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CLINTON COMMITS TO PURCHASE $300 MILLION IN COMMODITIES FOR INTERNATIONAL SCHOOL LUNCH PROGRAM
Newswire
reports indicate President Clinton recently unveiled a proposal at the recent G8 summit, and announced that the US would be contributing $300 million, to buy farm commodities for a year-long international school
lunch program supporters hope can begin sometime in late 2000.
USDA Secretary Dan Glickman suggested the program could provide as many as 300 million children worldwide with free meals at school, and could boost US commodity prices and support farm incomes in the process. In its design, sources indicate the program would provide free meals to school-aged children in developing countries as a way of boosting school enrollment, especially among girls, as well as promoting political and economic development. Meanwhile, Glickman suggested it's too soon to know which commodities would be pegged for this program, but he anticipated that wheat, corn, soybeans and rice would top the list. Furthermore, Glickman estimated legislation authorizing the proposed program would more than likely come as part of the next farm bill, which Congress will likely take up in 2002.
GLICKMAN SEES NO END TO THE NEED FOR GOVERNMENT SUBSIDIES FOR FARMERS
Speaking at a conference on the future
of US farm policy, USDA Secretary Dan Glickman suggested he sees no end in sight to the need for government cash handouts to farmers.
However, newswire sources indicate Glickman does envision a time when those cash handouts will be made in a counter-cyclical fashion based on individual needs rather than on a wasteful "ad hoc" basis. Moreover, Glickman suggested he believes AMTA and supplemental AMTA payments are keeping many farmers from "going out of business", while many agricultural producers who are not enrolled in AMTA-receiving programs are "missing out". Furthermore, after 2002 when Congress is expected to revise the current US farm policy, Glickman predicts a new form of direct assistance system will be in place that targets individual losses rather than historical production data.
KANSAS MAY FOR THE FIRST TIME PRODUCE MORE CORN THAN WHEAT
Under the category of unbelievable, a newswire
report suggests that Kansas, the biggest winter wheat producing state in the US, may actually harvest an even bigger corn crop in 2000-01. Sources estimate if the 3.25 MA (1.32 MH) of corn acres expected to be
harvested in Kansas this year produce yields similar to those seen over the last two seasons, the state corn crop could near the 460 MB (12.5 MMT) mark.
Meanwhile, the USDA is currently forecasting Kansas' 2000-01 winter wheat crop at 363 MB (9.8 MMT). According to the report, this phenomenon would be a first, setting a landmark in the history of Kansas agriculture. As indicated in the report, Kansas' corn crop has been on the upswing over the past six years, and has actually set state production records in the past three years. On the other hand, winter wheat acreage in Kansas has been in consistent decline during the last three years due to suppressed cash wheat prices. On an historic basis, sources suggest that wheat acreage is usually 3 times larger than corn acreage. However, the use of new technologies, such as "no-till" farming and genetically modified seeds, has propelled corn yields past those of wheat. Furthermore, sources indicate the economic returns in the corn market are larger than wheat, with the larger volume potential combined with increased demand for corn than wheat
REPORTS CONTINUE TO SUGGEST THE FRENCH WHEAT CROP IS SMALLER THAN EXPECTED AND QUALITY IS LOWER THAN NORMAL
Reports continue to trickle in concerning the suspect quality of the 2000-01 French wheat crop.
According to one newswire report, a representative from a major northern French agricultural cooperative suggests, that although only 15% of the acreage of wheat covered by the coop has been harvested, the falling number of some "bread-making" varieties is as low as 70 while the yield is well below initial prediction, estimated 5-10% lower than last year's crop. Moreover, sources estimate the disappointing falling numbers will probably cause some bread-making wheat varieties to move into animal feed applications. The French coop representative suggests the consistent warm and wet weather conditions through the spring and early summer have resulted in the initial drop in quality. Furthermore, sources indicate the average wheat protein content is somewhat disappointing as well, with an average reading of 10% (dry basis), compared to 11% (dry basis) in the 1999-00 crop.
ALTHOUGH DIM PROSPECTS, U.S. WHEAT ASSOCIATES CONTINUE TO TRY TO GET WHEAT SALES TO IRAN
US Wheat Associates'
Nelson Denlinger, Vice President of Government Programs, indicates US wheat sales to Iran are unlikely to pick-up anytime soon, even if the US uses export credit guarantees to promote exports, as four years of
sanctions have made it difficult for US and Iranian traders to stay in contact with one another. Despite the fact that Iran buys between 6.0 MMT-7.0 MMT of wheat per year and the US will have another year of
ample wheat supplies, the 1996 sanctions on trade with Iran have broken many of the personal relationships between traders that could secure a portion of the Iranian wheat market for US producers.
While the US wheat growers' organization supports both private and government (GSM-102) credits being made available to Iranian buyers of US wheat, Denlinger suggests there are still "considerable problems" with Iran's credit worthiness and banking relationships between the US and Iran. Moreover, newswire sources indicate USDA Secretary Dan Glickman believes that the Clinton Administration still has "strong reservations" about providing "any form of bank financing" to Iran or other countries that are suspected of supporting terrorism. Currently, Iran's state-owned wheat and rice purchaser, GTC, has a monopoly on the country's wheat trade, and due to domestic political reasons, they cannot commit to US wheat purchases. Despite all this, Denlinger suggests US Wheat Associates has not given up on the Iranian market, "We're certainly hoping, we've had contacts, and we're still scratching and trying to find an entry".
CARLSON ANNOUNCES GRASSROOTS PROGRAM FARGO -- Republican Candidate for Agriculture Commissioner Clare Carlson said if
elected he will launch a county-by-county assessment of strengths and weaknesses in agriculture to identify new opportunities for this industry
throughout the state.
The program, called GRO-Ag -- Grassroots Renewal of Opportunities in Agriculture, would feature a detailed analysis of all aspects of local agriculture
and agribusiness industries, including crops grown, new crop opportunities, access to markets, transportation infrastructure and processing potential.
"We have spent too much time in this state trying to find someone to blame for declines that have plagued agriculture for 65 years," Carlson
said. "My goal as Agriculture Commissioner would be to bring people together at the county level to identify and rally around realistic, market-based opportunities to increase profitability and optimism in
agriculture."
Carlson said he would name one person in the Ag Department to coordinate the project, working closely with local leaders and North Dakota resources
including universities, the department of Economic Development & Finance and the transportation institute at NDSU. His goal would be to complete the detailed analysis in every county during his first term.
"I believe North Dakota needs an Ag Commissioner who will stand up for this industry, not just by talking about its great past, but by identifying
opportunities for a great future," Carlson said.
The study would evaluate the production results of all the crops currently grown in the county, and potential for new or specialty crops. All avenues
for adding value to these crops would then be considered, including intricate projects such as processing plants as well as simpler projects like cleaning and packaging seed.
The study would examine export opportunities, including the potential to sell raw commodities such as hard red spring wheat directly from a country
elevator to a foreign country like China, Mexico or Cuba.
Carlson said a detailed assessment of transportation infrastructure would be an essential part of the analysis. Items to be reviewed would include
location to markets for current or future potential products, available shipping methods, and location to interstates, state highways, railroads, and airports.
"I want to collect all the strategic information available to help us focus local assets on diversifying, decreasing risk and increasing
profitability in agriculture," Carlson said.
Carlson said state government can be a valuable partner by providing overall leadership and technical assistance.
"The government has an important role to play," Carlson said. "But the real ingredient for success is the initiative and ingenuity of
North Dakota producers."
Carlson has diverse experience both on and off the farm in agribusiness, ag lending, marketing and state and federal policy. He currently serves as the
Agriculture Policy Director for Gov. Ed Schafer, and farms small grains, beans and sugar beets near Drayton.
Previously, he was ag policy advisor for Sen. Mark Andrews.
Contact: Clare Carlson
JULY 27, 2000 (701) 220-2792 (cell)
(701) 221-2732 (home)
BEETLE MAY HAVE ROLE IN LEAFY SPURGE BATTLE
Leafy spurge, an invasive noxious weed that is a major problem in North
Dakota and other northern plains states, is considered a prime candidate for biological control methods because it tends to infest rangeland and other noncultivated areas where chemical control is not economically
feasible. Biological agents used in the fight against spurge range from tiny flea beetles to sheep and goats. Finish the article at www.ext.nodak.edu/extnews/
HARVEST HAS STARTED IN NORTH DAKOTA
As you can see from the photos below, barley harvest has already started.
These pictures are from Ransom county, ND. Reports indicate that quality is 75 plump, 12 % protein, 65-70 bu/ac, and .4 vomitoxin.
 
 
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