Thursday, November 24, 2005

Missouri Beef Update

Dawn Thurneau, Director of Communications at the Missouri Beef Industry Council, followed up on our visit from last week about the cooking school held in Maryville and the role the beef checkoff had in helping with the experienc. She also has a few great holiday recipe ideas and shopping suggestions for you!

Ag News: Thursday, November 24

"U.S. Ag Exports to Hit New Record in FY 2006"
USDA on Tuesday issued a new estimate of U.S. ag exports for fiscal year 2006. USDA Chief Economist Keith Collins says the new estimate is a billion dollars more than USDA thought just three months ago. But he says the U.S. ag trade surplus will still likely be smaller this year than last. Collins says USDA's new ag export forecast of 64.5-billion dollars - and the new ag import forecast of 61.5-billion - would both be all-time records. He says the increase in U.S. ag export value is largely because of good export demand and relatively good prices for wheat, rice and pork. And the value of U.S. ag exports could go higher. The new USDA ag export forecast does NOT factor in any potential re-opening of the Japanese or South Korean market to U.S. beef.

"Johanns Says UN FAO Conference a Great Opportunity to Talk About WTO"
U.S. Ag Secretary Mike Johanns on Wednesday wrapped up a three-day trip to the United Nations Food and Agriculture Organization Conference in Rome. Johanns met with his counterparts from more than a hundred countries at the conference - aimed at assessing the current state of global agriculture and food security. But Johanns says his primary reason for going to the UN conference in Rome was to make progress before next month's meeting of all World Trade Organization ministers in Hong Kong. He says the conference represented a unique opportunity to talk to over 100 ag ministers at one time - something that rarely happens. And Johanns says he wasn't shy in telling the assembled ag ministers from around the world about the value of the Doha Round of WTO talks to developing nations. The Iraqi ag minister was among those at the UN conference in Rome. Johanns says he met with him - and promised U.S. assistance in planning Iraq's agricultural future. As it stands now - the U.S. Grains Council is the only contractor USDA is using to develop Iraqi agriculture. For more than two years - the Grains Council has worked to build Iraq's poultry industry - which used to be one of the biggest in the region.

"Portman Says U.S. Hasn't Lowered Expectations for Doha"
U.S. Trade Representative Rob Portman says - even though expectations for the WTO ministerial in Hong Kong are lower - he still believes the Doha Round of WTO talks can conclude successfully by the end of 2006. Portman says the key to progress is still market access for agricultural goods. And he says Europe must still give ground on its proposals for domestic supports and tariffs. But according to Portman - European Union Trade Commissioner Peter Mandelson is also correct in calling for progress on non-agricultural trade issues. And Portman says he's encouraged by the strong support of the Doha Round that appeared to emerge from last week's meeting of Asian nations. But Portman admitted no specifics for advancing the Doha Round are likely to emerge from the Hong Kong meeting. Instead - he said goals of the meeting include educating both participants and the public on remaining issues - taking stock of progress made - and putting building blocks into place for the eventual discussion of specific numbers on tariff reductions. Portman has been pushing hard for progress in the global trade talks - traveling to Europe - Africa - India - China and Korea and then back to Europe - all in the last two weeks. And Portman says he'll be back in Geneva the week after Thanksgiving for more talks. Portman made his remarks at a press conference Wednesday after wrapping up his most recent meetings with World Trade Organization ministers in Geneva.

"IG Gives USDA Finances a Mostly Clean Bill of Health"
USDA's Inspector General on Wednesday issued a 401-page report on the Agency's finances - and gave them a mostly clean bill of health. The report said USDA's financial balance sheets at the end of the last two fiscal years fairly present the financial position of USDA in all material respects. But the IG also found USDA needs to improve its overall financial management across the entire agency - and also needs to improve its information technology security and controls. Among the IG's specific findings - so called-abnormal balances existed at year-end without being fully researched and corrected. As of the end of fiscal year 2005 - the IG found over 90 abnormal account balances at USDA totaling over a billion dollars - that's billion with a b. Also - the IG said the Farm Service Agency incorrectly entered the loan maturity range for one of its loan programs - so FSA's cash flow model for direct loans didn't calculate the weighted average interest rate correctly. The IG said FSA fixed that problem after it was brought to their attention. And how about this - the IG review of a Commodity Credit Corporation's footnote to its cash-flow model found errors in disclosure relating to CCC’s loans. Corrections totaling more than 8-billion dollars were subsequently made to that single footnote on that one CCC document. The IG report says it's intended only for the information of USDA - the White House Office of Management and Budget - and Congress. It also says it is not intended and should not be used by anyone but those parties. So don't tell anyone from the government I told you about it.

"Brazil Temporarily Suspends Request for Sanctions Against U.S."
Brazil has agreed to suspend its demand for over a billion dollars a year in trade sanctions against the U.S. - at least for now. Brazil earned the right to ask for sanctions after it won a World Trade Organization case against the U.S. cotton program in March. Brazil first asked the WTO for permission to apply trade sanctions against the U.S. in July - asking for three-billion a year at that point. They put that request on hold after giving the United States until the end of the year to eliminate two cotton export programs ruled illegal by the WTO. But a Brazilian diplomat says the latest move doesn't mean Brazil is giving up on its quest for WTO sanctions against the U.S. He says - instead - the latest move is aimed at bringing the two sanctions requests together. Brazil says Washington has done little or nothing to come into line with the WTO ruling against the U.S. cotton program. U.S. officials counter by saying USDA itself eliminated one illegal cotton export program - and has asked Congress to eliminate the other one - known as the Step 2 program.

Thanksgiving Forecast

Turkeys will thaw in the morning, then warm in the oven to an afternoon high near 190F. The kitchen will turn hot and humid, and if you bother the cook, be ready for a severe squall or cold shoulder.

During the late afternoon and evening, the cold front of a knife will slice through the turkey, causing an accumulation of one to two inches on plates. Mashed potatoes will drift across one side while cranberry sauce creates slippery spots on the other. Please pass the gravy.

A weight watch and indigestion warning have been issued for the entire area, with increased stuffiness around the beltway. During the evening, the turkey will dimish and taper off to leftovers, dropping to a low of 34F in the refrigerator.

Looking ahead to Friday and Saturday, high pressure to eat sandwiches will be established. Flurries of leftovers can be expected both days with a 50 percent chance of scattered soup late in the day. We expect a warming trend where soup develops.

By early next week, eating pressure will be low as the only wish left will be the bone.

Wednesday, November 23, 2005

Missouri Soybean Update

John Kleiboeker, Director of Field Service at the Missouri Soybean Association, visited this week about the importance of the poultry industry, especially turkey, to the state of Missouri.

Ag News: Wednesday, November 23

"U.S. One of Five WTO Members Taking Lead in Pushing Doha Round"
Ministers from Brazil, the European Union, India, Japan and the U.S. have agreed to take the reigns in moving forward with the Doha Round of global trade liberalization talks ahead of the Hong Kong ministerial in December. The five key WTO members also agreed that a second full ministerial meeting should be held in early 2006. The issue of reducing farm support programs - especially certain farm subsidies - has been a road block for the Doha Round. According to Japan's Agriculture, Forestry and Fisheries Minister - that remains a sensitive issue - and continues to stall progress in the talks. The meeting in Hong Kong is scheduled to begin December 13th. The original goal of the meeting was to produce an outline of a comprehensive agreement - including numerical targets like formulas for tariff cuts. But in an effort to avert failure - WTO chief Pascal Lamy recently renounced that goal - recommending lower expectations for Hong Kong. Despite Lamy's recommendation - New Zealand's ambassador says a deal is still within reach. He says genuine and material progress has been made - especially since this summer. Because of that - the ambassador says - and these are his words - there is indeed something real and important within our grasp and we should not risk losing it.

"Grassley Asks USDA to Explore Active Farm Management Definition"
A Government Accountability Office report commissioned by Iowa GOP Senator Chuck Grassley shows many receiving farm program payments aren't actively involved in farming. Grassley says the problem is USDA hasn't defined exactly what active farm management is. So he's written U.S. Ag Secretary Mike Johanns to find out what USDA's doing to fix that. According to Grassley - the GAO report actually found that in a majority of cases - folks with little involvement in the operation were collecting benefits. In fact - some met the active management test by participating in annual conference calls about the farm. That's why Grassley hopes his letter to Johanns will lead to regulations that will shut-down loopholes in the rules on current farm program payment limits.

"Harkin Expands NAIS Study at Request of LMA, NLPA"
Just last week Iowa Democratic Senator Tom Harkin asked the Government Accountability Office to take a closer look at the National Animal ID plan USDA's proposed. Harkin expressed disappointment with USDA's failure to inform producers and federal and state governments of the costs associated with such a system. The day of Harkin's request - the Livestock Marketing Association and the National Livestock Producers Association asked Harkin to expand the study to include the cost impact on livestock markets and their producer customers. Harkin's office has explained they always planned to include that aspect in the study - and says Harkin will re-emphasize that in upcoming meetings with the GAO staff. According to LMA and NLPA - the impact on marketing facilities could be financially devastating if there's no federal assistance to help with the cost of obtaining the necessary equipment. LMA officials are pleased with Harkin's agreement to expand the study - and say his action reflects the important role marketing will play in national animal ID.

"Official Has Positive Update on Boll Weevil Eradication Efforts"
During a recent gathering of boll weevil eradication experts - a national coordinator for eradication of the pest shared the news that the boll weevil has been eradicated on 80-percent of cotton lands in the U.S. Cotton farmers in the South have been dealing with the pest for years - and eradication efforts started over two decades ago in 1983. Eradication programs are now operational in 17 states across the country. In fact - officials say 100-percent of cotton producing areas in the country are now participating in the eradication effort.

"Senators Support Legislation to Increase Agribusiness Security"
Republican Senators Pat Roberts of Kansas and Johnny Isakson of Georgia want ag retailers, distributors, manufacturers, formulators or aerial applicators of pesticides and fertilizers to have an incentive to improve security at storage sites. That's why Roberts has introduced - and Isakson is co-sponsoring - legislation to provide tax credits for the implementation of security measures. According to Isakson - farmers and ag businesses use pesticides and fertilizers that could be misused as agents for manufacturing illegal drugs. He adds certain chemicals could be used to develop explosive devices. Isakson says no eligible agribusiness would have the opportunity to receive more than two-million dollars in tax credits in any taxable year - and the security tax credit would not exceed 100-thousand dollars per facility per year.

"FDA, FSIS Hope to Iron Out Regulation Wrinkles"
The Food and Drug Administration and USDA's Food Safety and Inspection Service want to settle jurisdictional issues affecting the regulation of foods containing meat and poultry once and for all. That's why the two federal agencies will hold a public meeting on the issue Thursday, December 15th. The FDA and FSIS are looking for regulation consistency and predictability - because right now - that doesn't exist. In fact - if you manufacture frozen cheese pizzas - you'll be regulated by the FDA. If you manufacture pizzas with meat on them - the FSIS is your regulator. If you're manufacturing both - you could have two regulators taking a look at your operation. But FDA and FSIS want to straighten all of that out. That's why for the past year - a working group of staff members from both agencies has been working to come up with a regulation plan that makes more sense. For instance - food safety experts have been asking why so many agencies have a piece of the food regulation pie - and wonder if there should be a single regulator responsible for inspection, ensuring safe manufacturing practices, labeling and enforcement. While that's reportedly not a plan agency officials are considering - those are issues likely to be discussed at the December meeting.

"Buis for President"
With the announcement from National Farmers Union President Dave Frederickson that he won't be seeking another term - NFU's looking for someone to build on his success. NFU lobbyist Tom Buis says he'd like to be the one to do it. Buis announced his intentions to seek the NFU presidency during the Minnesota and South Dakota Farmers Union conventions this past weekend. Buis says he brings passion and energy to the job and wants to continue the tremendous work Frederickson started. Buis has been with NFU since 1998. Before that time - Buis served as senior agriculture advisor to South Dakota Senator Tom Daschle.

"NCBA Looks to Award Environmental Stewards"
The National Cattlemen's Beef Association is looking for individuals and businesses that raise or feed cattle and demonstrate outstanding commitment to protecting the environment and improving fish and wildlife habitats. NCBA's asking groups and organizations to nominate cattle producers for the 2006 Environmental Stewardship Awards. Environmental Stewardship Award Program program director Stacey Katseanes says the award program gives U.S. cattle producers the chance to show others around the country the innovative on-farm stewardship practices they employ. She says that - in turn - motivates others in the industry to try the techniques Stewardship award winners are using. And Katseanes says that - and these are her words - exhibits to the urban world how cattle families who live off the land are true environmentalists. NCBA will recognize seven regional winners, who will then compete for the national award. The application does take time to complete - so members of the selection committee are encouraging cattle producers to get nomination forms and applications well in advance of the March 16th deadline. For the ESAP nomination application visit http://hill.beef.org/esap

Tuesday, November 22, 2005

Ag News: Tuesday, November 22

"Johanns Expresses Importance of Hong Kong in Rome"
U.S. Ag Secretary Mike Johanns on Monday addressed the 33rd U.N. Food and Agriculture Organization Conference in Rome. Johanns said the conference on the global state of food and agriculture comes at a crucial time - less than three weeks before the Hong Kong meeting of all WTO ministers - which Johanns called an important milestone of the Doha Round of World Trade Organization talks.Johanns said the Doha Round will determine whether developing countries get the chance to enjoy the benefits of expanded global trade - which he said could significantly stimulate the global economy. According to Johanns - that's an opportunity the world can't afford to miss. Johanns told his colleagues that agriculture and reform of agricultural trade is a key component of the WTO negotiations - and explained the U.S. proposal outlined in October. On top of U.S. efforts to increase market access, reduce trade-distorting domestic support and eliminate export subsidies - Johanns said the U.S. is committed to promoting worldwide science-based standards. Because of that commitment - Johanns expressed appreciation for the proposed FAO budget - which protects two standards-setting bodies - the Codex and the International Plant Protection Convention. But Johanns also expressed some concerns. According to Johanns - the U.S. disagrees with aspects of the Director-General's proposal to reform the UN FAO - including any shift in FAO's focus away from its traditional standards-setting activities, data collection, and analysis.

"Appropriations on Hold for Turkey Day"
The Defense and Labor-HHS-Education bills are the only fiscal year 2006 spending bills left to be completed by Congress. Appropriators are close to achieving their goal of passing all spending bills for the fiscal year individually. They can see the goal line - but the last few yards could be the toughest yet. Congress is taking a break for Thanksgiving - but when they come back - according to Washington insiders - GOP leaders could decide to use the defense bill to carry the Labor-HHS measure and a number of other items - like the President's proposed reallocation of hurricane funds and funding to prepare for a potential flu pandemic. Just this weekend - President Bush signed the energy-water development bill into law. The President also signed a second continuing appropriations resolution to keep funds flowing to those agencies whose spending bills haven't been enacted through the 17th of December.

"EU Foreign Ministers Keeping Close Eye on Mandelson"
According to the French foreign minister - EU Trade Commissioner Peter Mandelson isn't ruling out the possibility of making a further offer on farm trade in the Doha Round of WTO talks. That's why - at the request of France - EU nations announced Monday they plan to closely monitor Mandelson at the talks in Hong Kong. EU foreign ministers say they will meet in special sessions to guide Mandelson through the final global trade deal stretch. But Mandelson has previously made it very clear he would not make a different offer on agriculture - and denies warning ministers he may make new agriculture concessions. Instead - Mandelson said he's looking to other countries to consider Europe's latest farm trade offer - and reciprocate with progress in other areas of the talks. Mandelson's offer to slash farm trade tariffs has not been well received by France. The French foreign minister has accused the trade commissioner of going too far - and while the EU's foreign ministers say they still back Mandelson as a trade negotiator - they have now given into the French push for a short leash on Mandelson. Mandelson is meeting with U.S., Brazilian and Indian officials in Geneva for informal talks Tuesday.

"Humane Society Plans to Battle USDA Over Poultry Slaughtering"
The Humane Society of the United States is filing suit against USDA in an effort to extend federal controls over livestock slaughter to protect birds. Poultry is currently excluded from the Humane Methods of Slaughter Act - an act requiring livestock be rendered unconscious or killed before slaughter. That's what the Humane Society would like to see changed. According to the Humane Society - the method of poultry-slaughter used injures birds while they are still conscious. They say that endangers humans because it leads to an increased chance of food-borne infections in people. But Phillip Lobo - President of the Alliance for Animal Agriculture - says the Human Society suit is a typical Thanksgiving week pubicity stunt. He points out promoting animal welfare is in the best interest of the U.S. poultry industry.According to the Washington Post - USDA has declined to comment on the suit until it's filed.

Monday, November 21, 2005

Ag News: Monday, November 21

"House Passes Budget Plan, NFU & NACD Disappointed"
The House passed its budget reconciliation legislation by an extremely narrow two-vote margin in the early hours of the morning Friday. The legislation includes 3.7-billion dollars in cuts to farm and food programs - including more than a-billion in cuts to domestic commodity programs in 2006 through 2010. No Democrats voted for the legislation. And according to Congressional Quartely - GOP leaders had to agree to several demands late Thursday to win the necessary votes of GOP moderates to pass the 49.9-billion dollar spending cut bill. National Farmers Union says passage of the Deficit Reduction Act is the wrong move at the wrong time. NFU President Dave Frederickson says it's already a tough time for farmers because of low commodity prices - high energy costs and adverse weather conditions. And he says the House plan makes the bad situation even worse - placing an even bigger burden on U.S. farmers and ranchers. NFU isn't alone in expressing concerns about the proposed cuts to federal farm program spending. The National Association of Conservation Districts is urging the chairmen of the House and Senate Ag Committees to treat conservation programs fairly in the House-Senate conference on budget reconciliation. NACD President Bill Wilson says - while cuts to conservation programs seem inevitable - NACD remains deeply concerned about proposed cuts to conservation programs. But with the Senate passing a plan to cut just 35-billion dollars in federal spending - the House-Senate conference will likely be extremely difficult. And if conferees ever reach a final agreement - adoption of that plan in the House could prove tough as well.

"House Speaker Promises MILC Extension"
Things are looking up for supporters of the Milk Income Loss Contract program - or MILC - a program that expired on September 30th this year. Many in the dairy industry had given up on an extension of the program - even though the Senate included a two-year extension of MILC in its budget reconciliation package. While that was a positive step for MILC supporters - the House did not include an extension in its version of the budget reconciliation. But now - according to Wisconsin GOP Congressman Mark Green - House Speaker Dennis Hastert is promising to order House negotiators to include a MILC extension in the House-Senate budget reconciliation conference report. Green says nothing is set in stone - but with Hastert's instruction to his conferees - and MILC supporter Jim Nussle of Iowa chairing the conference committee - Green says this is a huge step in the right direction. MILC won't be extended in its original form. The Senate did make changes to the program. But Green says just carrying the program through to the next farm bill is important. The primary opposition to the MILC program comes from western states with larger dairy operations. But MILC does have the support of President Bush - who spoke in favor of extending MILC during his 2004 re-election campaign.

"NCBA: Don't Re-open Border to Canada Until Animal Health Issues Resolved"
Last week - APHIS Administrator Dr. Ron DeHaven said USDA would expedite new rules to allow Canadian cattle over 30-months of age back into the U.S. R-CALF USA immediately condemned the move as a threat to U.S. animal and public health. And now - the National Cattlemen's Beef Association says it also opposes re-opening the border to older Canadian cattle - but for a different reason. NCBA says it will not support trade with Canada on cattle over 30 months old until science-based harmonization is achieved on all animal health issues. NCBA is particularly concerned about Canada’s restrictions on U.S. breeding stock and feeder cattle related to anaplasmosis and bluetongue. NCBA says those restrictions have placed undue hardship on America’s cattle producers for too long. NCBA says it will never favor any change in trade policy that threatens our herd health or the safety of our food supply. But NCBA says it doesn't believe Canadian cattle pose any such threat - and they say it is irresponsible to suggest otherwise. NCBA CEO Terry Stokes met last week with Canadian officials on the anaplasmosis and bluetongue issues. He says he expects a successful resolution to those problems by mid-2006.

"Legislation to Repeal Delayed Implementation of COOL Introduced"
The fiscal year 2006 ag appropriations bill signed by President Bush earlier this month included another delay in implementation of mandatory country-of-origin meat labeling. COOL supporters are fed up - and Thursday - a bi-partisan group of U.S. Senators announced the introduction of a bill that would restore implementation to September 30th of 2006. R-CALF says the continued support of Senate members is extremely important and appreciated. But the organization understands that getting the bill through Congress will be an uphill battle - particularly in the House. But R-CALF is confident that - with the support of COOL champions in the Senate and House - farmers and consumers can look forward to the implementation of M-COOL. The bill's primary sponsor - Montana Republican Conrad Burns - is joined by Democrats Max Baucus of Montana, Kent Conrad and Byron Dorgan of North Dakota, Tim Johnson of South Dakota and Iowa's Tom Harkin - as well as Republicans Craig Thomas and Michael Enzi of Wyoming, Chuck Grassley of Iowa and John Thune of South Dakota.

"Johanns In Rome for FAO Ministerial"
U.S. Ag Secretary Mike Johanns is in Rome leading the U.S. delegation to the 33rd Ministerial Conference of the United Nations Food and Agriculture Organization - or FAO. During the conference - Johanns will present the U.S. view on the state of food and agriculture - and will meet with ag ministers from around the world - and high-level FAO officials. Johanns says the conference brings FAO and World Trade Organization member countries together and provides an opportunity to bridge differences so a framework for completing the Doha Round can be set. That conference started on the 20th and wraps up on the 23rd.

"Johanns Announces Replacement for Davidson"
U.S. Ag Secretary Mike Johanns has named a replacement for former Risk Management Agency Administrator Ross Davidson. The new RMA chief is Eldon Gould. Johanns says Gould's experience at the local, state and federal levels - along with his personal history of agricultural production - make him qualified to lead RMA into the future. According to USDA - Gould has served on a number of boards of directors - including for the Illinois Farm Bureau - the U.S. Grains Council - and the U.S. Meat Export Federation - among others. Gould has also been involved with organizations like 4-H. Gould will be charged with managing the Federal Crop Insurance Corporation Board and implementing the crop insurance program - which includes evaluating new products and promoting risk management strategies.

"Chambliss, Harkin Introduce POPs Bill"
Currently - the U.S. is only an observer at the table where decisions on international pesticide policy and regulation are made. But Senate Ag Committee Chairman Saxby Chambliss and Ranking Democratic Senator Tom Harkin would like to change that - and believe legislation they introduced Thursday is a positive step toward that goal. According to Chambliss - the bill will implement America's pesticide-related obligations under agreements for a group of 12 toxic chemicals known as persistent organic pollutants - or POPs. He says passing the bill will help the U.S. reclaim its position as a world leader in the safe management of hazardous chemicals. Harkin says the legislation is critical to the control and elimination of the use of chemicals with the greatest potential for long-term damage to the environment. Implementing legislation would prohibit the sale, distribution, use, production or proposal of toxic POPs - and would add export reporting and labeling requirements - among other things.

"Budget & Strategic Plan Approved by National Pork Board"
The National Pork Board has approved its 2006 strategic plan and budget - calling for 48.8-million dollars in Pork Checkoff revenue to address nine critical issues already identified by the board. The issues identified in the 2006 strategic plan as critical include promoting domestic demand - early identification and management of issues - transfer and deployment of knowledge to producers - developing partnerships and alliances inside and outside the pork industry - improving the overall image of the pork industry - resolution of the swine welfare issue with customers - developing a long-range strategy for U.S. pork exports - continuing to develop the industry’s future leaders - and finding answers to the odor issue. About half of the recommended budget would be used for demand-building efforts - including continuing the new 'Don't Be Blah' campaign. Another 10.5-million is earmarked for promotion, research and consumer information programs at the state level. According to NPB President Danita Rodibaugh - the board's budget decisions are based on an industry forecast that 104.2-million hogs will be marketed at a live weight average of 271 pounds - with market prices expected to average between $42.50 and $45.80 per hundredweight - and pork producers contributing four-tenths of one-percent from the sale of their hogs to the Checkoff. U.S. Ag Secretary Mike Johanns must now approve the Pork Board's strategic plan and budget.