Thursday's Headlines

“U.S. Trade Rep Confirmed”

In a 92 to 5 vote - the Senate approved former Dallas Mayor Ron Kirk to be U.S. Trade Representative. Kirk told the Senate Finance Committee during his confirmation hearing last week that he would focus more on making sure other countries live up to their commitments under existing trade agreements than negotiating new deals to open markets to U.S. exports. But he’s also promised to work with Congress to get the pending free trade deals with Panama, Colombia and South Korea approved.

Kirk told the Finance Committee the agreement with Panama could be approved relatively quickly if that country makes some labor law reforms. The other two face challenges. Kirk said the U.S. will walk away from the South Korea deal unless auto provisions that now favor South Korean automakers too much are changed. And before the pact with Colombia is passed - he says more needs to be done to stop violence against trade unionists. The American Farm Bureau Federation has said the Colombia and Panama agreements represent U.S. ag export gains of more than a billion dollars a year at full implementation.

As for the Doha Round - Kirk said the U.S. is committed to reaching a deal. But he said developing countries like Brazil, India and China need to make better offers to open their markets.
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“Mexico Retaliates for Trucking Decision”

In retaliation for the decision to scrap a test program that allowed Mexican trucks to use U.S. highways to deliver goods - Mexico will apply tariffs of 10 to 45-percent on at least 90 U.S. products. Those tariffs - according to Mexico’s Economy Minister - will take effect tomorrow. The products do include some fruits and vegetables - like cherries and potatoes - but rice, corn, wheat and beans were excluded. Pork, beef and poultry also were not on the list.
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“World Bank Warns Protectionism the Wrong Route”

A World Bank report shows at least 17 of the 20 major nations that vowed to avoid protectionist steps have violated their promise - enacting measures to limit the flow of imported goods. The U.S., Russia and China are among those trying to protect their domestic industries amid the global economic crisis. Since last November - the World Bank reports 47 measures have been imposed that restrict trade at the expense of other countries.

The report followed on the heels of the announcement that Mexico would implement tariffs on 90 U.S. products in retaliation against the cancellation of a 2007 pilot program allowing Mexican trucks full access to U.S. highways to transport goods. Experts fear those types of responses could grow in coming months - which could sharply worsen the collapse of global trade. The World Bank says trade is facing its steepest decline in eight decades as global demand dries up.

World Bank Group President Robert Zoellick - a former U.S. Trade Representative - said leaders must not heed the siren-song of protectionist fixes, whether for trade, stimulus packages or bailouts. He said it could - and has proven in the past - to make a bad situation worse.
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“EU Ready to Cut Preferential Beef Duties”

In 2008 - the European Union purchased from both the United States and Canada a total of 20,660 metric tons of U.S. beef. The U.S. Meat Export Federations sets the value at 99.7-million dollars. The first 11,500 metric tons of that beef benefited from a reduced tariff of 20-percent. Any beef the EU imports above that level has a combined tariff of 12.8-percent duty and 3,000 euros per ton. But all of that could change soon.

The European Commission is considering a doubling of the preferential quota for beef imports. This would be a step forward in a decades-old dispute over beef trade. But first - the Commission wants the United States to eliminate about 166-million dollars worth of sanctions against EU products. The EU would still ban beef traded with hormones.
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“VeraSun Sales Approved”

After a two-day auction with several bidders - Valero Energy won a bid for seven of VeraSun Energy’s 17 bankrupt plants. Secured lenders submitted bids for the remaining VeraSun assets. The ethanol producer - which filed petitions for relief under Chapter 11 of the Bankruptcy Code in October - announced Wednesday that the U.S. Bankruptcy Court has approved the sales. The sales will close in April at a total of nearly one-billion dollars.

The National Corn Growers Association expects most 2008 VeraSun contracts will be voided as a result of the auction - but recommend affected growers check with their local buyers. NCGA Chairman Ron Litterer says there are still many questions to resolve about the corn contracts - but says the group is relieved the plants aren’t being shuttered - and hopes to see improvement in the ethanol industry as the economy rebounds.***********************************************************************************************

“Republicans Vow to Fight Cap & Trade System”

It’s not just the tax increases included in President Obama’s proposed budget House Republicans are opposed to - it’s the cap and trade program designed to curb carbon dioxide emissions. GOP leaders say they will oppose the program and instead focus on their “all of the above” energy proposals. Those proposals stress new domestic oil and gas production and the development of alternative energy sources. This is just one of six principles House Republicans say they will follow as they work on an alternative budget they plan to bring forward in the next few weeks.
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“Enhanced Feed Ban Could Be Delayed”

After requests from 18 Senators and packers and renderers from across the country earlier this month - it is expected the U.S. Food and Drug Administration will place a hold on the agency’s enhanced ban on high-risk cattle material in feed for all animals. The ban was to be effective on April 27th - but that date may get pushed back 60 days because of President Obama’s decision to review rules not yet in effect. Notice should be soon published in the Federal Register.

Packers and renderers are claiming certain hardships in the run-up to the rule’s implementation. At question is disposal of banned materials such as spinal cords and brains from cattle older than 30 months of age. Some renderers are refusing to take such materials or older dead stock off of packers' hands - forcing them to find other methods of disposal that can be costly and problematic.
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“University Study Shows Cellulosic Could Provide Big Economic Stimulus”

A new North Dakota State University study shows rural jobs could triple as ethanol production shifts to the use of cellulosic feedstocks like crop residues, forestry wastes and non-food energy crops.

While the study’s conclusions are tentative - as cellulosic production is just at the pilot-plant stage - researchers forecast that cellulosic biofuels will bring 192 plants to the North Central states - stretching from Missouri and Kansas to North Dakota. According to the study - those plants would pump 10-billion dollars into rural communities each year - directly employ nearly 15-thousand workers - and support thousands of additional jobs in feedstock harvest and transportation.

The report concludes that an emerging biofuels industry could offer new jobs that would help support rural communities and farm households and provide the kind of economic stimulus many agriculturally dependent areas have been seeking.
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“Irrigation Systems Get Smarter”

A Texas-based company is expanding on an Agricultural Research Service-patented technology. The system is called SmartCropTM. Smartfield, Inc. in Lubbock, Texas is adding three instruments to detect pressure and flow rates in subsurface drip systems; monitor wind speed and sunshine; and detect rain. The water saved by the system would be the equivalent of the total water needs of 44 homes for a year.

SmartCropTM uses pole-mounted infrared thermometers to read leaf temperatures as well as surrounding air temperatures. A computerized controller receives the readings every 10 seconds from each thermometer. The controller also collects weather data. Every 15 minutes - it transmits data averages to the Internet.

SmartCropTM capitalizes on the researchers' discovery that each plant species grows best only within a narrow temperature range. An overheated plant may need water as much to cool down as to quench thirst. For cotton in the Lubbock area - the system might send a text message advising turning on irrigation if leaf temperatures read above 82 degrees Fahrenheit for more than 6.5 hours at a time.
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“R-CALF Opposed to Proposed 840 Rule”

R-CALF USA has filed formal comments in opposition to USDA’s proposed rule on animal identification numbering systems - known as the 840 Rule. The rule is said to be designed to achieve greater standardization and uniformity of official numbering systems and ear tags. But R-CALF says the rule would make animal traceability for disease program more difficult and less effective. The group also believes it’s a way to mandate a National Animal Identification System.

R-CALF wrote USDA’s Animal and Plant Health Inspection Service has violated its rule making responsibilities under the Administrative Procedure Act by apparently implementing the change proposed in the 840 Rule without giving the public the opportunity to comment.

Among other things - R-CALF contends the 840 rule would make premises registration and use of the new NAIS premises identification number mandatory for all producers participating in any APHIS Veterinary Services disease program activities and curtail the use of time-proven postal-code identifiers on official ear tags.
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“MO’s McCaskill Voices Opposition to NAIS”

In related news (related to story above) - Missouri Senator Claire McCaskill has made her opposition to the implementation of the National Animal Identification System known to U.S. Ag Secretary Tom Vilsack. That’s according to R-CALF USA. The group says in a letter to the Secretary - McCaskill noted USDA has spent more than 130-million dollars to promote NAIS and that it was projected at a recent hearing that additional costs would escalate to a least 200-million or more. She reportedly went on to say it doesn’t make sense to put such a significant and unjustified financial burden on independent producers already stretched by the current economic situation.

Missouri is one of four states to have enacted legislation that prohibits mandatory premises registration programs.
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“Public Comment Sought on Farm Storage Facility Loan Program”

USDA’s Farm Service Agency has announced a series of meetings to solicit comments on the Farm Storage Facility Loan Program. The comments received will be considered as a Programmatic Environmental Assessment is prepared. The assessment will help USDA decision-makers and the public with an analysis for the environmental benefits and potential impacts associated with implementing changes to the loan program approved as part of the 2008 Farm Bill.

National meetings are scheduled for April 14th in Kansas City, Kansas and April 15th in Cleveland, Ohio. Those attending the public meetings can submit oral and written comments. Written and electronic comments may also be submitted. They must be received by the close of business on May 13th to ensure consideration.
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“Going to Kansas City”

Kansas City will be home to the 11th annual International Food Aid Conference hosted by USDA and the U.S. Agency for International Development. The theme for this year’s conference - scheduled for April 6th through the 8th - is Fighting Hunger in an Era of Global Economic Crisis. U.S. Ag Secretary Tom Vilsack, former U.S. Congressman and Ambassador to the U.N. Agencies in Rome Tony Hall and World Food Program Director of U.S. Relations Allan Jury are among the speakers. The conference provides a forum for discussions on policy and the operations issues related to the delivery of food aid - as well as improving communication and cooperation among those involved in food aid delivery.
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“Interior and FERC Reach Agreement on Offshore Renewable Energy Development”

The Department of the Interior and the Federal Energy Regulatory Commission are dividing the responsibility for regulation of offshore alternative energy sources. The agencies will prepare a Memorandum of Understanding that gives the Interior Department the right to decide on wind power proposals in federal waters and FERC oversight for wave, tidal and ocean-current projects.

Ahead of the announcement - Interior Secretary Ken Salazar told reporters that failure to resolve jurisdictional issues between FERC and Interior would hamper the administration’s efforts to expand renewable energy capacity. But this agreement - the Secretary says - will help sweep aside red tape so the U.S. can capture the great power of wave, tidal, wind and solar power off the coasts.
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“Acting FFA COO Named”

A former vice president of North America sales for Pioneer Hi-Bred International will assume the position of acting chief operating officer for the National FFA Organization. Bill Fleet will replace Douglas Loudenslager on April 1st. Loudenslager announced he would step down earlier this month. Fleet will guide the organization during the time required to conduct a national executive search for a full-time chief operating officer.

National FFA Adviser and CEO Larry Case says Fleet brings a wealth of experience in the agriculture industry and the agricultural education/FFA program. He says Fleet’s work supporting the ambitious agenda of the National Council for Agricultural Education has given him a ready grasp of the challenges and opportunities faced by the profession. Case called him the right man at the right time.

Prior to joining Pioneer in 1982 - Fleet taught agricultural education for four years at the high school level and served as adviser for both FFA and for adult farmers in the Dover Area School District in Dover, Pennsylvania.
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