down payment for loans will be reduced from 25% to 15%. 

Peanut Assistance Distributed.  USDA is distributing about $61 million to peanut producers to partially compensate them for continuing low commodity prices and increasing costs of production for the 2000-crop year. Signup for peanut producers began at USDA service centers or Farm Service Agency county office on Oct. 2 and ends Feb. 1. 

Food Firm Fails to Recall Barbecued Chickens.  USDA's Food Safety and Inspection Service, faced with a company that did not voluntarily recall a possibly contaminated product, has warned the public that approximately 7,640 pounds of barbecued chickens that may be adulterated with Listeria monocytogenes, produced by House of Raeford Farms, Inc., a Raeford, NC, firm. 

FAS Announces Markets Program Projects.  USDA's Foreign Agricultural Service says $9.8 million has been approved for projects and activities under the Emerging Markets Program. Of this total, approximately $6 million will be awarded directly to private organizations to support a number of export-related projects. The remaining amount is allocated to USDA agencies to undertake government-to-government projects that will promote the export of U.S. agricultural commodities and assist in the development of market-based economies. Amounts allocated to FAS will be used to work with private organizations on assessments, market access issues, training, and other marketing activities. 

Study Shows Lean Meat Can Be Part of Heart-Healthy Diet.  A recent study, funded by the beef checkoff program, confirms that including lean red meat in a sensible diet can positively impact blood cholesterol levels and actually help individuals follow the diet with better long-term compliance. The study demonstrated that the consumption of lean red meat or lean white meat over an extended period of time is similarly effective in reducing "bad" cholesterol and raising "good" cholesterol concentrations in those people with elevated cholesterol levels, according to the National Cattlemen's Beef Association.

News Summaries

Maybe Not This Year for China.  China may be forced to wait until next year to join the World Trade Organization (WTO), U.S. Trade Representative Charlene Barshefsky says, due to slow progress in talks in Geneva, according to a REUTERS report. Barshefsky said she planned to deliver that message in person to Chinese Premier Zhu Rongji and other leaders later this month or early in November, "hoping to break a stalemate that threatens to delay Beijing's accession to the trade body," according to this article. Diplomats have warned in recent weeks that China's 14-year-old bid to join the WTO was in serious jeopardy after talks in Geneva stalled over Beijing's commitment to implement WTO rules on intellectual property and carry out other promised market reforms. "It is still possible to finish this up by year-end," Barshefsky told REUTERS in an interview. "Previously, she had predicted with near certainty that China would become a member before the end of 2000," the article said. 

Clinton Says Cuba Provision 'Big Mistake.'  President Clinton criticized a congressional proposal for food and medicine sales to Cuba on Friday as "a big mistake." It does little for U.S. farmers and unwisely limits travel to Cuba, according to REUTERS. "I think it was a big mistake if it is what I think it is," Clinton told reporters at the White House. "But I want to reserve some room for judgement when we have a chance to review the actual language." The article adds that anti-Castro and pro-trade groups, usually on opposite sides of the debate, claimed victory in the package approved by congressional negotiators as part of a $75 billion agriculture funding bill. The House of Representatives and Senate were expected to vote on it this week. "What I have been told is that it looks like it eases the embargo on food and medicine but it probably doesn't very much because it doesn't provide any financing, which we give to other poor countries," the president said. 

Justice Should Investigate Milk Price Spread.  Agriculture Secretary Dan Glickman believes the Justice Department should investigate why retail milk prices have risen over the past year while prices paid to farmers have declined, according to REUTERS. "There's certainly a lot of concern out there" in farm country and among consumers, Glickman said. "I think it would be a good idea to have it investigated." In recent weeks, dairy-state lawmakers have called for a Justice Department investigation into the widening gap between retail and farm gate milk prices. "We've seen fluid milk prices rise over the past year about 6% and the prices received by farmers go down," said Keith Collins, chief economist for the Agriculture Department. "It's something particularly hard to explain at this point," Collins said. "We don't know why it's occurred and so I think that means it's worth looking into." 

USDA Increases Inspection Fees.  USDA's Food Safety and Inspection Service is increasing the fees it charges meat and poultry establishments, egg products plants, importers, and exporters for providing voluntary inspection services, overtime and holiday inspection services, identification services, certification services, and laboratory services. The fee increases became effective Sunday, Oct. 8. The fee increases reflect the inspection costs. FSIS is increasing the fee for providing meat and poultry voluntary inspection, identification, and certification services from $37.88 to $38.44 per hour per program employee. For meat, poultry, and egg products overtime and holiday inspection services, FSIS is increasing the fee from $39.76 to $41.00 per hour per program employee. In addition, the rate for laboratory services is increasing from $58.52 per hour per program employee to $60.04 per hour per program employee. The current fees for meat, poultry, and egg products inspection services and overtime and holiday inspection services were established Oct.1, 1999. Beginning with fiscal year 2001, which began Oct. 1, FSIS will review annually its fees for overtime and holiday meat, poultry, and egg products inspection services for necessary adjustments on a fiscal year basis. 

Japan, EU Seek WTO Talks Launch.  KYODO NEWS reports from Thailand that Japanese Minister of International Trade and Industry Takeo Hiranuma and European Commissioner for Trade Pascal Lamy agreed in talks Saturday to keep working for an early start to a new World Trade Organization (WTO) round that would have developing countries' concerns high on the agenda. The article quotes a European Union (EU) source. Hiranuma and Lamy exchanged views on WTO issues in a bilateral meeting in Chiang Mai, northern Thailand, apart from a series of multilateral meetings hosted by the Association of Southeast Asian Nations (ASEAN). "They agreed to continue to push for a new round at the earliest possible time, taking developing countries' concerns fully into account in the new round and in setting up the new round," the source said. Lamy was quoted by officials of the Ministry of International Trade and Industry (MITI) as saying developing countries are still at a loss regarding how to go about a new round. 

Investors Question IBP Deal.  REUTERS reports that some big investors "are less than happy" with last week's proposed $2.4 billion or $22.25 per share leveraged buyout of top meat packer IBP Inc. , according to Barron's business publication. Brandes Investment Partners, IBP's second-largest shareholder, was in the process of contacting other shareholders to gauge dissatisfaction with the deal, Barron's said. Brandes Managing Director Brent Woods and Portfolio Manager Paul Korngiebel told Barron's they are working to determine the credibility of a committee of IBP shareholders that approved the deal on the advice of J.P. Morgan. "We're not convinced that $22.25 per share is a fair number, when we're comfortable with valuations in the high 20s -- at least 20 to 40 percent up from the DLJ proposal," Barron's quoted Korngiebel as saying. Brandes is in the very early stages of assessing the options available to dissident shareholders, the Barron's article said. Last week, investment bank Donaldson Lufkin and Jenrette said that an investment fund affiliate had agreed to buy South Dakota-based IBP, the world's largest producer of fresh beef, pork and related products. The deal includes assumption of about $1.4 billion in debt.
 

October 6, 2000

Galvin Details Cuban Market Potential.  Foreign Agricultural Service Administrator Tim Galvin says with credit guarantees, market development and food aid, the Cuban market for U.S. agricultural exports could be worth $300 million with "a year or two." With completely normalized trade relations, Cuba could be a $1 billion market for U.S. farm good within five years, he added. 

Grocers Decry Irradiation 'Attack.'  Ideological attacks on food irradiation hinder efforts to save lives and enhance the safety of the food supply, says the Grocery Manufacturers of America. In response to what it calls "the latest series of orchestrated attacks on irradiation led by the group Public Citizen," GMA said the scientific evidence supporting the benefits of food irradiation is overwhelming. 

South Dakota Farmers Call for Rural Investment.  The South Dakota Farmers Union has endorsed a National Cooperative Business Association move to get congressional approval for new equity investment to rural America. The proposed National Rural Cooperative and Business Equity Fund Act would create a new public-private partnership designed to attract equity investment in cooperatives and other businesses in rural areas. Sen. Tom Harkin (D-IA) is sponsoring the bill and plans to introduce it with the goal of having it approved before Congress adjourns later this month. 

Farm Bureau Urges Clinton Sign Water Bill.  President Clinton should take farmers' and rural residents' interests, safety and livelihoods to heart as he considers the fate of a measure to prevent an intentional rise of water levels on the lower Missouri River, according to the American Farm Bureau Federation. AFBF-supported language in the 2001 energy and water appropriations bill -- legislation the White House has targeted for veto -- would prevent the Army Corps of Engineers from implementing an engineered "spring rise" on the lower Missouri River. The appropriations bill instead would allow states in the Missouri River Basin to continue efforts to develop a management plan for the river -- an avenue Farm Bureau supports. 

Minnesota Acts to Strengthen Contracts.  The state of Minnesota has approved a law to provide some basic protection to farmers who produce or market through contractual arrangements, and more than a dozen other states are considering similar moves. But what farmers who produce under contact want done on their behalf remains up in the air.

News Summaries

Futures Bill Still Hangs in Balance.  BLOOMBERG NEWS reports that lawmakers hope to reach a last-minute accord on a bill to reduce rules for futures exchanges and keep the government from regulating over-the-counter derivatives in time for a House vote as Congress struggles to adjourn next week. House Majority Leader Richard Armey and the Republican leaders of the House Agriculture, Banking and Commerce committees "have been trying for days to combine the three different measures the panels passed," this article says. They're still deadlocked over how best to exclude OTC derivatives from regulation, but hope for a floor vote next week, Banking Committee spokesman David Runkel said, according to the article. Futures exchanges, banks and securities firms say if Congress doesn't pass legislation this year, the multitrillion-dollar futures and derivatives market will move overseas. Time is running out for the House and Senate to pass the measure. 

Tobacco Compensation Payments Made.  USDA has begun distributing $340 million to compensate tobacco farmers who suffered a reduction of tobacco quota or acreage for the 1999-2000 crop years. Payments are expected to be completed by Oct. 20. While USDA does not pay direct subsidies to tobacco producers, the amount of U.S. tobacco produced is regulated to match supply and demand, with a guaranteed minimum price for producers. In recent years, allotments and quotas for some kinds of tobacco have been significantly reduced. Congress directed that producers of designated types of tobacco receive a portion of the $340 million to help defray lost income resulting from declining quotas and allotments. Eligible kinds of tobacco include: Flue-Cured types 11-14, Burley type 31, Fire-Cured type 21, and Cigar Filler/Binder types 54-55. 

Cuban Sales Approved by Conferees.  Members of a House-Senate conference committee voted along party lines for a compromise to allow some commercial food and medicine sales to Cuba. The measure, which has sparked bitter controversies, was the last item lawmakers dealt with as they completed the conference report on a bill to fund USDA operations in the fiscal year that began October 1. Democrats denounced a section of the compromise that will codify current restrictions on travel to Cuba, and Senators of both parties initially voted against accepting that section. But when House members remained adamant that the compromise remain intact, Senators relented and the measure was included in the final bill. Besides the travel restrictions, Democrats objected to the ban on financing sales by U.S. banks, although third- country bank financing would be permitted. Along with sanctions reforms, the conferees included portions of the Hunger Relief Act, which restores some cuts to the Food Stamp program made in 1996 welfare reform legislation. A $3.5 billion disaster relief package for agriculture was also part of the final deal. THE ASSOCIATED PRESS reports the legislation includes $1.6 billion for payments to farmers whose crops were destroyed by drought or damaged by disease, $490 million to livestock producers who lost pasture to this summer's dry weather and $473 million for dairy prices to compensate for falling milk prices. 

Cairns Group Seeks Start for WTO Talks.  The 18 nations of the Cairns Group that make up one third of the world's agricultural exports, meet in Canada next week in an effort to get commodity free trade talks underway that failed at last year's World Trade Organization summit, BLOOMBERG NEWS reports. The article says the Group, "which sees itself as the third party at the table of world trade negotiations, sitting beside the European Union and the U.S.," exports more than $105 billion a year and is pushing for an end to import quotas and export subsidies. Its most-recent drive for trade reform, at last December's WTO talks in Seattle, collapsed under an impasse between the U.S. and Europe over labor and environment issues, as protesters fought street battles with police outside.
 

October 5, 2000

NCGA Says Sell StarLink.  The National Corn Growers Association (NCGA) is encouraging farmers to participate in the Aventis buyout program for StarLink corn. Last Friday, Aventis CropScience reached an agreement with USDA for the Commodity Credit Corp. (CCC) to buy directly from farmers all 2000-crop StarLink corn, including all corn grown within 660 feet of StarLink hybrids, that is not intended to be fed on farm. 

FCA, ABA Spar Over National Charters.  The proposal to grant national charters to Farm Credit System (FCS) institutions is not in the best interest of the farmers, ranchers and rural residents FCS was chartered to serve, the American Bankers Association (ABA) told the House Banking and Financial Services Committee. 

NGFA Signs Major E-Commerce Agreement with DTN.  The National Grain and Feed Association has concluded an agreement with Data Transmission Network Corp. (DTN), Omaha, NE, to provide electronic data interchange (EDI) services to the grain, feed and processing industry. EDI involves the computer-to-computer exchange of business documents and other information between different companies. EDI-transmitted information is exchanged in a standard syntax and format that ensures the information is transmitted accurately and completely. 

Suit Dismissal Please Biotech Group.  The Biotechnology Industry Organization (BIO) says the dismissal in federal court of a lawsuit challenging the Food and Drug Administration's (FDA) regulatory policies governing foods and crops derived through biotechnology is a "huge victory" for FDA and consumers. 

Grain Elevators Want Corn Segregated.  A new survey from the American Corn Growers Foundation shows a majority of grain elevators either require or suggest segregating genetically modified corn from traditional varieties. It is the second such annual survey by the ACGF. A total of 1,107 grain elevators in nine states were surveyed.

News Summaries

How Success Spoils UK Farmers.  REUTERS reports from London that industry analysts have told United Kingdom food grain producers to "stop being so successful." They called on farmers to think about how long they could survive by harvesting millions of tons of wheat at a loss. Food grain farmers have greatly increased output of wheat this season, "boosting the crop by at least a million tonnes at a time when prices are sliding and eastern Europe can produce at lower cost," the article says. "There is a strong case for saying that cereal growing and in particular wheat production was one of the major success stories of the 20th century," John Page, a former agriculture adviser at Barclays Bank, told an industry conference. "But if we go on producing more than our consumers can buy we're going to see some very low prices...You've got to ask yourselves: can you cope with 60 pounds a ton?" Prices for wheat have declined to about 58 to 60 pounds per ton from this year's large harvest. The article says analysts said price increases were unlikely in the short term, while costs for fertilizer were expected to rise. "With yields currently growing at the rate of two percent a year and little increase in population, we shall need to find export sales of over six million tonnes a year by 2010," Page said. 

Dairy Exports Close to Record.  If export projections hold, U.S. dairy product exports could set a record exceeding $1 billion in fiscal year 2000, up from the previous record of $930 million in 1998. Recent trade reports show U.S. dairy exports are up 15 percent or $115 million in fiscal year 2000 compared with the same period a year earlier. "Exports of U.S. dairy products are showing strong growth this year in response to growing international demand, promotion efforts, and active government programs," said Timothy J. Galvin, administrator of USDA's Foreign Agricultural Service. "The strong export demand is good news for U.S. dairy producers. With domestic prices on the low side, it's good to see U.S. dairy producers take advantage of marketing opportunities outside the United States for growth in sales and income." Galvin noted that cheese, ice cream, and whey product exports are up significantly, with the whey complex up more than 25%. Exports of further-processed dairy products such as frozen pizzas and infant formula are also up sharply. "Government program activity, mainly the Dairy Export Incentive Program (DEIP), helped boost the value of nonfat dry milk shipments by $76 million to $177 million," said Galvin. On a country basis, Canada--with tastes similar to the United States–had the largest increase, while the recovering economies of Asia contributed to the upsurge, with strong purchases by South Korea, the Philippines, and China. 

Funding Bill Further Delayed.  Republican leaders in the U.S. Congress decided on Wednesday after hours of meetings to delay until noon today a meeting of a committee negotiating an agriculture funding bill that would allow limited U.S. food and medicine sales to Cuba, REUTERS reports. Conference committee members met on Tuesday on the $75 billion agriculture bill but delayed work specific to the Cuba sanctions so leaders could try to resolve differences between the Senate and the House of Representatives, according to the article. Both chambers have voted to allow the sales. House leaders favor more restrictive language that would exempt food and medicine from unilateral U.S. embargoes but deny public or private U.S. financing to Cuba. Some senators want to allow U.S. banks to finance the sales directly. The article says Republican leaders made little headway in quelling objections to their plan and set negotiations for Thursday, rather than try a Wednesday session. 

Specialty Sugar Allocation Announced.  Foreign Agricultural Service Administrator Timothy J. Galvin says the fiscal year 2001 specialty sugar allocation under the refined sugar tariff-rate quota of 17,656 metric tons raw value will be subject to new administrative procedures designed to facilitate the import of specialty sugars by small companies. FAS has instructed the U.S. Customs Service to limit the initial entry of specialty sugar to 14,656 metric tons raw value, an amount equal to the fiscal 2000 quota. The balance of 3,000 metric tons raw value, which is equal to the increase in the quota for fiscal 2001, will be made available for entry on Jan. 2, 2001, to give smaller importers a second opportunity to participate in using the quota. The U.S. Customs Service will establish procedures for prorating entries of specialty sugars. If total entries exceed the quota amount when the quota is opened, all importers will get a prorated share of the quota. The initial14,656-metric-ton import quota for specialty sugar is expected to be prorated and opened as soon as Customs has concluded procedures for prorating the global allocation of the refined sugar tariff-rate quota, which opened Oct. 2. The second tranche of 3,000 metric tons raw value will be prorated on Jan. 2. 

Higher Corn Yields Found in Nebraska.  REUTERS reports that Nebraska corn production continued to surprise industry representatives who toured the state on Wednesday. Field sampling and meetings with elevator operators showed better-than-expected yields and a good quality crop, according to the article. Many corn industry experts had been looking for significant problems with the new corn crop in Nebraska, after the state suffered through a severe summer drought that forced producers to work irrigation systems overtime and write off much of the state's dryland corn, says REUTERS. But the tour, sponsored by the Nebraska Corn Board and composed of more than 50 international representatives as well as U.S. industry experts, found that yields were in line with last year's crop or just slightly below. Quality was not considered a problem, although moisture levels in the kernels were well below normal levels, and some reported smaller-than-normal kernels. 

EU Eases Hormone Testing on Beef.  BLOOMBERG NEWS reports that the European Union's decision to ease testing of U.S. beef imports for banned hormones "means U.S. cattlemen can begin to ship more beef, a first step toward de-escalating the trade dispute," according to a senior EU official. If shipments increase to meet the quota for U.S. beef, the EU will "consider allowing the U.S. to increase its level of non- hormone-beef exports in compensation" for a continuing ban on hormone-treated beef, said John Richardson, deputy chief of mission at the EU's executive office in Washington. Last year, the Geneva-based World Trade Organization ruled the EU ban on hormone-treated beef illegal. Still the Europeans have maintained the ban. Last year, the United States imposed $117 million in tariffs on EU goods ranging from Danish hams to Belgian chocolates, with the WTO's blessing. The Clinton administration has said it will rotate the list of sanctioned goods in order to inflict maximum pain on EU exporters, although it has yet to do so. 

EU Proposes Banana Resolution.  THE ASSOCIATED PRESS reports the European Union set out new proposals Wednesday for solving the long trade row with the United States and Latin America over bananas, hoping the fresh ideas will lead to a lifting of American trade sanctions. The European Commission, the EU's executive body, proposed scrapping the quota system for a tariff only system by 2006. A transitional "first come, first served" system which would give all banana exporters a fair opportunity to ship their goods to European ports will be used until the tariff-only system is in place, the Commission said. "First come, first served is the key to putting an end to a dispute which has already gone on for too long," said Franz Fischler, the EU Agriculture Commissioner. The AP article says EU Trade Commissioner Pascal Lamy said the plan fully complies with World Trade Organization rules and would continue to help EU producers as well as former EU colonies in the Caribbean, and Africa. The plan, which still must be approved by the 15 EU national governments, should bring to an end a trade dispute that has lasted three years, Lamy said. 

Lyons' Funding Stripped.  A top-ranking USDA official who has alienated members of Congress may have little to do during the rest of his time in office, THE ASSOCIATED PRESS reports. House and Senate negotiators working on a USDA spending bill have agreed to strip James Lyons, USDA's under secretary for natural resources and environment, of his responsibilities overseeing the Forest Service and the Natural Resources Conservation Service, according to the article. The AP says that under the provision approved late Tuesday, the Forest Service and the Natural Resources Conservation Service would report directly to Agriculture Secretary Dan Glickman until Jan. 20, when he and Lyons are scheduled to leave office. The House had voted in July to eliminate funding for Lyons' office, but the lead Senate negotiator on the spending legislation, Sen. Thad Cochran (R-MS) said that was too much. The article says lawmakers have several complaints about Lyons. "Among other things, they say he didn't speak up for farm interests that opposed a plan by the Environmental Protection Agency to clean up polluted streams and lakes," the article says. Lyons also has come under criticism from lawmakers and the department's inspector general for a program that provided grants to cities for sometimes questionable projects, such as painting a wall mural. Democratic lawmakers, however, said the action was unduly punitive and would accomplish little, since Lyons plans to leave his position in the near future.

October 4, 2000

Consumers Increase Soy Use, Awareness.  An annual survey conducted by the United Soybean Board (USB) shows that America's consumption of soy continues to rise, as does the recognition of soy's health benefits. Seventy-six percent of American consumers consider soy products to be healthy, up from 71% last year. Thirty-nine percent are aware of soy's specific health benefits, including: lowering cholesterol, high fiber/digestive benefits, a source for increasing energy and relief of menopausal symptoms. 

Biotechnology Group Reaffirms Safety Pledge.  The Biotechnology Industry Organization (BIO) says safety continues to be its members' highest priority and announced an expanded commitment to increase public understanding of agricultural biotechnology products and practices. 

Water `Stress' Detectable.  Adding temperature sensors to a site-specific, center-pivot irrigation system showed that it is possible to detect water stress and manage delivery of irrigation water using that information, according to USDA research. Agricultural Research Service scientists in Florence, SC, are fine-tuning the controls for a modified center pivot. 

No Silver Bullet, but Irradiation Is Effective.  A recent report from the General Accounting Office shows that 50 years of research has shown the benefits of food irradiation with minimal potential risks. Yet, the major purchasers of irradiated foods are health care and food service establishments. 

Senate Approves Water Bill.  The Senate approved 57-37 the energy and water appropriations conference report, sending the bill to the White House where President Clinton could veto it. The bill includes a prohibition against a "spring flood" advocated by federal agencies on the Missouri River to protect an endangered fish and opposed by agricultural interests who fear it will disrupt agriculture and transportation. 

Agriculture Conferees Meet.  House and Senate conferees met last night to resolve differences over 2001 agriculture spending, but adjourned without debating the most contentious issues in the funding legislation. Discussion of trade sanctions reform and prescription drug imports was limited to procedural wrangling. Democrats warned against a repeat of last year's agriculture conference, in which the Republican leadership eliminated a sanctions reform provision amid perceptions that conferees would have acted differently.

News Summaries

UK Farmers Get Relief.  BLOOMBERG NEWS reports that the United Kingdom's government said it will give British farmers 1.6 billion pounds ($2.3 billion) to help the rural economy and promote ecological farming, the Daily Telegraph said in its online edition, citing Agriculture Secretary Nick Brown. The seven-year program will divert money from production support to aid product marketing, establish energy crops and help retraining in farming and forestry, the paper reported. "The government is committed to sustaining and enhancing the distinctive environment, economy and social fabric of the English countryside for the benefit of all," said Brown. Last month farmers and truck drivers protested increases in fuel prices. In the last 12 months, rising fuel prices have added an average 8,000 pounds in costs to some farmers, the National Farmers' Union said. 

Lobbying for China a Costly Venture.  REUTERS reports that corporations spent as much as $113 million in "an unprecedented campaign" to persuade Congress to approve permanent normal trade relations for China, opponents of the bill said on Tuesday in a report. The report, by Public Citizen's Global Trade Watch, asserts that business groups spent $31.2 million lobbying Congress, at least $13.75 million on television, radio and newspaper advertising, and made $68.2 million in political contributions to boost support for the trade bill, which passed last month. The article says that business groups led by the Chamber of Commerce and the Business Roundtable "made no secret that passage of permanent normal trade relations for China was their top legislative priority, but dismissed Public Citizen's figures as inflated." Chris Padilla, spokesman for the Business Coalition for U.S.-China Trade, said, "$113 million? Please. I guess someone must have stashed about $100 million into a Swiss bank account, because it didn't get spent on China." President Bill Clinton is expected to sign the trade bill into law later this week. 

China Bill Signing May Be Delayed.  President Bill Clinton hoped to sign landmark legislation granting permanent normal trade relations to China at a White House ceremony on Thursday. But Republican leaders in Congress are saying, not so fast, REUTERS reports. Even though it was approved overwhelmingly by the U.S. Senate in a final vote last month, leaders in the House and Senate have yet to send the trade bill to Clinton, and aides said they may hold onto it, possibly until Congress adjourns later this month, the article says. "It's going to get to the president," said John Czwartacki, spokesman for Senate Majority Leader Trent Lott of Mississippi. "It's not a matter of if. It's a matter of when." But Czwartacki said he doubted Clinton would receive the trade bill this week, as the White House had hoped. "Congress doesn't schedule its constitutional duties around a hole in the president's schedule," he added. 

Million Tons of Sugar Overhang the Market.  USDA will have to find a way to dispose of an estimated 1.08 million short tons of sugar forfeited to the government by domestic processors without damaging prices in return, a sugar industry official said Tuesday, according to REUTERS. Sugar processors have forfeited sugar to the government rather than repay USDA loans. Raw can sugar and refined beet sugar prices have been well below the government loan rates of 18 cents and 22.90 cents a lb, respectively. "Our primary concern is that it (the forfeited sugar) not be moved onto the domestic market in a manner that could cause further forfeitures," Jack Roney, chief economist of the American Sugar Alliance (ASA), told REUTERS in an interview at a Sugar Club dinner in Washington. He said the U.S. sugar industry is seeking to work with the government "and be as imaginative as we can about ways to dispose of this sugar in a way that would not depress the U.S. sugar market." 

National Charters Come Under Leach's Review.  THE WALL STREET JOURNAL reports that House Banking Chairman Jim Leach (R-IA) says government auditors will review whether the Farm Credit Administration violated federal rule-making procedures when it decided to issue national charters to its member banks. "This is an inappropriate idea, improperly made and has powerful-market changing ramifications," Leach said at a hearing to Michael Reyna, the chairman and chief executive of the farm loan agency. "It ought to be shelved." The WSJ article says the Farm Credit Administration, established as a government-sponsored enterprise in 1916 as locally controlled cooperatives lending to farmers, ranchers and rural homeowners, recently decided to allow its 158 lending associations to expand their business nationwide beginning Jan. 1, 2001. "The decision drew fire Tuesday from lawmakers, the Treasury Department and bankers worried that the Farm Credit System will expand beyond its congressional mandate, compete with commercial banks and begin funding projects that have little to do with the farmers they were intended to serve," the article notes.
 

October 3, 2000

Half of Farm Income Is from Government.  USDA distributed a record $28 billion in direct assistance to American farmers and ranchers in the fiscal year that ended Sept. 30 -- about half of farm income. Without USDA assistance farm income would have hit its lowest level since 1984. In releasing the figures, Agriculture Secretary Dan Glickman said, "I have no doubt that, in many cases, USDA assistance has meant the difference between small, family farmers surviving or going out of business." 

Corn, Grains Groups Hurry to Reassure Japanese.  The U.S. Grains Council (USGC) and the National Corn Growers Association (NCGA) quickly launched a "mission" last week to address the concerns of the largest single customer of U.S. corn -- Japan. Japan usually imports more than 600 million bushels of U.S. corn annually.

News Summaries

Group Buys IBP.  BLOOMBERG NEWS reports that a group led by Donaldson, Lufkin & Jenrette Inc. agreed to buy IBP Inc. for $3.8 billion in cash and debt. IBP has been making more high-profit items such as taco toppings and hot dogs as well as fresh beef and pork, the article notes. IBP investors will get $22.25 a share, 22% above the previous close. IBP stock, down by one third since 1995, traded at six times forecast earnings, about half of rival Smithfield Foods Inc. and below the 29 times for the Standard & Poor's 500 Index, according to the article. Increasing hog and cattle costs have squeezed profit at IBP, which gets most of its revenue from meat produced at its slaughterhouses. BLOOMBERG also says given the decline in IBP stock, the buyout offer "may meet resistance and could trigger a counter-bid from Smithfield," which owns about 6% of the company, according to Christine McCracken of MidWest Research in Cleveland who has a "buy" on IBP. 

Nearly 800,000 Tons of Forfeited Sugar Expected.  Sugar processors were expected to forfeit 781,421 short tons, raw value, of sugar to the federal government by the close of business on Monday, a sugar industry official said, according to a REUTERS report. That would increase government sugar inventories to an estimated 1.075 million short tons, Jack Roney, chief economist of the American Sugar Alliance, told reporters. "Isolating that much sugar from the market should be very constructive for prices," Roney said. The sugar program allows sugar beet and sugar cane processors to forfeit sugar to the government instead of repaying Agriculture Department loans. The article notes that with raw cane sugar and refined beet sugar prices well below the government loan rates of 18.0 cents and 22.90 cents per pound, respectively, many processors have taken the forfeiture option this year. 

Dairy Board Gets New Members.   Secretary of Agriculture Dan Glickman has appointed 11 new members and reappointed 2 incumbents to the National Dairy Promotion and Research Board. All will serve three-year terms from Nov. 1, 2000, through Oct. 31, 2003. Newly appointed were: Dennis A. Leonardi, Ferndale, CA. (region 2); Charles W. Bryant, Austin, AR (region 4); Arlon E. Fritsche, New Ulm, MN, and Loren E. Jons, Bonesteel, SD (region 5); Allard L. Peck, Chippewa, Falls, WI, and Connie M. Seefeldt, Coleman, WI (region 6); Wayne E. Dykshorn, Ireton, IA (region 7); Sanford L. Jones, Jr., Quitman, GA (region 10); Lewis Gardner, Galeton, PA (region 11); and Edgar A. King, Schuylerville, NY (region 12). Reappointed to serve second terms were: Pedro R. Lizaso, Emmett, ID (region 3); and Merle L. Chaplin, Moundsville, WVA (region 9). 

Congress Ready to Approve Cuban Sanctions Change.  Congressional negotiators on Tuesday appeared ready to approve a major shift in four decades of U.S. policy toward Cuba, easing an embargo on exports of food and medicine to the communist nation, REUTERS reports. The article says Senate and House negotiators were to consider the Cuban embargo as part of talks late on Tuesday afternoon on a $75 billion agriculture spending bill. The article adds that House aides were to check the language on Tuesday morning to help ensure smooth adoption by the conference. "I suspect they will work this out before we meet," said one congressional source. Republican leaders the House and Senate have been cool to easing sanctions. The article notes they agreed to it "only under duress earlier this year" when a clear majority of members in both chambers threatened a public challenge. 

Kansas Farmers Increase Crop Insurance.  Kansas farmers have increased dramatically their insurance coverage on 2001 winter wheat "as they seed parched fields," says THE ASSOCIATED PRESS. "They are just selling crop insurance hand over foot out here because it is hot and windy," said Vance Ehmke, a Lane County farmer who is planting 2,000 acres of winter wheat. In 25 years of farming, this is the first time Ehmke has bought insurance on his wheat crop. In the past he had carried minimal catastrophic insurance provided by the government for a small processing fee, according to the AP article. "It is pretty gruesome out here," Ehmke said. "I've seen some fields where there is not one chance in a trillion of getting a stand - and I guarantee you those guys are getting crop insurance." Kansas wheat growers this year paid a 30% increase in gross premiums compared to last year - most for added insurance coverage of their crop, said Gregg Classen, vice president of Rain and Hail Insurance Co. in Omaha. 

The First Jewish Agriculture Secretary.  President Clinton joked Monday night that he resents the credit given Al Gore for choosing a Jewish vice presidential running mate in Sen. Joseph Lieberman, especially when he appointed the first Jewish Agriculture Secretary, THE ASSOCIATED PRESS reports. "I know it's a big deal to have the first Jewish vice presidential nominee, but I mean, come on now, look at American history; that is nothing compared to the first Jewish agriculture secretary," Clinton said. He was appearing at a Capitol Hill fund-raiser with Agriculture Secretary Dan Glickman for a high school classmate of Glickman's, freshman Rep. Dennis Moore (D-KS). "I mean, just with a decision, I destroyed one of the great stereotypes in American life: Nobody thinks Jewish farmer is an oxymoron any more,'' the president said. The AP article says that as he began his remarks about Moore, Clinton told the crowd, ``I realize that I'm preaching to the saved here,'' then said, in an aside to Glickman, a longtime Kansas congressman, "I'll explain that later, Dan." 

Tests Confirm StarLink.  The government's own tests have now confirmed that taco shells recalled by Kraft Foods contained a variety of genetically engineered corn that isn't approved for human consumption, according to THE ASSOCIATED PRESS. Government officials are considering testing other foods to see if they may contain the corn as well, said Steve Johnson, a senior official with the Environmental Protection Agency, which is working with the Food and Drug Administration and the Agriculture Department on the project. The FDA is conducting the esting and confirmed the results from independent laboratories for a group of environmental organizations and Kraft, Johnson said Monday. The corn variety, known as StarLink, is approved by EPA only for use in animal feed. 

Wellstone Criticizes IBP Acquisition.  Sen. Paul Wellstone (D-MN) said Monday the planned $2.4 billion acquisition of meat packer IBP Inc. shows tougher antitrust laws are needed to keep markets fair for family farmers, REUTERS reports. An investment fund linked to Donaldson, Lufkin & Jenrette announced earlier Monday it would purchase the world's largest producer of fresh beef and pork in a deal worth about $22.25 per share in cash. Some industry analysts said the offer was low and could attract other bidders. Wellstone objected to the proposed acquisition because of Donaldson, Lufkin & Jenrette's financial ties to agribusiness giant Archer Daniels Midland Co., according to the article. ADM has a financial stake in the investment firm as well as its own holdings of about 12% in IBP, Wellstone said in a statement.

October 2, 2000

Congress Approves Continuing Resolution.  A continuing resolution has passed both the Senate and House to keep the federal government operating into fiscal 2001 at levels equal to fiscal 2000, the year that ended Saturday. Eleven appropriations bills remain to be finalized, among them the agricultural appropriations bill, for the new fiscal year. 

Aventis Will Buy Up Starlink Corn.  Aventis has agreed to purchase the 2000 crop of Starlink corn, a genetically engineered product recently found in processed foods, a use for which it has not been approved. USDA and the Environmental Protection Agency had urged Aventis to make the move in the belief it will give consumers confidence in the integrity of the food supply. 

No Difference in Sugars, Says GMA.  Additional food labeling requirements proposed by an activist group would mislead consumers into believing there is a difference between naturally occurring sugars and sugar added to food products, according to the Grocery Manufacturers of America. In comments filed with the Food and Drug Administration, GMA urged the agency to deny a petition by the Center for Science in the Public Interest (CSPI) calling for the phrase "added sugars" to be listed on product labels.

News Summaries

GAO Says Pork Referendum Justified.  REUTERS reports that the General Accounting Office says Agriculture Secretary Dan Glickman was within his authority when he called for a pork checkoff referendum, "despite threats of legal action from the U.S. pork industry." GAO said Glickman was right in ordering the Sept. 19-21 vote, since the department failed to validate a petition of 19,000 hog farmers calling for one. The Agriculture Secretary is required to hold a referendum when at least 15% of all hog farmers request it. "This clearly validates the secretary's decision to call a referendum," said Andy Solomon, USDA spokesman, according to REUTERS. Last March, the National Pork Producers Council, which represents 85,000 U.S. pork producers, called for the GAO investigation saying Glickman had no authority to hold a referendum, because the petition did not represent 15% of all hog farmers, and that many of the signatures were invalid. "We disagree with GAO's assertion regarding the Agriculture Secretary's discretionary authority," the pork group said in a statement. 

Roberts Wants EPA Visit.  Sen. Pat Roberts (R-KS) wants Environmental Protection Agency officials to tour his state before issuing final water quality standards. EPA has issued proposed regulations to impose federal water quality standards on all Kansas waters, including private waters, that are not used or designated for swimming, boating or fishing, the senator says. Roberts adds that while EPA expects the new regulations will cost Kansas communities about $2 million a year, state officials predict it will be much more than that and that most of the burden will fall on small towns. "A visit to the state can serve as a starting point for dialogue between the EPA and Kansas so an agreement on water quality standards can be reached, rather than letting lawsuits and federal courts set environmental policy," says Roberts. 

Charcoal Absorbs E. Coli Bacteria.  Refined activated charcoal can absorb the O-157 strain of E. coli bacteria and its toxin that causes food poisoning, a joint research team from the University of Osaka Prefecture and Okayama University says, according to KYODO NEWS SERVICE. The article says that researchers from the agriculture department at the University of Osaka Prefecture and the department of medicine at Okayama University say that medical carbon, made of refined activated charcoal, absorbs the bacteria and the toxin it secretes. ''The research will contribute to the development of treatment for the bacteria without using antibiotic drugs, which can cause severer symptoms for the bacteria,'' said Shinobu Watarai, who led the research. Researchers plan to give medical carbon to livestock and humans. The carbon is expected to be excreted through urine when used to absorb E. coli bacteria in the intestines of humans and animals, the researchers said. 

Wheat Not King in Kansas Anymore.  THE WALL STREET JOURNAL reports that wheat "isn't king in Kansas anymore." The state has wheat, which arrived in the 1800s with Russian immigrants, "emblazoned on Kansas license plates, and college-football teams clash in the state's annual Wheat Bowl," according to the article. But Kansas farmers are harvesting more corn than wheat this year. USDA reports that Kansas harvested 347.8 million bushels of wheat this summer, a decline of 19.6% from last year. The state's corn crop, which has been steadily increasing in recent years, is expected to total a record 432.3 million bushels this fall. The WSJ article also notes that wheat was runner-up in 1996, "but that didn't count in the minds of economists, because bad weather wiped out about half of the wheat crop that year." The major reason wheat production in Kansas is fading is that farmers are planting less of it. The size of Kansas wheat fields has shrunk by 2 million acres, or 17%, during the past four years, the article notes.