Ag News: Thursday, December 1

"Japan Zeroed In on Age Verification"
The Japanese government hasn't actually approved it - but a draft document outlines the requirements for exporting beef to Japan - and USDA officials were in Omaha, Nebraska Tuesday to discuss them. According to the Chief of Audits, Review and Compliance for the livestock and seed program at USDA's Ag Marketing Service - Japan's main focus is age verification. Proving an animal is 20-months of age or younger requires a lot of paperwork - but some new programs are designed to ensure the U.S. can meet Japan's demands. USDA officials say negotiations to reopen Japan's borders have led to some new terms for the cattle and beef industries. The Beef Export Verification program details the beef shipment demands a country has placed on the U.S. - while the Quality Systems Assessment program is the plan companies and cattle producers use to ensure they meet those requirements. According to USDA - the Quality Systems Assessment program must create a trail of paperwork that can be audited - and affidavits by producers have to be detailed. Some U.S. companies are already working to get producers certified for these programs.

"Decision on U.S. Beef Imports Delayed"
Many believe South Korea's probe into the safety of U.S. beef could be the key to reopening that market to U.S. beef. But an announcement on the country's investigation has been delayed. According to a Korean newspaper - the delay followed a farmer's group threat to stage rallies if the government removes its ban on U.S. beef. South Korean Ag Ministry officials say opposition remains strong among those who believe lifting the ban is a result of American pressure. But an Ag Ministry spokesperson also said another meeting will be held on the matter in a couple of weeks - after quarantine documents are reviewed.

"Johanns Jets to Genrva for More WTO Talks; Goodlatte Bows Out of Hong Kong"
U.S. Ag Secretary Mike Johanns is praising a recent decision by the European Union to reduce its internal sugar price by 36-percent - a move required by a recent WTO ruling against the EU sugar program. Johanns - in a interview with USDA Radio Newsline Wednesday - says any reform is welcome. But Johanns says the EU still hasn't matched the U.S. proposal on agriculture in the Doha Round of WTO talks. That's why Johanns says he's again traveling to Geneva this week - and will be there pretty much all weekend - in an effort to make progress ahead of a meeting of all WTO ministers in Hong Kong starting December 13th. Johanns continues to insist if a new WTO trade deal doesn't happen soon - it could be many years before any such deal is reached.One major power-broker who won't be going to Hong Kong is House Ag Committee Chairman Bob Goodlatte. Goodlatte made that announcement during a fund-raiser in Little Rock, Arkansas on Tuesday. Congress will be in session during the Hong Kong meeting. And Goodlatte says he wants to stick around D.C. to participate in House floor votes - and to help move an ag disaster aid package through Congress. That thinking may also keep several more lawmakers from going to the Hong Kong meeting. But Senate Ag Committee Chairman Saxby Chambliss is reportedly still planning on going - at least for now.

"No New Deal Coming from the EU"
European Union Trade Commissioner Peter Mandelson made it official Wednesday - the EU will not make another offer on agriculture ahead of the Hong Kong ministerial. Mandelson says the concessions he put on the table in the Doha Round of World Trade Organization talks were more substantial than any other offer ever made by the EU. In an address to the European Parliament - Mandelson said further EU concessions would throw the balance of the negotiations off. Negotiators have lowered their expectations for the Hong Kong ministerial - and U.S. Trade Representative Rob Portman and U.S. Ag Secretary Mike Johanns continue to say the fate of the round rest in the hands of the EU. Mandelson - on the other hand - accuses the U.S. of dawdling, posturing and focusing excessively on farm trade issues. He says that's been at the expense of other areas of world trade liberalization - and is urging the U.S. to take a serious role in creating market access.

"No Deal Could Put Some U.S. and EU Products at Risk"
The disagreement between the U.S. and EU on reducing ag subsidies could lead to legal problems - according to trade and agricultural experts. Oxfam International released a report Wednesday highlighting three American crops vulnerable to WTO lawsuits. The report also notes eight ag products in the EU could be vulnerable. Oxfam says U.S. corn, rice and sorghum programs could face WTO complaints - because farm payments for those crops account for 9.3-billion of America's 19.5-billion dollars in total farm program payments each year. Of those three U.S. crops - experts say corn is more vulnerable to a trade challenge now than ever before. That's because two big crops in a row and low prices have resulted in record payments to farmers. Oxfam says tomatoes, tobacco, butter, wine and spirits, citrus juices and processed fruits are at risk in the European Union.

"GOP Leaders Strategizing for Year-End Congressional Action"
House and Senate GOP leaders are putting their heads together to devise a strategy for the remaining weeks of the first session of the 109th Congress. Leaders are attending a closed-door retreat on Maryland's Eastern Shore to discuss - among other things - how to deal with the last two fiscal year 2006 appropriations bills - and if it's even possible to finish this year's budget reconciliation measures to cut taxes and federal spending. The House and Senate passed very different budget reconciliation packages. So GOP leaders have to iron out the differences between the House measure that cuts 50-billion in spending over the next five years and the Senate version that cuts 35-billion. But that's not all. Conferees will also have to address drilling in the Arctic National Wildlife Refuge - a provision only included in the Senate version.

"CRP Signup Delays Remedied"
Signup for the Conservation Reserve Program - Conservation Reserve Enhancement Program - and others - has been delayed in some states because of a funding issue with the Farm Service Agency and the Natural Resources Conservation Service. In order to complete CRP applications - a technical plan must be drafted. Due to a lack of funds - FSA was unable to pay NRCS to complete that technical work. Now - according to NRCS Chief Bruce Knight - FSA has provided about 15-million dollars for technical assistance. Knight says that means he's given field staff the OK to resume processing applications - and farmers who were waiting can once again move forward with the signup process.

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