September 28

Lugar Chides House Farm Bill Decision.  Sen. Richard Lugar (R-IN), ranking Republican on the Senate Agriculture Committee, believes it is "irresponsible" for the House of Representatives to take up a farm bill debate next week in light of important war issues that need to be considered, the over all recessing economy, the need to pass government funding bills and the fact that funds available for agriculture will be something less than the $73.5 billion previously assumed. House leaders have said the bill will be debated around the middle of next week. 

Harkin Calls for ‘Better System.'  Senate Agriculture Committee Chairman Tom Harkin (D-IA) wants a "better system" to provide farmers with income protection without requiring emergency bailouts ever year. "Farm income protection is of course a fundamental part of the farm bill," he said."However, protecting agricultural producers against income losses is not enough by itself." 

Veneman Outlines a Different Agriculture.  Agriculture Secretary Ann Veneman Wednesday followed the outline of USDA's farm policy principles made public earlier this month, describing a farm and food system that operates "in a far more complex business environment than in the past. The situation today also is far different than when many of our policies, programs, regulations, and other aspects of the public infrastructure were put in place." 

More Trade Key to Agricultural Growth.  The best chance for U.S. agriculture to grow in the future is to increase the volume of total world trade, and give the United States an opportunity to maintain its market share, according to a new study released Wednesday by the National Grain and Feed Foundation. 

Pork Producers Like Senate's Objectives.  National Pork Producers Council (NPPC) President Barb Determan believes the policy issues reflected in the objectives released by the Senate Agriculture Committee's top Democrat and Republican must be addressed "to ensure the continued viability and profitability of U.S. agriculture in the 21st century." 

Corn Growers Arm for Farm Bill Debate. The National Corn Growers Association is gearing up to oppose what is being called the "Kind amendment" to the House farm bill scheduled to come to the floor next week for debate. At a briefing conducted by House Agriculture Committee Chief of Staff Bill O'Connor, NCGA and other farm groups were told that the bill goes to the House Rules Committee on Tuesday with floor action scheduled for the following day. 

EU Wants WTO to Act on Quality Food. The European Union wants the World Trade Organization to make certain that products that claim special qualities deliver on the promise. 

Japan Consumers Edgy About Mad Cow.  REUTERS reports that Japanese authorities will launch a public relations effort designed to convince edgy consumers that the nation's beef supply is safe to eat. Discovery of mad cow disease has made consumers nervous about eating beef. Prime Minister Junichiro Koizumi criticized officials for not responding adequately to the crisis, and officials from the agriculture and health ministries met with consumer representatives to try to soothe concerns over the disease. A senior official from the ruling Liberal Democratic Party also said that Koizumi was personally backing a national beef-eating campaign next Tuesday to convince consumers that home-bred beef was safe. There has been a sharp decline in demand for domestic beef since the announcement late last week that tests had confirmed Japan's first suspected case of the disease, whose human variant has killed around 100 people in Europe. Many restaurants have put up signs reassuring customers that their beef is imported from countries free of the disease like Australia and the United States. 

Lester Crawford May Head FDA.  Health and Human Services Secretary Tommy Thompson has urged the White House to nominate veterinarian and food policy expert Lester Crawford to head the Food and Drug Administration, industry analysts said Thursday. REUTERS reports that Crawford is undergoing a review by the White House, analysts Marlene Grabau and Ira Loss wrote in a note to clients. White House spokeswoman Anne Womack said she could not comment "on any nominations the President may or may not make." The FDA, which regulates pharmaceuticals, most foods, medical devices and other products, is part of Thompson's department. An HHS spokesman said he could not speculate on possible nominees. Since 1997, Crawford has served as director of the Center for Food and Nutrition Policy, a Washington, DC-based educational and research center that was associated with Georgetown University. 

Plan Calls for More Conservation Money.  Four congressmen say they will try to almost triple federal spending on agricultural conservation and create a huge grasslands reserve by using money from commodity programs now authorized by the House farm bill. REUTERS reports the proposal is a major challenge to a $73 billion farm bill that relies on traditional crop subsidies to support grain, cotton and soybean growers. The House was scheduled to debate the bill next week. The news agency says House Agriculture Committee leaders clearly were worried about the amendment, according to lobbyists on both sides of the issue. An environmental lobbyist predicted "a nasty, divisive fight." "In its current form, the 2001 farm bill shortchanges conservation programs, which help small and large farmers throughout the country, while vastly increasing subsidies for large grain and cotton farmers in Texas and the Great Plains," Rep. Sherwood Boehlert (R-NY), one of the sponsors, wrote to colleagues. Boehlert's amendment would shift $1.9 billion out of commodity programs and into conservation, which now gets about $1.8 billion annually. It would be on top of the $1.65 billion a year increase proposed by the Agriculture Committee for a new total of $5.4 billion a year, on average. 

Biopesticide Workshop Planned.  The Environmental Protection Agency has scheduled a workshop to provide a better understanding of the pesticide registration process in the United States, Canada and California. The workshop will focus on facilitating the registration of low-risk alternative pesticides and will be held in Arlington, VA, on Nov. 13-15. The co-hosts will be EPA, Canada's Pest Management Regulatory Agency, California's Department of Pesticide Regulation and the Interregional Research Project No. 4 (IR-4), an organization that helps develop pest-management solutions for low-acreage crops. The workshop will guide participants through the process of registering biopesticides, including microbials, pheromones, biochemicals and genetically-engineered plant-incorporated protectants. Topics will include the biopesticide registration submission process, good laboratory practice requirements, scientific assessments and maintenance of existing registrations. Anyone currently involved in development, manufacturing and sales of biopesticides is especially encouraged to attend. The workshop will be held at the Marriott Crystal Gateway in Arlington, VA. For additional information, contact Cheryl Ferrazoli at IR-4 Headquarters at 732-932-9575, ext. 601. 

Northeast Compact in Jeopardy.  THE ASSOCIATED PRESS reports that advocates of the Northeast Dairy Compact have failed to get congressional renewal for the milk-pricing operation that is set to expire Sept. 30. However, one of the biggest champions of the price controls is independent Vermont Sen. James Jeffords, and Senate Democrats owe their majority to him, the AP article notes. ."The supporters of the compact include influential members of the House and Senate, and they aggressively believe in the value of the compact," said Art Jaeger, a spokesman for the Consumer Federation of America. The federation opposes the compact because it artificially raises milk prices. New England lawmakers say their efforts to keep the compact alive were lost in the crush of congressional business that followed the terrorist attacks in New York and Washington. However, they hope to resurrect the compact with amendments to bills that will come up in the House and Senate next month. After Jeffords left the Republican Party this spring, handing control of the Senate to Democrats, Majority Leader Tom Daschle, D-S.D., indicated he would support at least a short-term extension of the Northeast compact. "No one should think that we're going to give up this fight at all," said Rep. Bernie Sanders, I-Vt. "The idea of maintaining family-based dairy farms is of enormous consequence in this country, and preserving the dairy compact is an absolute necessity." 

September 27

UK Wheat Crop Suffers.  The wheat harvest in the United Kingdom this year is showing the largest production decline on record from weather damage, according to the National Farmers Union. REUTERS reports that the NFU published its annual food grains survey Wednesday and projected the wheat crop at 11.6 million tons, 5.1 million tons less than the 16.7 million recorded for 2000-01. NFU forecast total food grains production at18.9 million tons, down from the 2000/01 estimate of 24 million. Spring barley gained from increased plantings, with this year's production expected to show a 40.2% increase to 3.9 million tons. The total barley crop is seen up 1.3% at 6.6 million tons, according to the survey. 

Controls Limit China Soybean Imports.  Trade sources in China say strict port controls have delayed soybean imports, probably the result of government action. REUTERS reports that China's quarantine office said there had been no formal order to tighten checks at ports. A source at a state grain firm said China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC) had met more than 10 state-owned grain firms based in Beijing last week, asking them to slow down China's large soybean imports. The news agency says the meeting could not be confirmed, but there was widespread market talk on Tuesday that Chinese officials had asked importers to think twice before buying foreign soybeans. "Too many soybean imports have been hurting the interests of domestic farmers," the source at the state grain firm told REUTERS, adding that his company had attended the meeting. "Imports will bring domestic prices lower," he said. 

Agriculture Proves Thorny to WTO.  THE WALL STREET JOURNAL reports that no basis for negotiating agricultural trade reform has been agreed to by members of the World Trade Organization. A draft declaration to be presented to WTO trade ministers at their meeting in Qatar in November includes wording for negotiating a wide range of other issues, the section headed "agriculture" notes that the "text (is) to be elaborated through further consultations." The United States and the European Union hope to launch a new round of multilateral trade talks at the Qatar meeting. They argue a new round of trade liberalization is needed to enhance world economic growth and has become particularly urgent given the anticipated negative impact on business confidence of the Sept. 11 terror attacks in New York and Washington. 

Chicago Food Distributor Pleads Guilty.  A Chicago wholesale food distributor and its chief executive pleaded guilty Wednesday to knowingly storing rat-infested poultry and food products, according to federal prosecutors. REUTERS reports the U.S. attorney's office in Chicago said in a statement that the executive, 57-year-old Thomas Lam, and his employer, Hop Kee Inc., admitted they knew more than 148,000 pounds of contaminated food products were being stored at a company facility on the city's South Side. Hop Kee, which does business as Oriental Delicacies and Hong Kong Market, also admitted that it sold 3,600 pounds of adulterated chicken wings in late 1999 to a food market in Indianapolis. The food storage charges are misdemeanors, but the sale of the adulterated chicken wings is a felony, the statement said. Sentencing was scheduled for Dec.19. Lam faces a maximum penalty of one year in prison and a $100,000 fine, while Hop Kee could face up to 10 years' probation and fines of up to $700,000. 

September 26

House Will Debate Farm Bill Next Week.  The House leadership has scheduled action on the 2001 farm bill for Tuesday or Wednesday, the House Agriculture Committee said today. Capitol Hill sources said the House Rules Committee would likely meet on Monday to set ground rules for the debate. Agriculture Committee staff believe they can complete action on the bill, H.R. 2646, in little more than a day's time. The announcement followed day-long rumors that action was imminent. NATIONAL JOURNAL'S CONGRESSDAILY quoted House Majority Leader Richard Armey (R-TX) as saying the full House will debate the farm bill next week. Armey also said, according to this report, that trade promotion authority also could be debated in coming days. Twenty-one farm and agricultural organizations have urged the House to return the farm bill to a priority status. 

Farm Income a Record. USDA's Economic Research Service forecasts 2001 net cash farm income at $60.8 billion, an increase of $3.3 billion from last year and slightly above the previous record set in 1993. This cash-based concept measures the total income farmers receive in a given year, regardless of the year in which the marketed output was produced. It indicates the availability of funds to cover cash operating costs, finance capital investments and savings, service debts, maintain living standards, and pay taxes. 

Pork Producerrs Urge TPA Action.  National Pork Producers Council (NPPC) President Barb Determan, noting the bipartisan spirit of cooperation and achievement in Congress, is urging House and Senate leaders to schedule a vote on granting trade promotion authority (TPA) to President Bush. 

Harkin, Lugar Set Objectives.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) and ranking Republican Sen. Richard Lugar (IN) have issued a set of objectives for the Senate version of the next farm bill that calls for a strong conservation title and "reasonable protection against damaging changes in economic conditions for agricultural producers actively involved in farming and ranching." The latter objective is qualified to provide protection "in a manner that reflects shared responsibility between producers and government and recognizes market realities, budget resources and the variety of circumstances and characteristics of U.S. farms and ranches." 

FSIS Has New Notification System.  USDA's Food Safety and Inspection Service has begun a new notification system that will provide electronic status reports on testing samples taken from meat, poultry, and egg product establishments. The "laboratory electronic application for results notification system" will allow FSIS field personnel, agency staff, establishments, and state officials, to electronically monitor information on species identification, food chemistry, microbiological samples, and completed Salmonella/HACCP (hazard analysis and critical control point) sets. After a pilot test in several FSIS districts, LEARN, as the program is known, is now online across the country. 

Enzi Seeks Funding for Lamb Co-ops. Sen. Mike Enzi (R-WY) has asked the U.S. Small Business Administration (SBA) for financial assistance that would move a lamb cooperative toward strengthened competitiveness. In a Sept. 21 letter to SBA District Director Steve Despain, Enzi requested the SBA to immediately assist the Mountain States Lamb Cooperative (MSLC) in financing its cooperative stock investment. The MSLC plans to vertically integrate the lamb industry from producer through both processing and marketing operations. Enzi said the MSLC has been working with various entities to attain contracts that will provide markets for lamb meat and wool products. The MSLC is comprised of 100 producers from Arizona, Colorado, Idaho, Montana, South Dakota, Utah and Wyoming. 

Fischler Warns of Weak Trade Round Commitments. REUTERS reports that Europe's Farm Commissioner Franz Fischler is warning that a new global trade round is needed more than ever after the attacks on the United States, but the positions of many countries remain far apart. Fischler said the European Union would take a "constructive and well balanced negotiating position" to a World Trade Organization (WTO) meeting in Doha, Qatar, in November, where members hope to launch a new round, but "time was running out." He told an agricultural conference in Belfast, "We are standing side by side with our American friends, and we remain determined to make the Doha WTO ministerial a success." 

Florida Tightens Crop Duster Restrictions. Florida officials are working on a plan to tighten restrictions on the state's crop-dusting aircraft, REUTERS reports. There have been fears in the wake of the Sept. 11 attacks that crop dusters could be used for chemical or biological attacks. Federal officials grounded crop-dusting planes across the nation until Monday night due to concerns that they might be used in attacks. Under the proposed new rules in Florida, pilots would have to notify state agriculture officials every time they take off, identifying themselves, their aircraft's identifying tail numbers, the chemical cargo, and the precise area where the crop spraying would take place. Federal aviation officials must approve the new guidelines, expected to be completed within the next few days. Currently, the 150 crop dusters operating in Florida must be licensed by the state Department of Agriculture, but before the Sept. 11 attacks on New York and Washington they did not have to take specific steps to inform authorities about trips. Investigators traced one of the suspected hijackers, Mohamed Atta, and others to a South Florida crop dusting company where he was gathering information on the use of crop-dusting planes. 

Argentine Exports Hurt by Armed Conflict.  REUTERS reports from Buenos Aires that Argentine exports to major wheat buyers in Iran and Iraq would be sharply impaired by an armed conflict in the mideast Gulf region. "There is about to be a conflict. It's a different kind of conflict, and we don't know on what scale it will be. Even if the conflict were concentrated in a small area, the area is very important for Argentina's grain trade," said Daniel Miro, president of Novitas consultancy. "If we can ship (the wheat), that's one thing. If not, the story changes," he said. There is also the risk that the United States might push for a multinational agreement to impose an embargo on food shipments to the area, after attacks in the New York and Washington areas earlier this month left more than 6,000 dead or missing. The future of Argentine exports to the Middle East will depend on how the United States responds to the attacks, analysts said. "The area (Middle East) represents $1.5 billion in exports for the agriculture sector," said Pablo Adreani, a consultant at Agripac consultancy. 

September 25

Farmers Wave the Flag. Signs with "God Bless America" and American Flags are popping up throughout farm country in the wake of the terrorist attacks on New York and the Pentagon. American Farm Bureau Federation's Stewart Truelsen says U.S. farmers and ranchers "stand solidly behind the nation in the fight against terrorism." 

Farm Groups Discuss Biotechnology for World.  Several agricultural and industry groups met last week to discuss labeling and traceability of biotech crops on a national and international scale. One major topic involved actions and developments in the European Union regarding biotechnology and the need to influence the biotechnology debate in Europe. 

Italy Proposes Rimini for Food Summit. REUTERS reports that Italy has proposed the coastal city of Rimini for a planned November World Food Summit of the United Nations Food and Agriculture Organization (FAO) instead of Rome. "In a letter addressed to FAO Director-General, Jacques Diouf, from the Prime Minister's office, the Italian government expressed its willingness to bear the additional financial costs resulting from the move of the summit to Rimini," FAO said. "The Italian proposal has been forwarded to the members of the FAO governing council," the Rome-based organization added in a statement. "A decision is expected by the beginning of next week." Rimini Mayor Alberto Ravaioli said the city could do everything possible to guarantee security. Rimini is an Adriatic beach resort that officials believe can be made secure easily and has adequate communications and transport links. The summit, called "World Food Summit -- five years later," is being held to increase both the political will and financial resources to achieve a goal set in 1996 to halve the number of hungry people -- still more than 800 million -- by 2015. 

Crop Dusters Linked to Possible Terrorists. THE ASSOCIATED PRESS reports from Belle Glade, FL, that a group of Middle Eastern men - including one of the suspected hijackers in the World Trade Center disaster - repeatedly asked a fertilizer company about crop-duster planes in the months leading up to the terrorist attacks. J.D. "Will" Lee, general manager of South Florida Crop Care, said that groups of two or three Middle Eastern men came by almost every weekend for six or eight weeks before the attacks, including the weekend just before the Sept. 11 assaults. Lee said a co-worker, James Lester, identified one of the men for the FBI as Mohamed Atta, believed to be one of the suicide hijackers in the attacks on the trade center and the Pentagon. Lester did not return a phone message seeking comment. The Federal Aviation Administration banned crop dusters from flying on Sunday and Monday, concerned about the possibility of chemical and biological attacks. There are an estimated 3,500 agricultural aviators nationwide. 

Farm Groups Urge Farm Bill Action. REUTERS reports that farm groups are urging congressional leaders to include consideration of a farm bill along with national security and economic stimulation as part of a "must-do" agenda. House debate of a $73 billion farm bill has been delayed by the response to the attacks that destroyed the World Trade Center and damaged the Pentagon Sept. 11. House Agriculture Committee staff workers told about 50 farm group officials there was no sure date for action on the bill. They encouraged farm groups to build grassroots support to prompt a vote on it. About three dozen groups were expected to sign a letter to House leaders and members of the Agriculture Committee arguing that "a new agriculture policy is necessary for America's farmers and ranchers." 

September 24

USDA Provides ‘Solid Facts'. National Grain and Feed Association President Kendell W. Keith says USDA's farm policy principles are "particularly useful" because they are based on "solid facts that are difficult, at best, to challenge." 

Milk Industry Unites on Cheese Standards.  The National Cheese Institute (NCI) again has asked the Food and Drug Administration (FDA) to act swiftly on the issue of including liquid filtered milk in the cheese standards of identity. A breakthrough on the filtered milk issue, which has been pending for more than a year, occurred earlier this month when the National Milk Producers Federation (NMPF) sent FDA a letter to support the December 1999 petition on the subject from the American Dairy Products Institute (ADPI). ADPI also sent a letter to FDA on Sept. 6 urging swift resolution of the issue. 

More Action on ‘Spring Rise' Takes Place.  A meeting was held last week in Louisville, KY, to discuss ways to fund an educational campaign on the need to update navigation on the Missouri and Illinois Rivers. National Corn Growers Association CEO and Executive Vice President Rick Tolman said the Midwest Area River Coalition 2000 (MARC 2000) said the educational campaign would focus on regions and communities most affected by a spring rise. 

Japan Schools Remove Beef. KYODO NEWS reports that the discovery of mad cow disease in Japan has led at least 1,765 public schools in 14 prefectures to remove beef from their lunch menus. A survey by the news agency showed that education boards in 107 cities, towns and villages in three other prefectures are planning to drop beef from their school lunches amid rising fears of infection after the government announced on Sept. 10 that one dairy cow in Chiba Prefecture was suspected of having been infected. Education authorities are trying to contain the damage created by rumors about the disease. The Kyodo survey shows school authorities in Ibaraki have been most active in changing their school menus, reporting that the measure had been taken at 421 elementary schools and 167 junior high schools. 

WTO Move Ahead on Qatar. THE WALL STREET JOURNAL reports that the World Trade Organization is moving ahead Monday with plans to launch a new round of multilateral trade negotiations in Qatar in November. There have been calls for the meeting to be postponed for security reasons. "There's nothing to indicate that there's been any change in the preparation," said a WTO official in response to comments from Supachai Panitchpakdi, Thailand's former deputy prime minister and the WTO's next director general, who said the Doha meeting should be postponed for about a month because of the terrorist attacks in the United States. WTO Director General Mike Moore said Thursday that WTO trade ministers told him work should continue to prepare for the meeting, scheduled to be held in Doha, the Qatari capital, Nov. 9-13. 

Onion Growers Continue Marketing Orders. USDA has announced that two groups of specialty onion growers have voted to continue their marketing orders: Vidalia onion growers in Georgia, and Walla Walla onion growers in Washington and Oregon. Growers in each group vote every six years on whether to continue or terminate their marketing orders. A two-thirds majority by number or volume is necessary to continue the orders. The orders provide for production research as well as marketing promotion and development, including paid advertising. All Vidalia onion growers who participated in the referendum voted in favor of continuing their marketing order. Out of about 145 eligible Vidalia onion growers, 28 growers or about 19% participated in the vote. The Vidalia onion marketing order was established in 1989. Vidalia onion production is limited to specific soil and growing conditions found in 19 counties in southeastern Georgia. Only those onions produced within this defined region can be marketed as "sweet Vidalia onions." Some150 growers cultivate Vidalia onions on 13,000-15,000 acres, and about 119 handlers are involved in the grading, packing and distribution of Vidalias. According to USDA's National Agricultural Statistical Service, Vidalia production amounted to 3.16 million cwt in 2000 - about 316 million pounds - valued at $82 million. Walla Walla onion growers in favor of continuing their marketing order represented 95% of those voting. The volume of onions represented by those favoring continuation of the marketing order was 94%. Out of approximately 65 eligible onion growers, 20 growers or about 31% participated in the vote. This was the first continuance referendum held for Walla Walla growers since their order became effective in 1995. Walla Walla onions are grown in the southeastern corner of Washington, at the foot of the Blue Mountains in the Walla Walla Valley. According to USDA's National Agricultural Statistical Service, production for the 2000 crop year totaled 264,000 cwt, valued at $5.8 million, with production for the 2001 crop year expected to reach 288,000 cwt - about 28.8 million pounds. Nearly all Walla Walla onions are consumed domestically, with little more than 2 percent exported to Canada and virtually no shipments overseas. 

Lamb Promotion Order Under Consideration.  USDA's Agricultural Marketing Service is seeking comments on establishing an industry-funded promotion, research, and information program for lamb and lamb products including pelts but excluding wool and wool products. The proposed order is authorized by, and must be consistent with the Commodity Promotion, Research, and Information Act of 1996. An order would provide for assessments on sales of lamb and sheep, and for an industry board to carry out promotion, research, and information programs designed to increase the demand for lamb and sheep. Under the proposed program lamb producers, seed stock producers, feeders, and exporters would pay an assessment of one-half cent ($.005) per pound when live lambs are sold. The first handler, primarily packers, would pay an additional 30 cents per head of lambs purchased by the first handler for slaughter. The proposed lamb promotion, research and information order was published in Friday's Federal Register. Comments should 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. 20250-0251 no later than Nov. 20. Comments may also be submitted electronically to ralph.tapp@usda.gov or by fax at (202) 720-1125. Copies of the proposed rule and additional information are available at that address, or by telephone (202) 720-1115. 

Meat, Bone Meal Ban Questioned. KYODO NEWS reports that Japan's Agriculture, Forestry and Fisheries Minister Tsutomu Takebe is questioning the ban on all meat and bone meal (MBM) used to feed livestock. His statemens followed Saturday's confirmation of the first case of mad cow disease in Japan. He said an international organization, which he did not name, has said there is no risk of further infection from using the MBM to feed pigs and chickens. There had been reports that MBM also was used in swine and chicken feeds in some areas including Japan's northernmost island of Hokkaido, where the infected cow was bred. In a news conference in Aizuwakamatsu, Fukushima Prefecture, Takebe admitted that his ministry did not issue sufficient instructions to meat producers on the danger of using MBM as cattle feed. He also said that the ministry is conducting a nationwide investigation to determine if any other farmers had used MBM feeds. Takebe dismissed criticism that his ministry is trying to protect existing industries, including meat processors, in not including domestic producers of MBM in the ban.

September 21

Democrats Weigh in with Farm Bill Proposals. The Senate Democratic Policy Committee has proposed farm and rural policies that call for a counter cyclical payment program for farmers and an expanded conservation program. The Democrats called for a program that would avoid "adding more years or more dollars to a fundamentally flawed farm program" such as the 1996 farm law. 

Farm Bureau Joins Property Rights Case. The American Farm Bureau Federation has filed a friend-of-the-court brief supporting the rights of landowners in a United States Supreme Court property case – Tahoe-Sierra Preservation Council vs. Tahoe Regional Planning Agency. Joined in the brief by state Farm Bureaus from California and Nevada, AFBF is asking the Supreme Court to overturn a decision by the U.S. Ninth Circuit Court that ruled landowners near Lake Tahoe, CA, were ineligible for compensation after "temporary and rolling" restrictions stripped their ability to use their property. The circuit court decision in question reversed a district court ruling that the landowners were entitled to compensation. 

More Ammunition for Ethanol in California. A study commissioned by the National Corn Growers Association (NCGA) has concluded that refiners in California are on schedule to replace the state's supply of MTBE with ethanol, and that the state's motorists will have adequate supplies of ethanol-blended gasoline when MTBE is banned on Jan. 1, 2003. 

Cattlemen Applaud China, Taiwan Entries. The National Cattlemen's Beef Association (NCBA) is applauding this week's decision by the World Trade Organization (WTO) to formally approve WTO membership for China and Taiwan. "The beef industry has been a strong supporter of China joining the WTO to reduce tariffs and gain market access," said NCBA chief economist Chuck Lambert. "Through this action the U.S. beef industry will benefit from access to new wholesale and retail market channels. 

Afghan Food Crisis Could Worsen with Attacks. A food crisis in Afghanistan could be made worse if the United States carries out its threat of military action in retaliation for the Sept. 11 attacks on U.S. sites. REUTERS reports the U.N. Food and Agriculture Organization says millions of Afghans have been displaced by 20 years of war, economic ruin, and a severe drought in a country where some 85% of the population depends on agriculture for survival. "An already grave food crisis in Afghanistan caused by prolonged drought and civil strife can be expected to worsen if the threat of military action materializes," the Rome-based FAO said in a special alert. "Recent estimates put the number of vulnerable people inside Afghanistan at about six million, nearly one quarter of the population," FAO said, referring to people severely threatened by food shortages. 

Japanese Likely Safe.  KYODO NEWS reports the Japanese farm ministry believes people likely will be unaffected by a suspected case of mad cow disease reported last week. "The cow involved has not been distributed as beef so there is no possibility that the disease will infect people in this case," Agriculture, Forestry and Fisheries Minister Tsutomu Takebe told a news conference after a cabinet meeting. He also said the ministry is considering providing further information about the disease to the food and distribution industries . The government announced last Monday that the first suspected case in Japan of mad cow disease had been found in a dairy cow in Chiba Prefecture. The ministry plans to ask for appropriations from a planned fiscal 2001 supplementary budget to improve safety and investigation measures, vice farm minister Hideaki Kumazawa told reporters separately. He said the ministry will determine its budget request after the government decides on the scale of the extra budget to be submitted to an extraordinary Diet session starting next Thursday. The measures would include a system to track cattle parts in the multiple processing stages from production to distribution. 

Grain Industry Shocked at Afghan Donation. REUTERS reports that grain industry officials reacted in disbelief when told the federal government plans to go ahead with an earlier offer to buy 100,000 tons of wheat to donate to Afghanistan. That country has been accused of harboring Osma bin Laden wanted in connection with the terrorist attacks in New York and the Pentagon. "Oh, really!" said a wheat exporter when told that the Commodity Credit Corp. announced earlier on Thursday it would launch a tender Sept. 27 to buy the wheat for Afghanistan. "That's really interesting," said another exporter after laughing out loud when told the news. A USDA spokeswoman said tenders set by the agency are based on orders from USDA but did not elaborate. "The American public is going to look at this as giving food to who the government has been telling us is harboring the person that is responsible for this attack," said Shawn McCambridge, grain analyst at brokerage Prudential Securities. 

Europe Welcomes Apparent Farm Policy Change. The European Commission welcomes the apparent change in U.S. farm policy proposed by the Bush administration that would move farm programs away from traditional crop support and towards more environmental payments with an emphasis on external trade, according to REUTERS. The strategy paper said trade expansion was key for the United States and said domestic farm support "must be compatible" with trade policies and must be fashioned into a "market-oriented economic safety net for farmers." European Union Farm Commissioner Franz Fischler said he welcomed the move by U.S. Agriculture Secretary Ann Veneman towards less trade-distorting and more environmentally friendly measures. 

Tyson to Quit Hormone-Free Ads. THE WALL STREET JOURNAL reports that Tyson Foods Inc. will end a controversial advertising campaign proclaiming its chickens as hormone-free. The campaign so stirred up two rivals that they complained to the Better Business Bureau's National Advertising Division. Perdue Farms Inc. and Gold 'n Plump Poultry Inc. contended that the ads were misleading, since federal regulations prohibit any commercial grower from adding hormones or steroids to chicken products. The WSJ article says someone also apparently complained to the Federal Trade Commission, which contacted the Springdale, AR, poultry giant to ask about the claim, a Tyson spokesman said Thursday. Tyson's ads say its chickens have "no hormones and no steroids added." In one print ad now featured on the company's Web site, those words are in larger type. The Better Business Bureau's advertising division asked Tyson to respond to the complaints. When the company didn't - citing "internal developments" - the division also referred the matter to the FTC, as well as USDA, which has oversight over poultry processors. Tyson spokesman Ed Nicholson said "the reason we didn't get involved in this whole process is because we knew (the campaign) was ending" soon. That fact was communicated to the FTC to answer its concerns, he said. Nicholson said he was unaware of any inquiry from the USDA. The ads will be pulled at the end of this month. 

September 20

High Marks Given USDA Principles. Agriculture Secretary Ann M. Veneman Wednesday officially released the Bush Administration's review of the food and agriculture system and immediate reaction from agricultural interests was generally favorable. 

Starvation a ‘Blatant' Human Rights Violation. Undernourishment and starvation should not be considered less serious than blatant violations of other human rights, according to a statement by UN Food and Agriculture Organization (FAO) Director-General Jacques Diouf. "The State has the obligation, as an instance of last resort, to ensure that nobody should die of hunger. The international community is called upon to assist those States that do not have the means to ensure minimum access to food for all their people through complementary measures." 

Administration Calls for Broad Farm Policy Reforms. The Bush administration is calling on Congress to redirect farm and agricultural policy away from the emphases of the past toward what it sees as a new matrix of consumer, trade, environmental, technological and conservation concerns. Although not abandoning the more traditional farm programs, the USDA collection of farm policy principles, released by Agriculture Secretary Ann Veneman this morning, strongly advises redirecting traditional programs. 

Missouri Repeals Parts of Livestock Law. The Missouri General Assembly has approved a repeal of parts of the Missouri livestock procurement price discrimination law enacted in 1999. The state's Department of Agriculture indicates that the governor will sign the bill into law either Friday or Monday. Repealed are the price discrimination provisions that require meat packers to publish information about different prices paid for livestock and require packers to offer the same prices and terms to other livestock producers. The American Meat Institute had challenged this provision in a lawsuit filed in 1999. Also repealed is a provision allowing individual producers to sue for violations if they thought they had been wrongly subjected to price discrimination and a provision allowing individual producers to seek treble damages in those lawsuits. The bill adds new language to the state statutes, however, by enacting a state version of one section of the federal Packers and Stockyards Act (PSA). The new language mirrors section 202 of the PSA, the unfair practices section, and allows the state attorney general to bring cases against packers for those violations. The sunset provision originally in the law remains, so it will expire on Dec. 31, 2002.

Missouri Cattle Buyer's Collapse Has Ripple Effect.  REUTERS reports that the collapse of a Missouri cattle buyer's operation last month has spawned five bankruptcy suits and threatened to cost investors millions of dollars. The news agency says some observers believe the case could have long-term implications for the livestock trade. "Livestock for many years have been bought and sold largely on the basis of trust," said Roger McEowen, a professor of agricultural law at Kansas State University. "The one thing that may be damaged the most here is that trust factor," he said. At the center of the litigation is 70-year-old George Young, a longtime cattleman who made his living buying cattle and placing them in feedlots for his clients, eventually selling the fattened animals at a profit. In a state consumer fraud complaint filed Aug. 17, Iowa Attorney General Tom Miller accused Young of reselling the same cattle to multiple buyers. No criminal charges have been filed against Young but the FBI has been investigating his operations. Young, of Grant City, MO, informed investors on Aug. 10 that his businesses were folding. At the time, his companies were supposed to have contracted up to 210,000 head of cattle, but only about 16,000 could be located, according to documents filed by creditors in U.S. bankruptcy court. 

September 18

NCGA, RFA Join EPA in California Suit.  The National Corn Growers Association (NCGA) and the Renewable Fuels Association (RFA)are supporting the Environmental Protection Agency (EPA) in a lawsuit filed by the state of California against the EPA. California wants an EPA edict on the state's role in the reformulated gasoline program reversed. 

FAA Lifts Ban on Dusters.  THE ASSOCIATED PRESS reports that the Federal Aviation Administration Monday lifted a ban on agricultural planes grounded because of last week's air attacks on New York and Washington. Easing the prohibition was especially timely for cotton which must be defoliated before the bolls can be picked. Farmers nationwide requested that the FAA lift the crop-duster ban that grounded the nation's crop dusters. About 400 crop dusters are based in Arkansas, said Ron Harrod, executive director of the Arkansas Agricultural Aviation Association. "The greatest concentration of agricultural airplanes in the world is right here in the Arkansas delta," he said. Louisiana State Agriculture Commissioner Bob Odom said he spent much of Monday calling federal officials, trying to drive home the need for crop-dusting to resume in his state. "We've got crops in critical condition that need to be treated," Odom said. "Farmers may lose their crops." 

Breeds Driven to Extinction.  Farm animal breeds are becoming extinct and plant varieties are succumbing to the same fate, according to the United Nations. Two breeds of farm animals disappear each week, and 1,350 breeds face extinction. REUTERS reports that during the past 15 years, 300 of 6,000 breeds of farm animal identified by the Rome-based U.N. Food and Agriculture Organization (FAO) have become extinct. Latest information suggests that 30% of the world's farm animal breeds are at risk of disappearing, and their valuable traits, such as their ability to adapt to harsh conditions, disease, drought and poor quality feed, could be lost too. 

Farm Bill Funding May Suffer. REUTERS reports funding for farm subsidies may not be as extensive as earlier hoped as Congress funds U.S. security and helps industries damaged by the devastating air attacks. The news agency says congressional staff workers said there were no decisions to curtail funding in either the agriculture spending bill for fiscal 2002 or legislation to overhaul U.S. farm policy for the next decade. But there was no immediate word on when to expect either bill to be debated or if they were safe from change. Before last week's attacks, the House had been expected to begin work on its $73 billion farm bill later in the week. "It just seems like the farm bill will be pushed back," said private consultant Bill Lesher, and then "comes the question, will all the money be there? That's an open question." 

Cuba Imports Remain Large. Cuba's rice imports are expected to remain large next year. Farmers are fighting plague, drought and other problems, REUTERS reports from Havana. Production is expected to improve this year at Cuba's nine provincial state farms and dozens of smaller state municipal and cooperative farms but not enough to significantly reduce imports, reports showed. Cuba's third most important state farm said its crop would total "no less than 1.5 million quintales (1 quintale equals 100 pounds), around 40% of national rice production this year," the official daily Granma said Monday. That would make total provincial farm production about 176,000 tons before minimal processing. After processing, at a maximum 60% efficiency rate, about 105,000 tons of consumable rice would be available. The government of President Fidel Castro has not reported 2000 rice output, but Havana province's weekly Communist Party paper said in its latest edition that it was one of the lowest in a decade. 

Consumers Question Britain's Farming Methods. REUTERS reports that intensive agriculture -- once lauded for producing an abundance of cheap food for the masses -- now is being blamed for made cow disease that has killed hundreds of herds and an increasing number of people. Britain's recent foot-and-mouth epidemic all but sealed intensive farming's fate, giving critics yet more ammunition to attack a system that has also been blamed for salmonella in eggs, E-coli and for destroying the environment, the news agency says. The British government has begun a review of farming methods, and some have already hailed the end of a system that produced food for millions after rationing during the Second World War. "There is no future for an agriculture that is depleting soil fertility, adulterating food quality, undermining public health and wrecking the environment," said Patrick Holden, director of the organic campaign group the Soil Association. "This is the best chance we've had for decades to make the fundamental changes to drastically reduce the scale of intensive farming." 

No More Mad Cows Found.  KYODO NEWS reports that Japan's farm ministry has found no new cases of mad cow disease among some 1.18 million dairy and meat cows it has inspected. After the nation's first suspected case of mad cow disease found last week, the Ministry of Agriculture, Forestry and Fisheries began emergency inspections on about 4.53 million cows at 142,400 dairy farms across the nation. The inspection, started last Wednesday, will be completed by the end of this month. 

September 17

Zoellick Urges Qatar Meetings Proceed.  U.S. Trade Representative Robert B. Zoellick wants the November World Trade Organization (WTO) meetings in Doha, Qatar, to proceed in the wake of terrorist attacks in the United States, even as the nation moves to a war footing. 

NFU Calls for ‘Competition' Title in Farm Bill.  The National Farmers Union has called for a "competition" title in the new farm law. In a letter to members of the Senate Agriculture Committee said such a title would "help preserve family agriculture production in America. The inclusion of a competition title in the next farm bill would be a significant stride toward restoring a healthy, competitive marketplace for producers." 

USDA's Terrorist Reaction Role.  USDA is helping in the rescue efforts in New York City and at the Pentagon by mobilizing Forest Service incident management teams skilled in managing large emergency situations through their experience with wildfires. An incident management team is on site in New York as well as one in Washington. 

Animal Disease Surveillance Increased.  USDA will increase foreign animal disease (FAD) surveillance nationwide in the wake of terrorist attacks in New York and Washington. "No potential FAD cases should be disregarded. Potential hoaxes should be treated as real incursions of FADs until proven otherwise," USDA said in a memo. "Specific attention should be directed at livestock and poultry concentration points." 

Veneman to Testify. The Senate Agriculture Committee holds a hearing Thursday on writing the next farm bill. Secretary of Agriculture Ann Veneman is to testify, presenting the administration's views on farm policy. The hearing will be held at 11 a.m. in room 328A of the Russell Senate Office Building. 

Crisis Delays Farm Bill.  When the terrorists struck New York's World Trade Center and the Pentagon, the damages reached far beyond the immediate targets. The horrors also affected the legislative process on Capitol Hill, according to a Capitol Hill official working closely with the new farm bill in the House. It now appears that in addition to legislation directly related to the tragedies, Congress will manage to get only appropriations measures through before adjourning for the holidays. The farm bill debate in the full House, which could have come up this week, now is postponed indefinitely, this official said. Depending on how events develop, it could be well into next year before a farm bill is finalized. Other Hill sources have not given up on House action this fall, though they concede a bill will not be enacted into law until 2002. 

China Cleared for WTO; Fears Heard. Champagne flowed as China was hailed for its conclusion of the final step this past weekend to enter the World Trade Organization. But fears also were heard over what that means for other emerging economies. REUTERS reports that approval of the entry package, to be formalized today, was applauded by WTO officials and trade diplomats from rich and poorer countries in the early hours of Saturday as "historic" and "momentous." Beijing's chief negotiator Long Yongtu, who probably is in line for a high government post after his triumph, said the occasion marked "the end of the beginning" for deeper reform of his country's economy. And Karl Falkenberg, Long's counterpart from the European Union, described the outcome of the 15 years of "sometimes painful" negotiations as creating a potential "win-win situation" for all trading nations. Jeffrey Bader of the United States, reporting that the two major powers had settled a disagreement over the future position of their insurance firms in China, hailed U.S.-EU cooperation in the end-game talks. 

Activists Destroy Another Crop in France.  About 40 activists Saturday again struck a test crop in France, this time striking genetically modified animal feed that was being grown in open fields alongside non-GM crops. REUTERS reports that activists belonging to the left-wing Confederation Paysanne and the ecologist Greens Party uprooted a crop of mangel-wurzel, a form of beet fed to animals, near Lille, while police watched. The local head of the Confederation Paysanne said he urged European Union agriculture ministers ahead of a three-day meeting in Brussels starting on Sunday to end the practice of allowing GM crops to be grown in open fields. "We say to farmers: It is an issue concerning public health. Refuse this type of seed as it could turn against you," Gabriel Dewalle told the news agency. 

Japanese Cow not Destroyed but Processed.  THE ASSOCIATED PRESS reports from Tokyo that the animal suspected of carrying Asia's first case of mad cow disease was not destroyed as previously announced, but processed into meat and bone meal. Agriculture Ministry spokesman Toshimichi Kado said the investigation revealed that a meal plant and a feed mill in two different Japanese states were in possession of tons of meal that included processed meat and bones from the suspected five-year-old Holstein milk cow. The government had said the animal was slaughtered and burned. Kado said a misunderstanding between ministry officials and local authorities had resulted in the erroneous announcement. He did not give details, but said no feed or other products containing the meat and bone meal had been sold to customers. 

September 14

More Reaction to Terrorist Actions.  Officials from within the agricultural community continue to respond in the aftermath of Tuesday's terrorist attacks on New York City and the Pentagon. 

Economics, Nutrition Related, Says FAO.  Economic growth can be influenced positively by improved nutrition, the UN Food and Agriculture Organization (FAO) says in its annual report, The State of Food and Agriculture 2001 (SOFA 2001). "The impact of nutrition on labor productivity, health and education ultimately filters through to higher levels of overall economic growth." 

U.S. Retaliation Could Disrupt Wheat Trade. And official of the national wheat exporter AWB Ltd of Australia believes U.S. retaliation against the terrorist attacks earlier this week could disrupt world wheat markets in coming months. REUTERS reports that AWB, a strong competitor of the U.S. wheat industry for global markets, said counter-strikes in the Middle East could increase the number of countries that would not buy U.S. wheat. "One of their (U.S.) biggest problems is that they have a huge list of countries who they won't or can't trade with," AWB chairman Trevor Flugge said in an interview. After previous armed conflict in the Middle East, the United States does not sell wheat to Iran or Iraq, now major markets for Australian wheat. Flugge said that U.S. retaliation could mean further U.S. sales losses in the Middle East which in turn could intensify pressure by the U.S. wheat industry to increase sales elsewhere. Countries which might stop buying U.S. wheat may switch to Australia, Canada and other non-U.S. producers. 

Japan Bans Meal in Feed. Japan will prohibit meat-and-bone meal (MBM) in feed products for cattle because it may have caused the country's first suspected outbreak of mad cow disease, REUTERS reports. The agriculture ministry asked the domestic livestock industry in 1996 not to use animal protein to feed cattle; now it is using the force of law. "We are considering revising regulations by the end of September to ban the use of meat-and-bone meal in feed products for cattle," Agriculture Minister Tsutomu Takebe told reporters. Since Wednesday, the agriculture ministry has been investigating domestic plants producing compound feed for cattle to see if they are using MBM, while some 5,800 animal health experts have been deployed to check 4.5 million cows nationwide. 

New Zealand Urged to Research Biotechnology. THE WALL STREET JOURNAL reports that New Zealand's largest exporter, Fonterra Cooperative Group, is urging the government to permit research into genetic modification. "Fonterra must be allowed to conduct research in New Zealand in a responsible manner. We simply must have the ability to make sensible choices about the commercial application of genetically-modified organisms in the future," its chief executive, Craig Norgate, said in a statement. If permission isn't given, competitors nations will gain an advantage, he said. "The reality every New Zealander should understand is that our economy is overwhelmingly dependent on biological products," Norgate said. 

U.S. Imports Unaffected, Says Japan.  KYODO NEWS reports that grain imports, including corn and wheat, from the United States will not be affected to any great extent by Tuesday's terrorist attacks, according to a Japanese farm ministry official. Vice Minister of Agriculture, Forestry and Fisheries Hideaki Kumazawa told a press conference that he expects transportation of agricultural products to remain smooth with many U.S. ports and harbors functioning. On Wednesday, the ministry set up a task force to monitor imports of agricultural products from the U.S. and their prices following the devastating terrorist attacks in New York and Washington the day before. 

Cancer Protection May Come from Berry. A berry bush considered effectively only in curbing soil erosion produces an edible berry that scientists say is up to 17 times richer than tomatoes in lycopene, a compound widely believed to protect against cancer, THE ASSOCIATED PRESS reports. Known as autumn olives, they are more like cranberries in taste and size. In parts of Asia, they're eaten as a fruit. "I was really surprised," said Beverly Clevidence, who runs USDA's Phytonutrients Laboratory near Washington. "It's rare to see lycopene in anything that's not tomato-based." Clevidence analyzed the nutritional content of the berries at the request of Ingrid Fordham, a department horticulturist who began studying the fruit about eight years ago. They wrote a report on their findings that is to be published next month in the journal of the American Society for Horticultural Science.

September 13

Agriculture, Food Groups Begin to React Agriculture and food organizations have begun to react to Tuesday's attacks on the World Trade Center in New York City and the Pentagon in the Washington, DC, area. At the federal level, USDA reopened its administration and South buildings Wednesday with many individual offices unmanned as people continued to stay home with their families. 

Australian Economist Warns of Export Slowdown.  An Australian economist believes Australia likely will experience slower export expansion if the U.S. economy deteriorates in the wake of Tuesday's terrorist attacks. Bank economist Saul Eslake says even with a low Australian dollar, exports have been slowing over the last few months, and a weak U.S. economy would not help, the AUSTRALIAN BROADCASTING COMPANY reports. Eslake says that producers who rely on air freight also may suffer if commodity prices go into a decline. "And that includes some of our agriculture, agricultural producers, some producers of specialised manufacturing goods," he said. "Some of those might find, at least temporarily, difficulties or greater expense at getting goods into the United States." 

Japan Probe Goes into High Gear. Japan's Ministry of Agriculture, Forestry and Fisheries has ordered a nationwide investigation to determine the extent of mad cow disease infections following the suspected case at a Chiba Prefecture farm. KYODO NEWS reports that the ministry said the emergency on-the-spot probe will include about 4.5 million cows -- 1.7 million dairy cows and roughly 2.8 million beef cattle -- at some 140,000 farms in an effort to check whether there are irregularities suspected of being linked to mad cow disease, or bovine spongiform encephalopathy (BSE). The ministry instructed Japan's 47 prefectural governments to conduct probes at farms to see whether cows have shown symptoms of the disease, such as difficulty standing. The investigation also will determine if farmers fed cows 'meat and bone meal,' a protein feed made from the crushed internal organs, skin and bones of cows, ministry officials said. 

Inspection Finds No Bone Meal Fed.  THE WALL STREET JOURNAL quotes KYODO NEWS article saying an agriculture ministry inspection of a feed factory in Ibaraki Prefecture, central Japan, on Wednesday found the factory used no animal-based meat and bone meal (MBM) that may have caused Japan's first suspected case of mad-cow disease. The ministry inspected the Kashima feed factory of the National Federation of Dairy Cooperative Associations following the discovery Monday of a five-year-old cow suspected of being infected with the disease at a farm in Chiba Prefecture, east of Tokyo. It was determined that the cow consumed products produced at the factory, according to KYODO. Agriculture Minister Tsutomu Takebe said Tuesday it is almost certain that animal-based MBM feed caused the suspected infection. 

Japan Checks U.S. Imports. KYODO NEWS reports from Tokyo that the Ministry of Agriculture, Forestry and Fisheries has created a task force to monitor imports of agricultural products from the United States and their prices following the terrorist attacks Tuesday. The ministry wants a stable food supplies and also intends to check how the turmoil in the U.S. will affect Japan's agriculture, forestry and fisheries industries, it said. The task force also will provide information to the public about price movements of agricultural products. About 70% of the value of corn and soybean imports in Japan is associated with products from the U.S. 

Brazil Issues Trade Talks Ultimatum. REUTERS reports that Brazil's Foreign Affairs Minister Celso Lafer wants agriculture to play a role in world trade talks if Brazil is to open its industrial and service sectors to EU and U.S. competition. Lafer spoke to reporters in Sao Paulo after opening a two day forum on multilateral free trade negotiations, including South America's Mercosur bloc and the European Union as well as with the Free Trade Area of the Americas and the next round of World Trade Organization talks due in November. "For Brazil, the primary goal is the incorporation of the agricultural area in world trade negotiations, since this area is important competitively for us," said Lafer. Brazil's farm sector is highly protected. But the EU recently made concrete offer to open its normally sheltered farming sector to Mercosur goods. The United States and Mercosur, the world's third-largest trade bloc, recently agreed to begin informal talks later this month and plan to draft an agenda that could serve as a blueprint for formal negotiations on FTAA. 

USDA Prohibits Japanese Meat Imports.  USDA's Animal and Plant Health Inspection Service (APHIS) prohibited imports of beef and other ruminant meats as well as all ruminant byproducts from Japan effective last Monday. The action was taken in response to reports earlier this week that Japanese animal health authorities had discovered bovine spongiform encephalopathy (BSE) in a five-year old dairy cow from the Chiba Prefecture. Tissue samples from the animal have been sent to the international reference laboratory to confirm that the animal has BSE. As with restrictions placed on other BSE-infected countries, importation of non-ruminant material from Japan will not be eligible for entry into the U.S. until APHIS can verify that these products have not been co-mingled or cross-contaminated with ruminant products. APHIS announced an interim rule concerning this action is being prepared and will be published in the Federal Register in the near future. 

September 12

Immigration Reform Momentum Grows. The call for immigration reform grew louder last week as four significant political forces each urged Congress and the Bush Administration to pass legislation this year. Mexican President Vincente Fox, U.S. Chamber of Commerce President Thomas Donohue, AFL-CIO President John Sweeney and National Council of La Raza President Raul Yzaguirre separately called for immigration reform legislation that includes an earned legalization program for undocumented workers, reform of the current U.S. guest worker program and an increase in employment-based, permanent resident visas. President Bush modified earlier statements that immigration reform could not be addressed until after the 2002 elections by indicating his commitment to reform if impediments in Congress could be resolved. "The truth of the matter is that if somebody is willing to do jobs others in America aren't willing to do, we ought to welcome that person to the country and we ought to make that a legal part of our economy," President Bush said after Mexican President Fox spoke to Congress late last week. Fox's visit to Washington was followed by a Senate Judiciary Committee hearing where a wide range of witnesses testified to the value of immigrants to the American economy and the need for reform sooner rather than later. The panels included Sweeney, Donohue, Yzaguirre, Americans for Tax Reform Executive Director Grover Norquist and Cato Institute Senior Fellow Stephen Moore. The American Meat Institute said it currently is drafting its priorities for immigration reform. Immigration policy issues are developed by AMI's Human Resources Policy Committee and staffed by AMI Director of Legislative Affairs Rob Rosado. 

Chirac Condemns GM Crop Protests. French President Jacques Chirac has condemned the rash of genetically modified (GM) crop protests. REUTERS reports Chirac believes those responsible for tearing up fields should be punished. "The savage acts of destruction in recent weeks are not acceptable and should be firmly condemned," Chirac said during a speech at a European livestock trade show in western France. "There is no justification for people who assume the right to ransack the property of others to assert their arguments. We cannot accept such behaviour. They should be prosecuted and punished," he added. Since late June, radical farmers, environmentalists, anti-globalisation activists and others have cut down at least 10 fields of GM corn to protest against the testing of bio-engineered plants in France. Chirac defended such crop tests as "normal and necessary" and said they should proceed with full transparency. 

Philippines Lifts Poultry Ban on China.  The Philippines has lifted a ban on the import of poultry meat, processed meat and eggs from mainland China, according to REUTERS. The ban was imposed temporarily in May because of a bird flu disease in Hong Kong. The Department of Agriculture said in an order dated Aug. 29 and released to reporters on Tuesday that it lifted the ban after the Office International des Epizooties reported that mainland China was not affected by the avian influenza virus that swept Hong Kong in May. "The government of Hong Kong Administrative Region was able to control the outbreak of the avian influenza last May 2001 by stamping out approximately two million birds," the order said. 

Mad Cow Disease from Meal Feed. Japan's Agriculture, Forestry and Fisheries Minister Tsutomu Takebe said Tuesday that it was almost certain that animal-based meat and bone meal feed caused the first suspected case of mad cow disease in Japan. KYODO NEWS reports that Takebe told a news conference he told ministry officials to everything possible to find out how the milk cow was infected and investigate the establishments from which the farm purchased the feed. He also ordered an examination of the types and quantities of meat and bone meal -- a protein feed made from the internal organs, skin and bones of cows -- used at the farm as well as when it was used. 

September 11

‘Choline' Nutrition Claim Allowed.  Nutrition researchers and Central Soya Company, Inc., were to announce Monday that the Food and Drug Administration would allow a nutrient claim for "choline," a nutrient that may benefit heart, brain and liver functions of the body. Choline most often is found in foods that are often high in saturated fat and/or cholesterol. However, soy lecithin, a choline-rich food with little saturated fat and no cholesterol is a key exception. 

Corn, Soybean Groups Call for Quick Farm Bill Passage. The National Corn Growers Association (NCGA) and the American Soybean Association (ASA) have joined the American Farm Bureau Federation to express concerns to members of Congress that amendments would undermine passage of House version of a new farm bill. Of special concern was fear over attempts to move money from commodity programs to other agricultural programs such as conservation. 

USDA Seeks Details from Japan.  USDA is trying to find out more about the mad cow disease case that has cropped up in Japan, but a USDA official believes the U.S. beef supply remains safe, according to a REUTERS report. Japan's Agriculture Ministry reported that a dairy cow near Tokyo tested positive for mad cow disease, the first case reported in Asia. Ed Curlette, spokesman for USDA's Animal and Plant Health Inspection Service, said the agency was trying to get confirmation from Japanese officials that mad cow had in fact been found. "We haven't had any official contact with Japan about the suspected case. We are trying to contact any source we can right now," Curlette said. "We are concerned about the situation and we are monitoring it." 

Japan Tries to Reassure Public. THE ASSOCIATED PRESS reports that Japanese officials are trying to reassure a frightened public that they will do everything possible to keep the country's first suspected case of mad cow disease from becoming more widespread. Officials said frantic consumers had flooded the Agriculture Ministry and the town office where the case had been reported for more information. South Korea, Taiwan and Singapore said they would stop imports of Japanese beef. 

Australia Shivers Over Japan's Problem.Australia's beef export trade felt a shiver down the spine from the mad cow disease scare in Japan, REUTERS reports. Australia supplies one-third of all imported beef to Japan. The report says exporters were braced for a backlash against all beef by Japanese consumers who form Australia's largest beef market by value and eat 25% of all beef produced by Australia every year. In Asia's first reported case of the disease, a five-year-old Holstein cow from a farm in Chiba prefecture near Tokyo tested positive when slaughtered on Aug. 6 after showing classic symptoms of the disease, including difficulty in standing. "We're obviously worried about consumer reactions," said Mike Hayward, general manager for overseas operations of the main meat industry marketing body Meat & Livestock Australia. "If consumption declines it won't miss us, it will have an impact." Australian beef is used to make McDonald's burgers in Japan. "They'd want this like a hole in the head," Hayward said. 

Soybeans Could Reach Record Even with Hot Weather.  Hot weather in late July and early August may have reduced production potential for this year's corn and soybean crops, analysts said. But, REUTERS reports, the analysts still maintain that 2001 output will be sufficient to meet domestic and overseas usage. Soy production could reach a record high of 2.795 billion bushels. USDA Wednesday will release its September crop production report along with its updated U.S. and world supply/demand reports. "I was at 2.770 (billion bushels) on beans before the rains came," said Steve Freed, analyst for ADM Investor Services. Freed forecast the U.S. soybean crop at 2.820 billion bushels, near the high end of a range of analysts' estimates for soy at 2.714 billion to 2.867 billion bushels. Analysts' average estimates placed the soy crop at 2.795 billion bushels, above last year's record output in the U.S. of 2.770 billion. 

U.N. Expert Sees Low Risk of Mad Cow Disease. A United Nations expert believes the risk is low for a major outbreak of mad cow disease in Japan after the country reported its first positive case. The caveat is that most of the bonemeal imported would have to be used as fertilizer and not feed, REUTERS reports. "The risk of a big BSE outbreak in Japan if most bonemeal was used as fertilizer, as Japanese officials have said, is minimal," Yves Cheneau, chief of the U.N. Food and Agriculture Organization's animal health service, told the news agency. A dairy cow tested positive for mad cow disease in the Chiba area of Japan, near Tokyo, the first case reported in Asia. Japanese agriculture officials have said that most of the bonemeal Japan imported was used as fertilizer. Cheneau said strong regulation in Japan indicated that the risks of a big outbreak were low. "Knowing how heavy the government structure is there, and the level of discipline, I am tempted to think the risk is low," he added. 
 

September 10

Farm Bureau, Cattlemen Issue Last-Minute Farm Bill Advice.  The American Farm Bureau Federation wants the House to approve the Farm Security Act of 2001 (H.R. 2646) quickly and without amendments. AFBF President Bob Stallman, in a letter to House members, said amendments that would shift funding among the measure's programs could stall final action on the bill. "It is vital that the legislation moves in the House as quickly as possible," Stallman said. 

Missouri River Coalition Formed. Leaders of 20 major Midwest agriculture, business, utility, industrial and navigation entities have formed the Coalition to Protect the Missouri River (CPR) to represent the diverse interests of organizations who support "responsible management" of Missouri River resources. CPR opposes any major changes in the management of the Missouri River that adversely affects congressionally authorized uses. 

Ethanol Plants Under Construction. The farmer- owned Badger State Ethanol, LLC, of Wisconsin has begun construction on an ethanol production facility in Monroe, WI. The plant will process corn into 40 million gallons of ethanol per year. Fagen, Inc. - the Granite Falls, MN, design-build contractor - is spearheading the project. Fagen is building four of the 13 ethanol plants currently under construction. 

Adviser Says Slow Down on Genetics. British government advisers suggest that Britain's efforts to commercialize genetically modified crops should be slowed, REUTERS reports. More research needs to be conducted in the wake of controversial trials. The Agriculture and Environment Biotechnology Commission said the crop trials, many of which have been destroyed or damaged by green groups, should not lead automatically to commercial production. Criticizing the way the trials had been held, the commission's chairman said the public was not ready, and experiments alone would not make a case for GM crops. "We want the government to take a much more fundamental review than simply taking the data from the trials," Professor Malcolm Grant, the commission's chairman, told the news agency. "We don't want the government to assume that the data they get from these trials are going to be the only piece of evidence that they need to go ahead and give consent to commercialisation." 

BSE Suspected in Japan.  KYODO NEWS reports that a cow suspected of having mad cow disease has been found in Chiba Prefecture, east of Tokyo. The Health, Labor and Welfare Ministry said it is the first suspected case of the disease in Japan. In a report earlier this year, the European Union (EU) said there was a possibility that mad cow disease might be found in Japan, but the report was denied by the Ministry of Agriculture, Forestry and Fisheries, which said there is ''a high level of safety in Japan.'' 

Monsanto Vows to Continue Testing. Monsanto says testing of genetically modified corn will continue in the Philippines. One of Monsanto's fields was destroyed by activists last week, the first such action in Asia. REUTERS reports Monsanto is conducting field trials of Bt corn, which contains the bacterium Bacillus thuringiensis (Bt) proteins and is resistant to the Asian corn borer pest, at seven sites in the country. In addition to the Philippines, Monsanto is conducting field trials in China and Indonesia. The corn borer pest reduces harvest by up to 90% in some parts in Asia. "This is the first time we experienced this violent approach (in Asia)," Juan Agustin Ferreira, country director of Monsanto Philippines Inc, told a news conference. "It is reassuring that despite the uprooting, support from advocates of the technology continue to surge," Monsanto said in a statement. "Farmers and residents in the other field trial sites have rallied behind the experiments to prevent similar acts of destruction," it said. The news agency reports that police said up to 500 militant farmers stormed the local Monsanto unit's test field in Tampakan in the South Cotabato province of Mindanao last Wednesday and uprooted the plants. 

Asia, EU Meet to Resolve Trade Perspectives. Asian and European economic ministers will try to work out their differences over new trade negotiations this week and attempt to revive economic ties, REUTERS reports. The European Union (EU) and the United States want to launch a new round of world trade liberalization talks at a Nov. 9-13 meeting of the World Trade Organization (WTO) in Doha, Qatar, in hopes of reviving the sinking world economy. "The active support of the Asian countries will be essential if we are to launch a new round at WTO negotiations in Qatar," said EU Trade Commissioner Pascal Lamy. A week of meetings in Hanoi will involve the 15 EU countries, the 10-member Association of South East Asian Nations, China, Japan, South Korea, Australia, New Zealand and the United States. 

Vaile Will Pursue Trade Talks with U.S. Australian Trade Minister Mark Vaile says trade talks with the United States remain on course and will be pursued, according to REUTERS. Prime Minister John Howard will meet President George W. Bush this week during a visit to the United States and hopes for an agreement to start talks on a trade deal were dashed by resistance in Congress. Vaile said he had discussed Australia's gaols with U.S. Trade Representative Robert Zoellick. "Far from falling in a heap, we're working just as actively in terms of moving forward with it. We'll keep working on our side of things in terms of developing the argument for the Free Trade Agreement," he told the Network Ten Meet the Press program in Melbourne. "If it takes us six to 12 months to get agreement to start then it takes us six to 12 months. That's not a concern to the government. Our view is we need to do this with our second largest trading partner." Vaile also said he was confident that a new round of world trade talks would be launched at Doha, Qatar, by the end of the year and that it would include agriculture. 

Oregon Farmers Sell Parched Land.  Many Oregon farmers have agreed to sell land parched by drought for use in storing water for future irrigation, environmentalists said on Friday, according to REUTERS. The American Land Conservancy is backing the land buyout plan proposed earlier this summer to ease a long-term water shortage in southern Oregon around the Klamath Basin. The group got signed options to purchase about 32,000 acres from farmers that represents more than 10% of the Klamath Basin irrigation project, said Rich McIntyre, a representative for the organization in southern Oregon. Under the plan, farmers would get $3,000 an acre plus the appraised value for improvements with total cost of about $300 million. In April, the federal government cut off irrigation to 1,000 farms in the area to save fish protected under the Endangered Species Act. That led to months of demonstrations by farmers, including four incidents when angry residents smashed open the gates that held back the water. Opponents of the buyout plan disputed the conservancy's figures on the amount of land that farmers have agreed to sell in southern Oregon. 

Combest Says Farm Bill Budget Tight. House Agriculture Committee Chairman Larry Combest (R-TX) has told REUTERS that the $73 billion House farm bill is secure from any spending cuts that may follow forecasts of shrinking federal revenues. "We certainly don't intend to make any changes," Combest said. "This is not the culprit. We think the timing is correct to move forward." He added the farm bill would require only $1.9 billion in additional spending in fiscal 2002, which opens Oct. 1. "Certainly, there is an interest in the leadership in making sure certain things fit," he said. "This is not one of those huge spending bills that was not anticipated." He said that although the farm bill calls for an increase of at least $42 billion in crop subsidies, it remains "budget-honest" and would not require the farm bailouts that followed in the wake of the 1996 farm law, which he said "failed substantially." 

Florida Farm Bureau Opposes TPA Without Conditions. Florida Farm Bureau opposes trade promotion authority (TPA) unless import-sensitive agricultural products are exempted from regional and bilateral trade agreements. "Both President Bush and Secretary of Agriculture Ann Veneman have recently asked me whether Florida Farm Bureau can support TPA," said Carl Loop Jr., president of Florida Farm Bureau. "Florida's winter fruit and vegetable products are far more import-sensitive than are manufactured hard goods and intellectual property." Since the North American Free Trade Agreement went into effect, about one- third of winter vegetable producers have gone out of business, Loop said. Florida's fruit and winter vegetable producers must be assured protection before the president is given trade promotion authority and future trade agreements are made, he said. "It is both possible and legal for the administration to address Florida agriculture's concerns, exempting trade-sensitive commodities from free trade agreements," Loop said. "Experience tells us that would be the right thing to do." 

September 7

Stone Fruit Moves to Mexico.  The United States and Mexico have worked out an arrangement for U.S. stone fruit to be exported to that country. Agriculture Secretary Ann Veneman says the agreement comes "at a critical time in the export season." 

Corn Growers Cautious About Budget.  The National Corn Growers Association is voicing some concern that the declining budget surplus could have a negative effect on funding a new farm law as well as other "high profile legislative initiatives." With Congress back in Washington, "speculation is running rampant over the ramifications that the declining budget surplus will have on the farm bill," NCGA said. 

Pork Producers List Three Major Concerns.  National Pork Producers Council (NPPC) President Barb Determan say trade promotion authority (TPA), the farm bill and the Animal Health Protection Act are the top legislative priorities of the country's 85,000 pork producers. In a letter delivered to every House office, Determan called TPA "the single most important action that you can take to enhance the long-term viability and profitability of U.S. agriculture." 

NFU Descends on Washington Next Week. Farmers from across the nation will be in Washington next week in an effort to shift policymakers' focus to issues important to family farmers, ranchers and rural America. National Farmers Union (NFU) members from 24 states will meet with legislators through Wednesday to discuss the farm bill now being debated in Congress. 

Environmentalists Focus on Farm Bill Debate. Environmentalists see the coming congressional debate on a new farm law as their best chance in a decade to expand soil, water and wildlife conservation programs. REUTERS reports they hope to capture a larger share of the $73.5 billion bill than now offered. In particular, they support potential "green" payments to growers who integrate conservation into their daily operations. Lawmakers and farm analysts said the bill now awaiting debate in the House could exceed World Trade Organization rules that limit outlays on trade-distorting farm subsidies. "There is some chance," House Agriculture Committee Chairman Larry Combest (R-TX) agreed during a REUTERS interview. Lawmakers are working on issues of environmental payments and bigger farm subsidies as the WTO prepares for a November meeting to launch world trade talks. Farm subsidies will be a key issue for the meeting in Qatar. The article says U.S. analysts believe a plan for new "green" payments would require skillful drafting to avoid WTO restraints, although proponents are confident their programs are allowed. 

Conrad Sees ‘Serious Trouble' for Farm Bill.  THE ASSOCIATED PRESS reports that Sen. Kent Conrad (D-ND), chairman of the Senate Budget Committee, sees "serious trouble" ahead for providing billions in spending for crop subsidies and other farm programs in the face of a shrinking budget surplus. The AP article notes Rep. Larry Combest (R-TX), chairman of the House Agriculture Committee, said he still hopes to begin House debate next week on legislation approved by his panel in June. He acknowledged that the revised budget projections will make it more difficult to move the bill. The House committee's senior Democrat, Charles Stenholm of Texas, said the farm bill is dead for the year. The legislation would spend $168 billion over the next 10 years, including $73.5 billion of the surplus that was expected in the congressional budget agreement reached in the spring. Now, ``All that money has evaporated,'' said Sen. Tom Harkin (D-IA), chairman of the Senate Agriculture Committee. ``Exactly how we're going to deal with that, nobody knows.'' Over the next 10 years, the Congressional Budget Office predicts a $3.4 trillion surplus, including Social Security, compared to the $5.6 trillion in its May forecast. The article says farm-state lawmakers worry that the smaller forecast will force agricultural programs to compete with other spending priorities of Congress and the White House, including education and defense, to avoid being seen as using Social Security funds. The article also quotes Sen. Richard Lugar (R-IN) ranking member on the Agriculture Committee saying the Senate is unlikely to move a bill of its own before next year. "It doesn't seem to me to be there," Lugar said of the $168 billion needed for the House bill. To Lugar, the tighter budget could be a good thing if it lowers farm spending which he believes has stimulated excess production and distorted markets. "It may bring more of a sense of reason to what should be done," he said. 

September 6

Farm Bill Lacks Conservation Assistance.  The House farm bill would "destroy the highly effective federal-state-local conservation technical assistance delivery system" that now serves the nation's conservation needs, according to the National Association of Conservation Districts. NACD estimates that up to 90% of the nation's agricultural producers could lose most or all of the conservation technical assistance they receive from USDA as proposed by the legislation. 

Veneman Sees Bridge-Building Needed on Trade.  Agriculture Secretary Ann Veneman believes a new round of multilateral agricultural negotiations can lead to a global agreement on trade if the necessary bridges are built through dialogue with nations that differ with the United States on how far trade should be liberalized. Veneman met with reporters in her Washington office within hours of her return from three days of meetings with Cairns Group ministers in Punta del Este, Uruguay. 

Monarchs Have Little to Fear, Says EPA. The Environmental Protection Agency has released a report that holds Bacillus thuringiensis (Bt) corn poses little risk to monarch butterflies, putting to rest controversy stemming from a two-year-old Cornell University study that indicated the Bt pollen could be harmful to monarchs, says the National Corn Growers Association. 

Report Says New Biotechnology Products Coming. A new generation of genetically engineered products from blue roses to anti-HIV spinach is being developed, according to the nonprofit Pew Initiative on Food and Biotechnology. REUTERS reports the group said it had reviewed scores of new gene-spliced plant and animal products being tested in laboratories. However, the Pew report did not endorse gene-spliced products or forecast which new ones would succeed in the market. 

Sri Lanka Decision Pleases Australia. Australia's Agriculture Minister says Sri Lanka's announcement that it would suspend indefinitely a proposed ban on genetically modified (GM) food imports is justified because the proposed regulations were not substantiated by scientific analysis or a comprehensive risk assessment process. REUTERS reports that Minister Warren Truss said, "The ban also threatened to disrupt Australian agricultural and food exports to Sri Lanka worth more than A$100 million (US$52 million) a year." The Australian government had urged Sri Lanka not to implement the ban, Truss said. "We also sought to assure them of the safety of Australia's high-quality agricultural and food exports." That included providing a formal submission to the Sri Lankan health minister, and other key ministries, to help improve the understanding in that country of Australia's food safety regulatory system, he said. 

WTO Future in Doubt If Talks Fail.  The World Trade Organization's influence in world trade will suffer if new global talks in November fail, according to Brazil's Foreign Minister Celso Lafer. REUTERS reports that Lafer said that if the talks slated for Nov. 9-13 in Doha, Qatar, were suspended because of rifts among members, existing trade blocs and individual countries would feel encouraged to move ahead with regional trade accords instead of global agreements. The WTO's attempt to launch world trade talks failed in December 1999 in Seattle when members failed to agree on an agenda. "If this round does not happen, we run the risk of eroding the WTO and exacerbating regionalism," Lafer told reporters at a briefing on a recent foreign ministers' meeting in Mexico. 

Cairns Ends Meeting on Confidence Note.  THE ASSOCIATED PRESS reports that the Cairns Group of 17 farm export nations ended its three-day summit in Uruguay on a note of confidence that new global trade talks will feature agricultural reform. "The part of the process that is a little more encouraging is my perception of a much more significant level of commitment from the major players. I sense a much stronger commitment to achieve a positive outcome," Australian trade minister Mark Vaile, president of the Cairns Group, told a news conference Wednesday. However, he noted that the elimination of nearly $1 billion a day in worldwide price-distorting agriculture subsidies still poses a challenge. The United States is one of the worst offenders in this regard, according to many participants, having spent $92 billion in 2000 on farm and export support. A top-level U.S. delegation headed by Agriculture Secretary Ann Veneman and U.S. Trade Representative Robert Zoellick participated in talks with the Cairns Group of 17 agricultural exporting nations. 

Bush Wants FTAs with Several Nations.  The Bush administration wants to reduce trade barriers through different avenues including possible free trade pacts with Argentina, Brazil, Paraguay and Uruguay, U.S. Trade Representative Robert Zoellick said Wednesday. THE ASSOCIATED PRESS reports that Zoellick, who met with trade ministers from those four nations earlier this week, said that while such an agreement was currently not a top administration priority, it might serve a useful purpose down the road. The four South American nations are the full members of the Southern Cone Common Market, or Mercosur, currently the world's third largest trading block. All are negotiating with the United States and other democracies in the Western hemisphere to create a Free Trade Area of the Americas by 2005. 

Food Processors to Fight Senate Proposal.  REUTERS reports that the National Food Processors Association will fight a Senate proposal to withdraw federal meat inspectors if a plant fails to meet USDA salmonella food safety standards. That, the group said, would effectively close down a plant. The NFPA said it generally supports USDA's bacteria testing program to measure how well plants are reducing meat and poultry contamination. Senate Agriculture Committee Chairman Tom Harkin (D-IA) was expected to introduce an amendment to the fiscal 2002 agriculture spending bill that would allow the USDA to use the salmonella tests as an enforcement tool. The spending bill to fund all USDA programs should be debated by the full Senate next week. Harkin's amendment is designed to overturn a controversial federal court decision last year that stopped the USDA from using salmonella tests to measure if a ground beef plant owned by Supreme Beef Processors Inc was clean and sanitary. USDA appealed the Texas court ruling to a federal appeals court, and arguments are expected in October. 

French Farming Radicals Vow to Destroy. Radical farmers in France have vowed to continue destroying experimental genetically modified corn fields until the farm ministry bans open-field tests, REUTERS reports. The Confederation Paysanne farmers union also said that, after the end of harvesting, it would target seed companies that test GM crops in France. "We have decided not to stop the attacks, on the contrary," Secretary General Bernard Moser told journalists a day after union leaders met to plot further action. "We will continue until we obtain the banning of open-field testing," he said, adding that they would try to destroy most of the 109 GM test fields grown in France this year. In the past two weeks, the union, ecologists and other activists have cut down eight fields of GM maize to protest testing bio-engineered plants in France. 

Farm Bill Risks WTO Violations.  The House Agriculture Committee-approved farm bill, worth $73.5 billion in spending authorizations, could exceed what spending is allowed under the World Trade Organization, according to REUTERS. Committee Chairman Larry Combest (R-TX), however, also told the news agency the bill could be fixed later if necessary. During an interview, Combest said he wanted to comply with WTO rules, but his top priority was the welfare of U.S. farmers. "We want to show good faith. My interest is in protecting the American farmer," the Texas Republican said. The United States has agreed to spend no more than $19.1 billion a year on trade-distorting farm subsidies, which are described in WTO parlance as "amber box" spending. The United States already uses up one-third of its amber box limit on dairy, peanut and sugar supports. The amber box designation is reserved for farm payments that have the greatest potential impact on production and trade. The least trade-distorting farm payments are labeled "green box." Combest said there was "some chance" the bill would exceed the amber box limit. It could release an estimated $37 billion over the next decade when receipts from grains, cotton and soybeans fail to meet the bill's target prices. 

September 5

No Chicks on Northwest Leads to Legislation. Sen. Charles Grassley (R-IA) has introduced a bill designed to force airlines to accept conditionally day-old poultry chicks in the wake of Northwest Airlines' decision to stop transporting the birds as of Sept. 1. 

U.S., Mexico Sign Food Safety Agreement.  Officials from the United States and Mexican governments have signed a cooperative arrangement intended to improve the safety of the food supplies in both nations. The arrangement, in conjunction with other cooperative measures, should help reduce the incidence of food-borne illnesses on both sides of the border. 

Veneman ‘Encouraged' by Meetings. THE ASSOCIATED PRESS reports from Punta del Este, Uruguay, that Agriculture Secretary Ann Veneman was "very encouraged" by meetings with the Cairns Group of 17 agricultural exporting nations. Veneman said bilateral discussions between the U.S. delegation and various countries were important and designed to move the United States and the Cairns Group toward November's World Trade Organization meeting scheduled for November in Qatar. The Cairns Group wants to keep farm trade reform on the global trade agenda. U.S. Trade Representative Robert Zoellick told reporters, "Opening markets for American farmers and ranchers is a top priority for President Bush. And we very much believe the best way, the only way to achieve significant liberalization for agriculture globally, is through a new trade round." 

Texas Firm Recalls on Botulism Fears. Classic Foods, LP, a Ft. Worth, TX, firm, is recalling about 15,000 pounds of frozen chili that may be contaminated with botulinum toxins. USDA's Food Safety and Inspection Service said the product being recalled is five pound tubs of "SHERIFF BLAYLOCK'S BEST CHILI." Each tub lid has "EST13516" inside the USDA seal of inspection and "PRODUCT CODE 500" is printed above the brand name. A package code of either "10861" or "20861" appears on the side of the tub. The product was produced on March 27 and distributed to retail and wholesale stores in Colorado, Pennsylvania, Texas, and Washington. The problem was discovered after several illnesses were reported in Texas. Botulism is a rare but serious paralytic illness caused by a nerve toxin. Symptoms include double vision, blurred vision, drooping eyelids, slurred speech, difficulty swallowing, dry mouth, and muscle weakness. The illness can cause paralysis, respiratory failure and death. Symptoms usually occur from 18 to 36 hours after eating contaminated food. Anyone concerned about an illness should contact a physician. 

U.S., Mercosur Agree to Talk.  REUTERS reports from Punta del Este, Uruguay, that the United States and Mercosur, the world's third-largest trade bloc, have agreed to start informal free trade talks later this month. They also will draft an agenda that could serve as a blueprint for formal negotiations. But progress towards an agreement depends on the outcome of international agricultural trade reform talks, U.S. Trade Representative Robert Zoellick said. Brazil, Argentina, Uruguay and Paraguay form Mercosur, a marketplace of 210 million residents who produce some $1.17 trillion in goods and services. Mercosur is key to the Bush administration's drive to create the so-called Free Trade Area of the Americas, or FTAA, stretching from Alaska to Tierra del Fuego. "A competition in liberalization can work to our advantage. The United States is moving globally with WTO, regionally with FTAA and bilaterally with Singapore and Chile," said Zoellick, adding preliminary exploratory trade talks with Mercosur are due to begin Sept. 24 in Washington. 

Court Dismisses Beef Checkoff Vote Attempt.  THE ASSOCIATED PRESS reports from Lincoln, NE, that a federal appeals court Tuesday dismissed an attempt to force a referendum on the beef research and promotion order, also known as the beef checkoff. USDA decided in January not to hold the vote, saying ranchers failed to submit enough valid petitions. Rancher Michael Jacobson challenged the decision, but the 8th U.S. Circuit Court of Appeals dismissed his case, saying it did not have jurisdiction. Opponents say the program has done little to change what until recently had been a steady decline in beef consumption. 

Europe Seeks New Biotechnology Strategy. The European Commission now believes a new strategy on biotechnology is needed to make Europe a world leader in the field, REUTERS reports. The commission has invited public comment on the issue, and a wide-ranging policy initiative is to be announced at the end of the year. "It is of strategic and long-term importance that Europe master the new frontier technologies, in particular the life sciences and biotechnology, and use them for the benefit of society," Commission President Romano Prodi said. The Commission said it needed an overall approach to a sector that affects health care, agriculture, the environment and energy production. The public consultation will take the form of questions posted on the EU executive's web site, inviting comments from industry, consumer groups and individuals on issues ranging from genetically modified (GM) foods to stem cell research. 

September 4

Sugar PIK Announced. USDA will implement a payment-in-kind program for the current sugar crop in an effort to reduce the current inventory of surplus sugar. USDA has accumulated 741,148 tons of sugar under the current sugar price support program. Because of the nature of the product, there are fewer opportunities for use of this surplus than for other commodities. USDA is incurring monthly storage costs of $1.35 million on 446,594 tons of refined sugar and 294,554 tons of raw cane sugar. 

Exports Expected to Reach $57 Billion.  USDA expects agricultural exports for fiscal year 2002 to reach $57 billion, $3.5 billion more than fiscal 2001. If realized, fiscal 2002 exports would be the highest since 1997 and would represent three straight years of sustained agricultural export growth. 

Harkin, Lugar Want USDA Rule on Trade Impacts.  Senate Agriculture Committee Chairman Tom Harkin (D-IA) wants USDA to decide if current farm legislation meets U.S. international trade commitments. In a letter to Agriculture Secretary Ann Veneman, Harkin and ranking Republican Sen. Richard Lugar (R-IN) said concerns over the House farm bill suggested the legislation may violate existing trade agreements and interfere with efforts to reach new agreements favorable to U.S. farmers. 

U.S. Soy Officials Wary of Asia.  REUTERS reports from Kota Kinabalu, Malaysia, that U.S. soy officials are wary of the increasing sensitivity of some Asian nations toward genetically modified soybeans as well as China's new rules on GM products. U.S. farm interests, still working to recover from the controversy surrounding gene-spliced StarLink corn, is working hard to ensure that Asian buyers get exactly what they want -- GM or non-GM products, said Corwin Fee, vice president and chairman of the American Soybean Association's international marketing committee. "On the issue of Roundup Ready soybeans, we are definitely concerned," Fee told REUTERS in an interview on the sidelines of a Southeast Asia Soy Buyers Conference. "We are willing to work with them (Asian buyers) even though they have been approved for food. But once again, if it is still a customer preference not to involve them, there has to be a way of communication and a way to rectify the problem," he added. 

U.S., Canada Like Uruguay's Proposal. The United States and Canada have indicated approval of a proposal from Uruguay that the Group of 8 industrialized nations get a chance to review a farm subsidy-reducing proposal by the Cairns Group of agricultural exporting nations, REUTERS reports. The proposal insists that freer farm trade be the centerpiece at any new round of global trade talks. "We must knock on the door of the G8 to discuss the issue of farm subsidies," the meeting's host, Uruguayan President Jorge Batlle, said at the conclusion of the first day of Cairns Group talks. "Discussing this among trade officials is fine, but bringing it to a political level will get things done." U.S. officials termed the proposal a step forward in attempts to launch a new round of global trade talks in Qatar in two months but stopped short of espousing Batlle's idea. "I think it's an interesting idea. I don't know at this point if it's something the U.S. can sponsor," U.S. Agriculture Secretary Ann Veneman told REUTERS. Canadian Agriculture Minister Lyle Vanclief said he would talk with Prime Minister Jean Chretien about promoting the Cairns Group's drive to cut farm subsidies before his G8 counterparts. The G8 includes the United States, Japan, Germany, Britain, France, Italy, Canada and Russia. 

China Unloads Its Surplus.  THE WALL STREET JOURNAL reports that China is "quietly" reducing its stockpiles of corn, wheat, sugar, cotton and other goods in preparation to join the World Trade Organization. The article says this is making import and export trends "more confusing than ever." WTO entry is expected by the end of this year, and Beijing appears to be using the "waning days of protectionism to sell down its bloated stockpiles of many farm products at high or subsidized prices," the WSJ notes. Not only is it unclear how much the government wants to sell, but market watchers can only make wild guesses at the size of China's stockpiles. The U.N. Food and Agriculture Organization in February revised up its estimate of China's cereal supply to a stunning 364 million metric tons from the 28 million tons forecast last September. That's a 13-fold jump. "The truth is probably somewhere in between, but where?" the article notes. 

EPA Extends Bt Comment Period.  The public comment period on the Environmental Protection Agency's reassessment of Bacillus thuringiensis (Bt) corn and cotton plant-incorporated protectants has been extended until Sept. 10. EPA is conducting a comprehensive reassessment of time-limited registrations for all existing Bt corn and cotton plant-incorporated protectants. In response to requests from the public, EPA is providing additional time to submit comments on the agency's revised risk and benefit sections of the Bt corn and cotton reassessment and on potential risk mitigation and regulatory options. EPA's reassessment of Bt crops is being undertaken to assure that decisions on the potential renewal and/or extension of these registrations are based on the latest scientific data regarding Bt products. Instructions on how to submit comments are available at: www.epa.gov/pesticides/biopesticides/bt_reass_ext.htm. Additional information on EPA's review of Bt products is available at: www.epa.gov/pesticides/biopesticides. 

Brazil Wants Trade Truly Free. Brazil's agriculture minister says export subsidies, domestic farm support, and trade barriers based on questionable science have to go. "Brazil wants a commitment to gradually eliminate subsidies and ease access to markets through the elimination of trade barriers," Marcus Vinicius Pratini de Moraes told reporters at the 22nd Cairns Group Ministerial Meeting in the Uruguayan resort city of Punta del Este, according to THE ASSOCIATED PRESS. He criticized some member nations for not going far enough in their battle against trade barriers and subsidies. He also said it is important that the group form a consensus. He blamed the global economic downturn for providing cause for more barriers. "During recessions there are movements toward more projectionist policies. But moves to amplify and simplify trade ... are ways to fight off recession," he said. 

Mexico Prepares to Sell Sugar Mills.  REUTERS reports that Mexico's government will expropriate 27 near-bankrupt sugar mills and spend up to $327 million to get them ready for sale to local or foreign bidders. Mill owners accumulated multimillion dollar debts to government and private lenders and sugar cane growers that have gone unpaid for months. A new state-run company will be created to run the mills for the coming season and until they are sold. "This was a situation we could not allow to continue," Finance Minister Francisco Gil told reporters at a news conference. The expropriation was one of the most dramatic interventions by the government in the affairs of an industry since banks were bailed out by President Ernesto Zedillo after a peso devaluation in 1994, according to the news agency. Many of the nation's 60 mills are near bankruptcy. 

French Corn Growers Consider Suing.  The French corn growers' organization AGPM is considering filing a complaint against the activists who have rampaged the country's genetically modified crop tests, REUTERS reports. "The aggressors should be sued," AGPM President Christophe Terrain said at a news conference. "We have asked our lawyers to look at how it would be possible for us to file a complaint. Too much is too much." Terrain also said AGPM probably would demand compensation for the owners of those fields recently destroyed by anti-GM protesters. Last week, seeds producer Biogemma, which had one of its GM corn crops ravaged by activists, said it would file a civil lawsuit for what it described as "intolerable" destruction. The activists have accused the government of underestimating the possibility of cross-pollination between genetically modified and natural crops, and have threatened to continue their blitz on experimental fields across the country. Their campaign to destroy GM crop tests began in late June, when the farm ministry published the list of French districts where genetically engineered plants were being tested. 

French Police Prevent Anti-GM Assault. REUTERS reports from Sigalens, France, that police in anti-riot gear prevented activists from destroying three fields of genetically modified experimental corn on Saturday, the first time French police have stopped GM crop sites being ransacked since protesters began a campaign in late June to destroy bio-engineered plants. The police action came after Prime Minister Lionel Jospin publicly criticized the destruction of GM crop tests on Tuesday, describing the protests as illegal and urging activists to stop. "When it's illegal, it's illegal. We said it nicely. They didn't understand, so now we're saying it less nicely," farm minister Jean Glavany told reporters on Saturday at a meeting of Jospin's Socialist party in the seaside resort of La Rochelle. About100 activists from the radical farmers' union Confederation Paysanne, anti-globalization movement Attac and other groups arrived at a test site in Sigalens in southwest France, wielding sickles and scythes to chop down the maize plants. 

New Zealand Says U.S. Will Drop Lamb Quota.   The New Zealand government says the United States is about to halt an import quota on lamb meat from Australia and New Zealand. REUTERS reports the tariffs, ruled illegal by the World Trade Organization (WTO), would be gone by Nov. 15, according to a statement by Trade Minister Jim Sutton. The American Sheep Industry Association (ASIA) said the U.S. government also would provide the domestic lamb industry with $42.7 million in new aid. The United States should have dumped the tariffs as soon as the ink was dry on an WTO appeal ruling in May, Sutton said. "New Zealand sheep farmers have had to wait too long for the United States to honor its obligations under the World Trade Organization," he said.