October 31

Anthrax Found in USDA Mail Room. USDA has confirmed that trace amounts of anthrax have been identified in the mail room of the Economic Research Service (ERS) office located at 1800 M Street, N.W. in Washington, DC. USDA confirmed the test results late Monday afternoon and immediately reported the results to local authorities and began coordination of precautionary measures directly with the Public Health Service of the Department of Health and Human Services and the Office of Homeland Security.  

USDA, Wisconsin Work on CREP Water Project USDA and the state of Wisconsin are collaborating on a $243 million Conservation Reserve Enhancement Program to protect the state's water quality and wildlife habitat. Under this program, USDA will reimburse farmers to remove from agricultural production environmentally sensitive land next to rivers and streams.  

More States Allowed to Import Mexican Hass Avocados. Dietitians attending their national convention got a chance to learn new information about protein in a presentation at the American Dietetic Association's 2001 Food and Nutrition Conference & Exhibition in St. Louis, MO. Scientific research has shed new light on the emerging role of moderate protein diets in metabolic control and dietary compliance, according to key nutrition authorities.  

Enforce, Don't Change, Says AMI. The Food and Drug Administration should focus on achieving total compliance with the current animal feed regulations instead of changing the existing regulation, AMI Foundation President James H. Hodges told an FDA hearing on animal feed regulations. The hearing was held in Kansas City, MO, to discuss how or whether to strengthen a regulation designed to help prevent the introduction of bovine spongiform encephalopathy (BSE) into the nation's livestock population.  

France Dissatisfied with WTO Texts.  REUTERS reports from Paris that the French are not satisfied with the texts prepared for world trade talks next month but stressed the country was not breaking with the common stance of other European Union governments despite earlier signs of a split. EU foreign ministers agreed a common negotiating position Monday for the November world trade meeting in Doha, Qatar, which will try to launch a round of global trade liberalization talks. But France said texts issued before the meeting were "not satisfactory" and that freer trade must go hand in hand with tighter rules on good commercial conduct. "We call for a balance between the two," Foreign Ministry spokesman Francois Rivasseau told a daily press briefing. The news agency report notes that "all eyes have been on France" since Trade Minister Francois Huwaert suggested last month that efforts to launch a new trade round this year may fail and the EU should have an alternative plan ready. That prompted speculation France might be losing interest in the new global trade rounds.

Harkin's Farm Bill Coming Today.  Senate Agriculture Committee Chairman Tom Harkin (R-IA) will put his farm bill on the table today, a measure that would spend about $170 billion over 10 years and place far more emphasis on conservation than in previous farm laws. THE ASSOCIATED PRESS reports that conservation spending would double over the next decade and farmers would have two new subsidy programs to pick from under Harkin's bill. With minor changes, the legislation should have broad support in committee, he said in an interview Tuesday. "I believe I made good on what I said I was going to do and that was to make conservation a cornerstone," Harkin said. He said he expected the Bush administration to prefer his plan over the bill passed by the House's. The administration has been sharply critical of the House bill, saying it would encourage overproduction and primarily help big farms that need assistance the least. The administration has urged Congress to delay final action on an overhaul of farm programs until next year. Existing programs expire at the end of September 2002. Harkin's plan would keep two existing subsidy programs that provide fixed annual payments to grain and cotton farms and guarantee minimum income for their crops. Crop subsidy rates would be increased for most crops. Two new programs would be created: One would provide additional money when income falls below predetermined ``target'' levels - $270 an acre for corn, $215 for soybeans, $120 for wheat and $360 for cotton. The second new program would reward farmers for good environmental practices, such as erosion control, with payments of $20,000 to $50,000 a year. Conservation spending would rise $1.8 billion a year by 2006 and average $4 billion over the decade, up from $2 billion under existing programs. The House bill increases conservation programs by $1.2 billion annually. The Conservation Reserve Program, which pays farmers to take highly erodible land out of production, would be increased from 34 million acres to 40 million acres under Harkin's plan and there would be additional funds for a variety of other programs.

Zoellick Says Japan Complicates WTO Round.  THE ASSOCIATED PRESS reports that U.S. Trade Representative Robert Zoellick says Japan is complicating efforts to begin a new round of global trade talks. Zoellick said Japan was refusing to adjust its negotiating position to help bridge differences and allow agreement within the World Trade Organization on an agenda for new negotiations. "I have been frankly extremely disappointed by the lack of Japanese - I wouldn't expect leadership - but even respectable followership," he said Tuesday. Zoellick described Japan's position as intransigence symbolic of the country's paralysis on other economic issues. He said an agreement to negotiate lower trade barriers in agriculture would be key to getting support of the 80 percent of the WTO members from developing countries. The 142-nation WTO is to meet next month in Doha, Qatar. "It is frankly a disappointment for a country that was able to grow and develop through international trade and whose future depends on international trade to be acting in such a narrow-minded fashion," he said.

October 30

Dairy Groups Urge Broad Trade Round. Several U.S. dairy organizations are calling on the U.S. government to initiate a broad round of World Trade Organization negotiations that would include talks in economic sectors beyond agriculture and services. Five organizations representing segments of the U.S. dairy industry also are urging the Bush Administration to accept WTO General Council Chairman Stuart Harbison's proposed agricultural text without amendment.  

Rebuilding River Lock and Dam Systems Termed Vital. The National Corn Growers Association (NCGA) is urging Congress to act on rebuilding the nation's locks and dams to replace what NCGA calls an "antiquated" river transportation system. Currently, the lock and dam system on Corn Belt-serving rivers are 60 to 70 years old, designed and built by the U.S. Army Corps of Engineers in the 1930s. Some of these locks are only 600 feet long, making them unable to accommodate some of the modern 1,100 ft. barges. Because of this, barge delays have driven up the cost of U.S.-produced corn and lowered export demand.  

More States Allowed to Import Mexican Hass Avocados. USDA's Animal and Plant Health Inspection Service is amending its regulations to expand the number of states allowed to import Mexican Hass avocados and to increase the length of the shipping season. APHIS proposed this program expansion in the Federal Register on July 13. The public comment period closed on Sept. 1. APHIS solicited comments for 60 days and held four public hearings in August 2001, concerning the proposal to expand the Mexican Hass avocado import program.  

Ethanol Marks Two Years Record Production.  The Renewable Fuels Association (RFA) reports the U.S. ethanol industry set a production record for the month of September. The ethanol industry produced more than 115,000 barrels per day (b/d) in September of this year. This new record exceeds the previous September record of 101,000 b/d set in 2000, an increase of 14 percent. September's record was the 23rd monthly production record in the last 24 months. Officials say the ethanol industry is on pace to produce an annual record of roughly 1.8 billion gallons in 2001. The ethanol industry will also set a new capacity expansion record this year. There are thirteen ethanol plants under construction and 57 plants in operation.

Bt Harmless: BA Is Something Else.   Scientists at the Agbioworld Foundation have recently claimed to discredit rumors in which the anthrax bacterium Bacillus anthracis (Ba) is compared to Bacillus thuringiensis (Bt), a bacterium popular with farmers who use it as an organic spray to kill insects. The scientists stress that there is nothing to fear from organic farming or other agricultural applications of Bt, such as biotech plants that contain a single gene from Bt.

USDA Facilities Found Anthrax Free.  REUTERS reports that initial testing of USDA facilities in Washington, Maryland and Virginia have found no traces of anthrax. Earlier, a Department of Health and Human Services building tested "presumptively positive" for anthrax, adding to a growing list of contaminated federal buildings in Washington. Anthrax traces also have been found in mail offices used by the Supreme Court, the Justice Department, the CIA, Congress, the White House and the State Department. USDA spokesman Kevin Herglotz said anthrax tests found "nothing positive" at the two main department buildings in Washington and agency offices in Maryland and Virginia.

U.S. Move Should Jog China into Action.  REUTERS reports that China will be given a certificate for genetically modified soybeans by U.S. officials this week, an action expected to jog the Chinese into resuming imports of U.S. soybeans. "We will see if the U.S. document is in line with the requirements of our GMO regulations," said an official at China's Ministry of Agriculture, adding the office had not received any U.S. documents. The the first U.S. soy cargoes this season are expected in China as a test case for the country's import system that has been mired in uncertainties due to Beijing's new rules on GM crops and stringent quarantine inspections. The sources in Beijing told REUTERS that U.S. diplomats were handing over papers certifying the U.S. GM soybeans were no hazard to humans, animals or the environment and had been approved for use in the U.S. for the past six years. "The U.S. side is moving ahead to do the things they said they would do...It's up to the Chinese side to take some action," said a U.S. industry source. "We are optimistic that this is going to solve the problem." U.S. officials are formalizing an agreement reached on the sidelines of Asia Pacific Economic Cooperation (APEC) meeting in Shanghai last week, the source said. China said then that it was ready to accept such a U.S. safety certificate. China's Ministry of Foreign Trade and Economic Cooperation declined to comment. Many South American soy cargoes have been stranded at port silos due to quarantine inspections that were tightened in September. U.S. exporters suspect that a desire to prop up domestic prices is behind the red tape and have been lobbying Washington to get China to remove what they see as an unfair trade barrier.

October 29

EU Probably in Blair Compliance. USDA believes it is "likely" the European Union did not exceed Blair House agreement limits for the production of oilseeds in 2001-02. The EU did not exceed those limits last season either. Agenda 2000 changes to the EU's Common Agricultural Policy are reducing oilseed support levels thereby reducing incentives to plant oilseeds.  

California May Be Softening to Ethanol. The National Corn Growers Association (NCGA) late last week heard from the California Environmental Protection Agency a "softening of concerns" about ethanol in California and expression of a need for a "flexible" federal renewable fuels standard. The NCGA wrapped up its weeklong California ethanol outreach program Thursday by meeting with California EPA Secretary Winston Hickox who expressed a more positive position on ethanol in California than has been heard in recent months if at all.  

Japan Will Continue Ban on Beef.  KYODO NEWS reports from Tokyo that Japan's farm ministry has decided to continue its ban on distributing beef from cows slaughtered before nationwide cattle testing for mad cow disease began Oct. 18. The government has instructed beef producers and wholesalers groups to store beef in refrigerated warehouses, a total of 13,000 tons from cows slaughtered before the examination regime started. The government scraped a plan to authorize distribution of the meat in response to demands from the ruling Liberal Democratic Party (LDP). The ruling party said the distribution might rekindle fears among consumers about meat safety. ''If the beef that hasn't been tested is allowed onto the market, we wouldn't be able to alleviate consumer anxieties,'' an LDP official said. Producers and wholesalers groups will continue keeping the beef stored for up to eight months with subsidies from the ministry-affiliated Agriculture & Livestock Industries Corp., the officials said. During the eight-month period, the government will devise a method to dispose of the meat, they said. The LDP has been demanding the government buy all 13,000 tons and incinerate it at a cost of 20 billion yen.

Harkin Studies New Anti-Bioterrorism   Technology. Senate Agriculture Committee Chairman Tom Harkin (D-IA) was in Iowa over the weekend where he was scheduled to visit the SureBeam Corporation in Sioux City to see how the company's food safety technology can be used to kill anthrax and other pathogens in the mail. "I have been working for the past 20 years to provide resources that have helped fuel the research behind electronic pasteurization," he said in a statement prior to the visit. "Iowans can be proud of this groundbreaking technology that is today protecting Americans from dangerous bacteria in our food and on our medical equipment, and can tomorrow be safeguarding our mail." He has proposed a $2.3 billion dollar bioterrorism preparedness plan and promoted what he believes is better coordination needed between appropriate federal agencies and state and local levels of government. "We also need to focus on how we strengthen our health system by focusing on preparedness and investing in new technologies," he said.

EU's Lamy Predicts Tough Talks.  REUTERS reports that European Union trade chief Pascal Lamy predicts tough bargaining at World Trade Organization talks next month. But he also believes the prospects of launching a new round of global trade liberalization talks are brighter than they before. "Things look better, but we are not there yet," Lamy told REUTERS in an interview as the world's trade ministers prepare to meet in Doha, Qatar, from Nov. 9-13 in another attempt to launch a set of trade negotiations. "Obviously there will be difficult discussions in Doha," he said. Asked if the always thorny subject of agriculture could lead to the failure of the Doha meeting, Lamy replied: "Anything may be a cause of failure." Ministers are only trying to set the agenda for a trade negotiation which would last several years. But it has proved intensely difficult. An attempt to launch a round at the last World Trade Organisation (WTO) ministerial meeting in Seattle in December 1999 collapsed amid riots in the streets and bitter squabbling among ministers over agriculture and other issues.

Brains, Spinal Tissue Recommended for Banning.  A science advisory panel recommends that the U.S. government consider banning foods, dietary supplements and cosmetics laced with cattle brains and spinal tissue over concerns of mad cow disease which has killed about 100 people in Europe. REUTERS reports that scientists believe the deadly, brain-wasting disease -- found throughout Europe and most recently in Japan -- can be transmitted to humans who consume meat, drugs and other products derived from infected animals. No case of mad cow disease has ever been found in the United States. An 18-member panel of government, industry and academic scientists voted unanimously to urge the Food and Drug Administration to investigate whether consumer products containing traces of the cattle's central nervous system posed a serious health risk. Also known as bovine spongiform encephalopathy (BSE), the disease has been found only in brain tissue, the spinal cord and the retina of cattle. "We are not asking FDA to prohibit these products, since we clearly don't have enough evidence for that," said David Bolton, the committee's chairman and a biologist at the New York State Institute for Basic Research. "But, we do have enough to ask them to investigate and consider prohibiting their sale." The panel also recommended FDA consider banning the sale of cattle brains, considered a delicacy among some ethnic groups.

October 26

U.S., EU Riding to Biotechnology Collision. The United States and Europe appear to be on a collision course over the regulation of genetically modified food, according to senior government policy advisors speaking this week at a Pew Initiative on Food and Biotechnology dialogue. Both the U.S. and EU governments have the same goal regarding food policy: ensuring food and environmental safety, said Michael Rodemeyer, executive director of the Initiative. "However, each government has embarked on a disparate approach to the issue, reflecting different experiences, political philosophies and cultures. As a result, it may be hard to avoid a major ‘food fight' over agricultural biotechnology commodities."  

Senate Approves Agricultural Spending. The Senate Thursday approved $73.9 billion for agriculture appropriations in fiscal 2002. The total was a little less than President Bush had requested. Of the total, $35.8 billion, goes for feeding programs such as food stamps and child nutrition. The overall level is $78 million below the president's request but is $870 million above the 2001 spending level, not counting the $3.6 billion emergency farm package.  

U.S. Rice Exhibit Slated for Havana.  REUTERS reports from Havana that Cubans who attend this year's annual Havana International Trade Fair will have the chance to see and taste something unique: rice dishes cooked by the first-ever U.S. exhibitor at the fair. The 19th edition of Cuba's most important commercial event opens on Sunday, and among the countries listed as participating for the first time is the United States, which slapped an economic embargo on the communist-run Caribbean island more than 40 years ago. "I am delighted and at the same time filled with anticipation as to how we will be received," Marvin Lehrer, director of the USA Rice Federation's Latin American program, told the news agency. Lehrer, whose group obtained licenses from the U.S. Treasury and Commerce Departments to travel to Cuba, arrived in Havana on Tuesday with about 350 pounds (136 kg) of rice and promotional materials from nine U.S. companies.

Veneman Assures Public on Preparedness.  Agriculture Secretary Ann Veneman Thursday sought to reassure American consumers and farmers that the government was prepared to respond quickly should the nation's food supply come under a terrorist attack. Federal and state farm agencies have been on heightened alert, especially for foot-and-mouth disease and other highly contagious livestock diseases, since the deadly Sept. 11 attacks on the United States. "Should we see any unusual activity, we have the protocols in place to respond quickly," Veneman said at a meeting with Republican lawmakers. She refused to elaborate, except to say there have been no specific threats to the U.S. food supply. Health and Human Services Secretary Tommy Thompson told Congress earlier this week that the nation's food supply could be the target of a terrorist attack. Thompson urged lawmakers -- many of whom have balked in the past at spending more on food safety -- to authorize hiring hundreds of additional food inspectors.

Frist Calls for Food Readiness.  THE ASSOCIATED PRESS reports that Sen. Bill Frist (R-TN) believes the government should start preparing for the next bioterrorist attack, and that means strengthening the safety of the nation's food supply. In an interview with the AP, Frist said, "My responsibility is to prevent the next thing." As such, Frist, a surgeon before being elected to the Senate, pledged to fight for increased "vigilance in areas that touch our lives" such as protecting food from contamination. Frist has been a key manager of Capitol Hill's anthrax scare, explaining the public health consequences to worried lawmakers and members of the public. He has offered a bill with Sen. Edward Kennedy (D-MA) to provide $1.4 billion for bioterrorism preparedness. Most of the funds would help local and state officials upgrade computers, plan for disasters, increase staffing, train workers and improve health laboratories. President Bush has proposed $1.5 billion, most of which would go to federal emergency preparedness. The administration proposal includes money to increase stockpiles of antibiotics and other medical supplies and to buy 300 million doses of smallpox vaccine.

Congress Considers More Food Inspections.  THE ASSOCIATED PRESS reports that Congress is considering more inspections of the nation's food supply and giving federal officials more power to pull contaminated food from stores. The article notes that food has been used as a weapon once before. In the 1980s, a cult poisoned salad bars in Oregon with salmonella bacteria, sickening 750 people. Experts say potential terrorist targets now include fruits and vegetables that people eat raw and are subject to little inspection, and cattle that could be infected with the fast-spreading foot-and-mouth disease that is harmless to humans but devastating economically. "There are clear gaps in food regulation that would certainly give the opportunity for intentionally contaminated food to be shipped widely around the U.S.," said Caroline Smith DeWaal of the Center for Science in the Public Interest, an advocacy group. "Food moves quickly and is consumed quickly so in a short amount of time it can cause a significant outbreak." Terrorists could poison a limited amount of food and still "create a general atmosphere of fear and anxiety without actually having to carry out indiscriminate civilian-oriented attacks," Peter Chalk of the Rand think tank recently told Congress.

GM Corn Test Not Rapid.  THE ASSOCIATED PRESS reports that a corn researcher and officials from a chemical company are alerting farmers and grain elevators that testing kits for a type of genetically modified corn are not capable of rapid detection. The corn allows farmers who use Roundup Ultra herbicide to apply the weed killer directly on the crop without killing it. Unlike the genetically modified StarLink corn, which led to recalls when it was found in the U.S. food supply last year, Roundup Ready has been approved for human consumption. The modified corn can be sold in U.S. markets, however it hasn't been accepted by the European Union. Because of European and Japanese restrictions, farmers, grain elevator operators and millers must try to keep biotech varieties separated from unaltered types in order to follow international and domestic standards.

October 25

Conrad: ‘Money Is a Problem!' Senate Budget Committee Chairman Kent Conrad (D-ND) has branded as "meaningless" assurances by the Bush administration that federal money will be available next year to fund a new farm law if policy considerations meet the administration's standards. "That assurance by the administration that the resources are going to be available next year is meaningless," Conrad told the Senate, because "the administration plays no role in the writing of the budget resolution. That is purely a congressional document. It does not even go to the President."  

USDA Issues Decision on Federal Milk Order Priciing. USDA has issued a recommended decision to amend the current Class III and Class IV pricing formulas under federal milk orders. The recommendation follows a tentative final decision and interim amendment responding to a congressional mandate to reconsider the pricing formulas adopted in the final rule for the consolidation and reform of federal milk orders.  

USDA Accepting Organic Certification Agents.  USDA will continue to accept early applications for accreditation from potential organic certifying agents until Dec. 21. The extension gives applicants two additional months to submit applications to the National Organic Program (NOP) in order to be among the first round of USDA-accredited certifying agents, to be announced next April. Also, concerns have been raised by some applicants regarding the conflict of interest provision of the NOP regulations. According to both the Organic Food Production Act of 1990 and the NOP final rule, an accredited certifying agent cannot certify its own employees, including board members or other individuals responsibly connected to the certifying agent. While the Agricultural Marketing Service (AMS), the USDA agency that oversees the NOP, cannot waive this requirement, alternatives will be considered that clearly demonstrate that organizations have taken appropriate measures to prevent conflicts of interest. USDA says for example, organizations may want to consider alternative structures, including modifications to their bylaws, that avoid the potential for a conflict of interest. Accreditation application forms can be downloaded at www.usda.ams.gov/nop. AMS is working on a check-sheet that will help applicants understand further what information is needed for successfully submitting an application. Updates on the check-sheet can be found at this same website. Additional help in completing the application is available from NOP staff at 202-720-3252.

New Safety Officers Work at Plants  Thirty-five new "consumer safety officers" (CSOs) are expected to begin work at various meat and poultry establishments around the country Oct. 30. These CSOs - most of whom are former Food Safety and Inspection Service inspectors - will supplement the efforts of line inspectors and conduct periodic verifications of plants' food safety practices, according to the American Meat Institute. The CSOs are completing specialized training at Texas A & M University. Their training covers a variety of topics, including microbiological hazards, HACCP plan design, epidemiology and statistics. AMI has asked FSIS to share the CSO training materials with industry so that both industry and government understand the key points. Each FSIS district will receive two CSOs, except for Albany, which will receive three. The CSOs will focus on assisting smaller facilities first. As more CSOs graduate and are placed in the field, they will begin to focus on larger facilities. FSIS says that the CSOs will focus on validating and verifying controls in meat and poultry facilities. They will also review HACCP plans and hazard analysis documents, be part of in-depth verification (IDV) and epidemiological investigative teams, verify corrective actions following enforcement actions by the agency and work with the plant following the failure a sample sets for performance standards. AMI says according to FSIS representatives, CSOs will issue a report to the agency after visiting a facility. The report will document any failures, or areas of concern that were identified. The agency indicated that the report will be made available to plants. FSIS plans to add an additional 75 CSOs to the field within the next year.

EU Sees Trade Launch in Reach.  REUTERS reports from Brussels that European Union trade negotiators believe a "long-nurtured ambition" of launching a new round of global trade liberalization talks appeared finally within reach. "I think we've now reached the point where a balanced and ambitious round in line with the Union's main objectives can be envisaged," EU Trade Commissioner Pascal Lamy told the European Parliament in Strasbourg. He was briefing legislators on preparations for the key World Trade Organization (WTO) meeting in Doha, Qatar, now little more than two weeks away, when trade ministers will discuss the launch of a new trade round. "Of course we haven't got there yet. We are now on the last crucial strait leading up to Doha," Lamy said. Lamy said work was still needed in areas like agriculture, where he said a draft on the table at the WTO's Geneva headquarters seemed to pre-judge the result of the negotiations. The EU is prepared for more liberalisation of agriculture but opposes calls from the Cairns Group of major food exporting countries for a goal of eliminating farm export subsidies.

NPPC Searches for New CEO.  A National Pork Producers Council (NPPC) search committee is actively working to fill the position left vacant by the resignation of CEO Al Tank on Oct. 15. The NPPC search committee includes; Chairman and NPPC Vice-President Jon Caspers; NPPC board members Don Buhl and Mike Townsley; NPPC Past Presidents Karl Johnson and Moe Mohesky; and Mark Gebhards, executive director of the Illinois Pork Producers Association. "The search committee is approaching its task in a comprehensive way in order to arrive at a candidate who has the vision, experience and expertise to lead our industry into a confident and prosperous future," Caspers said. "Given the pivotal nature of the CEO position, it is important to consider the best qualified people and prevent the search from taking an inordinate amount of time. We believe both of these important goals can be achieved." In order to facilitate the work of the committee, a professional executive search firm, AGRIcareers, has been hired. Potential candidates should direct their inquiries to the President of AGRIcareers, Gary Maas, at P.O. Box 140, Massena, IA 50853, or call toll free 888-773-2524.

Japan Asked to Spend for Isolated Beef.   KYODO NEWS reports that Japan's ruling Liberal Democratic Party (LDP) wants the government to spend 15-20 billion yen to deal with 13,000 tons of beef isolated from the market. The meat was held back before the launch last Thursday of nationwide screening for signs of mad cow disease. The LDP along with the Agriculture, Forestry and Fisheries Ministry, will seek funds to cover part of the estimated outlay from a supplementary budget the government plans to compile for the current fiscal year through next March, officials said. Agricultural and food-processing organizations will keep the 13,000 tons The outlay will be used to subsidize differences between purchase and sales prices as well as cold storage and other costs. The ministry plans to put the beef on the market, but some LDP lawmakers are urging that the beef be destroyed by burning to dispel consumers' concerns. The ministry also plans to finance the disposal of meat and bone meal (MBM), which is believed to transmit mad cow disease, through burning and compensate farmers for loss of income resulting from the mad cow problem.

Pennsylvania Well into the Wind.   THE ASSOCIATED PRESS reports that Pennsylvania has two more wind farms open that triple the amount of wind-generated energy in the state and reduce carbon dioxide emissions. The 24 megawatts of wind-produced electricity will supply enough power annually for more than 8,000 homes. The 16 new turbines in the southwest part of the state stand 125 feet tall and have three blades. Three universities - Carnegie Mellon, Penn State and the University of Pennsylvania - as well as Philadelphia Suburban Water Co. and grocer Giant Eagle Inc. have agreed to buy 75% of the energy. The rest of the power - produced by the Exelon-Community Energy farms - will be sold to commercial and residential customers in the mid-Atlantic region, said Brent Alderfer, president of Community Energy Inc., a green electricity marketing company. Environmental groups say the new wind farms will prevent an estimated 75 million pounds of carbon dioxide emissions per year - the equivalent of taking 5,400 cars off the road or planting more than 10,000 acres of trees.

October 24

Bush Administration Links Policy to Money. The Bush administration is willing to go to the mat to fund a new farm law if that law reflects policies the administration supports. Agriculture Secretary Ann Veneman told farm broadcasters Tuesday "the money will be there if the policy is good." Mitch Daniels, director of the White House Office of Management and Budget, also has been quoted saying, "If we get the right policy, money will follow, I can assure you of that."  

WTO Affirms Mexico Erred on HFCS. The World Trade Organization (WTO) Appellate Body has affirmed a WTO panel's conclusion that Mexico's imposition of antidumping duties on imports of high fructose corn syrup (HFCS) from the United States is inconsistent with the requirements of the WTO Antidumping Agreement. The Appellate Body rejected Mexico's appeal of the panel's decision. The WTO panel had found that the steps Mexico had taken to comply with an earlier adverse WTO panel decision were insufficient.  

Little Gets FSA Nod.  Agriculture Secretary Ann M. Veneman has named James R. Little as administrator of USDA's Farm Service Agency. FSA administers farm commodity and conservation programs, farm loan programs, and emergency and food aid assistance. Before accepting the acting administrator role, Little was the USDA's associate chief financial officer for financial operations. He began his career with USDA as a staff accountant with the former Rural Electrification Administration, now a part of the Rural Development mission area. Little has held several positions in USDA agencies including the Federal Crop Insurance Corporation, Agricultural Stabilization and Conservation Service, Financial Management Division, ASCS and FSA; and as treasurer and controller, Commodity Credit Corporation. Little, a native of Charlotte, North Carolina, has a bachelor's degree from the Virginia Polytechnic Institute in Blacksburg, VA.

Corn Growers Seek to Educate California.   The National Corn Growers Association (NCGA) kicked off its week-long ethanol outreach in California this week, extending an offer of expertise, information and experience as agricultural and state groups look to build markets for renewables in the state. "We are meeting with other agricultural commodity groups and state agencies in California to offer our help solving California's gasoline situation and to gather as much information as we can about issues facing ethanol in the state," said NCGA Chairman Lee Klein. "NCGA has 15 years experience in developing the ethanol industry and has learned quite a bit along the way. We are offering to work with our counterparts in California to make the process as seamless as possible." On Monday, the NCGA group - consisting of Klein, Illinois Corn Marketing Board member and NCGA Ethanol Marketing Committee member Theresa Schmalshof, Executive Vice President and CEO Rick Tolman and Colorado School of Mines Professor and NCGA Consultant Mike Graboski - kicked off the ethanol outreach program by meeting with California agricultural commodity groups. Attending that meeting were representatives of the California Feed and Grain Association, the California Rice Commission, the California Farmers Rice Cooperative and the California Farm Bureau. Later in the day, the NCGA delegation met with Secretary Bill Lyons of the California Food and Agriculture Department. "You have a supporter in this secretary," said Lyons, who encouraged NCGA to provide him and his staff with the necessary data and unbiased information the Department needs to carry the ethanol message in the state of California.

Modifying Ethanol Tax Credit Sought.  The National Corn Growers Association (NCGA) and other ethanol industry allies have enlisted the support of more than a dozen House members in a push to modify the Small Producer Ethanol Tax Credit. In a letter to Ways and Means Chairman Bill Thomas (R-CA), the co-sponsors of H.R. 1636 urge Thomas to include modifications to the tax credit in the economic security package. "Specifically, we request that the incentive be available to ethanol cooperatives and be expanded to producers whose annual ethanol production capacity is below 60 million gallons," the letter stated. Currently, small ethanol producers can receive a tax credit of 10 cents per gallon, with the credit applying to up to 15 million gallons annually. "While this credit works well for ethanol production facilities as limited liability corporations, the credit is not useful as a practical matter for farmer-owned cooperatives," the letter said. NCGA Director of Energy & Analysis John McClelland believes cooperatives should be able to pass the credit through to its members, who can then treat the credit as if they had generated it directly. "The small producer credit pass-through for coop ethanol producers is critical to the continuing expansion of the industry," said McClelland. "This is about investing in rural America and our nation's energy security.

October 23

Soy-Based Fuel Debuts in Aiken. Another public fueling station offering soy-based biodiesel has opened in Aiken, SC. United Energy Distributors (UED) opened the first public alternative fueling station that gives consumers the opportunity to fill their tanks with soy-based biodiesel, E-85 (85% ethanol and 15% gasoline) or other alternative fuels. The soybean checkoff has funded most of the biodiesel research and promotion over the past decade.  

TPA Remains on Agriculture's Front Burner. Trade promotion authority will expand the market for beef - and that is good for America's cattle producers, said the National Cattlemen's Beef Association (NCBA). NCBA strongly supports H.R. 3005 -- the bipartisan Trade Promotion Act of 2001 -- and is urging cattle producers to take action.  

Michigan, USDA Work on Rural Development. The Michigan Economic Development Corporation and USDA will work together to assist the state's rural businesses and communities. "The MEDC is investing considerably in rural development through the work of our community assistance teams and other targeted initiatives," said Doug Rothwell, president and CEO of the Michigan Economic Development Corporation. "We welcome this partnership with USDA Rural Development, which will allow for a new level of strategic awareness and cooperation."  

E. Europe Relieved at EU's Commitment.   REUTERS reports that Eastern European officials are relieved over signs that attacks on the United States appeared to have strengthened, not diluted, the European Union's commitment to opening its membership to the old Soviet bloc. Although EU enlargement was far from the top concern of Union leaders at a summit Friday, Belgium, the current EU president, and the European Commission, emphasized that widening Europe to the east was a core part of the new security agenda. "We are sending a message that the new international situation confirms enlargement is all the more necessary for stability, peace and democracy in Europe," said Jean-Christophe Filori, a spokesman for the Commission, the EU's executive. Belgian Prime Minister Guy Verhofstadt, who is due to visit Warsaw today, even said that at its December summit the EU might name which states could enter in 2004, although other Belgian officials later retreated from the suggestion. "This is very encouraging," said Pawel Swieboda, head of the European Union department at Poland's foreign ministry.  

More Food Packets Dropped in Afghanistan.  THE ASSOCIATED PRESS reports that U.S. cargo jets dropped another 70,000 food packets over Afghanistan, continuing a U.S. effort to get aid to civilians while military targets are attacked, an Air Force spokesman said Monday. The mission involving four C-17 planes brought the total number of rations dropped to about 713,000 since the start of the operation, which coincided with the start of U.S. airstrikes, said Master Sgt. Randy Mitchell, a spokesman for U.S. Air Force Europe at Ramstein Air Base in Germany. The packets contain foods such as barley stew, rice, shortbread cookies and peanut butter providing at least 2,200 calories, which are dropped out of boxes from the back of the cargo planes. 

AMS Proposes Inspection Fee Increase.  USDA's Agricultural Marketing Service is proposing to increase seed inspection fees. The fee increase will cover the cost of testing and issuing federal seed analysis certificates. Factors contributing to the need for the changes in fees are increased employee salaries, rent, and supplies. In addition, the proposal will raise the hourly fee for testing and issuing certificates from $44.40 per hour to $52.00 per hour. It will also raise the fee for issuing additional duplicate certificates from $11.10 to $13.00 and establish a fee of $13.00 for issuing preliminary reports. The seed inspection program is conducted under the Agricultural Marketing Act of 1946 on a voluntary, fee-for-service basis. Since the act requires that fees for services equal the cost of providing service, the proposed fee increases will ensure that the program is self supporting. The proposal will be published in the Oct. 23, Federal Register. Comments should be sent to Richard C. Payne, Chief, Seed Regulatory and Testing Branch, Room 209, Building 306, BARC-East, Beltsville, Md. 20705-2325 no later than Dec. 24. Comments may also be submitted electronically to richard.payne2@usda.gov or by fax at (301) 504-8098. 

Ethanol Plant Building Agenda Announced.  The National Corn Growers Association (NCGA), in cooperation with the Nebraska Corn Development, Utilization and Marketing Board, will host the second "So You Want to Build an Ethanol Plant" Conference, Nov. 15-16 in Lincoln, NE, at the Cornhusker Hotel. The meeting is designed to provide information and share common experiences with groups of producers who are interested in opening a dry-mill ethanol plant. "This meeting will provide both the perspectives of consultants in the field," said NCGA Director of Production and Marketing Paul Bertels, "as well as practical experience of farmers who have opened farmer-owned plants. Ultimately the goal is to provide growers with the information and resources they will need to face the challenges of opening an ethanol plant." The conference is designed for those growers who have already started constructing an ethanol plant or for those advanced beyond the point of just discussing the process. "We have set up the agenda to answer some of the pivotal questions growers typically raise," said Bertels. "We will have a number of experts discuss topics such as community relations, business organizations, finance and capital acquisitions, site selection, and product marketing." Each session is designed to maximize participant discussion, and answer the grower's questions. To further encourage grower attendance, registration fee are held at $100 for individuals or $75 for 2 or more growers in the same group. For registration information, contact Bertels at 314-275-9915 ext. 131 or e-mail at bertels@ncga.com; or visit the NCGA web site at: www.ncga.com. 

AMI Members to Share Food Safety Information.   The American Meat Institute's Board of Directors has agreed to make food safety a non-competitive issue by sharing food safety information freely among all AMI member companies. The board made its decision during a meeting held at AMI's International Meat, Poultry and Seafood Convention and Exposition in Chicago. "Many years ago, meat and poultry companies may have viewed food safety information as proprietary," said AMI President J. Patrick Boyle. "But over time that view has changed. In recent years, companies have been informally sharing food safety information and technology with industry colleagues. In fact, in the last two years, scientists from a number of leading AMI member companies have worked with the institute to develop and share preventive strategies to control Listeria monocytogenes in ready-to-eat meat and poultry facilities." As a result of the board decision, AMI will develop a formal process to share and assess valuable information developed within individual companies. For example, a meat company's voluntary testing efforts for bacteria on products or in plants could yield valuable information about how, why and where various bacteria grow. "Members of the meat and poultry industry recognize that ensuring optimal food safety is good for everyone's customers – and everyone's businesses," Boyle said. 

Supachai Says Get on With It.  Supachai Panitchpakdi, the next head of the World Trade Organization, is urging WTO member nations to get on with a new round of trade talks and put aside their worries over global economic woes and security from terrorist attacks, REUTERS reports. "We need to get on with the agenda," Supachai, Thailand's former deputy prime minister, told reporters on the sidelines of a business conference in Hong Kong. He said he expected the launch of a fresh round of global trade liberalization talks and although he did not elaborate, he said agricultural issues are likely to top the agenda. "I do not know whether (investment and competition in the agriculture industry) would be part of the new round of talks or not, but it will feature as one of the discussion points at the Doha meeting," he said. Supachai said the treatment of anti-dumping duties also might be discussed.  

‘Bioinvasions' Discussed at White House.  THE ASSOCIATED PRESS reports that scientists have warned federal officials that the rate of known "bioinvasions" of aquatic species, pathogens, parasites and weeds has increased exponentially over the past 200 years. At a White House briefing, officials heard of an invasion of giant Australian jellyfish that clogs shrimp nets in the northern Gulf of Mexico, and swarms of Chinese mitten crabs with a taste for salmon that choke water pumps in San Francisco Bay. In a report outlining the problem, the Pew Oceans Commission, a panel formed last year by the nonprofit Pew Charitable Trusts, called for a federal "strike force" and $50 million to eradicate the invaders. "We really don't have a good grasp on the number of invasions going on," the Pew report's author, James T. Carlton, director of the maritime studies program of Williams College and Mystic Seaport, said Monday. The Pew-sponsored commission recommends better enforcing of mandatory ballast water exchanges and regulating intentional releases of live non-native marine organisms. It also calls for an early warning system that would be run by the Fish and Wildlife Service and National Marine Fisheries Service. More than 20 federal departments and agencies already are addressing the issue. The bulk of the work is being done by USDA which last year spent more than half a billion dollars seeking solutions, the General Accounting Office said.  

October 22

WTO Chief Calls for ‘Utmost Efforts.'  KYODO NEWS reports from Shanghai that World Trade Organization Director General-designate Supachai Panitchpakdi is urging the 143 WTO members to make utmost efforts to launch a new round of global trade liberalization negotiations next month in Qatar. Supachai takes over the WTO helm next September. He says the time is now for shaping a new round, including a development agenda, at the global trade body's ministerial meeting in November. The WTO meeting is scheduled for Nov. 9-13 in Doha, Qatar, but there is talk of changing the venue, and possibly even the dates, due to terrorism fears. Supachai told reporters in Shanghai that WTO members should not change the venue for the meeting from Qatar. Some members have questioned whether security can guaranteed in a Muslim country in the wake of the Sept. 11 suicide attacks on the United States and the subsequent U.S.-led military campaign on Afghanistan. But Supachai pointed beyond the large amount of money already spent by Qatar for the meeting as a reason to keep Doha as the venue.

Brazil's Ethanol Industry Gets Boost.  REUTERS reports that Brazil's sugar cane-based ethanol industry is blossoming from firmer prices, the prospect of increased local demand and talk of exports to the United States. Brazil accounts for 60% of world biofuel production, mostly for local consumption triggered by the government's pro-alcohol program launched in the mid-1970s following a world energy crisis and sharp rise in petroleum prices. Brazilian ethanol production is officially expected to increase 20% to 13 million cubic meters in 2002/03 (May/April), of which 12.5 million will be for the domestic market and the balance for export.

New EU Entrants May Be Named.  The European Union in December may announce the first group of east European country candidates likely to join the 15-nation bloc in 2004, Belgian Prime Minister Guy Verhofstadt said on Friday, according to REUTERS. He told a news conference after an EU summit in the Belgian city of Ghent: "We will see if there is a possibility to give some indications of which countries are on the right path to conclude negotiations in 2002. That will be the task of the (Dec.14-15) summit in Laeken." Verhofstadt, whose country holds the EU's rotating presidency, said that after the Sept.11 attacks on the United States "there is even more reason for enlargement and for concluding the enlargement negotiations." Belgian diplomats said naming countries was aimed partly at countering scepticism in many candidates, which have struggled to adopt voluminous, complex legislation to qualify for the EU.

Rush to Money Needs Restraint.  Rather than race to lock in funds for $73.5 billion to fund farm programs over the next decade, possibly at the expense of more pressing national security needs, Congress should write sound farm policy, REUTERS reports, quoting a USDA spokesman. The spokesman said lawmakers should "take the time to set the best policy and the (spending) numbers will follow. Urgent priorities" such as national security and "defeating terrorism" should be at the top of the congressional agenda, said USDA spokesman Kevin Herglotz. A sizable number of farm-state lawmakers want to pass a new farm law this year to capture the new spending of $73.5 billion, authorized in the annual budget resolution last spring, before Congress can change its mind in the face of a softening economy and demands for larger military spending. "It's obvious there is not consensus," Herglotz said, on revising U.S. farm policy. The Senate Agriculture Committee has yet to begin work on its farm bill. Committee members and farm lobbyists say there was no agreement on grain, cotton and soybean subsidies or on conservation spending. The major debate for the new farm law was how large an increase to give conservation and how much of the increased funding would come out of crop subsidies.

ASA Wants Soybean Rate Held.  The American Soybean Association has asked USDA to maintain the oilseed loan rate of $5.26 per bushel rather than let it decline to $4.92, the legal minimum, REUTERS reports. ASA cited uncertainties over long-term farm legislation and foreign exchange concerns to justify holding the rates for the 2002 crop. Allowing the cut in loan rates, ASA President Bart Ruth said, "would directly reduce producer income by more than $1 billion." ASA was joined by the National Sunflower Association and U.S. Canola Association in urging the status quo on oilseed loan rates. "Reducing oilseed loan rates would only drive up production of crops already in greater oversupply," Ruth said in a prepared statement. Ruth also said maintaining oilseed loan rates at current levels was necessary to protect producers "from the negative effects of a higher-valued U.S. dollar and massively devalued Brazilian currency that is sending false production signals to Brazilian farmers."

USDA Announces Payment Rates.   USDA has announced final payment rates for farmers under the 1996 farm law. REUTERS reports the rates are about equal with last year and should total about $4 billion for producers. Growers may request to receive payment in any month from now through August 2002. They have the option of receiving two equal payments or the entire payment at once. Those who do not make a request will see payment in full next summer. Payment rates were wheat, $0.461 per bushel; corn, $0.261 per bushel; sorghum, $0.314 per bushel; barley, $0.202 per bushel; oats, $0.022 per bushel; cotton, $0.0572 per lb.; rice, $2.05 per cwt. The leading states for payments would be Iowa with $373 million, Texas $342 million, Illinois $326 million, Kansas $281 million, Nebraska $280 million and Minnesota $224 million.

Russia Worries About Florida Poultry.   USDA officials have met in Moscow with the Russian government over Russia's decision to ban meat products from Florida, a major poultry exporter. Fears over anthrax are blamed. "We feel there is no scientific justification for the actions that were taken," said USDA spokesman Kevin Herglotz. "This is a temporary decision and we are working aggressively to try and reverse this decision." REUTERS reports officials said the meetings with Russia were progressing. They speculated that the ban could be lifted as early as this week. The ban on Florida meat exports took effect on Oct. 12. About 40% of all U.S. poultry exports to Russia originate from Florida ports in Jacksonville and Tampa. "Chickens don't get anthrax," said Richard Lobb, spokesman for the National Chicken Council. "We hope that Russia will reconsider." Cattle and sheep are common victims of anthrax outbreaks. Although extremely rare, humans can be infected by eating or handling infected animals and meat.

October 19

New Record Now Set for Farm Income. USDA now forecasts 2001 farm net cash income to be 6% higher than last year, continuing the trend of annual increases since 1998. At $60.8 billion, the 2001 figure would surpass 1993's previous record. This cash-based measure of income indicates the availability of funds to cover cash net income, finance capital investments and savings, service debts, maintain living standards, and pay taxes.  

NGFA Urges More Trade Recognition. The National Grain and Feed Association (NGFA) is urging the Senate to develop a farm bill that recognizes the interrelationship between agricultural and trade policy, and the essential importance of U.S. competitiveness in export markets to the future growth of U.S. agriculture. 

Almost Opposite Reactions to Lugar Bill. The National Farmers Union (NFU) expressed reservations about a farm bill proposed Wednesday by Sen. Richard Lugar (R-IN). NFU said it was concerned that the phase-out of commodity supports "is not the right direction in policy, considering today's commodity price crisis that is out of the control of family farmers and ranchers."  

Cotton Concerned About Lugar

EU Calls Subsidy Phase-Out ‘Unacceptable.'   THE ASSOCIATED PRESS reports that the European Union calls a draft agenda for a new round of global trade talks "a brave effort" but said any references to phasing out agricultural subsidies are unacceptable. EU Agriculture Commissioner Franz Fischler said the 15-nation bloc also wanted more emphasis given issues such as environmental protection and food safety issues. The seven-page document released by the World Trade Organization last month was an attempt to bridge gaps between the 142 members so that they could launch the new round at their next meeting, scheduled for Nov. 9-13, in Doha, Qatar. Fischler said it was important to go ahead with the meeting despite heightened security concerns, although the venue may have to be changed due to the U.S.-led attacks on nearby Afghanistan.  

U.S. Needs More Food Import Inspection, Says Bush.   REUTERS reports that President Bush wants increased inspection of imported foods and will ask Congress for emergency funding to accomplish that goal, according to White House budget documents. Now, less than 1% of imported food is inspected by 150 Food and Drug Administration inspectors responsible for more than 300 ports of entry. The inspection rate used to be higher but has shrunk as the volume of imports swelled in recent years. Some 3.7 million food shipments arrive annually, according to a recent count. In a letter to Congress on Wednesday, Bush asked for $20 billion for national security and recovery, including $61 million "to enhance the frequency and quality of imported food inspections, and modernize the import data system." "This is just not enough resources ... $61 million will help but it's not enough," said Charlotte Christen, senior staff attorney for food safety at the Center for Science in the Public Interest, a consumer group. "It's good to see the administration recognizes this is a pressing issue that needs to be addressed." Earlier this year, the FDA estimated it would need an additional $540 million if it wanted to inspect 20% of imports, Christen said.  

U.S. Food in Jeopardy.   REUTERS reports that a bioterrorism expert believes more action needs to be taken to protect the U.S. agriculture industry and food supply from attacks by extremists. "We have a highly critical sector that is vulnerable, and it's not that difficult to exploit that vulnerability," said Dr. Peter Chalk, a policy analyst with RAND Corp, in remarks at the World Food Prize annual symposium in Des Moines. The food and farm sectors have not been a prime focus of preparedness efforts following the Sept. 11 attacks on the World Trade Center and the Pentagon, Chalk said. But an attack on the nation's food supply could have a devastating economic impact, in addition to shaking consumer confidence. The introduction of a foreign animal disease into a cattle feedlot or big hog farm "would set off a tidal wave of effects," Chalk said, including economic losses to farmers, trade restrictions, food sector job losses and a loss of public faith in the regulatory system. The same concentration of animal numbers that makes U.S. livestock producers so efficient is also a security liability, Chalk said. Dairies or cattle feedlots housing thousands of animals in close quarters could provide a haven for contagious disease, he said.  

USDA Proposes New Beef Promotion Rules.  USDA is proposing to amend the Beef Research and Promotion rules and regulations to allow producers to direct more checkoff revenue to qualified state beef councils in states where cattle are born and raised. The amendment will permit cattle producers to pay the $1-per-head assessment, due when cattle are sold, to the qualified state beef council located in the producer's state of residence prior to sale, subject to certain conditions. Beef councils in states that have the bulk of cattle feedlot capacity likely would receive less checkoff revenue. Utilizing the new option would permit a producer who retains ownership of cattle that are shipped to another state for feeding to ensure that the beef council located in the state where the producer resides receives the $1 checkoff rather than the beef council in the state in which the cattle are located when sold. This could increase checkoff revenue for many beef councils, such as those located in the southeastern United States, that presently do not receive revenue from cattle owned and sold by that region's producers--who use feedlots in western states to finish cattle before selling them to packers. The proposed changes will appear in today's Federal Register. Comments, postmarked no later than Dec. 18, 2001, may be sent to Ralph L. Tapp, Chief, Marketing Programs Branch, AMS Livestock and Seed Program, USDA, Stop 0251, 1400 Independence Avenue, SW, Washington, D.C. 20090-0251; telephone number (202) 720-1115. Copies of the proposed rule and additional information are available from the same address.  

October 18

Veneman Commends Lugar on Farm Bill Approach. Agriculture Secretary Ann Veneman Wednesday commended Sen. Richard Lugar (R-IN) for a farm policy approach Lugar plans to take that would phase out crop support programs and pour twice as much money into conservation as now is allowed by law. Instead of crop supports, farmers would rely on conservation measures, crop insurance and vouchers. 

Farm Bureau Urges Quick Vote on TPA. With about three weeks to go before the World Trade Organization tries to launch a new round of global trade talks, the American Farm Bureau Federation called on the House to approve quickly a bill to give the Bush administration trade promotion authority and a clearer path for trade pact negotiations. 

ACPA Welcomes EPA Bt Corn Decision. The American Crop Protection Association says it welcomed a decision by the Environmental Protection Agency to continue the registration of several plant-incorporated protectants containing the Bacillus thurigiensis (Bt) gene. EPA announced Tuesday that Bt corn products (Cry1Ab and Cry1F corn) can be sold in the United States for the next seven years. 

Texas Ranchers Urged to Use Caution.   Texas urged ranchers Wednesday to guard against the possibility of animal diseases being introduced as a biological weapon to harm the U.S. cattle industry, REUTERS reports. "We're urging producers to keep a closer watch on their animals, in light of recent events in our country," Texas state veterinarian Linda Logan told the news agency. The warning followed a general security alert by Texas Agriculture Commissioner Susan Combs in September during an emergency meeting of farm and ranch producers held after the U.S. government cautioned more attacks were possible after the Sept. 11 hijack attacks in New York and Washington. The latest warning also came amid reports of more exposures to the potentially deadly anthrax bacteria in Washington, Florida, New York and Nevada. "An assault on our food supply through either biological weapons or the introduction of a foreign animal or crop disease or pest would be a highly destructive force that could be used against agriculture and America," Combs said in September.  

USMEF: U.S. Beef Sales to Japan Suffer.  U.S. beef sales to Japan, the largest overseas buyer of U.S. beef, have declined by about half since a single case of mad cow disease was confirmed there last month, REUTERS reports. Losses in U.S. beef exports could reach $1 billion if the trend continues, the U.S. Meat Export Federation said Wednesday. "What we are looking at at this point in time is probably a 50% reduction in U.S. (beef) exports to that market," Phil Seng, USMEF president and chief executive officer, said in a conference call with reporters. The Meat Export Federation develops export markets for U.S. beef, pork and lamb. The group is supported by the U.S. Agriculture Department, meatpacking companies and livestock and grain organizations. 

Japan's Beef Safe Despite Suspect Teenage Girl.  REUTERS reports that the Japanese ministers of health and agriculture have decided that domestically produced beef is safe to eat. The Health Ministry has started screening all cows to be processed for human consumption for signs of mad cow disease. "We have established a system under which only safe beef will be sold in the market," Agriculture Minister Tsutomu Takebe told a joint news conference with Health Minister Chikara Sakaguchi. "It will be the safest meat in the world." Sakaguchi played down Japanese media reports that a teenage girl may have contracted the human form of mad cow disease, saying an examination showed that it was unlikely she is suffering from the brain-wasting illness. KYODO NEWS, among others, reported that a teenage girl at a Tokyo hospital may be suffering from a variant of Creutzfeldt-Jakob disease (CJD), which scientists suspect may be caused by eating beef from mad cow disease-afflicted cows.  

Upper Great Plains Crops Suffering.  THE ASSOCIATED PRESS reports that Montana, Wyoming and South Dakota farmers should suffer record crop losses this year because of a drought that again gripped the states. In Montana, projected losses could total $280 million for insured crops this year with wheat accounting for about $200 million of the total, David Nickless, deputy director of the U.S. Department of Agriculture's Risk Management Agency in Billings, said. "This is, I guess, a classic case of why you would want to have crop insurance," Nickless said. In South Dakota, $190 million in losses are projected, compared with $136 million for all insured crops in 1995, Nickless said. In Wyoming, losses are estimated at $5.2 million, compared with the previous high of $4.8 million in 1993. Losses in North Dakota are projected at $291 million. That number is higher than other states because North Dakota farmers tend to insure crops of higher value, Nickless said. Wheat is expected to account for about half of this year's losses there, he said.  

October 17

EPA Renews Biotech Corn Registration. The Environmental Protection Agency has renewed the registration for biotech corn for another seven years. "Bt corn has been evaluated thoroughly by EPA, and we are confident that it does not pose risks to human health or to the environment. Consumers should be assured that these corn varieties show no signs of any adverse effects to human health," said Stephen L. Johnson, assistant administrator of EPA's Office of Prevention, Pesticides, and Toxic Substances.  

Senators Press Bush on China Imports. The chairman and ranking Republican on the Senate Finance Committee have asked President Bush to pressure China to get rid of that country's restrictions on imports of U.S. soybeans. Chairman Max Baucus (D-MT) and Sen. Charles Grassley (R-IA) wrote Bush earlier this week regarding "recent Chinese government authority actions that restrict access for U.S. soybean exports and other agricultural commodities."  

Senators Call for Competition Clause in Farm Bill.  Several senators, led by Sen. Mike Enzi (R-WY), have asked the Senate Agriculture Committee to include "open market language" in the farm bill that would address concerns among producers over concentration within agriculture. "As you know, the trend toward concentration and vertical integration in agricultural markets has forced competition policy to the top of the list of concerns for many farmers and ranchers," they said in a letter to committee Chairman Tom Harkin (D-IA) and ranking Republican Sen. Richard Lugar (R-IN). "As agribusiness firms consolidate horizontally, producers find themselves with fewer options for marketing their products." For example, they added, the top four processing firms for beef, pork and chicken control from 55 to 87% of the U.S. market for their commodity. "At the local level, this means a single processing firm is often the only marketing option for a farmer or rancher," the senators said. "The vertical integration trend, which is occurring through packer ownership and contracting, has progressed to a point where producers fear losing the ability to access a market if they are not aligned with a processor. 

Some in Agriculture Opposing TPA. REUTERS reports that as President Bush pushes for congressional approval of trade promotion authority, some key members of Congress representing agriculture communities are raising objections. Unfortunately for Bush, the news agency points out, months of promoting the benefits of TPA so far have failed to win the unqualified support of the Republican chairman of the House Agriculture Committee and that panel's senior Democrat, Reps. Larry Combest (TX) and Charles Stenholm (TX), respectively. The legislation would give Bush the power to negotiate bilateral and multilateral trade agreements without congressional authority to amend the pacts. In June, Combest "angrily withdrew his support for a Republican-backed fast-track bill," the article notes, and since then has heard "nothing from the administration, primarily USDA," to address his concerns, said Keith Williams, a spokesman for Combest. 

Harkin Says Bush Wants Less Spending in Farm Bill. THE ASSOCIATED PRESS reports that Senate Agriculture Committee Chairman Tom Harkin (D-IA) says the Bush administration wants to hold farm spending well below levels that were set aside for agricultural programs in this spring's congressional budget agreement that allocated $73.5 billion in surplus funds for farm programs over the next 10 years. The administration now wants to spend no more than $25 billion over the next five years, Harkin said Tuesday. "We must move forward, using the $73.5 billion in additional funding for the farm bill, as provided in the congressional budget resolution," Harkin said. The White House position would "clearly complicate the task of writing" legislation, he added. A spokesman for Harkin said he based the $25 billion figure on information from aides to Indiana Sen. Richard Lugar, the committee's senior Republican. A spokesman for Lugar did not return telephone calls Tuesday.  

October 16

NFU Also on Board Anti-Terrorism Bandwagon  

FCA Rejects National Charters  

NCGA Puts New Twist on Crop Report  

October 15

Roberts Plans Anti-Terrorism Farm Legislation. Sen. Pat Roberts (R-KA) plans to introduce a bill designed to respond to threats of terrorism against U.S. farms and the nation's food supply. In a Friday press conference, Roberts outlined plans to introduce a far- reaching response to threats of terrorism against America's agriculture industry. The legislation calls for spending of about $1.1 billion next year and about $271,000 million in each of the next 10 years in what Roberts terms "a crash program." 

EPA Schedules Sessions on TMDLs. Listening sessions on one of agriculture's most dreaded programs will be held through mid-December by the Environmental Protection Agency. EPA Administrator Christine Whitman said she intended to involve the "active participation of a broad range of parties." 

Clothing from Corn Near Reality.  Corn is getting a new image: it soon will be used in clothing, athletic gear and plastics in general. Farmers invested grants and checkoff funds from 20 grower states that allowed the National Corn Growers Association (NCGA) to partner with Cargill Dow in researching a corn-derived substance called polylactide or PLA, which can be used for a number of non-traditional uses. 

Lower Beef Prices Coming.  REUTERS reports that a confluence of market forces is bearing down on the beef market, bringing the likelihood of lower prices soon. The outlook is being prompted by an abundance of U.S. beef, a decline in restaurant dining after the Sept. 11 attacks and a mad cow scare in Japan. "I suspect we are really going to see bargains for some of the steaks, like the T-bones and porterhouses," said Todd Duvick, an agriculture analyst at Bank of America. A record number of cattle are in U.S. feedlots and many of these will be slaughtered in the fourth quarter, analysts said. Also, these cattle are at or near record heavy weights, which should further increase beef production. The large beef supply will come at time when a weak U.S. economy and the Sept. 11 attacks have hurt beef demand. Sales are down at some steak restaurants because business travel and dining out have declined, Duvick said. "The restaurants and resorts that rely on tourism and fly-in business are definitely affected," said Chuck Lambert, chief economist with the National Cattlemen's Beef Association, which represents the nation's cattle producers. 

Trade Conference Site May Be Switched. Trade ministers are trying to determine if it is the better part of valor to shift the location of a crucial world trade conference scheduled for next month in Qatar because of security concerns, REUTERS reports. Ministers from the 142 members of the World Trade Organization (WTO) plan to work on an agenda for a new round of world trade talks when they gather as now scheduled in Doha, the Qatari capital, from Nov. 9-13. But at a preparatory meeting in Singapore, convened to narrow differences on the agenda, some of the 21 ministers present questioned whether the conference should be moved because feelings are running high in the Middle East in the wake of U.S.-led military action against Afghanistan. "Let's not think of any other scenarios for the time being," a Qatari delegate was quoted as saying by one trade official. Any decision to change the venue of the November conference could not be taken in Singapore, because it is the prerogative of the WTO's General Council in Geneva, which represents the trade watchdog's entire membership. 

Senate Farm Bill Markup Possible This Week. REUTERS reports the Senate Agriculture Committee could begin writing its new farm law toward the end of this week, working first on less controversial sections of the bill. A spokesman, Seth Bofelli, said Thursday was a possible date for the first markup session which could cover three sections of the bill. He said the committee would start with sections less likely to attract argument. Farm lobbyists said there was no resolution of a debate within the committee over how much money to allot to crop supports and to conservation. Committee chairman Tom Harkin (D-IA) has authored a plan to pay farmers up to $50,000 a year if they make land, water and wildlife stewardship part of their daily work. Harkin has consulted the Agriculture Department while drafting material for possible inclusion in the farm bill, Bofelli said. Harkin wants a strong conservation section in the bill his committee will write. 

Large Crops Sink Prices. THE ASSOCIATED PRESS reports that corn and soybean futures declined sharply Friday on the Chicago Board of Trade as USDA forecast larger-than-expected crops. Wheat prices also retreated. Corn declined after the opening bell, losing as much as 3% of its value after USDA projected the crop would total 9.43 billion bushels - 192 million more than it forecast last month. The crop is still projected to come in at 500 million bushels fewer than last year which kept the decline from being even bigger. Soybean prices took a similar pummeling after the USDA forecast called for a record-large crop of 2.97 billion bushels, exceeding previous forecasts. Summer dry spells that were assumed to have caused crop stress appeared to have little or no affect on estimated final yields. Wheat dropped slightly less sharply than corn and soybeans. The government report said U.S. and world supplies at the end of this year will be slightly higher than expected. Much of wheat's decline was attributed to spillover from the big sell-offs in corn and soybeans. Beef futures retreated while pork futures finished mixed on the Chicago Mercantile Exchange. 

October 12

Veneman Aides Working with Committee on Farm Bill.  Agriculture Secretary Ann Veneman Thursday said USDA officials are working with the Senate Agriculture Committee in an effort to forge a farm bill that will look more like what the Bush administration wants as opposed to the House bill that the administration refused to support. 

Food Safety System Adequate, Says NFPA's Cady. The current regulatory system governing food safety is sufficient to meet new challenges facing the U.S. food supply and can be improved through stronger communication and coordination among the responsible agencies, according to testimony by National Food Processors Association President and CEO John R. Cady. Cady testified before the Senate Government Affairs Subcommittee for Government Management, Restructuring and the District of Columbia. 

Whence Cometh MREs?  Those meals, ready-to-eat, being dropped on Afghanistan in a U.S. humanitarian effort to counter the effects of the bombing missions, are prepared under contract to the Department of Defense. The Wornick Company, McAllen, TX, was awarded a $65,743,650 to assemble the meals. Three proposals were solicited and three were received. Work was performed in Cincinnati, OH. USDA's Agricultural Marketing Service inspects the MREs on a contract basis for DOD, but USDA has nothing to do with the purchasing or preparation of the meals. 

NCGA Welcomes Election of RFA Chairman.  The election of Gary Smith as chairman of the Renewable Fuels Association (RFA) "complements a highly effective and motivated group of leaders that will continue the drive for growing the ethanol industry and the nation's corn growers," says the National Corn Growers Association. NCGA and RFA have become collaborators representing and advancing the interests that are common to corn growers and the ethanol industry. "On issues such as the California waiver, defeat of the Cox-Waxman amendment and legislation to enact a renewable fuels standard, NCGA and RFA have stood shoulder-to-shoulder in the fight to advance ethanol," explained John McClelland, NCGA's director of energy and analysis. Smith is with the High Plains Corp. 

Al Tank To Leave Pork Producers Council.  Al Tank has tendered his resignation as CEO of the National Pork Producers Council (NPPC), effective Oct.15. Tank's resignation brings to conclusion a decade of work with NPPC, including the last four and a half years as CEO. "Al has made significant contributions to the advancement of the U.S. pork industry," said NPPC President Barb Determan. "In time of unprecedented change and challenge in the pork industry, he led our organization with skill, determination and a keen vision for the future. His skill enabled us to serve pork producers with programs and services to enhance their businesses, to grow demand for pork both domestically and internationally, as well as to effectively address a wide range of serious industry challenges including the environment, pork safety and biosecurity." Tank said, "Now is the right time to depart and create the opportunity for new leadership. The checkoff has been protected and the National Pork Board has a new CEO in place. Now, NPPC with the active involvement of producer and industry leaders must develop and implement the organizational blueprint to serve the pork industry. This is a time of unprecedented challenges and unlimited opportunities for the U.S. pork industry. I believe that NPPC and the National Pork Board are well positioned to address these challenges and capture the opportunities." Determan said, "We want it clearly understood that the decision to leave at this time is Al's decision - and his decision alone - which was reluctantly accepted by the Board of Directors," Determan continued. "He strongly believes this decision is in the best interest of pork producers, the pork industry and NPPC. We wish Al the best in his new endeavors and thank him for his leadership, hard work and dedication on behalf of the nation's pork producers." 

Biotechnology Policy Dialogue Announced.  The Pew Initiative on Food and Biotechnology will host a policy dialogue, "Are the US and Europe Heading for a Food Fight Over Genetically Modified Food?" on Oct. 24 at 9.30 am at the National Press Club. David Gergen, counsel to four presidents and author of "Eyewitness to Power: The Essence of Leadership from Nixon to Clinton" will moderate the discussion with senior representatives from USDA and the European Community. "We hope to stimulate a informative discussion about the political, economic and cultural differences that have led the European Union and the United States to adopt such divergent approaches to the regulation of genetically modified crops and food," said Michael Rodemeyer, executive director of the Initiative. "Recent EU proposals to require labeling and traceability of genetically modified crops and food have created uncertainty for the international trading system and raised concerns in the US business community. The dialogue will also examine the cultural roots of this food debate, and additionally ask how American farmers are affected by European attitudes about genetically modified food. We hope the Initiative's participation will help frame the international debate and help put it in a deeper context," Rodemeyer concluded. The Policy Forum will take place in the Murrow Room of the National Press Club. The dialogue will be presented via a live Internet webcast. To watch or submit questions go to http://www.PewAgBiotech.org or http://www.ConnectLive.com/PewAgBiotech. To register, please contact D.J. Nordquist at 202-347-9132 or via email at djnordquist@pewagbiotech.org. 

No Resolution to U.S., China Soybean Dispute. REUTERS reports that the United States and China will hold more talks in an effort to resolve a dispute over soybeans, special counsel for USDA David Hegwood said on Thursday. He told reporters Washington hoped to resolve a row over what he called "unfair" Chinese restrictions on imports of U.S. soybeans before President George W. Bush and his Chinese counterpart Jiang Zemin meet next week. "We will continue our discussions with the Chinese in the hopes of resolving this as quickly as possible. We would really like to put these issues behind us before the two presidents meet in Shanghai at APEC," Hegwood told a news conference after two days of talks with Chinese trade and agriculture officials. The two leaders are due to meet during the annual Asia Pacific Economic Cooperation forum which will be held in Shanghai on Oct. 20-21. 

October 11

Ethanol Byproducts Topic of Workshop. The upcoming National Corn Growers Association (NCGA) workshop on distillers dried grains and solubles (DDGS) will focus on managing an issue that affects two major customers of the nation's corn growers: ethanol producers and the livestock industry. 

AMI Comments Defining Cattle, Beef Products. The American Meat Institute told USDA's Food Safety and Inspection Service it "strongly opposes change in current origin labeling requirements for beef (or other meats and poultry)." The AMI comments responded to an advance notice of proposed rulemaking (ANPR) published Aug. 7. In the ANPR, USDA's Food Safety and Inspection Service (FSIS) invited comment on the need for regulations to clarify the definition of "United States cattle" and "United States fresh beef products." 

FDA Hearing Focuses on BSE.  The Food and Drug Administration will hold a public hearing to solicit information and views on whether and how to strengthen a regulation designed to help prevent the occurrence, through animal feed, of bovine spongiform encephalopathy (BSE) in U.S. cattle herds. 

Beef Producing Nations Reach Priorities Consensus.  The Five Nations Beef Conference, the world's largest beef producing nations, last week discussed and reached consensus on a variety of issues impacting beef and the beef supply. Through roundtable discussion, attendees developed a position statement covering trade reform; animal identification; environment; animal health, welfare and disease control; promotion, product quality and food safety; and advanced technologies, according to the National Cattlemen's Beef Association (NCBA), host of the conference. 

Grocers Tell of Plan on Food Safety.  C. Manly Molpus, president and CEO of the Grocery Manufacturers of America, outlined a four-point plan for a Senate panel to strengthen the current food safety regulatory structure rather than embarking upon a "radical restructuring" of the agencies charged with overseeing the U.S. food supply. 

Farm Trade Remains Nettlesome.  REUTERS reports from Geneva that members of the World Trade Organization (WTO) continued to argue about farm trade issue Wednesday, one of the main stumbling blocks to the launch of a new round of international trade liberalization talks. Representatives from 142 member states held a first negotiating session on draft proposals on agriculture put forward by the chairman of the WTO's ruling General Council, but trade sources said progress was minimal. Still, the fact that all countries said that the text was a basis for negotiation at least offered hope that the differences could eventually be overcome, they added. "We are only just starting and everything could fall apart. But the fact everyone is willing to talk is encouraging," said one senior trade source. The aim now is to reach agreement on a draft statement for the ministers to sign in Doha, Qatar, where they meet Nov. 9-13. This will in turn serve as a launching pad for the trade round that could take several more years. 

Canola Growers Count Moth Costs. UN Warns of Animal Disease Terrorism. European nations increased their efforts Wednesday to avoid biological terrorist attacks. REUTERS reports a United Nations expert warned that devastating animal diseases could be deliberately introduced into a country. "Bio-terrorism is very much in people's minds," said Pia Arhenkilde, spokeswoman for European Union Environment Commissioner Margot Wallstrom, ahead of a meeting on Thursday to discuss precautionary measures. Sweden's parliamentary defense commission said in a report there was information indicating that non-state operators were trying to acquire biological and chemical weaponry, including Osama bin Laden's group of Muslim fundamentalists. German drug company Bayer AG said on Wednesday it was increasing production of its Cipro anthrax treatment as fears mounted in the United States of biological attacks. Anthrax scares have swept the United States following a journalist's death from the disease in Florida and news that a second man has been exposed to the disease. Rare in nature, anthrax can be used in biological warfare. 

Germany Balks on Wheat Duties. REUTERS reports that Germany will vote against proposals to reduce import duties on cheap east European wheat at a meeting of the European Union grains management committee today. The EU committee is scheduled to vote on a proposal to end a 10 euro a ton import duty on grain from Mediterranean, Black Sea and Baltic ports. The proposal would open the EU market to more cheap east European grains, an effort the Commission wants to reduce EU grain prices, which it believes are too high. "Germany will vote against this proposal because it has come at an incorrect time and should have been undertaken earlier," the German farm ministry spokesman said. "Large grain stocks have been purchased following this year's harvest. The EU proposal would probably lead to lower prices, so leading to a loss in value of stocks which have already been paid for. This is not a fair way of operating." A REUTERS survey of EU states on Wednesday indicated that the plan was likely to be approved by the committee even if Germany voted against it. 

Congress Asked to Aid in Terrorist Protection. THE ASSOCIATED PRESS reports that government and industry are pushing for billions of dollars in aid from Congress to protect the nation's reservoirs, dams and power and chemical plants against terrorism. Lawmakers were told Wednesday the FBI has found no credible threats to any of those facilities. But Mike Parker, administrator for civil projects for the Army Corps of Engineers, replied that "the answer can only be a reluctant, sobering yes" to whether U.S. water resources were at risk. The Association of Metropolitan Water Agencies, whose members supply about 160 million people, told the House Transportation and Infrastructure subcommittee on water resources and environment that Congress should spend up to $5 billion to protect drinking water and wastewater plants. They also advised giving the Environmental Protection Agency $155 million more - a 62-fold increase - for security planning. 

GAO Details Food Risks from Terrorism. THE ASSOCIATED PRESS reports that the U.S. food supply is at risk from terrorism because of a fragmented inspection system. "We believe there is reason to doubt our ability to detect and fully respond to an organized bioterrorist attack," said Robert Robinson of the General Accounting Office, an investigative arm of Congress. Food inspection programs are divided between USDA and the Food and Drug Administration. FDA, which is responsible for safeguarding nearly all foods other than meat and poultry, has 750 inspectors to check 55,000 food plants. USDA has 10 times as many inspectors for 6,000 facilities. GAO has pressed Congress for years to consolidate inspection programs into one agency, and the terrorist attacks on Sept. 11 make it more imperative, Robinson told the Senate Governmental Affairs subcommittee on Wednesday. "Maybe the events of Sept. 11 will give us some impetus to change," said Sen. Richard Durbin (D-IL) who has long advocated the creation of a single food agency, an idea studied but dropped by the Clinton administration. Thousands of food processors nationwide lack proper security, and few test their finished products for contaminants, said Peter Chalk, a policy analyst with the RAND think tank.Robinson said USDA has been left out of the administration's bioterrorism planning. USDA and FDA officials said that they are coordinating their efforts to prevent or deal with an attack. "We're in a new day. We're facing threats we never thought we would have to be facing," said Elsa Murano, USDA's new under secretary for food safety. 

October 10

TPA Bill Readied for House Action.  Much to the delight of nearly the entire agricultural community, the House Ways and Means Committee marked up a trade promotion authority (TPA) bill Tuesday for House floor action sometime next week. With a little luck, the Senate could act on the bill as well before the November World Trade Organization meetings in Qatar. 

IDFA Clashes with Farmers Over Tariffs.  The International Dairy Foods Association says it "strongly opposes" a request by the National Milk Producers Federation (NMPF) to USDA to increase tariffs on imported butter, butteroil and butter substitutes. In a letter to USDA Under Secretary J.B. Penn, NMPF asked USDA to exercise immediately World Trade Organization (WTO) safeguard rights on butter and butteroil imports, claiming that "imports [of these products] in July and August 2001 reduced U.S. dairy farm income by $70 million during those two months by lowering butterfat prices in domestic markets." 

Security Task Force Created for Dairy. The International Dairy Foods Association has created a bio-security task force as part of ongoing efforts to ensure the quality and safety of domestic dairy products . Dairy processor members of the Milk Industry Foundation, National Cheese Institute and International Ice Cream Association are being invited to join. 

Food Aid a Mixed Blessing.  The American Soybean Association (ASA) is "pleased" that soy foods can play a role in the relief efforts for Afghanistan refugees announced by the Bush Administration. The White House will expand its support of the refugees and provide an additional $320 million in humanitarian assistance, including $150 million in food aid. 

Some ‘loose threads' from the farm bill.  Among the amendments offered last week in the House debate over the farm bill were several dealing with dairy issues, most of which went down to defeat. The approved bill, however, maintains dairy and sugar provisions that were passed by the House Agriculture Committee in July. The final bill contained no provision dealing with dairy compacts. In floor debate, the House voted to defeat Rep. Bernie Sanders' (I-VT) amendment that would create a new dairy scheme to include a $17.50 Class I price, national pooling provisions, new subsidies for producers that supply other classes of milk, and provisions for the creation of regional supply management programs. An amendment from Rep. Jim Walsh (R-NY) that called for a study of national dairy policy was approved. During the farm bill debate, a sugar amendment from Reps. Dan Miller (R-FL) and George Miller (D-CA) was defeated. The International Dairy Foods Association, through the Coalition for Sugar Reform, supported the Miller-Miller amendment as "modest reform toward a market-oriented sugar policy." IDFA said it was disappointed to see the amendment rejected. 

Canola Growers Count Moth Costs. In Western Australia, canola growers in the northern agricultural area are counting hundreds of thousands of dollars in losses from the diamond back moth. The moth has some growers seriously assessing whether it's worth planting the expensive but potentially very lucrative crop, according to the AUSTRALIAN BROADCASTING CORPORATION. The manager of oilseed productivity and industry development with the Department of Agriculture, Christine Zaicou-Kunesch, says control measures are being used to minimize the damage. "We do know of a small number of paddocks that have been devastated. Other crops have been able to manage the infestations and keep them under control through using insecticides. So there's been a cost to the growers in terms of chemical sprays which could be something like $50 a hectare if they're using two sprays. By keeping the insect under control, they're still getting good yields off those crops," she said. 

Senate Panel to Write Farm Bill.  REUTERS reports the Senate Agriculture Committee will begin writing its own farm bill next week, according to Chairman Tom Harkin (D-IA). But there appears to be no consensus on expanding conservation programs. The news agency notes that land, water and wildlife stewardship have overshadowed crop subsidies, the traditional focus of farm bills, as the major issue. Environmentalists see the farm law debate as the best chance in a decade to change the direction of the farm program. Harkin told reporters he wanted a strong conservation section in the Senate bill. The Iowa Democrat was lead sponsor of a plan to pay farmers up to $50,000 a year to practice conservation on "working" farm and ranch land. 

FAO Goes Back to Rome.  THE ASSOCIATED PRESS reports that the U.N. Food and Agriculture Organization has changed the location of its Nov. 5-9 world food summit again -- back to Rome, not the Adriatic resort of Rimini. FAO spokesman Nick Parsons gave no reason for the change. A week ago, the Rome-based agency said it had agreed to move the meeting to Rimini at the urging of the Italian government. The government feared the sort of violent protests that marred the Group of Eight summit in Genoa this summer. The Sept. 11 terror attacks in the U.S. added new security concerns. Parsons said the decision to hold the summit in Rome, as originally planned, was made at a meeting Tuesday night of representatives of the FAO and the Italian government. The FAO has said it expects scores of world leaders to attend the summit, a follow-up to the first food summit five years ago. Parsons said around 4,000 delegates are expected to attend. 

Fischler Doesn't Like House Farm Bill.  THE WALL STREET JOURNAL reports Franz Fischler, European Union agriculture commissioner, doesn't like the House version of the farm bill. He says it distorts trade. "(This decision) doesn't fit with what the U.S. has been saying in World Trade Organization agricultural negotiations," said Fischler. He said the House wanted to "push up price-based support and strengthen 'counter-cyclical' policies." He warned this decision put the U.S. in the ambiguous position of defending one policy at the WTO farm talks, while another policy was supported by the U.S. House. 

October 9

Corn Growers List Ethanol ‘Myths.' The National Corn Growers Association has compiled what it calls "10 of the most common myths concerning ethanol" in an effort to counter questions about the effectiveness of ethanol as a gasoline additive. Since June, says NCGA, when the Environmental Protection Agency denied California's request for an oxygenate waiver, "it seems many are trying to prove ethanol will cause all forms of problems," the association said. 

House Votes on Livestock-Related Issues Noted. During the farm bill debate last week, the House passed an amendment to the bill prohibiting the sale of "nonambulatory" livestock, proposed by Rep. Gary Ackerman (D-NY) and strongly supported by the Humane Society of the United States. The bill's major opponents were livestock producer and marketing groups, as well as others in animal agriculture. 

RFA Can Intervene in California-EPA Suit.  The Renewable Fuels Association (RFA) says the U.S. 9th Circuit Court of Appeals has granted its petition to intervene in the state of California's lawsuit against the Environmental Protection Agency on the issue of EPA's denial of the California request for a waiver from the Clean Air Act's oxygen standard. 

Brazil Wants Agriculture on WTO Agenda. REUTERS reports that Brazil's Agriculture Minister Marcus Vinicius Pratini de Moraes says developing countries must insist that agriculture is part of the next round of tariff reductions made by the World Trade Organization (WTO). Pratini said that over the past 50 years, average industrial tariffs had been reduced 2% from 40% but agricultural tariffs remained at 40%. "There's freer trade for industrialized countries but it is increasingly difficult for food exporting countries," Pratini told a ministerial meeting of the 10-member country Cocoa Producers' Alliance. "We must adopt a firm and united stance," Pratini said, pointing to a growing arsenal of non-tariff trade barriers, notably plant and animal health rules. Environmental concerns also have been exploited as an excuse to erect barriers to trade, he added. "The last Uruguay Round was a complete failure in agriculture," he said, and urged a "real reduction" in market-distorting domestic farm subsidies and effective implementation of trade preferences for poor countries. Pratini singled out U.S. government loan deficiency payments for its soybean farmers which encouraged production and depressed world prices, which he said resulted an estimated $1.2 billion in lost revenue for Brazilian farmers. 

DuPont, Monsanto Settle Seed Dispute. DuPont and Monsanto have resolved a dispute over the use of Monsanto's YieldGard corn trait, REUTERS reports. DuPont said the resolution includes the dismissal of several lawsuits filed by both parties in federal courts in St. Louis and Rockford, IL, over the development, use and licensing of Monsanto's corn trait. DuPont sells corn seed to farmers, and Monsanto's corn trait helps to protect the corn from insects, said DuPont subsidiary Pioneer Hi-Bred International. Under the agreement, Pioneer Hi-Bred will continue to offer its customers Monsanto's corn hybrids under a royalty-bearing license. Specific details of the agreements were not provided. 

Europe's Demand for GM-Free Feed Soars. When European supermarkets agreed to pay extra for animal feed free of genetically modified products, demand for animal feed soared, REUTERS reports. A certification firm says about 4 million tons of non-biotech soymeal, mostly from Brazil, was guaranteed this year by certification firm Cert ID, an increase from 700,000 tons in 2000, President Jochen Koester told the news agency. That could more than double next year if buyers were willing to pay the higher prices for certified material, he added in a telephone interview. 

Wisconsin Farmers in for $240 Million Boon. THE ASSOCIATED PRESS reports that Wisconsin farmers will receive $240 million to control soil erosion, improve water quality and restore prairie land under a new program that combines state and federal money. State Agriculture Secretary Jim Harsdorf said the program will allow farmers to enroll up to 100,000 acres in the Conservation Reserve Enhancement Program using $200 million from the federal government and $40 million in state money. That's more than a third of the 285,000 acres Wisconsin farmers have tried to enroll in the federal conservation program but have not been able to because of inadequate funding. Keither Foye, state conservation manager, said the program is expected to reduce phosphorus, nitrogen and sediment runoff; establish buffer strips on half the streams in the project areas that are currently unprotected; and increase the amount of tallgrass prairie. 

October 8

Pork Producers Hail Farm Bill Approval.  National Pork Producers Council (NPPC) President Barb Determan says the House-passed farm bill "meets the needs of production agriculture and the environment simultaneously." The House passed the bill Friday by a vote of 291-120. 

Farm Bureau Calls House Vote a ‘Victory.' Bob Stallman, president, American Farm Bureau Federation, calls the House action Friday to approve a farm bill "a great victory for America's farmers and ranchers. The funding included in this bill will help give rural America a much-needed economic shot in the arm." 

Farmers Union Expresses Disappointment. The National Farmers Union (NFU) expressed its disappointment that the farm bill approved by the House "continues the philosophy and policies of the failed 1996 Freedom to Farm law." NFU President Leland Swenson said the bill fails to provide "new vision and will impose reliance on government supports to sustain American agriculture and rural communities for the next ten years." 

Soybean Farmers Applaud Farm Bill Outcome. The American Soybean Association (ASA) applauded passage of farm legislation by the House of Representatives and called on the Senate to act quickly to write its own version that treats soybeans equitably with other program crops. "While ASA was not satisfied with the inequitable levels of support for soybeans in the House farm bill, we did support the overall spending and investment levels for agriculture contemplated in the bill," said Bart Ruth, a soybean and corn producer from Rising City, NE. 

Milk Producers Have Kind Words for Farm Bill.  The National Milk Producers Federation (NMPF) applauded the approval Friday by the House of Representatives of the 2002 farm bill which contains several dairy policy items supported by the NMPF. The measure was "a great tribute to the hard work and bipartisan cooperation demonstrated all throughout the year by the leaders of the House Agriculture Committee," said Jerry Kozak, president and CEO of NMPF. 

Team to Study Japan's Mad Cow Problem. KYODO NEWS reports the Obihiro University of Agriculture and Veterinary Medicine has formed a team to study the infection mechanism of mad cow disease and learn how to produce animal feeds that do not risk infecting cows with the disease. The state-run university is known for its research on animals' diseases induced by prions, the infectious agent suspected of causing mad cow disease and its fatal human variant, Creutzfeldt-Jakob disease (CJD). The team is led by the university's Vice President Ichio Sasaki. The team intends to explain whether and how the prions cause mad cow disease with an eye to stalling the spread of the disease in the livestock industry, university professors told a news conference. Each of seven task forces will have a specific research task, such as how to detect a prion in the mammals suspected of carrying the infectious agent, the professors said. 

Cuba Limits Rice Production, Preferring Imports.  REUTERS reports that Cuba will limit rice production and continue to import most of the island's main staple from Asia, as long as international prices remain low and financing scarce and expensive. "Rice has been selling on the international market starting from as low as $135 to $150 per ton this year, so we have had to choose carefully which of our 150,000 hectares of rice land we plant to insure costs are similar," Agriculture Vice Minister Dr. Alfredo Gutierrez said in an interview with REUTERS. That means Cuba's state-run provincial farms, which in 1988 produced a record 259,000 tons, will produce just 74,000 tonnes this year, Gutierrez said. Output was expected to increase only 25% in 2002, he added. 

U.S. ‘Irritation" Will Be Told to Chinese.  REUTERS reports that U.S. officials will tell Chinese counterparts that the United States is irritated over an interruption in agricultural trade that has erupted just as the World Trade Organization is preparing to admit China. Since July, high-ranking Bush administration officials, including Secretary of State Colin Powell and Agriculture Secretary Ann Veneman, have been pressing China to clarify rules for restrictions that took effect in June on imported bioengineered foods. China's refusal to provide those details has resulted in a virtual suspension of Chinese bookings of U.S. soybeans that are now being harvested. In recent weeks, soybeans arriving at Chinese ports have been facing unusually cumbersome inspection and quarantine procedures, David Hegwood, special trade adviser to Veneman, said on Friday night. In a telephone interview with REUTERS before departing for China, Hegwood said, "Ideally, we would like to get their (trade) restrictions lifted." 

October 4

House Ignores Administration Protest. Hardly had the House begun debate on the farm bill when the Bush administration belatedly issued its "Statement of Administration Policy" in which it stated that it does not support H.R. 2646 and urged the House of Representatives to defer action on the bill. The Administration was strongly criticized by both Republican and Democratic supporters of the bill. Both House Agriculture Committee Chairman Combest and Ranking Democrat Stenholm were critical of the leadership of USDA for failing to provide any suggestions during the Committee's long process of writing the bill. By waiting until the House bill was on the floor to state its position, the Bush Administration has probably forfeited its chance to have much impact on the outcome of the farm bill in the House of Representatives. 

NPPC Supports Animal Health Bill.  National Pork Producers Council (NPPC) President Barb Determan has commended Sens. Tom Harkin (D-IA) and Richard Lugar (R-IN) for introducing the Animal Health Protection Act, a bill that will "modernize and streamline the ability of the U.S. government to respond to an animal health emergency." Determan said, "In the event of an outbreak of an animal disease, response time and clear lines of authority are critical components of a successful containment strategy." 

Enzi Seeks Drought Assistance. Sen. Mike Enzi (R-WY) has requested funding that would assist livestock producers suffering from severe drought conditions. In a letter sent Tuesday to Sens. Herb Kohl (D-WI), chairman, and Thad Cochran (R-MS), the ranking member of the Senate Appropriations Subcommittee on Agriculture, Rural Development and Related Agencies, Enzi requested that the Livestock Assistance Program (LAP) be funded through this year's Agriculture Appropriations bill. 

Dairy Amendments Expected.  At least four dairy-related amendments were expected to be offered during the House debate on a new farm bill. Two were to authorize wider use of regional interstate dairy compacts to raise milk prices -- one filed by Reps. Don Sherwood (R-PA), Bob Etheridge (D-NC) and John McHugh (R-NY), and another filed by Rep. Jim Walsh (R-NY). Since the compact amendments are not germane to the bill (jurisdiction over interstate compacts resides with the Judiciary Committee, not the Agriculture Committee), it is expected these will not be successful, according to the International Dairy Foods Association. 

Secretaries Call for Sugar Reforms.  In a letter to the House of Representatives, released by the Coalition for Sugar Reform (CSR), former Agriculture Secretaries Dan Glickman (D), Jack Block (R) and Clayton Yeutter (R) endorsed the "Miller-Miller" sugar reform amendment, which is expected to be debated by the full House today. "Whatever its merits in the past, the sugar program, in its present form, no longer serves its intended public policy goals. It should be reformed," their letter said. "There appears to be no reasonable way to sustain the present sugar program in an open North American sweetener market, which will be fully implemented during the lifetime of the farm bill now under debate in Congress. In addition, defending this import-restrictive program is increasingly untenable for our trade negotiators as they attempt to pry open foreign markets for U.S. producers. This conflict harms the interest of other farmers, ranchers and processors. And in contrast to the past, the sugar program has become costly to taxpayers, with nearly half a billion dollars in federal outlays last year alone. The cost to U.S. consumers is far greater still." The amendment that Reps. Dan Miller of Florida and George Miller of California will offer rejects production controls, reduces price supports, provides for an increase in the existing forfeiture penalty and ends the current marketing assessment on sugar. 

EU Insists on Environmental Rules.  REUTERS reports from Geneva that the European Union is insisting that negotiations on environmental rules must be included in a new trade round. "Trade and the environment, or the omission of it, is indeed a deal-breaker," senior EU official Peter Carl told a news conference. Developing countries are refusing to consider the issue. The United States has said it would not renegotiate existing agreements on anti-dumping -- given broad U.S. use to protect parts of U.S. industry against low-priced imports. And emerging economies and poorer states said they wanted most of the problems they have with earlier WTO pacts resolved before they could consider agreeing on a round when the body holds a ministerial meeting in Qatar from Nov. 9-13. Diplomats said the most vivid differences now concerned the environmental issue -- labelled by Carl at a meeting of the WTO's ruling General Council as "of prime political importance" to Brussels. 

Zoellick Wants China to Lift Barriers.  U.S. Trade Representative Robert Zoellick has called on China to "immediately" lift "obstacles" for soybean exporters, a U.S. trade official said. REUTERS reports that Zoellick "raised concerns" with senior Chinese officials in Beijing and Washington about "difficulties U.S. exporters of soybeans are having getting product into China," according to the official. "Soybeans is one of the largest U.S. export products to China and we look to China to take steps immediately to remove these obstacles," said the U.S. trade official, who asked not to be identified. The official did not comment on China's reaction to Zoellick's conversations. 

Animal Sex Selection Successful.  REUTERS reports from Sydney that Australian scientists claim to have successful bred 25 lambs whose sex was selected before conception. The news agency says that could mean an end to the mass slaughter of "wrong sex" animals. The healthy lambs, now nine and 10 weeks old, are the first offspring of any species in Australia from sperm sorted into male or female chromosomes and rethawed after being frozen. Researchers from the University of Sydney, together with U.S. biotechnology firm XY, Inc, achieved an overall accuracy rate of 96% in producing the correct gender lambs, the scientists said on Thursday. Since the dairy industry needs only females, 600,000 male cattle are slaughtered at birth in Britain alone every year, the scientists said. The technology has further applications for endangered species, they added. 

October 3

EPA Extends Bt Cotton Registration.  The Environmental Protection Agency has extended for five years the conditional registration for Bt cotton. EPA said the decision came following "a comprehensive and exhaustive review." The agency also said it is requiring additional measures to ensure that use of the product does not pose any unreasonable risks to human health or to the environment. 

NFU Opposes Milk Definition Change.The National Farmers Union (NFU) has told the Food and Drug Administration (FDA) it is opposed to petitions that seek to change the official definition of milk used in manufacturing dairy products. One petition, filed by the American Dairy Products Institute, proposes changing the standard to allow the use of liquid ultrafiltered (UF) milk in cheesemaking. The other petition filed by the National Cheese Institute (NCI), the Grocery Manufacturers of America, Inc., and the National Food Processors Association seeks to change the standard to allow the use of both liquid and dry ultrafiltered milk in cheesemaking. 

Farm Bureau Proposes Anti-Terrorist Position. The American Farm Bureau Federation has urged President George W. Bush to appoint a specialist within the new Office of Homeland Security to help safeguard agriculture and the nation's food supply from terrorism. In a letter to Bush, AFBF President Bob Stallman requested that a special high-level staff position focusing on the prevention of agroterrorism be appointed to serve under Gov. Tom Ridge, head of the new Office of Homeland Security. 

House Debates Farm Bill.  The House plans to take up the farm bill today as farm group lobbyists try to get members to hold commodity spending authorizations firm against an attempt to funnel money from the commodities into more conservation programs. Another part of the debate no doubt will focus on whether Congress can afford the $170 billion price tag for which the bill calls over the coming decade. Some House proponents hope that quick action in that chamber will put pressure on the Senate to act. But it's highly doubtful the Senate will approve its version of a farm bill until next year. Conservation program proponents stand a much better chance to enhance "green" programs in the Senate where Agriculture Committee Chairman Tom Harkin (D-IA) wants an incentive-based conservation scheme to be part of the bill. 

Philippines Lifts Ban on Meat Imports.  THE WALL STREET JOURNAL reports that the Philippine Department of Agriculture has lifted a ban on the imports of live pigs, pork and pork products from Ireland, France and the Netherlands. Agriculture Secretary Leonardo Montemayor issued the order after the three countries were declared free from foot and mouth disease by the Office Internationale des Epizooties. Montemayor said that based on an evaluation of veterinary quarantine services by the Bureau of Animal Industry, or BAI, "the risk of contamination from importing live pigs, semen, pork and pork products from Ireland, France and Netherlands is negligible." The ban had been implemented March 14. 

Bayer Acquires Aventis CropScience.  Aventis and Schering AG have signed an agreement with Bayer AG on the acquisition of Aventis CropScience. Aventis holds a 76% interest in this business, while Schering AG, Berlin, holds 24 percent. Under the terms of the agreement, which is subject to the approval of the relevant authorities, the enterprise value of Aventis CropScience will be set at around 7.25 billion euros including debt. The transaction is expected to close during the first quarter of 2002. In November 2000, Aventis announced its intention to divest Aventis CropScience by the end of this year to focus on its pharmaceutical business. After reviewing different divestment options, Aventis has continued exclusive negotiations with Bayer since mid-July. This agreement represents a decisive step in the strategic shift of Aventis into a pure-play pharmaceutical company. For Aventis, the expected decrease in the net debt -- through the proceeds from the divestment as well as the deconsolidation of debt associated with CropScience -- would mean additional flexibility for the future development of its pharmaceutical business. 

October 2

China and Its WTO Obligations.  The World Trade Organization's "Working Party on China" concluded 15 years of negotiations last month and agreed to forward some 900 pages of legal text for formal acceptance by the 142 WTO member governments by the upcoming ministerial meeting in Qatar next month. Thirty days after China notifies its acceptance of the agreement, China legally becomes a member. 

USDA Must Adjust Butter Import Tariffs.  The recent sharp decline in U.S. butter prices is evidence that the federal government should exercise its right to adjust the tariffs on imports of butter and butter oil, according to the National Milk Producers Federation (NMPF). 

Farm Subsidies Distort UK Market.  THE WALL STREET JOURNAL reports that UK Agriculture Secretary Margaret Beckett is expected to tell a Labor Party conference today that large farm subsidies have distorted the market and left UK farmers out of touch with their customers, according to the FINANCIAL TIMES. Sources close to Beckett said it was necessary for the secretary to insist on reforms to the European Union's Common Agricultural Policy that would move policy away from market management and subsidies to farmers, the paper says. 

Developing Countries Not Pleased with WTO Proposal.  THE ASSOCIATED PRESS reports from Geneva that developing countries don't like a proposal from the World Trade Organization for the new round of trade talks. Their disappointment was expressed at an informal meeting of the 142-member WTO and pressured the world body to find a greater measure of agreement to launch the trade round at a major meeting in Doha, Qatar, next month. "Core concerns...have not been effectively addressed," Indian Ambassador Srinavasan Narayanan told the WTO general council. But he said it was "important to be constructive." A senior Southeast Asian diplomat told reporters he also was disappointed. But the diplomat said developing countries would "continue to engage" in dialogue with their trade partners ahead of the Doha meeting. "Nobody's rejecting the text," he said. The seven-page document was drawn up by Hong Kong Ambassador Stuart Harbinson, who chairs the general council, in consultation with WTO Director-General Mike Moore, in an attempt to find enough common ground between members to allow a new round. 

Testing Continues on Japanese Cows.  REUTERS reports from Tokyo that testing will continue on three cows that had shown symptoms of mad cow disease that had proven negative in initial testing. The dairy cows, two from the southern island of Okinawa and one from the Tokyo area, were tested after they developed problems walking, a classic symptom of the brain-wasting disease. Last month, Japan reported its first case of mad cow disease, known formally as bovine spongiform encephalopathy (BSE), after a cow on a farm in Chiba, near Tokyo, tested positive. A ministry official said an enzyme-linked immuno sorbent assay (ELISA) was taken for the initial tests. The second tests would involve a histopathological, or tissue, examination. Prime Minister Junichiro Koizumu and other lawmakers from the ruling coalition plan to launch a beef-eating campaign today to convince consumers that home-bred beef is safe. Events include a buffet of beef dishes.

Federal Court Seems Wary of Salmonella Claim. American Meat Institute officials attended the oral arguments session in which a three judge panel of the U.S. Court of Appeals for the 5th Circuit was hearing the USDA appeal in the Supreme Beef litigation. AMI reports the panel repeatedly interrupted the prepared presentations of attorneys for both sides, asking numerous pointed questions. "The court voiced skepticism about the validity of Salmonella as an indicator of sanitation," says AMI. Other questions asked related to USDA's statutory authority for taking action and the impact of the company's bankruptcy on the litigation. In the spring of 2000, a U.S. District Court judge enjoined USDA from withholding inspection at the Supreme Beef grinding facility because it allegedly failed a USDA Salmonella performance standard. USDA subsequently appealed the injunction, leading to the most recent oral arguments. The appeals court likely will rule in the next few months. 

ACPA Doesn't Like Court's Decision. The American Crop Protection Association "profoundly disagrees" with last Tuesday's federal court ruling that approves a consent decree, "despite strong public comment against it," between the Environmental Protection Agency and the Natural Resources Defense Council. The underlying lawsuit was originally brought by the NRDC against the EPA about deadlines for pesticide reassessments under the 1996 Food Quality Protection Act. EPA and NRDC agreed to the settlement Jan. 19, the last day of EPA Administrator Browner's tenure under the Clinton administration. After vigorous protest and court filings, in April a U.S. district court judge granted ACPA's motion to have the consent decree (agreed to between only two parties) published on EPA's web site for public comment so that all other affected stakeholders could comment. "It is outrageous that NRDC's attorney described our argument as 'flimsy.' That's mudslinging and we will not let this stand," said Jay Vroom, ACPA president. "We are surprised he would take this tone since the judge himself agreed that our concerns merited public comment - and our concerns were echoed in the comments opposed in this rush-to-judgment settlement. "But, we're not surprised NRDC is elated with the ruling," Vroom noted, "not because of any environmental claims, but because of its pecuniary interest in the settlement - NRDC will get $40,000 because of an agreement made with former administrator Browner." ACPA intends to appeal the ruling. "We believe the judge was in error in the scope of his authority, which the ninth circuit should review," Vroom added. "And, we will redouble our efforts to stand up for sound science and reasonable due process under the law. 

NFU Appeals for Farm Bill Changes. National Farmers Union (NFU) has asked Congress to address "shortcomings" in the farm bill scheduled for House debate this week. "National Farmers Union supports the adoption this year of a new farm policy to replace the 1996 farm bill," said NFU President Leland Swenson. "However, provisions of H.R. 2646 must be modified to avoid extending the mistakes made in 1996 for another decade." H.R. 2646, the "Farm Security Act of 2001," will establish the direction for American agriculture for the next 10 years. The pending legislation fails to achieve what Swenson said should be its primary goals: increasing demand so farmers and ranchers get a decent price from the market and ensuring an adequate safety net for producers based on current yield and planting realities. NFU also maintains that new farm legislation should provide an improved dairy program, expand renewable energy production and use, target benefits to family-sized operations and fully address conservation and rural economic development issues in the agricultural sector. The organization also has pushed for the inclusion of a competition title in the next farm bill to address agricultural concentration. 

Japan Bans Some Cattle Feed.  THE ASSOCIATED PRESS reports that Japan has banned the domestic distribution of cattle feed containing recycled cow parts amid concerns over the nation's first mad cow case. Japan had banned imported meat-and-bone meal. The new move, which comes into effect Thursday, also bars the use of domestic and imported meat-and-bone meal in fertilizers, said Tadahiko Tashiro, an Agriculture Ministry spokesman. Tashiro said that under the measure, which he said is aimed at easing worries among consumers, the government will incinerate all meal containing recycled animal parts that is currently sitting unused. "With this measure, I am convinced that we have created a system that will completely shut out any possible infection by BSE," Agriculture, Forestry and Fisheries Minister Tsutomu Takebe told parliament Monday. 

Citizens Group Doesn't Like Farm Bill Timing.  The Council for Citizens Against Government Waste (CCAGW) sent a letter to House Speaker Dennis Hastert (R-IL) saying it is disappointed that a farm bill is being considered by the House "at this time." "Congress should focus on taking action that enhances our national security, rather than considering special interest legislation that is not in the national interest. Since the present farm bill does not expire for nearly a year, there is no logical reason to rush this legislation to the floor right now. Furthermore, H.R. 2646 represents a dramatic backward step in farm policy. It not only continues to subsidize the products it has always subsidized and restores all subsidies that have ever been eliminated, but it also creates new subsidies for products that have never been subsidized before. The bill reported out of the House Agriculture Committee is completely irresponsible and ignores reality. It adds another $73 billion in subsidies to the already-existing $95 billion 10-year base -- at a time of growing uncertainty that such funds will even be available," the group said. The Bush administration recently released its farm policy principles "which correctly analyzed the negative impacts of existing farm policies. Congress should consider the principles enunciated by the administration before rushing head-long into passing farm legislation that is simply an extension of the current farm policies, which benefit a small number of wealthy farmers at the expense of small family farmers and the American taxpayers." CCAGW is the lobbying arm of Citizens Against Government Waste, a non-partisan, non-profit organization that wants to eliminate waste, fraud, mismanagement and abuse in government. 

October 1

Cotton Equates Farm Bill with National Security. National Cotton Council Chairman James Echols maintains that current political, economic and national security uncertainties do not diminish U.S. cotton's need for new farm policy that holds promise for restoring economic health to all farm industry segments. 

Dairy Compact Ends Business.  The expiration date of Sept. 30 came and went without congressional reauthorization of the Northeast Dairy Compact, meaning the compact must suspend the over-order pricing of milk in the New England region. Some compact proponents are attempting to breathe life back into the compact, but the International Dairy Foods Association (IDFA) said it is hopeful that reaching this expiration date signals the end of the milk cartel. 

Farm Groups Mass to Defend Commodity Spending.  Nine agricultural groups signed a letter sent Friday to every member of the House of Representatives opposing a conservation-related amendment to House farm bill. The groups object to the expected amendment, because, they say, it would reallocate funding between the commodity and conservation titles of the House farm bill. The letter urges each member "to vote against this or any amendment that would substantially alter the funding allocations within the bill." 

Senate Panel Deals Ethanol a Blow.  The Senate Environment and Public Works Committee last week approved a bill that would eliminate the Clean Air Act oxygen standard and phase out the use of MTBE. Introduced by Sen. Bob Smith (R-NH) the legislation, however, fails to address several other issues including a renewable fuels standard. 

South Dakota Eligible for Canadian Exports. South Dakota has become the eighth state, joining Montana, Idaho, North Dakota, New York, Washington, Hawaii and Alaska, eligible to export feeder cattle to Canada under the Northwest Cattle Project, the U.S. Embassy in Ottawa reports. Under the program, relaxed animal health rules apply to approved Canadian feedlots which import cattle from states with a low incidence of "anaplasmosis" and blue tongue between Oct. 1 and March 31. The Canadian Cattlemen's Association continues to push the government of Canada for year-round access to U.S. feeder cattle, according to this report. During October 2000 through March 2001, Canadian feedlots imported a record 204,000 head of U.S. feeder cattle from seven U.S. states, 13% more than during the previous season. 

Missouri Repeals Livestock Price Law. THE ASSOCIATED PRESS reports that meat packers in Missouri will resume cash payments for livestock now that Gov. Bob Holden has signed legislation that repeals much of the states price discrimination law. Holden said the revised law, which took effect immediately, should end a financial drain on Missouri's farmers. "With my signature, stability will return in Missouri's livestock trade," Holden said. "The cash market for live animals will be restored, and producers will no longer face losing millions of dollars." In 1999 state lawmakers approved a bill prohibiting packers from paying different prices to producers unless the price differences were based on meat quality. It was an attempt to protect small farmers against increasing corporate competition. Packers quickly quit paying cash based on the live weight of cattle, hogs and sheep, and many farmers complained they were losing money. The legislation passed two weeks ago during a special session strikes most of the 1999 pricing language and replaces it with fair-trade wording similar to that in the federal Packers and Stockyards Act. It abolishes the right of farmers to sue packers for alleged price discrimination.