Ag Policy Wrap-up - Dr. Larry Sanders, Oklahoma State University

14 Mar 01
(Sunup Program to be aired 15 Mar)

1. The US has finally banned imports of European swine and ruminant and chilled or frozen meat from swine or ruminant with concerns of foot-and-mouth disease. What are the implications for US agriculture and consumers?

–With news of the spread from Great Britain to France, USDA announced it will ban all incoming shipments and quarantine and inspect EU meat products imported since 21 Feb.

–With earlier concerns of mad cow disease, the US has not imported any cattle or beef from France since 97.

–There will be a small impact on pork imports.

–Many are concerned that USDA may have moved too late. Senate Minority leader Senator Daschle wanted USDA to move last week and include a moratorium on live animals as well.

–Consumers have little to fear from this disease, but cloven hooved animals (pigs, cattle, sheep, goats) are highly susceptible.

–The other concern is what this is doing to the consumer perceptions in Europe. Over the past decade, it seems that one bad news story after another has hit the meat market there: additives, mad cow disease, and this.

–An entire generation of European consumers may be developing long term negativity toward meat eating, and that’s a danger sign for livestock producers here in the US.

2. Some Congressional reps are pushing trade with Cuba. Any chance this will get through?

–Senators Baucus (D-MT), Roberts (R-KS), & Lincoln (D-AR) has introduced trade bills to end the Cuban trade embargo.

–While the majority in both houses of Congress would like to see this occur, the GOP leadership and President Bush are adamant about no relaxation of restrictions on Cuba until Castro is gone.

–Most farm organizations also support free trade with Cuba.

–Some of the more cynical are noting that Castro has outlasted 4 decades and 9 US administrations of anti-Castro policy.

–It is also interesting to note that one of Bush’s answers to tough times in agriculture is to open up more trade markets and expand free trade.

–His thinking on that apparently doesn’t extend to Cuba. History has indicated that using food as a political weapon usually doesn’t work, especially when the US acts unilaterally.

3. The Bush Administration seems to be sending mixed signals about global warming and environmental regulations. What’s the latest?

–In recent talks with global partners, the Administration signalled they were ready to re-engage in the Kyoto Accords talks to reduce the danger of global warming, with some hope of setting the goal of movement as early as this summer.

–On the campaign trail, Bush promised to treat carbon dioxide as a pollutant, which heartened many scientists and environmentalists.

–His EPA head Christie Whitman recently reinforced this by announcing that this pollutant was a major threat and regulations were being considered.

–Electric utilities were lobbying behind the scenes to change the Administrations plans because it would be too costly, especially at a time of high energy costs.

–This week, Bush reversed himself and went against his EPA head’s recommendation and said there would be no regulation of carbon dioxide.

4. Latest on the farm bill debate:

a. Sen. Lugar (R-IN), Senate Ag Committee chair, has indicated a goal of this summer or early fall for a markup of the first title of the next farm bill.

b. Barley growers gave their input last week, calling for more funding and to maintain flex.

c. National Farmers Union will announce its recommendations this week.

–Recently, NFU voiced increased support for environmental programs, including CRP, and expressed concern that the Bush Administration doesn’t seem to want to provide emergency aid to farmers this year.

d. House Ag Committee Chair Combest (R-TX) continues to remind commodity groups he wants specific recommendations when they address his committee on the farm bill.

5. Other policy-related news affecting agriculture:

a. An Oklahoma producer was among those elected to positions with the National Grain Sorghum Producers. Ken Rose, Keyes, OK, was elected as Secretary-Treasurer.

b. Recent program announcements by USDA include (see local FSA for details):

(1) the third Dairy Market Loss Assistance Program for eligible dairy farmers; there are limitations on eligibility.

(2) signup for Apple Market Loss Assistance with $100 million available for 98 & 99 production because of low prices.

(3) signup for Wool and Mohair Loss Assistance of $20 million available for 2000 because of low prices; deadline 13 Apr.

(4) grazing payments in lieu of loan deficiency payments for 2001 may begin now for eligible producers electing to use acreage planted to wheat, barley, or oats to graze out livestock.

(5) honey loan repayment and loan deficiency payment rates for 2000, ranging from 13.7 cents/pound for sale/redemption July/earlier to 14 cents/pound for March 2001; 14.7 cents/pound will be the rate for Dec 00 & Jan 01.

(6) honey nonrecourse marketing loan provisions for 2000 crop: 65 cents/pound.

6. 107th Congress:

a. Recent/Current:

–House Ag Committee reviews federal farm commodity programs with the barley growers (8 Mar).

–House Ag Committee reviews federal farm commodity programs w/National Farmers Union (14 Mar)

b. Upcoming:

–House Ag Committee reviews federal farm commodity programs w/wheat industry (15 Mar)

–House Ag Committee business meeting to consider budget views (15 Mar)

–House Ag Committee reviews farm commodity programs w/rice industry (21 Mar)

–House Ag Committee reviews farm commodity programs w/livestock industry (22 Mar)

–House Appropriations Ag Subcommittee FY2002 hearing schedule:

–CFTC (21 Mar)

–Budget Overview (25 Apr)

–USDA Secretary (26 Apr)

c. Congressional Calendar:

--As of 19 Mar, about 94 weekdays remain in this Congressional session.

April 1 Daylight Savings Time Begins

April 7 ‑ April 23 Spring District Work Period

April 8 Passover

April 15 Easter

May 13 Mother’s Day

May 25 ‑ June 4 Memorial Day District Work

Period

May 28 Memorial Day