Week of July 23-27 Archive
27 26 24 23
July 27
U.S.-SOUTH KOREAN BEEF TALKS DELAYED---Talks between the U.S. and South Korea on easing beef import restrictions have been delayed due to Seoul’s recent discovery of two packages of banned U.S. bone-in beef, officials said.
According to news reports, South Korean officials said beef talks would not be scheduled until the U.S. explained how the shipment of bone-in beef was sent to South Korea and assure the mistake would not be repeated.
Agriculture Department officials have assured their Korean counterparts that their requests will be met in a timely manner so the bilateral beef talks could proceed. South Korean officials said they would have initiated talks in August if it were not for this last mistaken shipment.
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PHILIPPINE OFFICIALS EASE BEEF IMPORT REGULATIONS---Philippine government officials have relaxed entry rules governing shipments of beef and beef products imported from the U.S. and Canada. The Philippines banned beef imports in 2005 due to an outbreak of bovine spongiform encephalopathy. The ban was lifted the same year, although strict import regulations were put in place allowing only boneless and gland-free beef from cattle no older than 30 months.
The new rules allow imports of U.S. and Canadian boneless beef from cattle of all ages and bone-in beef from cattle younger than 30 months of age.
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July 26
HOUSE FARM BILL FACING MAJOR HURDLES---The farm bill approved by the House Agriculture Committee faces major hurdles that must be overcome before it is approved by the full chamber. On Wednesday, Republicans who previously indicated support for the bill changed course, saying a proposed change to tax rules for U.S.-based foreign companies’ use of offshore accounts to avoid U.S. taxes was unacceptable. The change in tax rules was crafted as a way to help fund $4 billion in increased costs for nutrition programs in the farm bill.
Rep. Bob Goodlatte (R-Va.), ranking Republican on the committee, said yesterday that all members of his party on the panel and other leaders in the chamber will vote against the bill if the tax provision remains. A White House statement issued Wednesday threatened a veto of the bill because it doesn’t go far enough to reduce subsidies to farmers. The administration also decried the change in rules for U.S.-based foreign companies as “an unacceptable tax increase.”
The House Rules Committee met this morning and approved about 30 amendments to the bill, which may be offered today. Debate could be pushed back to Friday or later.
No further information was available at press time.
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---SENATE LEGISLATION WOULD REAFFIRM CLEAN WATER ACT---Sen. Russ Feingold (D-Wis.) and 19 Senate colleagues this week introduced the Clean Water Restoration Act, “to restore the original protections of our nation’s rivers, streams and wetlands provided by the Clean Water Act.” Similar legislation was recently introduced in the House by Reps. James Oberstar (D-Minn.), Vernon Ehlers (R-Mich.) and John Dingell (D-Mich.).
If this bill becomes law, it would be the most far-reaching expansion of the Clean Water Act in more than three decades and could extend federal jurisdiction to everything from ditches and gutters to groundwater, American Farm Bureau Federation President Bob Stallman said in a statement.
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---CONAGRA TO PAY PENALTY FOR ACCOUNTING ALLEGATIONS---ConAgra Foods Inc. will pay a $45 million civil penalty for a complaint filed by the Securities and Exchange Commission with the U.S. District Court in Denver, alleging the company used improper and sometimes fraudulent accounting to meet Wall Street earning expectations.
The allegations stemmed from the 1999 through 2001 fiscal years. SEC alleged that ConAgra used funds in its reserves to make up for losses, improperly recognized revenue on deferred delivery sales and failed to adequately record bad expenses at a former subsidiary, United Agri Products. SEC found that due to the income tax errors, ConAgra misstated its income tax expense by $105 million and issued false and misleading earnings reports, the commission said.
ConAgra settled the case without admitting or denying the allegations. ConAgra Chief Executive Gary Rodkin said the allegations were not a new issue, adding that in recent years the quality of the company’s financial controls have significantly upgraded.
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THOUSANDS OF CATTLE DEAD DUE TO HEAT---A two-day heat wave has left more than 1,000 cattle in South Dakota dead. Ranchers could lose thousands of dollars as insurance does not typically cover loss of animals due to heat.
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July 24
CITRUS PEEL-TO-ETHANOL PLANT PLANNED FOR FLORIDA---FPL Energy LLC and Citrus Energy LLC of Boca Raton, Fla., are developing a commercial ethanol plant that will use citrus peel as a feedstock. The cellulosic ethanol facility is expected to produce 4 million gallons of ethanol annually and will be located on the site of a citrus processor.
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FOOD PLANT CLOSES DUE TO BOTULISM---Castleberry’s Food Co. has shut down production at its Augusta, Ga., plant after recalling 92 products due to the threat of botulism. According to the company, 16 cans of chili sauce tested positive for Clostidium botulinum, the organism that causes botulism. The plant will remain closed until the Food and Drug Administration and the Agriculture Department approve it for reopening.
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---DAIRIES LOSING $80 MILLION TO MILK CRATE THEFT---Dairies around the nation are facing an estimated $80 million in annual losses due to milk crate theft. Last year, the dairy processing industry lost around 20 million crates, said International Dairy Foods Association executives. The crates are being stolen off loading docks and sold to recycling companies that chop up and ship the plastic to companies in China to be made into a variety of products.
The petroleum-based plastic commonly used to manufacture milk crates has recently increased in value along with gasoline prices. The material now sells for 22 cents a pound, compared to about 7 cents a pound in recent years . Dairies around the nation are taking action, persuading legislators to pass laws allowing them to sue recyclers who have accepted stolen crates.
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HOUSE BILL TO RESTORE FARM TRUCK EXEMPTION INTRODUCED---Legislation introduced in the House this week would restore farm truck exemptions from federal motor carrier vehicle regulations. The bill, H.R. 3098, makes two clarifications to federal law. It updates the definition of commercial motor vehicle to exempt farm trucks that cross state lines if the weight of the vehicle is less than 26,001 pounds. The bill also prohibits the Transportation Department from using federal grant money to force states to impose federal commercial trucker requirements on farmers when they operate solely within state limits.
Farm Bureau supports the legislation.
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HOUSE FARM BILL DEBATE ANTICIPATED THURSDAY---The hottest issue in Congress this week will likely be the House debate of the new farm bill. On Thursday, the House is expected to debate farm bill legislation (H.R. 2419) approved by the House Agriculture Committee late last week.
“Most people don’t realize it but in some way, shape or form every single person in the United States is touched by at least one piece of what’s going on in the farm bill,” said Tara Smith, American Farm Bureau Federation farm policy specialist.
Farm Bureau and other farm and commodity groups are urging House members to support the farm bill approved by the committee and cast “nay” votes on proposed amendments that would be harmful to farmers and ranchers.
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July 23
CWA BILL COULD HINDER FOOD PRODUCTION---Current Clean Water Act legislation in Congress has the potential of interfering with private land and impeding producers’ abilities to produce food, fiber and fuel, according to the American Farm Bureau Federation. In written testimony sent to the House Committee on Transportation and Infrastructure, AFBF argued that H.R. 2421 would not only expand CWA jurisdiction, but needlessly sweep many agricultural and forestry activities into the scope of the CWA.
According to AFBF, H.R. 2421 goes much further than simple redefinition of the CWA; it does not limit the type of waters that would be regulated in any way. “Truly navigable waterways, tributaries, streams and wetlands adjacent to such waterways are already subject to CWA regulation under current law,” said AFBF. “The language being proposed in H.R. 2421 could reach a backyard mosquito fogger if a breeze happens to blow into ‘waters of the United States.’”
As it stands, said AFBF, the CWA is one of the nation’s most successful and comprehensive environmental laws. It regulates pollution at its source and involves a comprehensive federal and state regulatory system for issuance of permits and water quality standards. Changing it would be detrimental to producers and other landowners.
---LATEST CATTLE REPORT SHOWS MARKET SUPPORT---The latest Agriculture Department cattle inventory report should provide support to cattle markets through 2009, according to Jim Sartwelle, livestock economist for AFBF.
“Based on Friday’s cattle inventory report, which detailed overall beef cattle numbers and the figures reported for beef replacement heifers, we should have continued strong beef cattle markets all the way through 2009,” Sartwelle said.
The report showed that all cattle and calves totaled 104.8 million head, down 400,000 head from July of last year. Beef cows that have calved also decreased 100,000 head from mid-year 2006, checking in at 33.35 million head. Dairy cows that have calved were unchanged from a year ago, totaling 9.150 million head.
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