AgricultureLaw.com -- September 1999 News Archive

September 30, 1999

LATE BREAKING NEWS - Washington, D.C. - 4:30 p.m.Ag Appropriations About Ready for Final Action. It now appears all but certain that the House or Senate or both will vote on the final agricultural appropriations bill sometime Friday. Seven senators had signed the conference version of the bill as of Wednesday and another one or two could sign yet today. Nine House members signed. The House Rules Committee must issue a rule on the conference report because of provisions not covered by the original rule that brought the House appropriations bill to the floor. That is expected to happen this evening. Some observers think it may be tough for the bill to attract a majority of votes in the full House. USDA will function under the continuing resolution until the bill is signed into law by President Clinton. Once signed, USDA should begin functioning under the fiscal year 2000 appropriations.

Conferees Try to Break Stalemate. House and Senate leaders are collecting signatures from conference committee members on a final version of the fiscal 2000 agriculture appropriations bill. The stalemated bill has been locked in controversy, and its fate remains in doubt.

USDA Trying to Plug Loophole in Loan Repayment Scheme. Some farmers have figured out a way to lock in increasingly lower repayment rates on their USDA loans and realize a larger gain between the repayment rate and the loan rate. USDA is about to propose a way to stop the practice. Farmers are "sort of taking advantage of our rules," says one official.

House Passes Crop Insurance Bill. The House, by voice vote, Wednesday approved a crop insurance reform bill that increases producers' insurable yields and reduces premiums with a larger federal subsidy. House Agriculture Committee Chairman Larry Combest (R-TX) says it "reduces the need" for farmers to depend on Congress for ad hoc disaster assistance.

Lugar Introduces His Crop Insurance Bill. As the House passed its version of crop insurance reform, Senate Agriculture Committee Chairman Richard Lugar (R-IN) was introducing his own version. A major feature is a payment to farmers who use at least two risk management practices each year through 2004.

Ag News Summaries

Biotech Regulatory Review Announced. USDA has reached agreement with the National Academy of Sciences to undertake an independent, on-going scientific review of USDA's regulatory process for biotechnology-derived plants. NAS will establish a standing committee to review various aspects of USDA's biotechnology regulatory process. In its first year, the committee will examine the environmental impacts associated with commercialization of biotechnology derived plants and provide guidance on how best to assess and mitigate those risks.

Democrats Criticize Smithfield's Latest Acquisition. Two Senate Democrats say Smithfield Foods' latest acquisition of Tyson foods' hog division will be "devastating" to family farmers and should raise antitrust concerns, REUTERS reports. The Tyson deal is considered rather small, involving about 110,000 female pigs and would increase the total number of hogs Smithfield slaughters to about 19 million a year. Industry experts say Smithfield would have about 15% of the nation's hog slaughter with the Tyson acquisition.

Senator Tom Harkin (D-IA) sent a letter to Joel Klein, Chief of the Justice Department's Antitrust Division, urging him to scrutinize Smithfield's actions. Another Senate Democrat, Tim Johnson of South Dakota, is gathering bi-partisan support for a bill to ban meatpackers from owning livestock for slaughter.

Mexico May Export Processed Poultry to U.S. USDA will add Mexico to the list of countries that can export poultry products to U.S. markets, BLOOMBERG NEWS reports. USDA says Mexico's inspection system gives consumers the same protection they would have in the United States. However, the birds must be slaughtered in the United States, then shipped to Mexico for processing, USDA says.

Public Support for Free Trade Is Weak. U.S. officials warn that public support for free trade policies is at a low, threatening to undermine a new round of global trade talks sought by the Clinton Administration, BLOOMBERG NEWS reports. "Out there among the average people there is tremendous mistrust and fear" of free trade, Commerce Secretary William Daley told the Senate Finance committee after returning from visiting cities throughout the country. People he met "believe trade rules are made in secret and that workers and the general public have no rights in the process," he says.

September 29, 1999

Resolution Sought for Appropriations Bill. Senate and House negotiators were busy Tuesday seeking a resolution for the stalled appropriations bill. It appears the dairy provisions will be removed from consideration as well as a provision that would loosen slightly the U.S. trade restrictions with Cuba. Farmer aid now totals $8.7 billion.

Glickman Officially Asks for Justice Probe. Agriculture Secretary Dan Glickman has asked Attorney General Janet Reno to investigate Smithfield Foods' acquisition of Murphy Family Farms "for any detrimental effects on hog producers, competitive conditions in hog markets and the nation's rural communities."

New Conservation Reserve Program Signup Announced. USDA will conduct another signup for the Conservation Reserve Program Jan. 18-Feb. 11. Eligible CRP offers will continue to be evaluated using an environmental benefits index. The EBI is based on the potential environmental benefits to be gained from enrolling the land in the CRP.

New Food Aid Request Made by Russia. Russia has submitted an official request for additional food assistance. Agriculture Secretary Dan Glickman says the request is being reviewed. The USDA announcement did not specify how much aid was requested, but REUTERS reports from Moscow that the total is a bit more than 5 million tons.

House Will Take Up Crop Insurance Reform The House of Representatives today will consider a $6 billion expansion and reform of federal crop insurance. Lawmakers are slated to begin debating the bill, approved earlier by the House Agriculture Committee, at 10:00. For a copy of the bill and the Committee report, click here.

Ag News Summaries

Congress Approves Continuing Resolution. Congress approved Tuesday a continuing resolution designed to keep the government and its agencies open fro three weeks beyond Sept. 30, the end of the current fiscal year. THE ASSOCIATED PRESS quotes White House officials saying President Clinton will sign the bill. That would avert the possibility of a government shutdown which neither the Republicans nor the Democrats want right now. It also gives Republicans time to smooth out internal disputes over agriculture and other appropriations issues.

Australia Seeks Group Support for Free Trade. Australia will urge farm ministers form the United States, European Union, Japan and Canada to form a coalition for freer trade in farm products ahead of the World Trade Organization talks this November in Seattle, REUTERS reports. "It's important that we put on the table our very clear view in terms of making progress on the liberalization of trade on the softer commodities," said Trade Minister Mark Vaile. "All these meetings are critically important in building a coalition of support for our position."

Australia Wants More Access to Japan's Rice Market. Australian Trade Minister Mark Vaile says he will urge Japan to liberalize key agriculture markets, especially its highly protected rice market, KYODO NEWS SERVICE reports form Sydney. Vaile will make a four-day visit to Japan this week. Although access to the Japan market has improved, Vaile says only 3% of Japan's rice supply is from external sources; Australia's share is about 17%.

Monsanto Can Make Plastics from Plants. Monsanto Co. says it can produce biodegradable plastic from plants with gene implants, REUTERS reports from London. Monsanto has been faced with mounting European opposition to genetically modified foods. "We've been looking at producing plastic without using non-renewable resources like oil," Monsanto's UK director of corporate affairs Tony Combes told REUTERS. Friends of the Earth official Pete Riley called it a "public relations stunt using what is perceived as a beneficial use of GM to repair their damaged image." Combes says the company has been working on the technology since the early 1990s.

September 28, 1999

One Republican Reaction to Glickman's Payment Plan. Agriculture Secretary Dan Glickman's proposal to pay farmers income assistance on acres actually planted brings a sharp reaction from a Republican official on Capitol Hill. He says speed of delivery of the payments is the main reason for Republicans' opposition to Glickman's proposal.

U.S. Agricultural Exports Decline, Imports Increase. A strong dollar and lower commodity prices have helped U.S. agricultural exports decline in value and imports increase. For the first 10 months of fiscal 1999, the value of ag exports declined 11% from the same period a year earlier and imports increased slightly.

USDA Says 20% of Donated Produce Discarded. A study by USDA's Economic Research Service shows food banks and food recovery organizations in mid-Atlantic states discard 20% of all donated produce because of gaps in their infrastructure. The groups need funding to reduce transportation costs and obtain more refrigerated transportation and storage space.

USDA Lacks Controls Over Crop Insurance Claims. The General Accounting Office says USDA has no precise estimates of the extent to which improper crop insurance claims are made. GAO questions the method used by the Risk Management agency and says erroneous claims probably are greater than RMA estimates.

Ag News Summaries

Cuba Sanctions May Be Sacrificed. A Senate proposal to allow U.S. food and medical sales to Cuba could be abandoned as part of the agricultural appropriations bill, REUTERS quotes farm lobbyists saying. The Senate voted in early August to exempt food and medicine from all unilateral U.S. embargoes, including Cuba. House Republicans, however, have balked at the language being included in the funding bill. There also are contentious dairy issues holding up conference committee deliberation on the appropriations bill. Among these issues (not actually included yet in either the House or the Senate bill) are extending the life of the Northeast Dairy Compact and authorizing a southern states compact and including a milk price enhancement provision dairy farmers like. Those, too, may become casualties, REUTERS reports.

Cargill Favors Voluntary GMO Food Labeling. Cargill Inc., expecting a long, difficult fight to persuade consumers to accept genetically modified organisms, favors labeling to identify the new crops, chairman Ernest Micek said Monday in Shanghai. "People want freedom of choice," he told a business breakfast, according to REUTERS. "Now we need to go through this system of labeling and identifying GMO and non-GMO materials."

Monsanto Rethinks UK GMO Strategy. Monsanto Co. is considering a major rethinking of its strategy on genetically modified foods in Britain, REUTERS quotes the newspaper, the Observer, reporting on Sunday. The paper says Monsanto had offered to use its databases to help plant breeders create new varieties of crops using traditional cross-breeding rather than controversial genetic modification. The British government has come under heavy criticism from the anti-GMO lobby in recent months after agreeing to limited test trials of GMO crops to determine whether the technology is safe.

September 27, 1999

Glickman Questions Payment Rate Scheme. Agriculture Secretary Dan Glickman questions the way Congress is considering paying farmers under a relief provision included in the agricultural appropriations bill. He claims some payments will be made on acres not planted this year.

USDA Makes $5 Million Available for Hog Disposal. USDA has made $5 million available to fund the disposal of decaying hog and poultry carcasses contaminating water in North Carolina from Hurricane Floyd. Some 45,500 hogs, 2.2 million chickens and 283,000 turkeys drowned.

Milk Producers Urge Pricing Provision Be Included in Bill. The National Milk Producers Federation has urged that the House leadership allow producer-preferred milk pricing provisions to be included in the agricultural appropriations bill. Otherwise House action approving the provision "will be meaningless."

Suits Filed to Stop Milk Markin g Reforms. At least three suits have been filed to stop the implementation of USDA's final rule on milk marketing orders, scheduled for Friday (Oct. 1). The suits especially seek to stop the milk pricing option many producers oppose.

Ag News Summaries

White House Budget Summit Urged. House Speaker Dennis Hastert (R-IL) says it is possible to fashion a budget without leaning on Social Security funds, but it won't be easy, THE ASSOCIATED PRESS reports. But House Democratic Leader Dick Gephardt (D-MO) says Republicans already have lost the battle and are heading for a budget that uses $30 billion of the Social Security surplus. At stake is an expected $14 billion budget surplus and how to spend it in fiscal 2000. To spend more than $14 billion means dipping into the Social Security trust fund. Hastert and Gephardt appeared Sunday on CBS' Face the Nation. Gephardt says congressional leaders and the Clinton Administration should sit down to work out a compromise.

Few Elevators Are Segregating Non-GMO crops. PRO FARMER quotes Monsanto officials who quote a Sparks Companies Inc. report that finds only 8% of Midwest grain elevators are segregating non-biotech soybeans from regular soybeans, and only 11% are segregating non-biotech corn. "The majority of elevators don't ask if the grain they're receiving has been improved through biotechnology, according to the survey which involved 100 elevators in Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Ohio and South Dakota," Monsanto notes. Carl Casale, director of Monsanto's North American agricultural business, says the survey's results reinforce the fact that biotech crops are part of the commodity mix and that the demand for premium-priced non-biotech grain is small.

U.S., China Try to Salvage WTO Talks. Top U.S. and Chinese trade negotiators meet today for what could be make-or-break talks on China's bid to join the World Trade Organization, REUTERS reports. Although few expect a WTO agreement to struck at the Washington meeting, U.S. officials are counting on U.S. Trade Representative Charlene Barshefsky and her Chinese counterpart, Trade Minister Shi Guangsheng, to narrow their differences. If talks don't succeed, an agreement to allow China to join the WTO could be dead for the year.

September 24, 1999

Ag Appropriations Conference Highlights

Ag Appropriations Conference at Stalemate. The Senate-House conference committee considering a final version of agricultural appropriations for fiscal 2000 appears deadlocked. In addition to the stalemate on dairy provisions and trade with Cuba, there are reports that efforts are being made to add more money for disaster assistance. The conference now has $500 million for disaster aid, considered inadequate by many in the agricultural community.

There also are reports that the trade with Cuba issue is being held up by Republican leaders in Congress as a favor to Florida members facing tough re-elections next year. Senate Democratic Leader Tom Daschle (D-SD) said, "The farm crisis won't wait for negotiators to work out political problems," according to a report by BLOOMBERG NEWS. Reports circulated throughout the day that House leaders would add more members to the conference to obtain their desired outcome – a maneuver that some wags compared to President Franklin Roosevelt's unsuccessful efforts to "pack" the Supreme Court by adding more justices.

Clinton Vetoes Tax Cut; Farmer Favorites Included. When President Clinton predictably vetoed the Republicans' tax cut bill, he also scuttled several provisions favored by farmers. Estate tax repeal, capital gains tax reductions, health care cost reduction and the Farm and Ranch Risk Management Accounts have been favored by agricultural interests.

Farm Income Will Decline This Year Over 1998. USDA predicts 1999 net farm income will total $43.5 billion, below the revised estimate for 1998 of $44.1 billion. Direct government payments should total $15.5 billion, second only to the $16.7 billion farmers received in 1987. Cash-flow problems for farm businesses this year will be pervasive in the heartland, Mississippi Portal and southern seaboard regions.

'Blackbird' Trading System Criticized at Hearing. The chairman emeritus of the Chicago Mercantile Exchange told the Senate Agriculture Committee yesterday that a new electronic communications system used to trade derivatives operates free of government regulation. There is "no justification" for regulating one type of system only to exclude another, says Leo Melamed.

Ag News Summaries

European Union Agriculture Commissioner Franz Fischler says he hopes France's Guy Legras, the EU's top farm bureaucrat, will represent the bloc in the next round of global trade negotiations, reports REUTERS from Vienna. "I appreciate Mr. Legras very much," he told REUTERS in an interview. "He is the most experienced man in Europe as far as agriculture negotiations on the international level are concerned." Legras was involved in the entire negotiation of the Uruguay Round trade agreement that took seven years to complete.

Soybean Exports Increase 224% So Far. USDA export figures show U.S. soybean exports have increased 224% from a year earlier, BLOOMBERG NEWS reports. Sales of soybeans to Taiwan, Japan and South Korea are further signs of recovering economies in Asia, the report notes. Wheat exports have declined 1% in the sales season compared with the same period a year earlier. Corn is up 57% while cotton has declined 45%.

September 23, 1999

House Approves Milk Pricing Alternative to USDA Plan. The House voted 285-140 Wednesday to change USDA's milk pricing scheme to a formula that many believe will put more money in dairy farmers' pockets. USDA's plan goes into effect next week.

Cuba, Dairy Snag Ag Appropriations Conference. The Senate-House agricultural appropriations conference committee is considering a Republican proposal to exempt food and medicine from U.S. trade embargoes but not for Cuba; Cuba has to become a democracy first. That issue and negotiations on dairy reforms bogged down the committee Wednesday.

Glickman Calls for Attention to People in Farm Crisis. Agriculture Secretary Dan Glickman calls for more attention to the "human side" of food production during times of financial crisis. He made the comments at the second meeting of the National Drought Policy Commission Wednesday.

Ag News Summaries

USDA to Request Smithfield-Murphy Merger Review. Agriculture Secretary Dan Glickman will ask the Justice Department to review the planned purchase by Smithfield Foods Inc. of Murphy Family Farm, the nation's second largest pork producer behind Smithfield. REUTERS reports Glickman will not "prejudge" the outcome of any review but repeated his concerns about the diminishing number of firms in many parts of the agricultural economy.

More Specialty Soybeans Being Developed. The United Soybean Board says several new soybean varieties are being developed by the seed industry to meet specific needs of customers. REUTERS credits Criss Davis, USB director, with the statement in a report from Singapore. "We expect several of these identity preserved soybean varieties to be on the market in the United States within the next five years," Davis told a conference for southeast Asian soy buyers in Singapore.

IMF Warns Against Trade Protectionism. The International Monetary Fund has urged the United States and other major trading powers to resist protectionist pressures and pick up the pact of global trade reform in agriculture and other sectors. REUTERS reports the IMF says growing trade imbalances could spark a protectionist backlash and undermine commercial relations among the United States, Europe and Asia. The IMF also put pressure on the United States and Europe to wrap up negotiations with China over China's bid to join the World Trade Organization.

September 22, 1999

Glickman Promises Veto Recommendation on Dairy Bill. Agriculture Secretary Dan Glickman has promised he'll recommend a veto if Congress approves a bill now before the House that changes the way USDA prices milk from the farm. The bill seeks to overturn USDA's milk pricing option and replace it with one that many analysts believe will mean higher farm milk prices.

Senate-House Appropriations Conference Begins. Senate and House conferees began deliberations last evening on ironing out differences in their agricultural appropriations bills. After four hours of talking, they quit for the night to come back this morning. The cost of emergency farm aid has increased – $500 million likely will be added for disaster assistance.

Glickman Reiterates Insistence on Targeting. Agriculture Secretary Dan Glickman has told the conferees he doesn't want Congress to increase 1996 farm law payments across the board but instead target assistance to farmers most in need.

USDA Proposes changes to Feeder Cattle Grade Standards. USDA proposes to change feeder cattle grade standards to reflect changes in the genetic composition of beef cattle over the past 20 years. Adjustments are necessary because of the changes in frame size and muscle thickness over the past two decades, officials say.

Ag News Summaries

NPPC Honors Members of Congress. The National Pork Producers Council honors Sen. Jesse Helms (R-NC) and Reps. David Minge (D-MN), Ray LaHood (R-IL) and Leonard Boswell (D-IA) with the industry's Bronze Symbol Service Award this week during the NPPC's legislative seminar. The award is presented each year to leading national lawmakers who have been instrumental in helping pork producers be heard on Capitol Hill and in educating other lawmakers on specific issues such as mandatory rice reporting, trade and the environment.

Ag Losses May Exceed $1 Billion in North Carolina. THE AMERICAN FARM BUREAU FEDERATION reports agricultural losses could exceed $1 billion from Hurricane Floyd. In 1996, Hurricane Fran caused $872 million in ag damage in the state. At least one million poultry and 110,000 hogs have been killed from the hurricane's effects, and corn, peanut and cotton crops have been seriously damaged. Much but not all of the tobacco crop had been harvested. Officials plan to set up two portable incinerators and get 10 more from Florida to dispose of livestock carcasses. Above-ground composting is being considered for poultry carcasses.

Cuba Sanctions on Conference Agenda. Another thorny issues is on the ag appropriations conference committee agenda: whether to allow licensing of exports of food and medical supplies to Cuba. Cuba was not on the list earlier this year when the Clinton Administration allowed sales of food and medicine to Iran, Libya and Sudan. A Senate provision allows the government to issue licenses for up to one year for food and medicine sales to public institutions in Cuba but would bar USDA from subsidizing such sales. Some lobbyists involved in the issue said it appeared conferees might accept a sanctions provision but word it in a way that avoids affecting the Cuban embargo.

Suiza to Form Largest Milk Supplier. Suiza Food Corp. will combine domestic milk operations with Southern Foods Group LP to create the nation's largest milk supplier, THE WALL STREET JOURNAL reports.

Summers Defends U.S. Role in Russia. Treasury Secretary Lawrence Summers told a Congressional panel the Administration had begun to tighten controls on Russian aid before the current money-laundering scandal became public, THE WALL STREET JOURNAL reports. The current controversies about whether loans and aid to Russia were diverted could affect future U.S. decisions about food aid, in the view of many observers.

September 21, 1999

Most Crop Damage from Drought Irreversible. USDA's Economic Research Service says critical stages of crop development generally occur in mid to late July, so heavy rains from Hurricane Floyd made little difference. The agricultural damage is "irreversible," ERS says.

Food-Borne Illness May Kill 5,000 a Year. The Centers for Disease Control and Prevention has released "the most complete estimate to date" on food-borne illnesses. Food-caused diseases "may cause" 325,000 serious illnesses that result in hospitalization, 76 million cases of gastrointestinal illnesses and 5,000 deaths a year.

Parasitic Wasps Should Help Control California Mealybug. An "exotic" parasitic wasp may hold the key to controlling the pink hibiscus mealybug that attacks more than 200 plants, including fruits, vegetables and ornamentals.

Schedule

Two major farm issues could move closer to resolution today, as the House of Representatives takes up legislation to override USDA's recent milk marketing order reforms and impose a plan similar to the status quo. Separately, House and Senate negotiators have scheduled a formal meeting at 6 p.m. on the 2000 USDA funding bill, with emergency farm relief and dairy policy likely to take up most of the conference committee's time.

The Senate Agriculture Committee holds a hearing Thursday at 9 a.m. in 216 Senate Hart Building to examine the impact of electronic trading on regulations. The committee also will consider the nominations of Paul W. Fiddick to be assistant secretary of agriculture for administration and Andrew C. Fish to be assistant secretary for congressional relations at USDA.

On Thursday, Sept. 30, the Senate Ag Committee will review the Clinton Administration's agriculture agenda for the World Trade Organization meeting in Seattle later this year. That hearing will be held at 9 a.m. in 328A Russell Senate Office Building. At a hearing Oct. 7 in 328A Russell Senate Office Building the committee will review public policy related to biotechnology. An emphasis will be segregation of biotech products from conventional products.

Ag People Making News

Philip A. Blalock has been named deputy executive director for state operations at the Farm Service Agency. Blalock has been FSA's small farms coordinator and before that position, he was an agricultural marketing specialist for the North Carolina Department of Agriculture under Commissioner James A. Graham. He holds a bachelor's degree in animal science from North Carolina State University.

Ag News Summaries

The Egg Makes A Comeback. Today's WASHINGTON POST contains an article that suggests that the cholesterol-burdened egg, which fell from grace 30 years ago, is making a comeback. The Post reports that per capita egg consumption is on the rebound nationally as researchers report that dietary cholesterol from eggs and their foods may not be as worrisome as earlier believed. Among the most serious challenges to the dietary cholesterol-heart disease link was a study published by the Journal of the American Medical Association that showed no increases in heart disease among healthy people who ate as many as seven eggs per week. The Post reports that the American Heart Association, which led the charge against egg consumption during the 1970s and 1980s, is in the early stages of reviewing its influential recommendation that people limit their consumption of egg yolks to no more that three to four a week. For the complete article, log on to http://www.washingtonpost.com/wp-srv/health/nutritionfit/stories/eggs092199.htm.

USDA, Wal-Mart Settle Charges. USDA and Wal-Mart Stores, Incl, Bentonville, AR, have settled charges that the company violated the Plant Quarantine Act, Plant Pest Act and federal regulations governing the importation of Mexican avocados. The company was alleged to have been involved in moving Mexican Hass avocados from approved states to unapproved states. The company contends there was no intent to violate the acts or regulations, and it had obtained the Mexican avocados from its vendor believing they came from countries other than Mexico. Wal-Mart has agreed to pay a civil penalty of $45,000.

Farmers Still Earn Almost $54 Billion. Despite lower prices for a number of crops and livestock, USDA is projecting farmers will earn net cash income of $53.7 billion in 1999, down just 2% from last year, according to an article in the latest issue of THE FOOD AND FIBER LETTER. With Congress expected to approve "emergency aid" more $7-10 billion, net cash income this year could be close to the highest on record. "If so, it would give at least some farmers the wherewithal to continue to bid up farm land prices, at least in the near term," the newsletter says.

Quaker Oats to Cut 1,200 Jobs. Quaker Oats Co. will eliminate as many as 1,200 jobs in North America, one tenth of its work force, and use the savings to promote Gatorade, the world's best selling sports drink, BLOOMBERG NEWS reports. Quaker Oats expects to reduce costs by about $45 million in 2001 and $70 million a year after that. Chairman Robert Morrison will use the savings to add more advertising and plants to make Gatorade which accounts for more than a third of profit and could overtake food sales in less than five years.

September 20, 1999

Appropriations Conference Meets Tuesday. House and Senate negotiators are expected to meet Tuesday at 6 p.m. to begin the process of resolving differences on the 2000 funding bill for USDA. A controversial dairy bill, designed to formulate higher farm milk prices, could be up for floor debate in the House on Tuesday.

E. Coli Toll Now Greater than 1,000. As health officials announced 1,013 reported cases in New York from the E. coli epidemic, investigators traced the bacteria to a well on a fairgrounds site that may have been contaminated by runoff from the fair's dairy barn.

Glickman Receives Award from Black Mayors. Agriculture Secretary Dan Glickman has been given the first annual Beacon Award by the National Conference of Black Mayors. The award is given for guidance and inspiration to bring about change and a positive impact on the lives of disenfranchised people.

Old Farmer's Almanac Expects Continued Drought. Extreme heat and the spread of the eastern drought characterize the first summer of the new century, according to the Old Farmer's Almanac. Record July and August temperatures along with below average rainfall are expected by the venerable almanac.

Schedule

All eyes are on the appropriations conference committee this week, but the Senate Agriculture Committee will hold a hearing Thursday on two nominations: Andrew Fish to be assistant secretary of agriculture for Congressional affairs, and Paul Fiddick to be assistant secretary for administration. The committee will also consider the ramifications of electronic futures trading in a hearing Thursday. For the complete schedule, see http://www.senate.gov/~agriculture/99hear.htm Meanwhile, House Agriculture Committee chairman Larry Combest (R-TX) is this week's speaker at the Commodity Club, a Washington luncheon group.

Ag News Summaries

No GMOs in UK Fast Food. Britain's largest fast-food chains, including McDonald's and ‘Burger King, tell the BBC they have removed genetically-modified (GM) ingredients from their menus in time for the introduction of new labeling laws.

North Carolina Farms Hit Hard. North Caroline officials told REUTERS thousands of farm acres were ruined in the aftermath of Hurricane Floyd. Affected crops include tobacco, corn, cotton, sweet potatoes, soybeans and peanuts. Separately, REUTERS says state officials warned of the possibility that entire hog farms had been inundated, potentially releasing large amounts of manure into the flood waters. Officials called the reports unconfirmed, however.

Glickman Vows Quick Aid Payments to Farmers. Agriculture Secretary Dan Glickman said Saturday that U.S. farmers would begin receiving emergency farm aid payments more quickly than in previous years. REUTERS reports form Hutchinson, KS, that Glickman said farmers would receive payments as soon as they could verify their claims. The payments would be part of the farm relief aid now being considered in Congress.

September 17, 1999

Bill Halts Ag Mergers for One Year. Sen. Paul Wellstone (D-MN) has introduced a bill to halt for one year mergers, acquisitions land marketing agreements between agribusinesses with net revenues or assets greater than $50 million. That would give Congress time to determine if antitrust laws need to be revised.

More Dairy Farms Disappear if Price Formula not Changed. The National Grange says more dairy farms will be lost if Congress fails to approve a milk pricing formula that probably means higher milk prices for farmers. Grange President Kermit Richardson also believes regional dairy compacts are needed to keep dairy farms profitable.

Feds Launch Effort to Curb E. Coli Disease Outbreaks. The Centers for Disease Control and Prevention has launched a series of actions designed to help control the spread of St. Louis encephalitis and E. coli. New York City has been hit with the encephalitis outbreak, and Illinois and New York are trying to deal with two separate E. coli outbreaks.

Combest Plans Comprehensive Farm Policy Review. The agricultural agenda for second half of the 106th Congress will be a review of federal farm policy. House Ag Committee Chairman Larry Combest (R-TX) plans to hold hearings on farm programs, domestic and foreign markets and the effects of government regulation when Congress comes back in January for the second half of this session.

Ag News Summaries

Conferees to Meet Tuesday. House and Senate negotiators were slated to meet early next week to assemble a farm bail-out package of at least $7.65 billion, Senate leaders told REUTERS on Thursday. Negotiators were scheduled tentatively to meet Tuesday afternoon, said an aide to Senator Thad Cochran, who oversees agricultural spending on the Appropriations Committee.

Watermelon Crop Insurance Suspended. USDA has suspended the pilot watermelon crop insurance program effective for the 2000 crop year. "We need to retool the program into a more market-neutral product," says Ken Ackerman, Risk Management Agency administrator. To ensure that crop insurance does not unduly stimulate production in pilot counties, the policy will be re-evaluated. A decision then will be made whether to continue with an insurance policy.

Belgian Health Not at Risk from Dioxin.Belgian scientists have played down the long-term health effects of cancer-causing dioxins found to have entered the food chain through contaminated animal feed, REUTERS reports from Brussels. "It is very unlikely that the isolated episode of contamination in Belgium will cause adverse health effects on the general population," a group of scientists wrote in this week's edition of the scientific journal Nature. A similar message was given by experts testifying before a Belgian parliamentary committee of inquiry into the dioxin scare that began public hearings on Wednesday.

Welsh Assembly May Break with UK on Farm Support. Welsh Agriculture Secretary Christine Gwyther says the parliament in Wales will break with the British government if Westminster refuses to fund a United Kingdom scheme to support farmers. Gwyther says the Welsh assembly supports a plan to compensate farmers facing their toughest times since the 1930s and who are being forced to dispose of unwanted calves, REUTERS reports from London. Gwyther says farmers in Wales, which has large numbers of very small family dairy farms, face particular difficulties.

China Braces for More Farm Imports. Officials and industry sources say China is preparing to abandon a long-held goal of food self-sufficiency in connection with its accession to the World Trade Organization. WTO membership means much larger imports, REUTERS reports. Prices of many Chinese farm products are 20-50% higher than world market prices, and imports are expected to flood the domestic market once tariff barriers are lifted. Zhu Yuchen, president of hte Dalian Commodities Exchange, says that by overplaying grains as a strategic resource, China has paid dearly without bringing significant benefits to farmers.

Lawyer Says Claims in Farm Case Are False. Black farmers seeking part of a $375 million discrimination settlement withe USDA will have to wait because of fraudulent claims, says attorney Othello Cross. Cross handles about 2,200 claims from black farmers in Arkansas. He says some people who never farmed are filing claims saying they lost thousands of dollars because of discrimination by USDA dating back to 1981. In 1997, a small group of black farmers sued USDA, saying many county-based offices that delivered loans, emergency aid and other government help consistently had discriminated against black farmers. The government and the farmers settled in March.

Mergers Ahead for Food Industry. U.S. food companies, suffering from intense competition on the grocery shelf and slowing consumption, are ripe for consolidation despite merger talk denials from Bestfoods, REUTERS reports. Though mergers and consolidations among commodity-linked companies have aroused the most controversy among farmers, many financial analysts believe that after a long spell of inactivity, companies that make branded food products are also likely to be top merger candidates.

September 16, 1999

Glickman Gives Panel No Numbers. Agriculture Secretary Dan Glickman gave the House Agriculture Committee a broad outline of what the Clinton Administration wants in farm aid this year but refused to put a price tag on it. That rankled committee Chairman Larry Combest (R-TX) who has been trying to get numbers out of Glickman for months.

National Corn Growers Pu blishes Processors' Rules. The National Corn Growers Association has published a summary of what processors have made public about their marketing plans for hybrids. Five companies' guidelines are detailed.

Interior Bill Includes BLM Provision. The Interior Department appropriations bill includes a provision that gives adequate time to the Bureau of Land Management to complete the process of renewing expiring grazing permits. The Senate tabled an amendment that would have required BLM to complete permit renewals by the end of 2001.

Sierra Club Says Millions Spent on Wealthy Hog, Chicken Farms. The Sierra Club says "enormous taxpayer giveaways" benefit wealth factory hog and chicken farms and in return, the public gets polluted air and water.

Ag News Summaries

Dairy Rally Held on Hill.
Members of Congress and state secretaries of agriculture from 32 states rallied Wednesday on the steps of the capitol to promote dairy legislation. The House is expected to debate a bill this week to change the milk pricing structure in USDA's final milk marketing order rule. The rally was in support of that legislation as well as efforts to extend and expand the Northeast Dairy Compact and authorize a compact for southern states.

UK Expert Warns of Organic Food Dangers.
One of Britain's top science forums was told Tuesday that genetically modified crops could make people healthier, REUTERS eports from Sheffield, England. "Nothing is safe," argued Professor Ben Miflin, University of Nottingham. "It is the relative risk that is important. Genetically modified technology has the possibility of reducing risk." Miflin also said the public needs to get rid of the "nonsense" that so-called natural products are best. He asserted that organic foods may contain more mycotoxins, a claim that organic proponents would dispute.

Russia, U.S. Firms Create Poultry Venture.
Russian and U.S. poultry industry representatives have signed an agreement to set up a joint venture to produce broilers near Moscow, REUTERS reports from Moscow. The joint venture will be set up at Naro-Fominsk and include the Russian holding company Elinar and the USA Poultry and Egg Export Council, representing 32 U.S. companies. Production of 125,000 broilers per week is planned within a year with a maximum capacity of 250,000 broilers per week.

September 15, 1999

Roberts, Kerrey Introduce Cr o p Insurance Bill. Sens. Pat Roberts (R-KS) and Bob Kerrey (D-NE) have introduced an expanded version of their earlier bill to overhaul the federal crop insurance program. The new and improved version encourages producers to assume risk management activities in addition to crop insurance and addresses perceived regional inequities in the program.

Producer Groups Outline Wa ys to Improve Farm Economy. Officials representing the major crop and livestock producers laid out proposals Tuesday before the House Agriculture Committee designed to improve prices for farmers facing a second consecutive year of financial difficulties. The proposals range from tax reform to direct payments to trade issues.

Wheat Officials Urge GSM Credit for Iran. The National Association of Wheat Growers and the Wheat Export Trade Education Committee have asked the Clinton Administration to consider using GSM credit and other trading tools for U.S. commodity sales to Iran. Simply lifting unilateral sanctions, as the administration has done, is not enough to counter European, Canadian and Australian wheat sales to Iran.

Ag News Summaries

The Senate Agriculture Committee Has Scheduled Several Hearings For The Coming Weeks:
-- September 23, 9 a.m., in 216 Hart Building, the committee will examine the impact of electronic trading on regulation as part of the Commodity Exchange Act reauthorization;
-- September 29, 9 a.m. in 328A Russell Building, the committee will review the Clinton Administration's agriculture agenda for the upcoming World Trade Organization talks in Seattle this fall;
-- October 7, 9 a.m. in 328A Russell Building, the committee will review public policy related to biotechnology.

EU Pledges United Defense of Farm Policy. European Union farm ministers Tuesday presented a united front in defending the Common Agricultural Policy in the new global trade talks, REUTERS reports from Tampere, Finland. The ministers also recognize they will have to go on the offensive to counter attacks from the United States and others. The United States and the Cairns Group, which includes Australia and New Zealand, want agriculture at the heart of the so-called Millennium Round and consider the EU's CAP an outdated market-distorting policy.

Greenpeace Mexico Decries Biotech Food. The environmental group Greenpeace says genetically modified corn imports by Mexico from the United States pose a threat to Mexico's corn crop, a butterfly reserve and public health, REUTERS reports. "The policy of (Agriculture Minister) Romarico Arroyo (to allow imports) doesn't just put at risk the diversity of corn cultivation, the Mexican ecosystem and the health of the population but also goes against local grain producers," Greenpeace says in a statement. Greenpeace alleges that imports from the United States contain a high percentage of genetically modified corn and that jeoparidzes 300 corn varieties in Mexico.

September 14, 1999

Appropriations Conference Takes Shape. The Senate has named its conferees for the agricultural appropriations conference, and the House was expected to name its slate Monday. The Senate named members of the ag appropriations subcommittee, plus the chairman and ranking member of the full committee, and the House was expected to do the same. On the legislative front, the House is expected to consider a major dairy bill this week.

House Ag Committee Goes to Kansas. The House Agriculture committee holds a field hearing Sept. 18 at the Kansas State Fair Grounds, Hutchinson, KS. Rep. Jerry Moran (R-KS) had asked the committee to hold the hearing.

U.S. Exports to China Increase With WTO Accession. A U.S. International Trade Commission study finds that U.S. exports to China and U.S. foreign investment in China increase with the removal of non-tariff barriers in the context of China's accession to World Trade Organization membership. For agriculture, if tariff rate quotas replace existing barriers, U.S. market access increases: the proposed TRQs are greater than current import volumes.

Ag News Summaries

Suit Planned Over Companies' Biotech Control. The Foundation on Economic Trends and the National Family Farm Coalition plan to sue major agribusiness companies for billions of dollars because the companies allegedly have amassed too much control over genetically modified seeds, REUTERS reports. The suit is to be filed in federal court by Dec. 1 and focuses on growing concentration of ownership in the commercial biotech seed business. Fewer than a dozen companies control most genetically modified seeds sold worldwide, says Jeremy Rifkin, FET executive. Farmers in less developed countries have complained that patents on GM seeds unfairy bar them from reusing the seed the following season, says REUTERS.

Administration Seeks No Farm Law Change For Now. The Clinton Administration will not seek major changes in the 1996 farm law, according to REUTERS. Agriculture Secretary Dan Glickman and White House Chief of Staff John Podesta told members of the National Farmers Union that major changes in the law would have to wait until next year at the earliest. Glickman says a multibillion dollar aid package is vital with assistance linked to farm production and targeted "on the basis of need."

USDA Accepting Applications For Madigan Award. USDA is accepting nominations for the Edward R. Madigan United States Agricultural Export Excellence Award that honors entrepreneurial efforts to advance U.S. agricultural exports. The award commemorates Edward R. Madigan, former Republican congressman from Illinois and a former Secretary of Agriculture. Nominations will be reviewed by a board composed of Mrs. Evelyn Madigan, widow of the late secretary; former Rep. Tim Penny, now senior fellow, Center for International Food and Agriculture; H.D. "Harry" Cleberg, president and CEO, Farmland Industries; former Rep. E. Kika de la Garza, now an attorney, and Ron Schuler, president, California Canning Peach Association. Nominations should be sent to Board of Evaluators, Edward R. Madigan United States Agricultural Excellence Award, AgExport Services Division, foreign Agricultural Service, USDA, Room 4939-S, Stop 1052, 1400 Independence Ave., SW, Washington, DC, 20250-1052. For more information, contact James M. Warden at (202) 690-1148 or by e-mail at warden@fas.usda.gov.

Senators Unveil New Crop Insurance Bill. Senators Pat Roberts (R-Kan.) and Bob Kerrey (D-Neb.) on Monday introduced a new and expanded proposal to substantially overhaul and reform the federal crop insurance program, PRO FARMER reports. The broad-based bill follows an earlier crop insurance reform measure offered by the two senators in March.

U.S., Mexico Talk Sugar. U.S. and Mexican officials have again been discussing how much sugar Mexico can ship north, as the U.S. Department of Agriculture prepares to set its import quota for the coming fiscal year. Bilateral trade in sugar and high fructose corn sweeteners has been the focus of a complex series of disputes between the two countries since before approval of the North American Free Trade Agreement. Meanwhile, USDA must decide how many imports to permit in the quota year that starts October 1. That decision could be controversial this year since it could affect the type of price support loans made available to processors.

September 13, 1999

USDA announces improved E. coli test. In the wake of one of the country's worst E. coli outbreaks, USDA inspectors have begun using a more sensitive method to detect the often deadly pathogen in raw meat products. The new testing begins immediately in Athens, GA, and will be used in California and Missouri as soon as equipment is in place and operable.

Memory loss? Eat some blueberries. A diet rich in blueberry extract reversed some loss of balance and coordination and improved short-term memory in aging rats, USDA reports. If the findings translate to human behavior, too, a lot more blueberries will be sold.

New soybean variety can be tailored to needs. A new edible soybean can be tailored to taste, needs and growing conditions. The vegetable soybeans or "jade peas" can be eaten just like green peas and seasoned to taste.

EPA awards $443,740 clean water grant for dairies. The Environmental Protection Agency has awarded a $443,740 grant to a California program that trains dairy operators to comply with clean water laws and avoid waterway pollution with cow manure.

Appeals court lets stand California milk ruling. A California appeals court has decided not to reconsider its ruling that opened the state's milk market to competition. The earlier ruling held that milk could be sold from out of state if it met Food and Drug Administration standards.

Ag News Summaries

Bill would ban meat packers from owning herds. Sen. Tim Johnson (D-SD) plans to introduce a bill to bar meat packers from owning their own herds, REUTERS reports. The bill would respond to complaints from grower groups that a series of mergers and acquisitions in the meat packing business is forcing family farmers out of business. Johnson says current law doesn't go far enough to protect farmers and ranchers. The legislation would exempt farmers and ranchers who own livestock in a produced-owned and controlled cooperative.

APEC tones down agricultural reform support. Asia-Pacific leaders have toned down their support for a ban on agricultural subsidies, REUTERS reports from Auckland. They will "support" the abolition of agricultural export subsidies, not "seek" the reforms as an earlier draft version said. The new draft also adds detail on how APEC wants the World Trade Organization to conduct the next round of trade talks that open in Seattle in November. The new draft communique is to be issued today.

Gore, Bradley spar over farm policy. The opponents for next year's Democratic presidential nomination are challenging each other over farm issues, THE DES MOINES REGISTER reports. Vice President Gore's supporters point to former New Jersey Sen. Bill Bradley's allegedly anti-farm program record in Congress, while Bradley notes the current weak farm economy under the Clinton-Gore administration.

Musicians want new farm policy. Musicians led by country singer Willie Nelson want new farm policies enacted by Congress. REUTERS reports they made the appeal Sunday at the Farm Aid ‘99 concert in Bristow, VA. "It's not just bad weather hurting the family farmer, it's corporate greed and bad laws," says Carolyn Mugar, Farm Aid executive director. Activists at the concert waved placards denouncing genetically modified crops, Agriculture Secretary Dan Glickman and corporate giants Cargill Inc. and Continental Grain Co. that recently merged their grain units. Many concert participants blamed the 1996 farm law for farmers' woes. They plan to hold a family farm rally on the steps of the Senate this morning.

Daley doubts quick Congress nod for China WTO bid. Commerce Secretary William Daley says he doubts Congress would approve China's bid for World Trade Organization membership even if Washington and Beijing complete negotiations quickly, according to REUTERS. "Time is not on our side right now," Daley told reporters in Auckland. Trade talks in Seattle this fall are considered a deadline for China's accession to the WTO. As part of the U.S.-China agreement so far, the Clinton Administration must persuade Congress to grant permanent most favored nation status on China, now known as "normal trade relations." Congress would not vote on China's WTO entry, although the vote on trade status could become the occasion for legislative efforts to thwart WTO membership for China.

POST looks at biotech backlash. Washington's newspaper of record, THE WASHINGTON POST, waded into controversies over agricultural biotechnology this weekend with a front-page article that discussed how some farmers are alarmed by controversies created by the new bioengineered seed varieties. The article speculated some farmers might choose to return to conventional seed varieties this year, while noting industry skepticism that much switching back would really occur.

September 10, 1999

NASDA thinks $13 billion needed for farm relief. The National Association of State Departments of Agriculture has proposed $13 billion for farm relief this year. The plan includes income and natural disaster payments and emergency conservation, trade and economic development spending.

Silent administration rankles Combest. House Ag Committee Chairman Larry Combest (R-TX) continues to press the Clinton Administration for specifics on farm relief. "I believe it's time for the administration to finally break its silence" on the issue, he says in a letter to Agriculture Secretary Dan Glickman. Glickman hasn't replied to an invitation to appear before Combest's committee to review the crisis, he says.

Ewing proposes alternative fuel technology development bill. Rep. Tom Ewing (R-IL) has introduced a bill to authorize funding for technology development for alternative fuels. The bill mirrors a bill introduced by Senate Ag Committee Chairman Richard Lugar (R-IN). Biomass fuel development is one focus of the legislation along with expansion of ethanol production.

Soybean farmers may ask for referendum. USDA will give soybean farmers a chance to ask for a referendum on the soybean promotion and research order. The law authorizing the order requires that every five years soybean producers be given the opportunity to vote on continuing the program.

Fall crop supplies to exceed storage capacity. Fall grain and soybean supplies should be greater than the capacity to store the crops for the second consecutive year in the eastern and western Corn Belts and for the third straight year in the Central Plains, USDA says. Rail operating problems should ease in time for the busy late September shipping season.

Calendar

The House Agriculture Committee will hold a hearing Sept. 14 to address issues facing Congress concerning farm financial needs. The hearing will be held at 10 a.m. in 1301 Longworth Building.

National Food Processors Association will hold training sessions in October and November for companies that need to implement hazard analysis and critical control point (HACCP) inspection systems. Sessions will be held Oct. 21-22 in East Lansing, MI; Oct. 26-27 in Chicago and Nov. 11-12 in Davis, CA. For a complete agenda and to register, visit http://www.fpi-food.org

Ag News Summaries

EU Prepares Farm Policy Defense for Trade Round. The European Union will prepare to defend its farm policy next week ahead of new international trade talks in which the United States and others will target two EU policies – export subsidies and direct aid, says REUTERS. The EU's 15 agriculture ministers will hold an informal meeting in Tampere, Finland, Monday and Tuesday to coordinate strategy ahead of the next trade round in Seattle in November. The United States has pledged to put agriculture at the heart of the Millennium Round and has been joined by the Cairns Group which includes Australia and New Zealand in naming the EU's farm policy as "enemy number one," according to REUTERS.

APEC Suggests a Three-Year Round of Talks. Asia-Pacific trade ministers have agreed to stand against farm export subsidies but struggled to find common ground on other key issues to be considered this fall in international trade talks, REUTERS reports. New Zealand trade minister Lockwood Smith says the decision by the Asia-Pacific Economic Cooperation ministers meeting in Auckland will send a "very powerful message" to other World Trade Organization members, including Europe, to eliminate farm subsidies. But the APEC ministers had difficulty finding common ground on other trade issues from duties on electronic commerce to government procurement.

Moderate Alcohol May Reduce Cancer Risk. Moderate drinkers are half as likely to die form cancer as non-drinkers, BLOOMBERG reports from Tokyo, quoting the Yomiuri newspaper. The newspaper cited a study by Japan's National Cancer Center. The research was conducted on 19,231 Japanese men in their 40s and 50s and indicated that those who consumed the equivalent of one beer a day were about 50% less likely to die form cancer as non-drinkers. By comparison, cancer fatalities were 1.5 times higher for men who drank the equivalent of four beers a day than for non-drinkers.

Iowa State Receives $80 Million Gift. Iowa State University says its department of agriculture received an $80 million gift, the largest in the school's history and one of the largest ever given a U.S. public university, REUTERS reports. Raymond Baker, an Iowa State alumnus, died in January at age 92. He was the first director of research for Pioneer HI-Bred International Inc., the world's largest seed corn company. His wife, Mary, died in February at 94. They are the donors of at least a major part of the gift. The money will be used to establish an endowment for Iowa State's College of Agriculture.

September 9, 1999

Banks' Ag Lending Increases $6 Billion in 1998. An analysis of banks' performance in 1998 shows an increase of $5.9 billion in agricultural loans over 1997 to $70 billion. The country's 2,951 farm banks held $37.3 billion in agricultural loans for land purchases and production in 1998, an increase over $36.7 billion in 1997.

"Functional Foods" Will 'Explode' in New Century. American Farm Bureau Federation's Stewart Truelsen says functional foods – foods that provide benefits in addition to basic nutrition and may prevent disease or promote health – are "ready to explode" in overall volume and number in the next century.

WTO Members Must Be Committed to Environment. World Trade Organization members must modify WTO rules to include environmental concerns if they are serious about establishing a sustainable world economy, says the World Wildlife Fund. WTO rules and decisions must not undermine multilateral environmental agreements and national policies designed to protect the environment, the WWF says.

McDonald's Adds Branded Pork Products to Menu. McDonald's has added Johnsonville Bratwurst, a premium pork product, to its menu for a limited time. Through Sept. 30, the brat will be available in Iowa, Minnesota and western Illinois. The promotion will be expanded and offered in 2,000 restaurants by the end of the year.

Iowa Conference Warns of Concentration Perils. Agricultural concentration is not about production efficiency, it's about corporations capitalizing on economic power, says Sen. Tom Harkin (D-IA). Also speaking at an Iowa conference on concentration, Iowa State University economist Neil Harl said high profile mergers place keys to evolving technologies in the hands of fewer players.

Ag News Summaries

Canada Cautioned Over Wheat Board Policies. U.S. special trade negotiator for agriculture Peter Scher says he told senior Canadian agriculture and trade officials that the continued surges in the export of Canadian wheat to the United States mean the United States will make the Canadian Wheat board "a top priority" in the upcoming round of trade negotiations. THE NATIONAL JOURNAL CONGRESS DAILY also reports that Scher says he told the Canadians the United States is bothered by Canada's pricing of softwood lumber.

APEC Agrees On Agriculture But Divisions Remain. Asia-Pacific trade ministers have agreed to stand against farm export subsidies but struggled to find common ground on other key issues to be considered this fall in international trade talks, REUTERS reports. New Zealand trade minister Lockwood Smith says the decision by the Asia-Pacific Economic Cooperation ministers meeting in Auckland will send a "very powerful message" to other World Trade Organization members, including Europe, to eliminate farm subsidies. But the APEC ministers had difficulty finding common ground on other trade issues from duties on electronic commerce to government procurement.

Segregating Varieties Will Be Difficult. The United States could increase soybean exports to Europe and resume reduced-levy corn sales to Spain and Portugal if suppliers segregate genetically modified crops from conventional crops, REUTERS quotes European industry sources as saying. But they warned it will be difficult to segregate crops efficiently because of cross-pollination and the difficulty of keeping GM and non-GM grains apart during transportation and storage.

September 8, 1999

Global Warming Won't Be As Bad As Feared. A new study from the American Enterprise Institute claims research now suggests global warming will not be as harmful as once feared. Scientists have lowered their expectations of the magnitude of warming, ecologists believe "net primary productivity" may increase and economists have changed their expectations and see a mix of costs and benefits developing.

USDA Certifies Maryland's Ag Mediation Program. A new program in Maryland offers mediation as an option to resolve disputes in which farmers are involved. The program offers a mediator for issues between borrowers and creditors, producers and government agencies and farmers and non-farming neighbors.

Study Offers Solutions to California Water Problems. California can meet water demands of an expanding population, save millions of dollars and preserve environmental quality if the state rejects complex policies of the past and embraces "water markets." The author of a new study says California's water problems are not due to a lack of water but from poor management and allocation of existing supplies.

Soy Protein, Food Starch Allowed As Binders. USDA's Food Safety and Inspection Service has authorized the use of soy protein concentrate, modified food starch and carrageenan as binders for certain cured pork products.

Ag News Summaries

Harkin Wants Antitrust Law Changes. Sen. Tom Harkin (D-IA), who organized a special hearing to discuss increasing agricultural concentration, wants changes in the federal antitrust laws. "We've got to make some changes in the legislation," he says, according to a report by THE ASSOCIATED PRESS from Cedar Rapids, IA.

Hundreds of activists jammed a community college gymnasium for the hearing, cheering and leaping to their feet as one after another argued that big business is taking advantage of family farmers. Joel Klein, antitrust attorney at the Justice Department, told the hearing concentration issues are "front and center" at Justice. "You have to analyze each merger to see whether it is helpful or harmful. If we start to overreact, we are going to do more ham than good."

Infectious Virus Found in New Jersey Hogs. A highly infectious hog virus thought to be eradicated from New Jersey four years ago was found in 320 hogs on a farm in Deptford, NJ, last month, the PHILADELPHIA INQUIRER reports. Pseudorabies, a highly infectious strain of the herpes virus, causes still births and respiratory infections in hogs and costs U.S. farmers more than $30 million a year in hog deaths and vaccinations, but it does not affect humans, BLOOMBERG NEWS reports. The diseased hogs, bought in Lancaster County Pennsylvania, were incinerated Aug. 24 at an Indiana facility.

Non-GMO Grains Bring Premiums. Grain merchants in the U.S. Midwestern Corn Belt told REUTERS Tuesday they have started paying a premium for export-bound soybeans and corn that have not been genetically altered, despite the higher storage and handling costs involved.

Justice Defends Merger Approval. A U.S. Justice Department antitrust official on Tuesday defended the government's approval of Cargill Inc.'s purchase of Continental Grain Co.'s grain business and said agribusiness mergers will be tightly reviewed, according to REUTERS.

China Talks Could Bear Fruit. U.S. and Chinese negotiators continued technical talks in Beijing amid growing speculation that a breakthrough could occur within a week, according to various news services. China's bid to join the World Trade Organization needs U.S. approval, but President Clinton last spring rejected a deal despite numerous Chinese concessions on agriculture and other topics. Then the accidental NATO bombing of China's embassy in Belgrade put the talks on hold.

September 7, 1999

As Congress Returns, Combest Hammers Clinton. Congress comes back to work this week with agriculture appropriations one of the major items to be resolved. House Agriculture Committee Chairman Larry Combest (R-TX) wants the Clinton Administration to "end its political campaign" and submit a "concrete plan" to Congress to give aid to farmers.

Harkin Wants Smithfield-Murphy Merger Probed. Sen. Tom Harkin (D-IA) wants the Justice Department "to give the most stringent scrutiny" to Smithfield Food's proposed acquisition of Murphy Family Farms. "The sheer magnitude of this acquisition should raise serious antitrust concerns," says Harkin.

A Cloud on the Biotech Phenomenon Develops. Archer Daniels Midland has urged its suppliers to segregate non-genetically modified crops to preserve identity. ADM also says the marketplace will determine the size of premiums for identity preserved non-GM crops. The American Soybean Association supports the ADM position.

Coulston Surrenders 300 Chimps in Wel f are Case. Coulston Foundation, an Alamogordo, NM, research facility, will give up 300 of its chimpanzees and arrange for a USDA-approved external review team to examine their entire animal program. The settlement involves violations of the Animal Welfare Act.

Ag News Summaries

Georgia Limits Definition of Vidalia Onions. The Georgia Department of Agriculture has excluded certain onion varieties from the Vidalia definition. An amendment to a rule relating to the Vidalia definition expressly excludes Sweet Dixie, Sugar Queen and spring Express onions "under these or any other names." The three varieties may have a parentage similar to true Vidalia onions, but they are considered unsuitable for producing the quality of a true Vidalia onion.

Five Nevada Counties Disaster Areas. Five Nevada counties have been declared agricultural disaster areas due to wild fires. Farmers and ranchers in the counties and the four contiguous counties are eligible for emergency, low-interest loans from fires that began Aug. 5. They have eight months to apply for the loans to help cover part of actual losses.

Itochu Limits Soybean Imports to Non-GMs. Japan's second-largest trading company, Itochu Corp., will limit the importing of most soybeans used in food to non-genetically modified crops starting in October, BLOOMBERG NEWS reports. Japanese makers of food products such as tofu and natto or fermented soybeans are reluctant to use modified because. Quality Traders Inc., Iochu's wholly owned subsidiary, based in Illinois, will supply the company's needs from the United States. The price of the non-GM soybeans will be 10-20% higher.

U.S. "Hypocrisy" Under APEC Fire. The United States is finding itself under fire for protectionist policies as the Asia-Pacific Economic Cooperation (APEC) prepares to meet in Auckland, REUTERS reports. In recent days Tokyo has lashed out at U.S. efforts to curb Japanese steel shipments. New Zealand and Australia are angry over U.S. restrictions on lamb imports, fueling charges in an Auckland-based business magazine that President Clinton is a free-trade hypocrite.

Farm Banks Hit. Low U.S. commodity prices are starting to hurt the performance of the nation's 3,000 farm banks, THE WALL STREET JOURNAL reports. The decline in credit quality and other factors follows several years of good results for the rural banks.

September 3, 1999

Bush Proposes, Democrats Scoff. Texas Gov. George W. Bush has called for emergency assistance for farmers, a reform of crop insurance, strong trade efforts and tax changes to strengthen family farms. If he cares so much about farmers, the Democrats respond, he should urge Congress to pass the $7.4 billion relief package pending in the Senate's agricultural appropriations bill that's about to go to a conference committee.

Smithfield Acquires Murphy; AFBF Worries. Smithfield Foods, Inc., has agreed to acquire all the capital stock of Murphy Farms, Inc., and its affiliates. Murphy is the second largest hog producing company in the country with some 325,000 sows and 5.5 million market hogs a year. American Farm Bureau Federation worries the deal "fuels the growing concern of concentration" in agriculture.

"Serious Irregularities" Found in Food Programs. A nationwide audit of USDA"s child and adult food programs concludes "some disreputable private nonprofit organizations" have "enriched themselves at the expense of the children and adults there were supposed to feed." There have been 31 criminal investigations as a result of the inspector general's findings.

More Milk Means Compact's Reimbursements. Increased milk production in the Northeast means the Northeast Dairy Compact must reimburse USDA almost $1.4 billion for nonfat dry milk purchases that resulted from the increase. The compact must reimburse for product purchases that result from increases that exceed the projected national rate of increase.

Ag-Related Practices Main Threat to Western Wildlife. A new USDA study shows that agriculture, logging and mining, traditionally the economic base of many rural communities, now are the primary threats to endangered species. To protect species, agriculture and such developments as housing construction will have to become more compatible with species and habitats.

Ag News Summaries

ADM Wants Crop Segregation. Archer Daniels Midland has told its grain suppliers to begin segregating genetically modified corn, soybeans and other crops from traditional varieties, REUTERS reports. "As your trading partner, we want to alert you to a change we are experiencing in consumer demand," the company said. National Corn Growers Association President-Elect Lynn Jensen said the change "could mean for some growers that the `Supermarket to the World (ADM)' is now backing away from cashing that check (to growers who sell to ADM)." REUTERS also reports from London that European officials welcomed the action. It will help British food retailers "in their efforts to source non-GM ingredients," said the British Retail Consortium which represents all shops including supermarkets.

White House Readies Farm Aid Proposal. The White House intends to give Congress proposals for billions of dollars in farm aid and changes in farm policy after Labor Day, REUTERS reports. Officials provided few details, indicating only that a multibillion dollar plan would be proposed to rescue farmers form a second year of low grain prices. The White House proposal may match the Senate's $7.4 billion rescue package.

Asian Recovery Not Complete. Asia's apparent economic recovery this year is fragile and still faces huge risks, THE ASSOCIATED PRESS reports from Singapore. The report quotes analysts at a regional forum in Singapore. "I don't think the recovery is solid yet," Christopher Nailer, director of advisory serves for The Economist Conferences told the AP. Strong fluctuations between the dollar and yen could destabilize other Asian current rates, creating an uncertain trade environment, he said. Multibillion dollar International Monetary Fund packages to Asia give the region a temporary boost, but ‘gradually that money dries up," Nailer added, and "it's not repeatable."

U.S., China to Resume WTO Talks Next Week. U.S. and Chinese negotiators will begin talks next week on China's bid to join the World Trade Organization, resuming a process derailed in May by NATO's bombing of the Chinese embassy in Belgrade, BLOOMBERG NEWS reports. "China has indicated that a technical level review might be in order," said Richard Fisher, deputy U.S. trade representative. "And we, as you know, have not met in five months, so a stock-taking is in order."

ASPCA Commends USDA on Animal Violations Enforcement. The American Society for the Prevention of Cruelty to Animals says USDA"s settlement of charges against The Coulston Foundation, Alamagordo, NM, animal research facility, "demonstrates the need for more aggressive enforcement of the law and underscores the need to establish a permanent retirement plan for post-research chimpanzees." The ASPCA opposed a government plan that gave Coulston 111 chimpanzees no longer used in research. "Our opposition was based on the deaths of several otherwise healthy chimps in Coulston's facilities in recent years," said ASPCA.

September 2, 1999

Heritage Foundation Raps Senate Aid Hard. The Senate's version of emergency farm relief "makes a mockery" of the recent tax reduction package and threatens any commitment by Congress to protect the budget surplus for Social Security, the Heritage Foundation charged. Peter Sperry said that farmers with a household net taxable income of more than $50,000 a year do not need "tax subsidies" through emergency farm aid.

Public Trusts Farmers on Animal W el fare. A survey sponsored by the Animal Industry Foundation finds the public trusts farmers and ranchers to care for animals and practice animal welfare; 94% say consumers should have the right to choose what they eat and not be dictated to by a small minority of animal welfare activists.

Farmer Co-op Business Volume, Income Decline. Business volume of farmer-owned cooperatives declined to $104.4 billion last year, a decline from $106.7 billion in 1997. Cooperatives' net income of $1.7 billion also declined in 1998 from $2.3 billion in 1997.

USDA Will Accelerate Apple Purchases to Help Prices. USDA will accelerate purchases of fresh apples as part of the school lunch and other child nutrition programs in an effort to help increase producer prices for apples.

Louisiana, Texas Work to Prevent Spread of Rice Borer. Scientists are working to prevent Mexican rice borers from spreading beyond Texas into Louisiana. Traps to detect rice borer moths have been placed in the Beaumont, TX, area and in selected Louisiana locations. The rice borer can be a very expensive pest.

Ag News Summaries

Bush Pledges Aid to Farmers. Texas Gov. George W. Bush says he has a farm aid package that will help "the heart of our economy," THE ASSOCIATED PRESS reports from Dallas Center, IA. The package includes short-term aid such as emergency relief and special tax-free savings accounts which Congress already is considering. Also included is a proposal to increase agricultural exports. Bush says blocking China's admission to the World Trade Organization is a mistake, and European allies should be pressured to lift restrictions on genetically altered commodities.

China Trade Delegation to Visit U.S., Canada. A Chinese trade delegation will leave Sunday for a visit to the United States and Canada, signaling a warming of Chinese-U.S. relations. The delegation plans to visit Los Angeles, Seattle, Chicago and Detroit. In Canada, they will visit Toronto and Montreal to finish a 12-day trip, according to the CHINA DAILY and reported by REUTERS. Liaoning Province Governor Zhang Guoguang will lead the 80-member delegation on the trade trip. They hope to find investors for 163 projects in the transportation, telecommunications, water supply, environmental protection, tourism and high-technology sectors.

France to Further Delay British Beef Imports. France will delay imports of British beef at least one month while the government consults with its new food safety agency, the FINANCIAL TIMES reports, according to BLOOMBERG NEWS. On Aug. 1, the European Commission lifted the ban on United Kingdom exports of beef, but French Agriculture Minister Jean Glavany says approval from the new agency is required before imports may resume. BLOOMBERG says the announcement is a blow to U.S. farmers whose exports to France accounted for almost one-third of their business before the ban was imposed three years ago because of the "mad cow" disease outbreak.

Clinton to Seek Farm Aid. THE WASHINGTON POST reports President Clinton will soon make a formal request for at least as much emergency farm aid ($7.4 billion) as in a bill passed by the Senate. More emergency spending requests for Kosovo are also in the works, THE POST says.

September 1, 1999

Dairy Farmer Vote Given "Grudgingly." It may have been overwhelming, but it also was given "grudgingly." The National Milk Producers Federation also terms the early-August referendum on USDA's final milk marketing order reforms "not an endorsement for the proposal."

Corn Growers Still Want Freedom to Farm. The 1996 farm law, nicknamed Freedom to Farm, isn't responsible for the current economic crisis in agriculture, says Tim Hume, Walsh, CO, National Corn Growers Association official. Abandoning it "is not the answer."

USDA Develops Certification for EU Beef Exports. USDA has developed a third party certification system designed to make sure beef exported to the European Union is produced from cattle that never received hormonal growth promotants. The Food Safety and Inspection Service is working with industry to improve controls from birth to processing and packaging.

New Tool for Sugar Beet Fungi Discovery Near. USDA scientists have developed a way to quickly identify any of six major fungi types that attack sugar beets. Each disease can cause multimillion dollar losses. The process uses DNA probes that detect unique DNA segments for each fungal type.

GAO Suggests WIC Program Fraud Needs Better Control. A new report from the General Accounting Office says USDA has no recent estimates on vendor, participant or employee fraud and abuse occurring in the women, infants and children's nutrition assistance program. A more effective discovery system for communication with the states on such cases is recommended.

Ag News Summaries

Bush to Announce Farm Endorsements. Texas Gov. George W. Bush is getting the endorsement of more than 100 prominent Iowa farm activists, including supporters in each of the state's 99 counties, THE ASSOCIATED PRESS reports. The list includes prominent commodity group leaders, political figures and local farm leaders and is by far the most extensive compilation of Iowa farm leaders supporting a GOP presidential candidate. The group will be headed by former Iowa Agriculture Secretary Robert Lounsberry of McCallsburg and former farm broadcaster Herb Palmbeck of Des Moines.

Soybean Crayons Offered With Fast-Food Meals. McDonald's is offering a free four-pack of "Prang" soybean crayons in every "Happy Meal" in a partnership with the North Carolina Department of Agriculture and Dixon Ticonderoga Co., the firm that makes the crayon. The crayons are made from soybeans rather than petroleum-based wax, allowing the crayon colors to appear brighter, resist flaking and break less often. A portion of the proceeds form Happy Meal purchases will be donated to the four Ronald McDonald Houses of North Carolina.