Monday's Headlines

“Final COOL Rule to Go Into Effect As Planned”

U.S. Ag Secretary Tom Vilsack has announced that the final rule for country-of-origin labeling will go into effect March 16th as scheduled. The Secretary also released a letter that invites stakeholders to follow additional voluntary labeling practices. Voicing his support for COOL - Vilsack called the program a critical step toward providing consumers with additional information about the origin of their food. He added USDA will closely review industry compliance with the rule and evaluate the practicality of the suggestions for voluntary actions outlined in his letter. While the rule was under regulatory review - according to a release from USDA - Vilsack determined the best avenue for evaluating the program was allowing it to go into effect and carefully monitoring implementation and compliance by retailers and their suppliers. The evaluation period will give the Secretary the information he needs to decide whether additional rulemaking is necessary to provide consumers with adequate information.
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“JBS Abandons National Beef Takeover”

Effective this past Friday, U.S. Premium Beef and National Beef Packing Company have terminated their Membership Interest Purchase Agreement with JBS S.A. Premium Beef’s Chief Executive Officer Steve Hunt says the Department of Justice lawsuit filed last fall to block the purchase was what led to the decision to call off the purchase. Still, Hunt says, - we are excited to continue the growth and success of our business on a stand-alone basis. National Beef CEO John Miller says this development has re-energized our management team. Miller added, - we are eagerly looking forward to building on our value-added model while continuing to focus on serving the needs of our customers. In Sao Paulo, Brazil, JBS told Reuters it blamed U.S. authorities who insisted it sell two of its eight North American units so it did not surpass the size of U.S. food giants Tysons Foods and Cargill. JBS added the termination of the purchase effectively renders all litigation moot as well.
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“Organizations React to End of Merger”

R-CALF USA and the Organization for Competitive Markets expressed their pleasure with the announcement that Brazilian-owned meatpacker JBS has abandoned its bid to take over National Beef Packing Company. R-CALF USA CEO Bill Bullard said this takeover bid was defeated by a combination of aggressive opposition from R-CALF USA and OCM. Bullard said our organization’s members - should be proud that they have achieved their goal of blocking this monumental, anticompetitive merger. OCM Executive Director Fred Stokes said this news is extremely welcome and represents a very positive start on what will be a long, hard fight to restore competition to the U.S. cattle market. Stokes added, we must now - focus our collective efforts on reversing the anticompetitive mergers of the past, including JBS' 2008 acquisition of the nation's largest feedlot company when it acquired Smithfield Beef Group. Since March 2008, R-CALF USA and OCM aggressively opposed the JBS/National Beef merger on the grounds that it would exacerbate the distortions already evidenced in the U.S. cattle market and would strengthen JBS' ability to use packer-owned cattle and other forms of captive supplies to manipulate prices paid to hundreds of thousands of independent cattle producers.
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“Reminder About Refuge Requirements”

The National Corn Growers Association reminds U.S. Bt corn growers that the Environmental Protection Agency requires growers to plant a refuge on their farm. These refuge acres ensure that rare resistant insects that feed on insect-protected varieties of corn will mate with susceptible insects and slow the development of resistance. Loss of the technology to resistance could cost U.S. farmers billions of dollars through yield reduction and increased pesticide use. Rob Korff, chairman of NCGA’s Biotechnology Working Group, points out - since the introduction of biotech traits, the vast majority of corn growers have followed refuge requirements to help protect the efficacy of this important technology. He adds - growers must continue to follow these requirements to help preserve its long-term value. To help preserve Bt technology, the EPA established the Compliance Assurance Program. Under the program, thousands of growers are randomly surveyed about their IRM compliance practices each year through EPA mandated on-farm assessments. Growers who do not comply with refuge requirements can lose access to the technology. Similarly, seed dealers who do not follow through on their commitments stand to lose their ability to sell the products.
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“EPA Advisory Committee Meeting”

The Farm, Ranch, and Rural Communities Committee, meets in Washington, D.C. beginning today. The 30-member independent advisory committee to the Environmental Protection Agency was formed in 2008 as part of EPA’s efforts to improve its relationship with the agricultural community.
Topics planned for discussion include impacts of EPA agriculture programs on climate change and renewable energy; identification and development of a comprehensive environmental strategy for livestock operations; and development of a constructive approach to sustainable agriculture and protection of the environment. The committee members represent large and small farmers, ranchers, and rural communities; rural suppliers, marketers, and processors; academics and researchers who study environmental issues impacting agriculture; environmental, conservation, and citizens’ groups; and state, local, and tribal governments.
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“WTO Talks Slowly Moving”

WTO Director-General Pascal Lamy says just because some countries have undergone political change is now reason to – set on our hands. And that is why, - since the beginning of the new year we have resumed work in all areas of negotiations with all chairman undertaking work according to the plan. And all of this trade talk is taking place without the United States having the benefit of having a Trade Representative in place. Ag Chair, Ambassador Crawford Falconer, says consultations, would have him speaking with each of the main negotiating groups and with some individual delegations such as the European Union. Falconer hopes that after two rounds of negotiations a set of issues could emerge that could be discussed in – small invitation only – meetings. Observers of the trade talks believe not much will happen until the United States has a Trade Representative able to participate in the talks. It could be late March before President Obama’s nominee, Dallas Mayor Ron Kirk, will be confirmed and briefed on trade policy issues. That might be in time for a meeting of 20 major trading powers in London on April 2nd.
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“President Signed Energy Agreement with Canada”

During his visit to Canada last week President Obama and Canadian Prime Minister Stephen Harper signed an agreement to work toward developing clean energy technology. Mr. Obama said, the agreement - will advance carbon reduction technologies. And it will support the development of an electric grid that can help deliver the clean and renewable energy of the future to homes and businesses, both in Canada and the United States. While there, the President also said his election-year promise to renegotiate the North American Free Trade Agreement will have to wait. The U.S. President also warned against a - strong impulse - toward protectionism while the world suffers a global economic recession. Mr. Obama said he wants to find a way to toughen NAFTA’s labor and environmental standards but stressed that nothing should disrupt the free flow of trade between neighbors. President Obama also said, – we've got to be very careful about any signals of protectionism. He explained - as the economy of the world contracts, I think there's going to be a strong impulse on the part of constituencies in all countries to see if we -- they can engage in beggar-thy-neighbor policies.
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“Growing DDGS Exports Help Ethanol Industry”

The U.S. Grains Council’s manager of international operations for DDGS says increasing the exports of distiller’s dried grains with solubles – is critical to the continued success of the U.S. ethanol industry. Dan Keefe says - as ethanol margins have been pinched in recent months, DDGS have become a more important product for maintaining ethanol plant profitability and continued operation. Keefe says - the Council is working around the world 24 hours a day to increase awareness of U.S. DDGS as a feed ingredient and expand demand for the ethanol co-product. In fact, Keefe says, - we are the only organization conducting hands-on market development programs to increase utilization of the co-product in animal rations across the globe. According to USDA’s Foreign Agricultural Service, the 2008 calendar year concluded with 4.5 million metric tons of U.S. DDGS entering the overseas marketplace. That’s up 91 percent from 2007. Council programs launched in 2002 introduced the co-product in overseas markets unfamiliar with the product. For example, Turkey, the third largest DDGS market, increased its imports last year near 2 and one-half times.
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“New Biofuel Resource Found”

A desert shrub called Quayule (why-YOU-lee) may prove to be an economical, environmentally friendly source of renewable energy. Right now, guayule is being used to make high-quality gloves, medical devices and other in-demand natural rubber products. But scientists at the Agricultural Research Service’s Western Region Research Center in Albany, California, say bioenergy can be made from ground-up Quayule stems and branches; left after their white, rubber-rich latex has been removed. The leftovers--a soft, light brown sawdust-like material called bagasse--provide 8-thusand to 9-thousand Btu per pound, about the same as charcoal. Researchers are looking into converting Quayule bagasse into bio-oil and synthetic gas. They say Guayule isn't a food or feed crop, so using it for energy production won't compete with those uses. Guayule's bagasse and latex are available year round. The only other biofuel feedstock available continuously right now is garbage from municipal solid waste. Guayule shrubs can be harvested for the first time as early as two years after planting, and are ready to harvest again in about another year and a half. In addition, guayule thrives in hot, dry ecosystems where many other biofuel crops wouldn't grow well.
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“Corn Contest Yields Insight”

Commodity Classic begins this Thursday in Grapevine, Texas. This meeting is where the National Corn Growers Association, The American Soybean Association, The National Association of Wheat Growers and the National Sorghum Producers will meet separately and in combined programs. More than 45-hundred growers and their families and industry representatives are expected to participate. Some of the corn growers attending will be discussing the latest results of the National Corn Growers Association’s National Corn Yield Contest and a study released by Informa, a data analysis company. The Informa report found that when comparing National Agricultural Statistics Service corn production figures to contest figures, contest participants average yields are - at least 10 years ahead of everyone else. How is all of this increase in production occuring? It all deals with plant counts. Based on the reams of data provided on each participating farm, one can have a good look at some yield-boosting techniques. And these techniques are setting the future of corn growing. Dave Alley, senior consultant for Informa , says - the contest is a leading indicator of what the future holds for corn innovation and corn potential.