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A publication of the National Association of State Departments of Agriculture
NASDA HOSTS CONSERVATION FORUM
COURT DECIDES AGAINST MUSHROOM PROMOTION PROGRAM
CLINTON PLANS CHEMICAL REDUCTION ORDER
State News--GOVERNOR ANNOUNCES $2.5 MILLION IN GRANTS TO PROMOTE GROUNDWATER STEWARDSHIP
State News--EUROPEAN TRADE TRIP "VOYAGE OF DISCOVERY" FOR AG
State News--S.C. STATE AG EXPO 2000
What's New on the NASDA Website
Food Safety Letter (What's New section)
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NASDA COMMENTS ON FOOD SAFETY PLAN NASDA provided comments this week on the administration's food safety strategic plan during an interagency workgroup meeting of the President's Council on Food Safety. The special briefing was held by USDA's Food Safety and Inspection Service (FSIS) and the Food and Drug Administration (FDA) in advance of a public meeting planned for January 19, 2000. The Council's Strategic Planning Task Force has been tasked by the President to develop a comprehensive five-year federal food safety strategic plan by July 2000. The plan will be used to set priorities, improve coordination and efficiency, identify gaps in the current system and mechanisms to fill those gaps, strengthen prevention and intervention strategies, and develop performance measures to show progress. In a letter submitted to the Council, Fred Dailey, NASDA president and the director of the Ohio Department of Agriculture, and Dan Wyant, chairman of NASDA's Food Regulation and Nutrition Committee and the director of the Michigan Department of Agriculture, expressed support for the planning process and goals. They also urged the Council to maintain an ongoing mechanism for state and local involvement in the federal planning process and reminded members of the heavy investment of state and local partners in the national food safety system. The letter was developed by Dan Wyant and approved during NASDA's annual meeting last September. A copy is available on NASDA's website under the "What's New" section. The Council announced that numerous revisions have been made to their original draft proposal by simplifying statements on goals and objectives for a seamless national food safety system. These revisions will be published in the Federal Register in coming days and will be posted on NASDA's website. FSIS and FDA will be seeking comments on the revised draft for the January public meeting. The Council also announced that the administration's comprehensive Egg Safety Action Plan will be released soon for public comment. (Contact: Charlie Ingram) NASDA HOSTS CONSERVATION FORUM This week, NASDA hosted a Conservation Partnership Forum with the National Association of Conservation Districts (NACD) to highlight state environmental management programs. The forums are held quarterly in Washington, D.C., as educational and information-sharing sessions for agricultural organizations, food and commodity groups, federal and state agencies, and congressional staff. Several NASDA members addressed the meeting and outlined state activities on resource management planning. Delaware Department of Agriculture Secretary Jack Tarburton and Maryland Department of Agriculture Assistant Secretary for Resource Conservation Royden Powell described their states' nutrient management programs and efforts to address nonpoint source water quality issues. New York Department of Agriculture Deputy Commissioner Ruth Moore outlined her state's voluntary Agricultural Environmental Management Program which is designed to assist farmers in protecting environmental resources while maintaining viable agricultural operations. The audience also heard from Ruth Goldstein of Future Harvest, a private organization working with producers and corporations to promote Maryland's Conservation Reserve Enhancement Program (CREP). All of the speakers emphasized the critical need for technical assistance and funding resources for state and federal resource management programs. (Contact: Charlie Ingram) WTO--NEXT STEPS On Friday, December 3, at 8:00 p.m. U.S. Trade Representative Charlene Barshevsky called off U.S. negotiations at the World Trade Organization (WTO) Ministerial in Seattle. Delegates did not reach a final agreement on an agricultural mandate and a wide divergence of positions remained at the end of the day on non-agricultural issues. Negotiations are expected to continue in Geneva, Switzerland, within the next six months, although an exact date has yet to be set. Some progress was made in terms of the reduction of the European Union's (EU) export subsidies. Under pressure from the United States, the Cairns Group, APEC countries and developing countries, the EU agreed to the reduction of their export subsidies. However, by ending the negotiations without a written agreement, the U.S. has given the EU an opportunity to refute its decision on export subsidies in future discussions. There was forward progress on some agricultural issues in Seattle. Talks moved forward on establishing a proposed working group to study how WTO members can improve the approval procedures that govern biotechnology in certain countries. Although not a member of the WTO, China participated in side meetings and signed the U.S. China Agreement on Agricultural Cooperation. The agreement was reached in Washington, D.C., in April. Under the agreement, China agrees to significant cuts in tariffs, establishment of a tariff-rate quota system for imports of bulk commodities, the right to import and distribute products without going through state trading enterprises and elimination of sanitary and phytosanitary (SPS) barriers not based on sound science. For the U.S., the benefit of the SPS portion will be a lifting of a thirty-year ban on wheat from the Pacific Northwest due to concerns about TCK smut. China also agreed to recognize the U.S. certification system for meat and poultry, allowing U.S. products immediate access to all segments of the Chinese market. U.S. citrus exports will be allowed based on U.S. standards and phased in over an interim two year period. The USTR expects that new negotiations on agriculture and services trade to begin as scheduled in January 2000, regardless of the inability of the WTO membership to establish an agenda. WTO members already agreed at the end of the Uruguay Round in 1994 to commence new talks in these sectors by 2000; but, any substantive debate on these issues are delayed by the lack of an agenda. This is not the first time that a global trade round has been suspended. The General Agreement on Tariffs and Trade (GATT) failed to launch a new round at its Ministerial in 1982 in Geneva, Switzerland. An agreement was reached fours year later in Uruguay to commence negotiations which were then suspended in Belgium in 1990. The negotiations finally resulted in the 1994 Uruguay Round agreements, creating the WTO. (Contact: Patrick Atagi) COURT DECIDES AGAINST MUSHROOM PROMOTION PROGRAM A three judge panel of the U.S. Court of Appeals in Cincinnati has ruled that the mushroom promotion program violates the First Amendment rights of the producers' free speech. At issue is the mandatory "checkoffs" deducted by producers or processors which finance 12 existing national programs covering beef, cotton, dairy, eggs, fluid milk, honey, mushrooms, popcorn, pork, potatoes, soybeans, and watermelon. Additional commodity programs are being developed including peanut, blueberry, olive oil, lamb, and wool promotion programs. The appellate court's decision concerning United Foods, Inc., v. USA may be used to challenge the constitutionality of all of the promotion programs an issue that the commodity programs thought had been settled by the Supreme Court's Wileman Bros. decision which upheld the promotional program for California nectarines, peaches, and plums finding it was consistent with the First Amendment. The United Foods decision found that "absent 'extensive regulation' of the market, 'coerced payments for advertising' are unconstitutional," a violation of United Foods' commercial free speech rights. The Wileman Bros. decision distinguished the California tree fruit market as "a regulated market" and therefore the government could require advertising payments. USDA is expected to ask the full appeals court to overturn the panel's decision. A more in-depth story with a link to the full text of the decision is available on AgricultureLaw.com's website at http://www.agriculturelaw.com/Headlines/dec/dec2a.htm. (Contact: Rick Kirchhoff) CLINTON PLANS CHEMICAL REDUCTION ORDER The Clinton Administration has drafted a new Executive Order on Toxic Chemical Reductions that would require federal agencies to reduce the "use" of fifteen or more chemicals by fifty percent in five years. The draft Order has gone largely unnoticed and is currently under review by the White House Council on Environmental Quality. Specifically, the draft order would require the Environmental Protection Agency (EPA) to develop a list of fifteen or more priority chemicals for use reduction. It is not clear what risk management process, if any, would be used in the listing process. In addition, the draft Order would require federal agencies to eliminate the use of organophosphate and carbamate pesticides at their facilities no later than December 31, 2000. There are also provisions for agencies to conform landscaping services with environmentally beneficial practices. Although the draft order only pertains to federal agencies, it could have adverse impacts on commercial markets and all chemical/pesticide users. It could also have an indirect effect if other customers follow the lead of the federal government. In general, the action sends a negative message to the public about chemical uses, risks, and exposures and raises many unanswered questions. For example, if USDA is required to eliminate its use of organophosphate and carbamate pesticides, will state and local governments, or other public/private institutions, be expected to do the same? If USDA is prohibited from using these products, does this hamper their ability to review and communicate pesticide management practices? NASDA is discussing this issue with industry organizations and agricultural groups to determine the exact status of the draft proposal, assess the potential impacts on agriculture, and determine possible next steps. A copy of the draft executive order, titled "Greening the Government Through Leadership in Environmental Management," is posted on NASDA's website. (Contact: Charlie Ingram) AGRICULTURE LOSING GROUND A new national study by USDA's National Resources Inventory reports that agricultural conservation efforts are falling short. From 1992 to 1997, nearly 16 million acres of agricultural and forest land was developed. Agriculture is losing 3 million acres per year of forest and agricultural land, double what was lost each year from 1982 to 1992. Nearly 2 billion tons of soil is eroding into waterways each year. Despite gains in erosion control during the past 15 years, there has been no additional improvement since 1995. Gross wetland losses have increased to 54,000 acres annually on land covered under agricultural wetland preservation efforts, like the Wetland Reserve Program. The figures confirm what farming communities have already known urban sprawl is eating up farmland acreage. The figures also show that the loss of farmland is not just centered around major metropolitan areas--small and medium sized cities are being affected, too. This is not to say that all farmers are benefitting by selling their land to developers. Most farms are still located away from urban areas. States with the highest acreage conversion rates include California, Florida, Georgia, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Texas. The information can be accessed on the web at http://www.nrcs.usda.gov/. (Contact: Patrick Atagi) INTERNATIONAL TRADE NEWS ~~Senate and House Leaders Comment on WTO~~In a statement released December 6, House Agriculture Committee Chairman Larry Combest (R-Texas) issued a statement regarding the World Trade Organization (WTO) negotiations which took place last week. Combest in statement noted that the WTO offered a great opportunity to agree to future negotiations that would level the agricultural playing field, including the elimination of foreign subsidies that put US farmers and ranchers at a significant disadvantage. Combest stated, "While I was hopeful that an agreement could be obtained to proceed with agricultural negotiations, no agreement is better than a bad one." Senator Pat Roberts (R-Kan.) placed the breakdown in the negotiations squarely on the shoulders of the protesters and President Clinton. Roberts accused the president of inviting, encouraging, and sympathizing with the protesters which led to the disruptions in Seattle. Roberts said that while the environment and organized labor's issues are important, they should have been excluded from the trade agenda. ~~World Bank Sees Economic Growth~~During its annual Global Economic Prospects and the Developing Countries 2000 meeting, the World Bank predicts that the world output will rise 2.6 percent this year and 2.9 percent next year, while six months ago, the forecast was for 1.8 percent this year and 2.4 percent next year. The World Bank believes that the global economy is performing better than expected six months ago and will grow close to 3.0 percent in 2000. The bank was quick to note that the recovery is somewhat tenuous, especially among developing countries. The report noted that the environment for developing countries has improved and will improve further because of even growth in the industrialized world, which will help firm up export markets for developing countries. World trade is expected to average 6.5 percent in 2000 and 2001 compared to four percent last year. However, the World Bank was skeptical if developing countries could maintain long term growth prospects. It was also noted that although there is growth in the Asian market, their economies are nowhere near previous economic peak levels. ~~Canadians May Return to Farmer Subsidies~~Agriculture and Agri-Food Minister Lyle Vanclief said this week that the Canadian government may reinstate subsidies to Canadian farmers in light of what they see as the failure of WTO negotiations in Seattle. Minister Vanclief believes that there was progress made on the agriculture text at the Seattle WTO Ministerial; but, it appears unlikely that there will be progress in Canada's goal of elimination of global export subsidies or substantial reductions in domestic subsidies. The Canadian federal government is looking at reinstating some form of grain transportation subsidy to replace the former subsidy that was withdrawn in 1995. Although progress was questionable at the WTO in Seattle, there are still several multi-lateral trade agreements with which to negotiate the North American Free Trade Agreement (NAFTA), the Asia-Pacific Economic Cooperation Forum (APEC), and the Free Trade Area of the Americas (FTAA). ~~Legislative Review~~The Africa Trade Bill (H.R. 434) bill provides new trade benefits for countries in sub-Saharan Africa. The legislation encourages trade with African nations through a set of trade and investment initiatives in exchange for commitments to continue with market oriented reforms. House Action: The bill passed the House on July 21, by a vote of 243-163. Senate Action: The Senate passed its version of the Africa bill on November 3. After considerable debate an agreement was reached and the bill was passed by voice vote. Conference: The House and Senate are expected to meet early in 2000 to reconcile the two bills. Sanctions Relief (H.R. 3140; S. 1771) The respective bills would exempt agricultural commodities and medicine from unilateral economic sanctions. House: Introduced its bill on October 25. Chances for its success this year in the House dimmed after disagreement over Cuba sanctions appeared from House leadership in the final legislative days of Congress. Senate: Introduced its bill on October 25 after conferees removed similar language from an agricultural appropriations measure (S. 1233). (Contact: Patrick Atagi) USDA News ~~Agricultural Outlook 2000 Forum~~ USDA announced that it will hold its annual agricultural forum on February 24 and February 25, 2000. The forum will provide a comprehensive view of agricultural prospects and issues in a compact two-day format. Government officials, industry analysts, and farmers assess farm prospects for the year ahead. Focus sessions will highlight the impact of biotechnology and other developments changing the business of agriculture, including the move towards e-commerce. Attendees will receive new long-term commodity projections to the year 2009 prepared by USDA economists. The forum will be held at the Marriott Crystal Gateway Hotel. Please call 202/720-3050 for further information or write to Outlook Forum 2000, Room 5143 South Building, USDA, Washington, D.C. 20250-3812. The information is also available at http://www.usda.gov/oce/waob/agforum.htm. ~~Low Prices Expected to Continue~~The Economic Research Service at USDA forecasts season-average farm prices will rise modestly for hogs and cattle in 2000 and will be lower for many other commodities. Across most of the field crop livestock complex, prices remain low, suggesting only modest improvement, if any, in cash receipts during 2000. Improvements in producers' market returns will therefore depend on the price effects of developments in a number of areas. As always, weather next year will be critical. The continued recovery of crisis-affected countries will also have an impact on export prospects and prices. Recovery has been faster than initially expected in countries like South Korea and Thailand. For further information contact Frederic Surls, 202/694-5202 or Dennis Shields, 202/694-5331. ~~Members named to Soybean Promotion Board~~On December 1, 19 appointments were made to the United Soybean Board. All will serve 3-year terms beginning December 1999. Appointed members representing soybean producers by State are: Alabama Harold R. Phillips; Arkansas Richard B. Howard; Illinois Bryan K. Hieser; Indiana Robert I. Williams; Iowa Ronald D. Sterler and David F. Schmidt; Kansas Gary D. Parker; Kentucky Gerald T. Day; Maryland Everett G. Holland; Michigan Lois F. Mason; Minnesota Michael B. O'Leary; Mississippi Jerome B. Slocum; Missouri David M. Haggard; Nebraska Gregg A. Fujan; Ohio William R. Coppess; South Carolina W. Edwin Dargan, Jr.; South Dakota Charles R. Friedrich; Tennessee Jimmy V. Barbour; and Texas Thomas P. Rotello. The 62 member Board is authorized by the Soybean Promotion, Research and Consumer Information Act. The Board administers a program of soybean promotion and research to expand uses for soybeans and soybean products in domestic and foreign markets. ~~El Nino~~Forecasts based on the El Nino, Southern Oscillation phenomenon might help farmers manage cold-weather crops like winter wheat. After analyzing 103 years of climate data, Agricultural Research Service (ARS) scientists found evidence of higher winter wheat yields during El Nino's cool, wet winters and lower yields during La Nina's warm, dry winters. The current La Nina that began in the spring of 1998 suggests an increased probability of warm and dry conditions over the winter wheat belt in the coming months. The existence of this and other persistent and possible predictable climate mechanisms led some to believe that interseasonal climate predictions may be possible under certain circumstances. Tests will continue on how farmers might best use the forecasts, using computer simulations to track a farming career with and without seasonal forecasts. Atmospheric scientists Steven A. Mauget and soil physicist Dan R. Upchurch of USDA's Agricultural Research Service are studying if, where and how such predictions might be used by farmers. ~~Mexican Hass Avocado Import Rules Amended~~The regulations that govern the importation of Mexican Hass avocados have been amended by the federal government. The amendment requires handlers and distributors of Mexican Hass avocados to enter into compliance agreements with the Animal Plant Health Inspection Service (APHIS). The compliance agreements will ensure that distributors and handlers are familiar with the distribution restrictions and other requirements of the regulations. These compliance agreements will be available from USDA's APHIS-PPQ offices. USDA is also adding requirements regarding the repacking of the avocados after their entry into the United States. Any boxes used to repackage the avocados in the U.S. must bear the same information that is required to be displayed on the original boxes in which the fruit was packed in Mexico. Under current regulations, Mexican Hass avocados may be imported in 19 northeastern states and the District of Columbia between November and February. ~~Pear Certification~~Effective as of December 7, USDA will no longer inspect and certify U.S. pears for export. This change implements President Clinton's November 12 signing of an amendment to the Export Apple and Pear Act (Public Law: 106-96). Previously, exports of pears were required to meet minimum quality and container marking requirements and were required to be inspected prior to exportation. Under the amendment, all references to pears have been removed, and the act has been renamed the Export Apple Act. USDA will continue to require that all U.S. apples destined for export be inspected and certified as meeting set quality requirements. Minimum quality requirements for shipping pears would continue under any existing state regulations. ~~Burley Tobacco~~The Burley Tobacco Advisory Committee and the buying segment of the tobacco industry made a recommendation to USDA that moisture testing be performed by AMS on all burley tobacco marketed during the 1999-2000 marketing season. USDA is now amending the regulations governing permissive inspection of tobacco under the Tobacco Inspection Act of 1935, to provide for special tests and services. These testing services will be available for all burley tobacco offered for sale at designated auction markets. The amendments will provide regulatory authority to conduct moisture testing and collect fees and charges for these services beginning with the 1999-2000 burley marketing season. The rule will become effect give December 3, 1999. ~~Food Recall~~Galant Food Co., San Francisco, California is voluntarily recalling approximately 20 pounds of chicken, rice, and cheese piroshkies that may be contaminated with Salmonella. The product being recalled is "PARAMOUNT PIROSHKI" brand chicken, rice, and cheese piroshkies. The product was produced Nov. 22; packaged in boxes holding one, two, or three dozen piroshkies; and distributed to local delis. The delis may have packaged individual piroshkies with company-supplied labels. The product was distributed in the San Francisco area. (Contact: Patrick Atagi) STATE NEWS
GOVERNOR ANNOUNCES $2.5 MILLION IN GRANTS TO PROMOTE GROUNDWATER STEWARDSHIP |