Corn Stocks in USDA Report Higher Than Expected

Crop numbers in July’s World Agricultural Supply and Demand Estimate (WASDE) report released Friday by the Agriculture Department were generally in line with what the industry was expecting, according to the American Farm Bureau Federation.

Corn stocks came in higher than expected and wheat and soybean stocks generally met expectations, said Terry Francl, AFBF senior economist.

“The one shoe that’s hanging over the corn market is the fact that USDA used the harvested acres from the June report,” Francl said. “Most analysts believe that there will be up to a 2-million-acre reduction in harvested corn acreage in the August report. Those numbers could get adjusted real quick."

Corn ending stocks for 2008-2009 are projected higher in July as higher carry-in and reductions in food, seed and industrial uses more than offset lower production and higher feed and residual use. USDA’s corn ending stocks estimate for July is 833 million bushels, up from the June estimate of 673 million bushels.

In general, the July report shows a tight supply and demand situation for both corn and soybeans with wheat showing a slightly stronger supply and demand picture due to rising U.S. and world stocks. “It is the world developments that are influencing wheat stocks, particularly the drought in Australia,” said Francl.

Soaring Fuel Costs Hit Grocery, Farm Budgets

At virtually every link in the nation’s food chain, the cost of oil is pushing expenses ever higher according to a San Diego Union-Tribune article. Retail bills for some food staples have risen at least 20 percent since 2006, and probably will continue an upward march. A gallon of gasoline could cost $7 within the next two years, some analysts say.

Farmers are paying more to fill their tractors with diesel for planting and harvesting. They are spending more for fertilizer, pesticides and plastic packaging, most of which are petroleum based. Dave Kranz, manager of media relations for the California Farm Bureau Federation, told the newspaper the high cost of fuel is rebounding through the entire agricultural economy.

Truck Weight Laws Leave Farmers in the Lurch

Mike Spradling, president of the Oklahoma Farm Bureau Federation, testified before the House Committee on Transportation and Infrastructure’s Subcommittee on Highways and Transit Wednesday, emphasizing that farmers and ranchers hauling their own goods and services to market across relatively short distances should not be held to regulations intended for commercial long-haul drivers.

“Current weight limits imposed by the Safe, Accountable, Flexible and Efficient Transportation Safety Act (SAFETEA) and the Federal Motor Carrier Safety Regulations (FMCSRs) burden farmers and ranchers hauling their products to market,” testified Spradling, a Sand Springs, Okla. cattle and pecan producer. “The American Farm Bureau Federation recommends changes to FMCSR’s rules regarding Commercial Motor Vehicles that will make them more workable for farmers and ranchers while still maintaining the safety of rural roads.”

More information is available from the AFBF news release HERE.

Wildlife Federation Files Suit Against Haying/Grazing

The National Wildlife Federation has filed a lawsuit prompting a federal district judge in Seattle, Wash., to issue a temporary restraining order that stops grazing on Conservation Reserve Program (CRP) land under the Critical Feed Use Program that was announced May 27.

The injunction ordered Tuesday by U.S. District Judge John Coughenour could affect 24 million acres of conservation lands across the country. Coughenour granted a temporary restraining order that prevents USDA from approving any further CRP contract amendments. The ruling also enjoins all previously approved contract modifications.

The restraining order is in place pending further consideration of the issues. The next court date is set for July 17. The restraining order DOES NOT stop the grazing of CRP ground in the counties opened earlier this week because of flooding.

Under the Critical Feed Use Program, haying and grazing of CRP ground would be allowed after the primary nesting season of grass nesting birds. The National Wildlife Federation contends USDA’s plan to allow hazing and grazing on CRP acres after nesting periods violates the National Environmental Policy Act by not properly considering environmental factors.

USDA has been carrying out this CRP plan in some areas since July 1 through an amendment to current contracts. This contract amendment did not require the use of USDA’s natural disaster related emergency authority. Farm Services Agency approval for an amendment to CRP contracts was required and significant limitations were placed on eligibility.

More information is available from a Seattle Times article.

Groups Urge No Early Release of CRP Acres

In related news, USDA is considering allowing some Conservation Reserve Program (CRP) participants an early out on their contracts without penalty, which prompted 15 environmental and conservation groups to urge Agriculture Secretary Ed Schafer to nix the idea.

In a Wednesday letter to the secretary, the 15 groups said the move would be “a devastating blow” to the nation’s soil, water and wildlife habitat, and would increase global warming. The groups said the early release would waste millions of dollars in taxpayer money that has been spent restoring the land.

The letter was signed by the Environmental Defense Fund, The Minnesota Project, Sierra Club, Center for Native Ecosystems, National Wildlife Federation, National Audubon Society, Partners For Sustainable Pollination, Environmental Working Group, Pollinator Partnership, Defenders of Wildlife, American Farmland Trust, World Wildlife Fund, American Rivers, Sustainable Agriculture Coalition and American Beekeeping Federation.

It is important to note that this decision does not affect CRP acreage already released due to the Midwest flooding. Schafer announced late Monday that he is releasing CRP acres for livestock grazing in counties designated as Presidential Disaster Areas because of flooding. The release permits grazing only in counties designated as primary and contiguous disaster areas and only because of flooding.

More information is available from a MarketWatch article.

Schaffer Tells AFBF: USDA In Race to Finish Line

Agriculture Secretary Ed Schafer told the American Farm Bureau Federation’s Council of Presidents meeting in Washington Monday the department is running to the finish line to conclude agriculture’s priority issues before year’s end.

Ranking at the top of the Agriculture Department’s list, as well as a top priority for AFBF, is implementation of the farm bill. “It is time to set aside political differences and implement the bill,” said Schafer to the state Farm Bureau presidents meeting in Washington.

Sen. Diane Feinstein (D-Calif.) also spoke to the Council of Presidents Monday, urging support of her proposed Emergency Agriculture Relief Act that would provide temporary limited immigration status for experienced farm workers who must continue to work in American agriculture for the next five years.

The AFBF Council of Presidents continues its meeting today with visits to Capitol Hill leading the agenda. The meeting wraps up Wednesday with an address by Rep. Adam Putnam (R-Fla.), the chair of the House Republican Conference.

Executive Order on Offshore Oil Drilling Lifted

President Bush on Monday lifted the executive moratorium on offshore oil drilling that has been in effect since 1990. The move by Bush puts pressure on Congress to lift its ban on offshore drilling. The White House has been urging Congress to lift its ban to boost domestic oil supplies.

According to a Washington Post article, the U.S. Geological Survey estimates there are “undiscovered conventionally recoverable resources” of 17.8 billion barrels of oil in the United States. In addition, the Post notes that a recent Gallup poll indicates 57 percent of Americans surveyed said they were willing to allow drilling in coastal and wilderness areas where drilling is currently off limits, provided doing so had the potential to reduce high gas prices.

Farm Bureau continues to press Congress to lift its ban on offshore oil drilling.

Half of CRP Acres Likely Won't Move Into Production

Roughly half of the 34.7 million acres currently in the Conservation Reserve Program (CRP) are environmentally sensitive and likely will not be released for production, even if early release from contracts is an option, according to Terry Francl, senior economist at the American Farm Bureau Federation. That still leaves approximately 17 million acres available that could come out of CRP for cultivation.

“Even given today’s high crop prices not all of that land would be withdrawn from the CRP. My guess is that 10 million to 12 million acres would come out,” Francl said in a Friday conference call with state Farm Bureau officials.

“There are only 8 million acres of CRP land in Corn Belt states,” he added. “Given corn and soybean prices, I would project that roughly 4 million acres will come out of the CRP and go back into either corn or soybean production with one important caveat: it will take two to three years to get this land back to a full potential yield level. Even then, most of this land was of a more marginal nature so it will probably only produce at 80 percent to 90 percent of the respective state average yield.”

RFA Says World Bank Biofuels Study Off the Mark

The Renewable Fuels Association (RFA) says an analysis of a World Bank study blaming biofuels for 75 percent of the rise in food costs sheds light on the bias of the author and explains the backpedaling of the World Bank.

Even the president of the World Bank, Robert Zoellick, admits that the claim that biofuels is responsible for 75 percent of the rise in food prices is “at the far end” of the spectrum of analyses out there.

“The findings of this report are so far removed from even the wildest claims made previously about biofuels and food prices that rational people will find hard to believe,” said Bob Dinneen, RFA president.

“A careful reading of the leaked World Bank paper shows the bias of the author against biofuels. While the author underestimates the impact of higher energy prices and a weak dollar, he simply assigns all other factors to biofuels. Such a simplistic approach fails to accurately and honestly account for the myriad of factors driving food costs higher. Fortunately, this document is only a working copy,” said Dinneen.

An analysis of the report prepared for the RFA reveals that the World Bank report fails on a number of points to provide a disinterested, objective assessment of the factors behind the rising price of food.

Floods Leave Indiana Farmland Badly Damaged

Erosion in central and southern Indiana following the June floods is among the worst the state has seen, according to an article in the Indy Star. Damage estimates are in the millions of dollars and some farmland is beyond repair.

"It took our most valuable resource we have in the state of Indiana, and that is our soil," said state conservationist Jane Hardisty. "We're talking millions of tons of soil that have been lost. There are going to be some places that will never produce a good crop again."

Now, people are wondering if destroyed levees can be rebuilt without permits and whether it’s better to put some damaged farmland into conservation reserve programs instead of back into production.

Stores Receiving Recalled Meat, Poultry to be Listed

Beginning in August, the Agriculture Department will begin listing on its Web site the names of retail stores that have received meat and poultry products involved in Class I recalls, which pose the most serious threat to public health. According to USDA, posting the names of retail stores that have received recalled products will improve public health by providing more information to consumers.

USDA’s Food Safety and Inspection Service (FSIS) will post a list of retail stores that receive products subject to Class I recalls, the highest risk category, within three to 10 business days after the recall is issued. Retail stores include supermarkets or other grocery stores, convenience stores, meat markets, wholesale clubs and supercenters.

Distribution centers, institutions and restaurants that have received products subject to Class I recalls will not be identified, as they prepare food for immediate consumption without packaging that is identifiable or available to consumers, according to FSIS.

$28.4 Million Available for Specialty Crop Research

The Agriculture Department announced Friday it will make available $28.4 million for research and extension projects in fiscal year 2008 to address the critical needs of the specialty crop industry.

The Specialty Crop Research Initiative has five focus areas: 1) plant breeding, genetics and genomics research to improve crop characteristics; 2) efforts to identify and address threats from pests and diseases; 3) innovations and technology, including improved mechanization and technologies that delay or inhibit ripening; 4) efforts to improve production efficiency, productivity and profitability; and 5) methods to prevent, detect, monitor, control and respond to potential food safety hazards in the production and processing of specialty crops.

The 2008 farm bill provides an additional $50 million each year for fiscal years 2009 through 2012 for the Specialty Crop Research Initiative, which equals $230 million over five years.

The U.S. specialty crop industry is comprised of producers and handlers of fruits and vegetables, tree nuts, dried fruits and nursery crops, including floriculture. It is a major contributor to the U.S. agricultural economy, accounting for 10 million harvested cropland acres in 2004. The total value of U.S. specialty crops is more than $50 billion in sales, which puts the combined value of these crops in league with the five major program crops, according to USDA.

More information can be found HERE.

World Bank Calls for More Food Aid

Poor countries will need about $6 billion in food aid annually, considering that food and energy prices are expected to remain high for years to come, according to Robert Zoellick, president of the World Bank. At a World Bank conference organized by the Dutch government, Zoellick on Saturday said the bank plans to use billions of dollars to help developing countries combat global warming and adopt new technologies.

Zoellick estimated that for 2008, $10 billion in aid is needed to ease the effects of food inflation globally. About one-third of that total would go toward “short-term safety net” projects, such as school lunches and work-for-food programs, in more than 50 countries.

Montana FB, Stockgrowers Prseent Brucellosis Plan

The Montana Farm Bureau Federation (MFBF) and the Montana Stockgrowers Association have begun to work with producers to develop a “hot spot” management pilot project as a solution to the brucellosis problem in the Greater Yellowstone Area.

Montana, Wyoming and Idaho producers have all had domestic livestock infected from the wildlife brucellosis pool centered in Yellowstone National Park. Brucellosis affects livestock producers financially, as it causes cattle to abort and results in states losing brucellosis-free status. The disease also threatens wildlife welfare by causing elk and bison to abort.

“Our proposal recommended that (Animal and Plant Health Inspection Service) or an appropriate wildlife agency would be responsible for the management plan and the cost,” said MFBF’s John Youngberg. “Ranchers in the ‘hot spot’ area would be compensated for the tag, test and vaccination costs, as well as tracing and tracking livestock annually until the hot spot is removed.”

According to Youngberg, eradicating the disease, maintaining grazing of domestic livestock in the Greater Yellowstone Area and having a healthy wildlife population are attainable goals of the management program.

Read the news release for additional details about the brucellosis management plan.

Senate Committee Considers EPA Oversight of RFS

The Senate Environment and Public Works Committee’s Subcommittee on Clean Air and Nuclear Safety on Thursday held a hearing titled, “Environmental Protection Agency Oversight: Implementing the Renewable Fuel Standard.”

In her opening remarks at the hearing, Sen. Barbara Boxer (D-Calif.) said, “The role that the ethanol mandate is playing in the recent spikes in food prices is controversial. This administration has estimated that about 3 percent of the increase in global food prices is due to use of biofuels. The Agriculture Department estimates that the recent upswing in biofuels production is only a small contributor to increased domestic food prices—an increase of one quarter of one percent or less.

Boxer went on to say that other estimates peg the cost impacts of biofuels production as higher.

“It is clear that corn prices, for example, are affected by ethanol production. Higher corn prices are having impacts on some food producers, such as the poultry producers in my home state of California, who have told me they are really being hurt by increasing feed prices,” she said. Boxer added that she believes stronger incentives must be created for moving more quickly towards cellulosic and advanced biofuels, and that “we must move away from reliance on corn-based ethanol.”

“Any reduction in the renewable fuel standard would sap investment in biofuel technology and undermine efforts to wean the nation off oil and reduce greenhouse gases,” said Deputy Assistant Energy Secretary Steven Chalk, according to an Associated Press article. “Keeping that in place is very important to us,” Chalk said.

Barge Traffic Resumes on Mississippi River

The Army Corps of Engineers has opened the last of the closed locks on the Upper Mississippi River and barge traffic has resumed.

However, the three weeks the river was closed has backed up shipping, and it will take some time for traffic to return to normal. According to Tom Torretti of Cooper Consolidated in St. Louis, it’s hard to tell how long it will take, but he estimates it will be 30 to 45 days.

“It will be different in different locations,” Torretti told Farm Progress Companies. “It may be less than that because the river is dropping; it dropped 2 feet overnight here in St. Louis, and even if we get some more rain, the river will be able absorb it.” In some areas it could be much longer than that as elevators and docks in many parts of Missouri, Iowa and Illinois still must be cleaned up before shipping can resume.

Buy-In Offered for Supplemental Disaster Assistance

The Agriculture Department’s Farm Service Agency (FSA) will allow producers who would otherwise be ineligible for the new disaster assistance programs to become eligible by paying a fee.

The farm bill requires producers who wish to participate in the new disaster programs to have crop insurance or non-insured crop disaster assistance (NAP) coverage for the land for which assistance is being requested, and for all farms in all counties in which they have an interest. Since the farm bill was enacted after the application periods had closed for those programs, producers who did not have such coverage could not comply with this requirement in order to be eligible for the new disaster programs. However, the farm bill authorizes a waiver that allows producers to pay a “buy-in” fee, to be eligible for this new disaster assistance.

Every producer whose crops, including grazing lands, are not fully covered by crop insurance or NAP may take advantage of this one-time opportunity. The buy-in fee is due no later than Sept. 16, 2008. Those who miss this opportunity will not be eligible for disaster assistance. USDA also reminds producers that payment of the applicable buy-in fee does not afford the crop insurance or NAP coverage; just eligibility for the 2008 disaster programs.

Read the USDA news release for additional details. Producers can contact their local administrative FSA County Office to file the application for waiver and pay the applicable fees.

Lawmakers Aim to Ban Cattle, Swine from Argentina

Sen. Tim Johnson (D-S.D.) introduced a bill Thursday that would block swine and cattle imports from Argentina until the country is free of foot and mouth disease.

USDA’s proposal would allow imports from areas of Argentina that are certified to be free of FMD. However, Johnson says this is too risky. Rep. Stephanie Herseth Sandlin (D –S.D.) agrees and intends to introduce a companion bill in the House soon.

Clothiers Refuse Australian Wool Production Practice

Clothing companies from Abercrombie & Fitch to Timberland have succumbed to pressure from the People for the Ethical Treatment of Animals (PETA) when it comes to sourcing wool. Several companies are now refusing wool from Australian merino sheep that are mulesed, which is the process of removing folds of skin from the wrinkly sheep’s hindquarters. Breeders insist the practice is currently the best way to avoid maggot infestations in the sheep’s skin.

Illinois Ag Department Offers Recycling Program

The Illinois Department of Agriculture has launched a program offering free recycling of pesticide containers. Beginning later this month, sites throughout the state will collect the containers and grind them into small plastic chips to make shipping pallets, fence posts, drainage tubing, plastic lumber and hazardous waste drums.

Collection sites will accept only high-density polyethylene #2 plastic agrichemical containers that are clean and dry. Participants are responsible for rinsing them and removing all caps, labels, booklets and foil seals.

The program is a cooperative venture between Illinois Farm Bureau, the Illinois Department of Agriculture, the Agriculture Recycling Council, GROWMARK, Inc., the Illinois Fertilizer and Chemical Association, Container Services Network and the University of Illinois Extension.

AFBF Opposes Restoration of 'Byrd' Amendment

The American Farm Bureau Federation has learned that Sen. Robert Byrd (D-W.Va.) is considering an amendment to the appropriations bill that would reinstate the Continued Dumping and Subsidy Offset Act or “Byrd” Amendment, a statute that has been ruled as inconsistent with U.S. commitments to the World Trade Organization (WTO).

In a letter to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.), AFBF President Bob Stallman urged the Senate to reject any restoration of the repealed Byrd Amendment. Stallman emphasized that revising the Byrd Amendment would again threaten U.S. exports with retaliation by foreign nations for a violation of WTO rules.

“AFBF is a strong supporter of fair and open trade and the rules-based trading system that is the foundation upon which our trade, and the resulting economic growth, exists,” Stallman stressed. “This rules-based system has been a critical reason why the U.S. exported a record $81.9 billion of food and agricultural products to buyers in other countries in 2007 and why exports account for one-quarter of U.S. agricultural production.”

Efforts Under Way to Aid Turkey Plant

Help may be on the way for the central Utah company that produces turkeys and turkey products, which had planned to lay off about 450 employees for about three months.

This week, Gov. Jon Huntsman Jr.'s office announced that efforts were under way to prevent a shutdown at Moroni Feed Company, a co-op of turkey growers that produces the Norbest brand.

Company officials said last week that because of skyrocketing prices of corn, a main component in turkey feed, the business had become unprofitable.

Other Salsa Ingredients Possible Salmonella Culprit

The Food and Drug Administration (FDA) is now looking at jalapeno peppers and other salsa ingredients along with tomatoes as possible causes for the Salmonella outbreak that has sickened more than 900 people since mid-April.

The Centers for Disease Control and Prevention initially blamed tomatoes, but has broadened the investigation to other foods commonly eaten with tomatoes, particularly ingredients used to make salsa. Jalapeno peppers, cilantro and Serrano peppers have been added to the probe.

The search has centered on salsa because many of the nearly 1,000 people affected had eaten some. FDA is focusing on fresh salsa prepared at certain restaurants, not processed or canned salsa.

CAST Publications Now Free of Charge

The Council for Agricultural Science and Technology says it is now offering a large sector of its publications without charge. All CAST issue papers, formerly $5.00 each, are now available online and free to anyone.

The issue papers may be downloaded from the CAST website at www.cast-science.org. The publications are also available in hard copy from CAST by telephoning (515) 292-2125 or by mail at 4420 West Lincoln Way, Ames, IA 50014-3447. Shipping and handling fees are applied to hard copy orders and further details are available from CAST.

CAST Commentaries have always been available without charge online, and CAST says including free issue papers improves their mission of assembling, interpreting and communicating credible, science-based information.

Wal-Mart Steps Up Buying More Local Fruits, Veggies

Wal-Mart recently announced a commitment to sourcing more local fruits and vegetables to keep produce prices down and provide affordable selections that are fresh and healthful. The company also reported that its partnerships with local farmers have grown by 50 percent over the past two years, which the retailer cites as an example of ongoing efforts to support local economies, cut shipping costs and provide fresh food offerings.

Today, hundreds of growers across the United States provide produce sold in Wal-Mart Supercenters and Neighborhood Markets, making Wal-Mart the nation’s largest purchaser of local produce. According to a company press release, during the summer months, locally sourced fruits and vegetables that are both grown and available for purchase within a state’s borders make up one-fifth of the produce available in Wal-Mart stores. In addition, locally grown fruits and vegetables are identified by signs that include official state-grown marks, indicating approval by the state’s agriculture department.

A list of locally grown produce available by state at Wal-Mart stores is available online.

U.S. Beef Passes South Korean Inspection

Shipments of U.S. beef have passed inspection for the first time since last October, according to government officials in Seoul, South Korea. The National Veterinary Research and Quarantine Service has inspected and cleared six shipments of frozen U.S. beef totaling 85.6 tons, and is currently examining another shipment.

Pending payment of duties, the beef could be released for distribution Monday or Tuesday, although representatives of large discount outlets and supermarket chains have indicated they will not initially stock U.S. beef to avoid protests.

Citizen protests against U.S. beef have turned more violent since trade resumed last week. According to press reports, hundreds of police and protestors were injured Sunday in a rally that coincided with the conclusion of a visit by Secretary of State Condoleeza Rice, who urged South Koreans to trust official assurances that U.S. beef is safe.

AFBF Urges FDA to Review Milk Labeling

The American Farm Bureau Federation recently sent a letter to the Food and Drug Administration (FDA) regarding guidance it issued in 1994 pertaining to labeling of milk and milk products from cows not treated with rBST. Currently, all of the top U.S. grocery store chains restrict the sale of milk from cows not supplemented with rBST. This milk typically sells at a premium compared to milk that is not labeled. As a result, AFBF told FDA, producers who sell to markets restricting the use of rBST are seeing lower production and lower profits during a time of record-high feed and fuel prices.

Farm Bureau supports the science-based labeling policy established by FDA, which states that special labeling is not required unless a food is significantly different from its traditional counterpart, or where a specific constituent is altered; voluntary labeling must use statements that are truthful and not misleading; and voluntary labeling of identity-preserved agricultural and food products should be based on a clear and factual certification process.

Farmers and ranchers have suffered great economic consequences from past labeling mishaps that have claimed an “absence” of a substance with absolutely no science on which to base a food safety claim. Farm Bureau believes that labels should not be required to contain information on production practices that do not affect the nutrition or safety of the product.

House Passes AMT Patch

Last week the House passed H.R. 6275, a $62 billion, one-year Alternative Minimum Tax (AMT) patch. The legislation would extend the enhanced AMT exemptions that are temporarily in place for 2007 and increase them to $69,950 for joint filers and $46,200 for individual filers for 2008. Because the 2007 exemptions expired at the end of last year, passage of legislation is necessary to prevent 21 million taxpayers from becoming liable for the AMT in 2008.

Under AMT, farmers and ranchers end up paying more because they lose the ability to deduct some of their state and local taxes, some farm and ranch operating losses and because they tend to have more capital gains tax income than taxpayers in general. While predictions are that one in four households will owe the AMT by 2010, the effect on farmers and ranchers will be much greater with three or more out of 10 owing the tax due to the distribution of farm household income.

The Senate has not yet taken up the issue due to a dispute about whether or not the one-year patch must be offset by spending reductions or tax increases. Last year Congress passed a one-year extension of the higher AMT exemptions without offsetting the cost.

Farm Bureau supports repealing the AMT and supports the one-year patch to prevent an AMT tax increase.

Many Countries Restricting Food Exports

At least 29 countries are sharply curtailing food exports, according to a New York Times article. Officials are cutting exports to ensure their own populations have enough food at affordable prices, according to the Times.

India, Vietnam, China and 11 other countries have limited or banned exports of rice, according to the article. Fifteen countries, including Pakistan and Bolivia, have capped or halted wheat exports. In addition, more than a dozen have limited corn exports. And Kazakhstan has restricted exports of sunflower seeds. The restrictions make it harder for impoverished importing countries to afford the food they need. In turn, many people who are most vulnerable to hunger and depend on relief agencies for sustenance, are at greater risk, according to the article.

"'It's obvious that these export restrictions fuel the fire of price increases," said Pascal Lamy, director general of the World Trade Organization.

The new restrictions are just an acute symptom of a chronic condition, according to the article, which also notes that since 1980, even as trade in services and in manufactured goods has tripled, adjusting for inflation, trade in food has barely increased. For several decades, "food has been a convoluted tangle of restrictive rules, in the form of tariffs, quotas and subsidies."

Noting that Australia's farm sector is crippled by drought and Argentina has suffered a series of strikes and other disruptions, "the world is increasingly dependent on a handful of countries like Thailand, Brazil, Canada and the United States that are still exporting large quantities of food."

Weather Damaged Crop Costs Top $8 Billion

Crops have incurred more than $8 billion in estimated weather-related damage thus far in 2008, according to the American Farm Bureau Federation’s June Market Update. Iowa accounts for approximately half the damage. However, there are notable problems in at least a dozen other states ranging from the excessive wetness and flooding in Illinois to drought in California.

“Wet weather and flooding create issues, as farmers are unable to plant their crops,” said Terry Francl, AFBF senior economist. “The crops they do plant do not sprout and grow, resulting in fewer acres harvested. Additionally, the difficult growing conditions greatly reduce the yield of the crop that is harvested.” He adds that expected Iowa corn yields are reduced 16 percent for this year, and 1.5 million to 2 million acres of corn and soybeans in Iowa that farmers intended to plant this spring will likely remain fallow.

This results in a $4 billion shot to Iowa’s crops. Other states taking a hit from excessive wetness and flooding are: Illinois, $1.3 billion; Missouri, $900 million; Indiana, $500 million; Nebraska $500 million; and an additional $1 billion in remaining wet states.

Some areas are experiencing the opposite problem. Drought is taking a toll on several western states and a few states in the southeast. Northern California battled the driest spring in its history. As a whole, the state suffered $500 million in estimated damage. This equals the estimated drought-related damage in all other states combined.

Nationally, the average corn yield is likely to decline some eight to 10 bushels per acre from the 2008 trend line, mostly due to inclement weather. The national average soybean yield is also likely to be down one to two bushels per acre from the current Agriculture Department projection of 42 bushels per acre.

These damage estimates relate only to crop production as of the last week of June. This means livestock, infrastructure, building and equipment losses aren’t considered. Additionally, the estimate assumes normal weather conditions will ensue for the remainder of the growing season. Varying weather conditions later in the season could cause the estimate to grow or contract.

More information can be found from an American Farm Bureau News Release.

Iowa Farm Bureau Launches Flood Recovery Web Site

Iowa Farm Bureau has launched a comprehensive “Road to Recovery” Web site to assist farmers and rural resident affected by the 2008 floods. The Web site contains information about farm, crop and business recovery including crop insurance, debris disposal, stress and counseling resources, household cleanup and disaster fund applications. The Web site also shares Iowans’ stories through photos, videos and personal testimonies.

In addition, www.iowafarmbureau.com/flood08 highlights Farm Bureau’s advocacy work on flood issues. This includes efforts to open Conservation Reserve Program grassland for early grazing, raise the weight limits on rural roads and urge the Army Corps of Engineers to carefully consider outflows from reservoirs to minimize further field flooding impacts.

For more information visit the site or read the Iowa Farm Bureau press release.

HSUS Releases More Undercover Video Footage

Earlier this week the Humane Society of the United States released new video footage depicting improper treatment of nonambulatory dairy cattle at the Portales Livestock Auction in New Mexico. According to HSUS, the video was taken by one of its undercover investigators who was employed by the livestock market between May 15 and June 6, 2008.

Media response to this video has been relatively muted, compared to a similar one distributed Jan. 30, which included footage shot at the Hallmark Meat Packing Company in Chino, Calif., a top supplier for the National School Lunch Program at the time.

At a press conference announcing the release of the most recent footage, HSUS officials stopped short of claiming a direct link between the video footage shot at Portales and Caviness Beef Packers of Hereford, Texas, which is currently the largest ground beef supplier to the school lunch program.

Although HSUS attempted to discredit Caviness, public records reveal the processor has had clean audits from the Agriculture Department for at least the past three years. The company does not slaughter downer cattle, according to Terry Caviness, CEO. In addition, detailed records kept by the company account for every animal purchased on the days video footage was taken at Portales.

Producer YouTube Video Explains Pork Production

One Missouri hog farmer is influencing consumer perception with her YouTube video “Truth about Modern Pork Production.” In the five-minute video, Chris Chinn, a Clarence, Mo., hog farmer and the former national YF&R Committee chair, talks about her hog operation and takes viewers on a tour of the facilities.

“In today’s world, putting a face on farming is a necessity,” says Chinn, a fifth-generation farmer who runs a 2,400-sow operation with her husband, Kevin, his parents and his brother. “It’s important to use online tools like blogs and social networking sites to reach a wider audience and stand up for agriculture.” Chinn’s video has done just that.

“This is really an informative video,” wrote WorkingMom13 in a comment section about Chinn’s piece. “It explained several things about pigs that make me realize how much better it is for them inside those buildings. Pig farmers really care about how the pigs are taken care of.”

Energy Costs Main Culprit in Recent Food Price Increases

Most of the recent increase in food costs has nothing to do with biofuels, Bob Young, the American Farm Bureau Federation’s chief economist, told reporters and farm leaders last week in Putnam County, Ind.

Putnam County Farm Bureau and White Oak Farms sponsored the event, “Food Prices and Biofuels,” which included a news conference and a question-and-answer session. Estimates as to how much of the retail food price increase can be attributed to biofuels vary from 3 percent to 30 percent, according to Young.

“We need to have a long conversation about that other 70 percent to 97 percent,” Young said.

Young and Don Villwock, Indiana Farm Bureau president, said consumers need look no further than their local supermarket. Items that have no connection at all to corn or soybeans – grapes, for example – have also increased in price, Villwock said. And even with a corn or corn-related product such as corn flakes, the connection to ethanol is tangential at best, he added, noting that there are only a few cents worth of corn in each box of cereal.

“The box costs more than the corn,” he said. Boneless, skinless chicken breasts contain about 6.5 cents worth of corn, Villwock added. Read the Indiana FB press release for further details.

Interior Adds Polar Bears to Threatened List

Interior Secretary Dirk Kempthorne listed polar bears as “threatened” under the Endangered Species Act on Wednesday. The American Farm Bureau Federation opposes the listing.

Kempthorne said the loss of Arctic sea ice due to a warming climate could drive polar bears to the brink of extinction in less than four decades, The Washington Post reports.

“This has been a difficult decision,” Kempthorne said. “But in light of the scientific record and the restraints of the inflexible law that guides me, I believe it was the only decision I could make.”

In addition, Kempthorne said he would ensure his decision did not “open the door” for activists to force the adoption of limits on greenhouse gas emissions linked to global warming. He also said the act “is not the right tool to set U.S. climate-change policy.”

Traditional Zanjeros Focus of L.A. Times Piece

Men known as “zanjeros” have long shepherded water in the West, but there are fewer of them all the time. Automated irrigation systems are taking their place as each drop of water becomes more precious in the West.

The Los Angeles Times recently published an in-depth look at this dying way of life in certain portions of rural America. Describing one long-time zanjero, Jose Romo, and his work in the Imperial Valley, Mike Anton writes, “His job is to deliver prescribed amounts of Colorado River water to farmers served by the Imperial Irrigation District in southeastern California. It’s a job rich in tradition, one that mirrors the settlement of the West and its complicated relationship with water.

“The zanjero was once the most powerful man in any community, entrusted with overseeing its most valuable resource. In early Los Angeles, he was paid more than the mayor.”

NAFTA's Importance to U.S. Agriculture

The American Farm Federation has long supported free trade agreements such as the North American Free Trade Agreement (NAFTA) because of the boost they provide to most aspects of U.S. agriculture. In recent weeks, trade, and NAFTA in particular, have figured prominently in the primary race between Sens. Hillary Clinton (D-N.Y.) and Barack Obama (D-Ill.), which may reach its culmination today.

The Office of the U.S. Trade Representative just released an updated version of its “NAFTA—Myths vs. Facts” document to dispel common misconceptions about the trade agreement between the U.S., Canada and Mexico.

The document notes that Canada and Mexico accounted for 37 percent of the total growth of U.S. agricultural exports since 1993. Moreover, the share of total U.S. agricultural exports destined for Canada or Mexico has grown from 22 percent in 1993 to 30 percent last year.

Sheep Shearing May Become A Lost Art?

Low wool prices and high shearing costs are behind the addition of a special breed of wool-less sheep to some flocks. Sheep producers focused on the meat market are turning to Katahdin sheep, which grow hair instead of wool. The Katahdin breed originated in Maine more than 30 years ago, and there are about 100 million hair sheep around the world.

Sheep numbers have risen slightly after declining significantly over the past decade, according to the American Sheep Industry Association. The nation’s sheep numbers fell from about 8 million in 1997 to 6.1 million in 2004, then edged up to 6.2 million this year.

Read more from the Associated Press, HERE.

University of California-Davis Seeks Producers for FMD Survey

Researchers at the Center for Animal Disease Modeling and Surveillance (CADMS) at UC-Davis are seeking livestock producers to participate in an online survey about foot-and-mouth (FMD) disease. The goal of the survey is to collect information for a computer simulation model that will help predict how FMD might spread in the U.S. and identify the control strategies for containment.

The online survey was launched in 2006 and is part of a research study funded by the Department of Homeland Security and the National Center for Foreign Animal and Zoonotic Disease Defense. The current version of the survey consists of nine questions about animal and people movements on and off the farm and takes only about 5-10 minutes to complete, according to researchers. Dairy, swine and goat producers, in particular, are sought for the survey.

FMD is a highly contagious animal disease affecting cloven-hoofed animals such as cattle, swine, sheep, goats and deer. According to CADMS, producer information from the survey will be kept confidential and used only for modeling purposes.

The survey can be found HERE.

'Caring for Farm Animals' Brochure Available

“Caring for Farm Animals,” a new educational brochure produced by AFBF, emphasizes the humane treatment farmers and ranchers provide to their farm animals daily. The brochure notes that farmers and ranchers are “guided by both an ethical drive to humanely serve society and an unwavering moral obligation when it comes to providing the best possible care.” It also mentions the importance of well-managed grazing and provides a list of the everyday products derived from cattle.

The brochure includes language about how livestock production benefits rural communities and is designed to appeal to non-farm audiences. Order the new brochure and other materials developed by AFBF online at the Voice of Agriculture Web site, which is found HERE.

New EPA Web Site Lists Regulations Affecting Agriculture

The Environmental Protection Agency has launched a new Web site featuring a “look-up tool” listing federal environmental regulations that could potentially apply to agriculture. According to information on the site, it provides a “succinct, general description of EPA’s requirements for both regulatory and voluntary programs.”

The new web site can be found HERE.

E85 Pump Locations Posted

The National Corn Growers Association and the National Ethanol Vehicle Coalition have teamed up to provide a tool that allows flex fuel vehicle owners to pinpoint gas stations that sell E85 simply by entering a ZIP code or location. The tool is available at http://www.e85refueling.com.

When visiting the site, flex fuel vehicle owners can search for stations by ZIP code or state. The site then allows the visitor to map the station. Organizers say the website is particularly a good tool for people traveling across the country. Currently, there are more than 1,200 E85 stations in 37 states. Four locations with E85 pumps in Utah include:

-Chevron. 1350 East 700 South. Clearfield, Utah. 84015. 801-773-1640.

-Chevron. 267 West 12300 South. Draper, Utah. 84020. 801-816-1665

-Christensen Oil Company. 524 North 1500 West. Orem, Utah. 84058. 801-373-7970.

-Christensen Oil Company. 595 South 200 East. Provo, Utah. 84606. 801-373-7970.

Web site counters attacks on food production

A group of 18 national food and agriculture associations launched a Web site last week dedicated to telling the real story of the U.S. food system.

The Web site, www.bestfoodnation.com, contains current factual information about the positive contributions delivered by the food system each and every day, as well as individual stories about some of the millions of men and women who are dedicated to providing safe, abundant and affordable food in the United States.

“We believe it’s important to set the record straight when critics use out-of-date or inaccurate information to attack the food system,” said Mike John, a Missouri cattle producer and president of the National Cattlemen’s Beef Association.

The new Web site was created to counter “Chew on This,” the latest book by Eric Schlosser that is critical of food production and processing. Aimed at middle-school students, the follow-up book to “Fast Food Nation” offers sensationalized misinformation about the U.S. food system.

“We welcome open dialogue about our food system,” said Janet Riley of the American Meat Institute. “There are important issues worthy of discussion. However, some of the information contained in this book is inaccurate and misleading, and Americans should know the facts so they can form their own opinions.”

Visitors to the Best Food Nation Web site can learn about efforts that directly benefit the public, including the various healthful and balanced food choices offered by restaurants and food-product manufacturers, the creation of millions of jobs offering competitive wages, the practice of good animal welfare and environmental stewardship by our nation’s farmers and ranchers, and the numerous benefits local communities derive from the food and agriculture industries.

The American Farm Bureau Federation is among the 18 organizations supporting Best Food Nations.