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FINAL INSTALLMENT OF $1.3 BILLION IN
1999-CROP DISASTER PROGRAM FUNDS 4/4/00
USDA's Farm Service Agency's Administrator Keith Kelly today announced that approximately 260,000 American farmers hit by natural disasters will receive the
final installment of the 1999 Crop Disaster Program. Over $500 million has already been issued as advance payments; the balance of the $1.3 billion total available for the program will be issued starting this week.
Because the total of the claims filed exceeds $1.3 billion, farmers will be paid 69.6% of their qualifying losses. In response to the nation's farm crisis, USDA's Commodity Credit Corporation has already issued over
$17 billion in direct payments this fiscal year for ongoing programs and for programs with emergency funding. Since enactment of last year's appropriation bills, emergency funds already issued to farmers include:
* nearly $5.5 billion in Market Loss Assistance Program payments.
* nearly $200 million for the Livestock Assistance Program and Livestock Indemnity Program.
* $328 million issued to States for delivery of funds
to tobacco quota holders.
* more than $50 million for peanut farmers. Producers should contact their local USDA Service Center or Farm Service Agency office for additional information about these and other USDA
programs. DISASTER PAYOUTS 70%
The U.S. Department of Agriculture will pay just under 70 cents on the dollar in disaster benefits for 1999-crop
losses, the government announced. Because eligible losses exceeded the money Congress provided, payments will be pro-rated at 69.6%. About half a billion dollars in losses will thus be uncompensated, at least for the
moment. Farm-state lawmakers are likely to ask for money to pay the full amount of losses if Congress, as expected, again debates emergency farm support measures this year. WINTER WHEAT CROP CONDITION REPORT AND SPRING WHEAT PLANTING PROGRESS
On Monday, the
USDA issued their first national US winter wheat crop condition/progress report for the week ended April 2. They estimated that 12% of the crop fell into the excellent category (13% last year), 48% of the crop
rated in the good category (55%), 26% of the crop rated fair (26%), 9% of the crop fell into the poor category (5%), and 5% was rated very poor (1%). In addition, the USDA estimated that 4% of the winter wheat
crop was headed, compared to 2% last year and a 5-yr average of 1%.Moreover, the USDA also issued their first national US spring wheat crop progress report for the week ended April 2. The USDA estimated that 6%
of the crop has been planted, versus 3% last year and a 5-yr average of 2%. SUMMARY OF LAST FRIDAY'S USDA REPORT ON WHEAT STOCK AND ACREAGE
On Friday, the USDA issued their latest 1999-00 ending wheat stocks estimate, as well as their forecast for the 2000-01 prospective spring and durum wheat
plantings. As of March 1, 2000, the USDA forecast 1999-00 US wheat ending stocks at 1.41 BB (38.4 MMT), compared to the average trade estimate of 1.44 BB (39.3 MMT) and last year's USDA estimate of 1.45 BB (39.5
MMT). Meanwhile, the USDA forecast for 2000-01 other spring wheat planted acreage was pegged at 14.8 MA (6.0 MH), versus the average trade guess of 15.4 MA (6.2 MH) and USDA's 1999-00 estimate of 15.3 MA (6.2
MH). Finally, the USDA forecast the 2000-01 durum wheat planted acreage at 3.6 MA (1.4 MH), compared to the average trade estimate of 3.8 MA (1.5 MH) and USDA's 1999-00 forecast of 4.0 MA (1.6 MH). AUSTRALIA'S GLOBAL CUSTOMERS SHUN GM WHEAT
SYDNEY, March 16 (Reuters) - World-wide customers of Australia's A$3-A$4 billion annual wheat exports have shown a clear preference for non genetically modified wheat,
national wheat exporter AWB Ltd said on Thursday.Australia is now challenging Canada as the second largest wheat exporter in the world. "AWB is ... very aware of an anti-GM feeling out there among our
customers," AWB's spokeswoman said. "We do not sell GM wheat nor will we in the foreseeable future. Australia's non-GM wheat stance is backed by a growing number of countries asking for certified non-GM
wheat. Some of the most negative reactions came from the biggest customers of U.S. wheat, Reuters reported on Wednesday from Washington. Australian, U.S. Wheat Face Same Dilemma
The U.S. association's Tokyo
office said GM wheat imports would be a "highly sensational and emotional issue" in Japan and could "lead to a total boycott of U.S. agricultural products." Japanese millers probably would shift
from the U.S. to other suppliers, directly hitting U.S. market share, the office said.Buyers in Egypt, the biggest export market for U.S. wheat, also expressed concern. Australia does not want to be left behind
by productivity gains and cost reductions promised by GM wheat crops -- particularly if its competition in the U.S., Canada and Argentina moves to GM wheat. GM wheat is one of 21 crops presently undergoing trials
across Australia. And AWB recently entered into a three-way joint venture with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Grains Research and Development Corp (GRDC) in a company called
Graingene. This assures Australia will not be left behind in GM science and technology, although GM wheat, if commercially introduced at all, is seen about 10 years away. "(But) while the customer wants GM free
grain, we will deliver GM free grain," AWB's spokeswoman recently said. USDA REORGANIZATION PROGRESS 'MIXED'
The General Accounting Office says USDA's five-year-old project to reorganize and modernize its
agencies has produced some progress, but little has changed in how three agencies serve their customers. Many projects have encountered delays, GAO adds GAO cited as an example that USDA closed more than 1,000 of its
3,726 county office locations and established collocated service centers throughout the country. It also deployed personal computers and a modern telecommunications network to most of its service centers.
"However, despite the agencies' collocation, little has changed in how the three agencies (Farm Service Agency, Natural Resources Conservation Service, and Rural Development) serve their customers, and many
modernization and re-engineering projects have encountered delays," said GAO. USDA attributed the delays to program demands and funding constraints that have limited the agencies' ability to direct resources to
the modernization effort; limited cooperation among the agencies, and some employees' resistance to change. Also, Congress stopped USDA from implementing the administrative "convergence initiative." But USDA
":remains committed to obtaining approval for merging the agencies' administrative organizations," GAO noted. GAO identified two issues that have impeded the department's progress: the lack of a
comprehensive plan to guide the modernization effort and the lack of a management structure with the accountability and authority to resolve differences among the agencies. "USDA is working toward addressing
these issues," the report said. In November, USDA issued its final service center modernization plan that lays out the department's goals for the service centers and the phases for implementation and also describes
its management strategy and processes. A third issue - the need for a change in the existing organization culture - "is crucial to completing the reorganization and modernization effort," said GAO.
"While USDA has recognized the importance of this issue by making it the focus of one of the five initiatives, it has not succeeded in overcoming resistance from the affected agencies and employees. Without this
support, progress on each of the initiatives is at risk." MONSANTO TOUTS NEW RICE AS 'BREAKTHROUGH'
Monsanto Company has announced "a major scientific breakthrough" with decoding the
genetic makeup of rice that the company says will lead to more nutritious and higher yielding varieties. Monsanto will share data on the variety with researchers worldwide through the International Rice Genome
Sequencing Project.Sharing it with researchers worldwide, Monsanto says, "will enable the world's scientific community to greatly accelerate the development of more nutritious and higher yielding rice." It
also should lead to similar developments in other major commodities such as corn and wheat. The rice genome sequence has been decoded to the level of a "working draft," Monsanto said. This is the first crop
genome to be described in such technical detail and will provide a new level of understanding of almost all the genes in rice, but certain details have yet to be determined. A new gene sequencing approach produced the
data primarily in the laboratories of Leroy Hood at the University of Washington, Seattle, under contract for Monsanto. The Japanese Ministry of Agriculture, the lead agency for the International Rice Genome
Sequencing Project, has said it will distribute a set of the Monsanto data to members of the IRGSP. "This new body of information will provide countries and research institutions with the ability to accelerate
development of improved types of rice," Monsanto said. "In the years ahead, rice with better nutritional value, greater yields and more adaptable to seasons, climates and soils will be developed, both through
traditional methods of crop improvement (breeding) and biotechnology." The research also may lead to new varieties that require fewer environmental resources, including land and water, and use natural resources
more effectively, the company added. NDSU CONDUCTING TWO-YEAR WEED SURVEY
Researchers from North Dakota State University will be conducting a comprehensive, two-year weed survey beginning
this spring. A primary objective of the statewide survey is to document the population and distribution of weed species. NDSU conducted a similar study in 1978 and 1979. "The upcoming survey also will help
support North Dakota state pesticide registrations and provide information for conducting a herbicide-benefit analysis," says Richard Zollinger, extension weed specialist at NDSU and survey coordinator. Working
with Zollinger on this project is Jerry Ries, an NDSU research associate in the plant sciences department. About 2,000 North Dakota fields will be surveyed. The number of fields NDSU researchers will survey in each
county will be based on the total number of tillable acres in that county. Zollinger and Ries will randomly select fields to survey. Only cropland will be part of the survey, not land enrolled in the Conservation
Reserve Program, pasture or hay land. Once they have selected specific fields, the surveyors will contact farmers and ask them to fill out a short questionnaire to determine cropping histories. Weed species and
densities will be recorded in 10 locations in each selected field. Zollinger says survey results will be published during the fall of 2001. "Farmer cooperation will be key to the success of this survey,"
Zollinger says. "We need to get enough fields from around the state included so that we have a representative sample. The more fields, the more precise the survey." The information derived from the weed
survey will benefit farmers by increasing their base of knowledge for pest management, Zollinger says. Likewise, the information will help university plant scientists hone their research focus, and chemical companies
will be able to use the information for registering products. ST PAUL LEGISLATIVE SESSION 2000 SESSION - NINTH WEEK (March 27 - April 2) There are about three weeks remaining of the 2000 legislative
session. The Governor and legislative leaders need to sit down and work out tax cuts, license tabs, the bonding bill, light rail funding, tax rebates, and other issues. It's that time of year when everything
seems to be falling apart, but by the middle of the month things should fall neatly into place. The House and Senate have generally been processing bills on the floors in the morning. During the afternoon,
members participate in conference committees. Leaving town by Easter is still the goal.COOP SECURITIES EXEMPTION. The bill that reinstates an exemption from securities filings for cooperatives,
SF-2987 (Vickerman) and HF-3903 (Westrom), was passed unanimously by the Senate last week. However, an amendment offered by Senator Linda Runbeck (R-Circle Pines) that requires a cooperative to return a member's
capital credits no later than six months after a request for a return was adopted on a voice vote. This is clearly an unacceptable change in policy and it appears that Runbeck was trying to help a constituent
without realizing the extent of her amendment. Senators Vickerman and Sams spoke against the amendment and several Senators realized after voting that it was a mistake. Now that we know about the amendment,
we are working to educate House members about the importance of defeating this amendment if it is offered. It will not become law. The companion should be taken up in the House this week. FEEDLOTS.
The feedlot rule fix bill (HF-3692, Kuisle) was heard on the House floor last week. As expected, several amendments were offered and all were defeated. The bill has been in good shape for several weeks and nothing significant has changed in either the House or Senate bill. The Senate should take up the companion bill (SF-3443, Sams) this week and then a conference committee will be needed. During conference, the final negotiations with MPCA will take place in order to get the bill signed.
TAX BILL. Conferees on the tax bill were named this week but they did not meet. House members are: Abrams (R-Minnetonka), Daggett (R-Frazee), Kuisle (R-Rochester), McElroy (R-Burnsville), and Rest
(D-New Hope). Senate members are Johnson, DJ (Tower), Belanger (R-Bloomington), Hottinger (D-Mankato), Pappas (D-St. Paul), and Vickerman (D-Tracy). OMNIBUS FUNDING BILL. The omnibus funding bill,
HF-2699, is a collection of seven other bills rolled into one. It contains funding for agriculture, environment, crime prevention, judiciary and health and human services and totals approximately $83.9
million. This bill is so large and contains so many items that it may not be constitutional. According to the Minnesota Constitution, and recent court cases, a bill may only have one subject matter in its
title. The main title of HF-2699 is appropriations, followed by lots of policy language. Leadership is trying to figure out what to do. The initial thinking was to make this a garbage bill so that
there is enough in it for everyone in case a veto override becomes necessary. The agriculture portion is $5.8 million, with about $5.2 million of that going once again to the ethanol program. That leaves
about $600,000 of peanuts for the rest of the commodity groups, including $200,000 to study drainage projects and additional funding to eradicate pseudorabies in swine herds. The environment portion is $11.4
million, with $5 million of that (in the House bill) for a short-term, state run CRP program where farmers in Northwest counties could enroll up to 160 acres at approximately $50 per acre for up to three years.
The Senate bill does not contain this program and the final outcome is unknown. House conferees on this bill are: Goodno (R-Moorhead), Finseth (R-Angus), Boudreau (R-Faribault), Krinkie (R-Shoreview), and Skoe
(D-Clearbrook). Senate members are: Samuelson (D-Brainerd), Krentz (D-May Township), Price (D-Woodbury), Janezich (D-Chisholm), and Kiscaden (R-Rochester). BONDING BILL. The other large bill to
settle is the 2000 bonding bill. The bonding bill is passed in non-budget years and deals primarily with long-term capital investment projects, like civic centers. Some folks refer to it the credit card bill
because the funds are spent now but paid for over a period of years. The last bonding bill in 1998 was $999 million. The Governor has set a target of $500 million for projects that have a "statewide
impact", which means they can't be for a local pet project. Too bad for the Governor, because the bonding is usually packed with local projects, and an argument could be made that every project in the bonding
bill is local. The Senate bill totals $764 million, while the House bill totals $532 million. House members have stayed close to the Governor's target, but on the other hand they didn't fund much of his
stuff. This will be a long conference committee. House members are: Knoblach (St. Cloud), Bishop (R-Rochester), Kalis (D-Walters), Osthoff (D-St. Paul), and Leppik (R-Golden Valley). Senate members are
Berglin (D-Minneapolis), Langseth (D-Glyndon), Cohen (D-St. Paul), Stumpf (D-Theif River Falls), and Scheevel (R-Preston). WOLF BILL. Conferees on the wolf management bill met only once this week to go
over the House bill, the Senate bill, and the DNR's two-zone plan. No testimony was taken. There may be brief testimony next week during the next conference committee meeting. CHINA. Governor
Ventura testified in Washington, D.C. this past week on the issue of granting permanent trade relations with China. He referenced market potential for Minnesota farm products as one of the primary benefits of open
trade with China, a country with 20% of the world's population. It seems that Democrats want to continue restricted trade with China as a way to leverage human rights issues. In typical Ventura fashion, he
told federal lawmakers that trade with China is "the number one marketing opportunity of the 21st century. Please don't blow it." |
