Ag News: Friday, November 18

"House Defeat of Labor, HHS Spending Bill, Makes Budget Reconciliation a Squeaker"
Congressional efforts to squeeze budget savings through a process known as reconciliation were briefly de-railed Thursday. The House Republican leadership suffered an unexpected defeat when the House-Senate conference report on Labor and Health and Human Services spending was defeated by a 15-vote margin. The defeat of that spending bill throws a monkey-wrench into the entire appropriations process - and raises the likelihood that Congress will have to pass a massive omnibus spending bill in December to wrap up government funding for the fiscal year that began in October. It also made it tougher for House leaders to find the votes to pass the budget reconciliation bill - a measure to cut 50-billion dollars in federal spending over the next five years. In a bid to pick up the final few votes needed to pass the budget savings package - House Republican leaders agreed Thursday morning to slightly soften cuts proposed for Medicaid and food stamps. GOP leaders had hoped to take the revised package to the House floor Thursday afternoon. But instead - they did so early Friday morning - and the budget-cutting bill passed by just two votes.

"APEC Nations Call for End of Export Subsidies"
The Asia-Pacific Economic Cooperation - or APEC - nations are joining the U.S. in its call for an end to export subsidies. Top trade ministers from the APEC nations would like to see subsidies eliminated by 2010 - and are looking to countries for increased market access for ag goods. The 21 APEC members met this week - and reportedly decided the current World Trade Organization Talks are important. According to U.S. Trade Representative Rob Portman - this week's meeting marked the first time Asian countries had come together in a united front ahead of the December WTO ministerial in Hong Kong. Despite this action - Portman says more must be done on market access if the stalled WTO talks are going to move forward. But the EU hasn't been offering real changes in market access - calling for progress in other areas before giving additional access.

"Peru Willing to Sign On the Dotted Line With or Without Andean Neighbors"
Iowa GOP Senator Chuck Grassley sent a letter to the Chief Trade Negotiator for Colombia Thursday - and urged him to make a new agricultural proposal in the U.S.-Andean Free Trade Agreement negotiations. And while Grassley - according to a statement issued Thursday - fears the restrictive ag proposals offered by Colombia to date could endanger the success of the negotiations - Peru's chief negotiator Pablo de la Flor is willing to move forward without the country's Andean neighbor. Although there is still plenty of work to be done - the country's negotiator said Peru will sign an agreement with the U.S. regardless of the participation of Colombia and Ecuador. De la Flor remains hopeful a group deal can be reached - but if not - he says Peru will tend to its own interests and sign alone. As for Ecuador - that country's negotiators have indicated they're in no rush to sign a deal with the U.S.

"USDA Plan to Open Border to Older Canadian Cattle Disappoints R-CALF"
Administrator of USDA's Animal and Plant Health Inspection Service Ron DeHaven says USDA is planning to revise its BSE restrictions - and allow Canadian cattle over 30-months of age into the U.S. by the middle of next year. R-CALF USA President-Elect Chuck Kiker says the plan only shows USDA's willingness to give market access away before regaining the international export markets lost since December of 2003. But Kiker says the decision also shows USDA is ignoring the science - which he says proves older Canadian cattle pose a greater risk to the U.S. cattle herd and U.S. consumers. R-CALF's case against USDA on the Final Rule allowing Canadian cattle younger than 30-months of age into the U.S. is still unresolved - but Kiker says the arguments used in that case are even stronger against the importation of older Canadian animals. The USDA proposal - according to Kiker - makes implementation of mandatory country-of-origin labeling even more critical so consumers can make informed purchasing decisions. But the American Meat Institute is urging USDA to move forward with the rule expanding Canadian live cattle imports to older animals. And it's worth noting that USDA hasn't actually issued a proposed rule on older cattle from Canada as of yet.

"Harkin Pushes for 2006 Implementation of COOL"
Supporters of mandatory country-of-origin labeling aren't willing to give up - despite implementation delays. The latest delay - included in the fiscal year 2006 ag appropriations legislation - pushes implementation of COOL off until 2008. But Iowa Democratic Senator Tom Harkin is co- sponsoring legislation that would repeal that ag appropriations provision. He says American consumers should have the information they've been demanding since 2002 by 2006. Harkin says COOL never should have been delayed - since it was adopted as part of the 2002 farm bill. He says - and these are his words - re-writing the farm bill in the appropriations process has gotten out of hand - and blocking COOL is a glaring example of that problem.

"Bush Nominates New Chief U.S. Ag Trade Negotiator"
President Bush has nominated Richard Crowder for the position of Chief Ag Negotiator. Crowder currently serves as President and Chief Executive Officer for the American Seed Trade Association. But for three years - from 1989 to 1992 - Crowder served as Under Secretary for International Affairs and Commodity Programs at USDA. U.S. Trade Representative Rob Portman says Crowder will bring unique insight to the needs of U.S. farmers and ranchers and impressive background in ag issues to the negotiating table. Most U.S. farm and commodity groups have expressed approval with Crowder's nomination. American Farm Bureau Federation President Bob Stallman says Crowder has an understanding of domestic and international agricultural issues - and will represent U.S. agriculture well. Crowder comes to the position at an important time during the Doha Round of World Trade Organization talks - where according to Portman - and these are his words - negotitaions on agriculture reform are key to opening markets worldwide. Crowder replaces Allen Johnson - who stepped down as chief U.S. ag trade negotiator in September.

"Higher Energy Prices Likely Impacting This Year's Thanksgiving Feast"
You might end up spending a little extra dough on your Thanksgiving feast this year - that's according to the American Farm Bureau Federation's 20th annual informal survey of the price of a traditional Thanksgiving dinner. This year's survey shows an increase of one-dollar and 10-cents from last year's survey of the total cost of basic Turkey Day items. That means your family's Thanksgiving chow-down will cost you - on average - 36-dollars and 78-cents this year.Farm Bureau Senior Economist Terry Francl says the increase this year can mainly be contributed to higher energy prices - which affect processing, packaging, refrigeration and shipping costs. The cost of the main Thanksgiving staple - turkey - is the largest contributor to the overall cost increase. According to Francl - turkey is roughly 88-cents more expensive when compared to 2004. Consumers also saw increases in prices for a gallon of milk, pumpkin pie mix, frozen green peas, stuffing, pie crust, and brown-n-serve rolls. AFBF's shopping list for this Thanksgiving survey includes turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries a relish tray of carrots and celery, pumpkin pie with whipped cream, coffee and milk. The average cost is based on purchases of quantities sufficient for a family of 10.