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News from the Minnesota Association of Wheat
Growers for Thursday, June 22,  2000

DROUGHT CREATES OPPORTUNITIES FOR FRENCH WHEAT
POITIERS, France, June 22 (Reuters) -According to Reuters, widespread drought this year has created unexpected export opportunities for French wheat farmers, who are struggling to supply an increasingly segmented market, export promotion officials said on Wednesday.

France stands to increase sales to Morocco, which is suffering from its fourth consecutive year of drought, and will campaign for increased sales to Poland and China, where dry weather is raising concerns of crop shortfalls, said Jean Gault, director of grain promotion group France Export Cereales.

The agency will also renew efforts to recapture the Egyptian market, which has shunned France this year in favour of the United States and Australia.

Gault said his group was intensifying its efforts in Poland and China, where it already had offices, amid expectations that imports by both countries would rise due to dry weather.

 

 

PRESIDENT CLINTON SIGNS CROP INSURANCE BILL
President Clinton on Tuesday signed a bill that will provide $8.2 billion over the next five years for increased crop insurance subsidies to US farmers and $7.1 billion in emergency farm assistance over the next two years.  Both Clinton and USDA Secretary Dan Glickman applauded the "positive" changes laid out in the legislation.  However, both indicated their "disappointment" that "no constructive changes were made to the farm safety net."  Sources suggest they were hoping for the addition of counter-cyclical income language targeting aid to farmers who need it most.  Furthermore, Glickman indicated his concern that Congress will have to pass another emergency farm aid package next year if it fails to reform the US farm safety net.

 

 

AG COMMITTEE NEWS RELEASE: CROP INSURANCE REFORM BILL SIGNED INTO LAW
New Crop Insurance Coverage Begins with Fall-Seeded Crops Signing "Agricultural Risk Protection Act" into law improves coverage, protects revenue.

Washington, D.C. - With legislation signed into law on Tuesday, farmers and ranchers will be able to access vastly improved federal insurance on crops planted as early as the coming fall season.  "The Agricultural Risk Protection Act" (H.R. 2559) provides producers the ability to protect themselves against the increasing economic risks to their crops and livestock created by harsh weather and volatile markets.

"Crop and cattle producers will find new coverage for revenue losses as well as insurance that more realistically reflects their productive capability and production costs," said House Agriculture Committee Chairman Larry Combest (R-TX).  "I strongly urge producers to take a new look at this coverage with particular attention to its rewards for efficiency, good management, and the ability for producers to better cover risks from weather as well as markets."

An improved coverage approach allows producers who have experienced multiple years of disaster to re-establish their actual production history to levels that will allow meaningful coverage when losses force down their yields.

New provisions also strengthen the integrity of the crop insurance program with directed coordination between USDA agencies to reconcile producer information for investigating claims of waste, fraud or abuse.  In addition to identifying vulnerabilities of the insurance program, the law also mandates greater civil penalties and disqualification of producers, agents, loss adjusters and others who defraud the crop insurance program.

"The Agricultural Risk Protection Act" also allows experts to develop new policies so that producers will have a wider choice of coverage available.  The Federal Crop Insurance Corporation would have the authority to enter into contracts for research and development for underserved states and commodities, including specialty crops.   Pilot programs may be expanded nationally, including coverage for livestock.

House and Senate approved the measure on May 25, including assistance to producers - largely for market losses - to be paid out beginning September 1. More details of the crop insurance program are found on the Internet at agriculture.house.gov - the House Agriculture Committee web site.

The U.S. House Committee on Agriculture web site http://agriculture.house.gov has additional information on this and other subjects.

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DAKOTA GROWERS LINK WITH ITALIAN COMPANY
Dakota Growers Pasta Company, Carrington, N.D., or America's third largest pasta manufacturer and Gruppo Euricom, Italy's second largest pasta producer, announced today that they are forming a long term strategic marketing alliance. Dakota Growers will market Gruppo Euricom's premium Italian pasta and risotto to North American supermarket retailers, foodservice operators, and ingredient food processors.

"Many of our buyers value the unique attributes of Italian pasta and desire a single vendor for all of their pasta needs," said Gary Mackintosh, Executive Vice President for Dakota Growers Pasta Company. "Our objective is to integrate an Italian import into our domestic pasta line and provide our customers a single source for all of their pasta needs."

"The Italians have been making pasta for more than 700 years, perfecting the process over the centuries, said Mackintosh. Pasta making is as much art as science. It's important to us that we partner with a family who has a long tradition of pasta making.

Our customers deserve to buy from an artisan." Antonio Gazzola, who heads up Euricom's pasta division, comes from a family that has been crafting fine Italian pasta for more than 80 years. His son, Roberto, who is Euricom's export manager, is carrying the Gazzola family tradition forward.

"This is a perfect partnership and brings us tremendous advantages, "said Roberto Gazzola. "Dakota Grower's broad market access will allow us a fast track into the North American market.We are anxious to bring our Corticella, La Mediterranea labels, and Other custom-packed Italian pasta and risotto products to the United States and Canada."

Mackintosh expanded on Euricom's capabilities. "Euricom's facilities are equipped with efficient, high quality milling and manufacturing equipment and versatile packaging lines. Very few Italian companies offer the wide variety of packaging options including carton, flexo, gussetted re-sealable bags and pillow-pack. We know each market has different packaging needs in the United States. Gruppo Euricom does it all."

 

 

EXPORT HEARING RELEASE
Committee Questions Secretary Glickman on use of USDA Export and Market Promotion Programs

Washington, DC - Today, Chairman Larry Combest (R-TX) convened the House Committee on Agriculture to receive testimony from Secretary of Agriculture Dan Glickman regarding various USDA export and market promotion programs and the extent to which they are used to assist U.S. farmers and ranchers.  The hearing also provided a venue to compare expenditures on U.S. programs to those of other countries.

During the hearing, Members questioned Secretary Glickman as to whether the USDA is maximizing use of programs such as the Export Enhancement Program (EEP) and the Dairy Export Incentive Program (DEIP).  Chairman Combest raised his concern that while a total of $2 billion was authorized for EEP from 1996 through 2000, less than $10 million of those funds have been used.

"USDA estimates that U.S. agricultural exports will total $50 billion in 2000, and that the expected trade surplus will be $11 billion, the lowest level since 1986," Combest said.  "Because of the reduced value of agricultural exports it is important that the USDA export and market promotion programs are utilized to the maximum extent."

"Our agricultural export programs are a great way to leverage scarce federal resources to create or enhance overseas markets and to address the continued negative impact of low demand overseas," said Ranking Committee Member Charlie Stenholm (D-TX).  "We were all disappointed in Seattle last December with the failure to reach a framework agreement for new negotiations on agriculture.  Until we begin to see more meaningful progress towards the further reform promised in the Uruguay Round, we must ensure that our export programs are adequately funded and that the Secretary has the necessary tools to keep our farmers and ranchers competitive."

Members, led by Chairman Combest, also expressed concern regarding the wide disparity between U.S. support programs for domestic agriculture and those of other nations.  For instance, the European Union spends more than sixteen times as much as the United States on export subsidies, and more than twice as much on domestic support for agriculture.

"As I said following the World Trade Organization Ministerial in Seattle last year, I believe the Agriculture Committee should review all of our options for our own programs," Combest said.  "I want to look at everything available to us and consider steps to insure our farmers are not disadvantaged.  Our farmers can compete with any farmers in the world but cannot and should not be forced to compete with other governments."

The U.S. House Committee on Agriculture web site http://agriculture.house.gov has additional information on this and other subjects.

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NORTHERN CANOLA GROWERS ASSOC. AND MN CANOLA COUNCIL TO HOST MEXICAN COMPANIES
June 21, 2000
(Bismarck)  The Northern Canola Growers Association (NCGA) and the Minnesota Canola Council (MCC) will be hosting Mexican companies interested in purchasing canola from the United States, June 26-29, 2000.  The reverse trade mission aims to generate new interest among Mexican oil processors and crushers, expanding U.S. canola seed and oil sales in Mexico.  In 1998 / 1999 Canada exported 529.2 thousand tons of canola seed and 1.5 thousand tons of canola oil to Mexico.  The US has had very little export activity in past years.  However, with canola acres expected to increase more than 50% in North Dakota in 2000, export markets will be able to be explored.

Five Mexican companies will be represented on the four-day tour.  The delegates will tour four elevators in Minnesota and North Dakota; the Minnesota Crop Production Center in Thief River Falls, MN; North Central Research Extension Center in Minot, ND; ADM in Velva, ND; and a farm near Karlsruhe, ND.  Two specific half-hour times have been reserved for media to visit with participants and leaders of the NCGA and MCC.  June 27th from 3:30 to 4:00 PM at the  Osnabrock Farmers Elevator in Osnabrock, ND and June 28th from 12:30 to 1:00 PM at the North Central Research Extension Center, Minot, ND; however, media is invited to join at anytime. 
For a detailed schedule of events, please contact the Northern Canola Growers Association at (701) 323-5051