Farm Bill: Two More Weeks?

The 2008 Farm Bill continues to drag on, both the House and Senate have voted to extend current farm bill legislation until May 16. The agriculture committee conferees will continue to try to agree on new legislation that must pass Bush Administration objections to become law.
     Last week, farm bill negotiators reported they reached agreement on certain issues. Among them, senior negotiators acted on crop-subsidy rules, land-stewardship programs, language to prevent abuse of price supports and whether fruit and vegetables will continue to be barred on land eligible for crop subsidies. For months, the administration has urged an income cutoff point for access to crop subsidies — $500,000 in adjusted gross income if Congress adopts broad-scale reform or as low as $200,000 AGI if there was little reform. Farm-bill negotiators did not want any limit on income from farming although they proposed a cap of $500,000 or $750,000 for off-farm income. However, earlier last week, USDA Deputy Secretary Charles Conner said the committee's proposal "does not move Congress closer to a farm bill that the president would sign."
     Senate Agriculture Committee Chairman Tom Harkin (D-Iowa) has said the provision in the Senate version of the bill to limit packers' livestock ownership to 10 days before slaughter was still subject to debate. "It will fail," House Agriculture Committee Chairman Collin Peterson (D-Minn.) was quoted as saying.

PEW Report Outlines Changes for "Industrial Farms"

The long awaited report from the PEW Commission on Industrial Farm Animal Production came out last week. The report was 2.5 years in the making, and the commission's conclusion is that "industrial farms" raising animals for food require "a far-reaching overhaul." Among the areas that the commission focused on include: Environmental and waste issues, animal well-being, antibiotic usage, disease spread between people and animals and impact on the rural community.
     The $3.4 million study was a project of the Pew Charitable Trusts and the Johns Hopkins Bloomberg School of Public Health. The commission studied various aspect of what the commission called "industrial farm systems." For more, go to www.porkmag.com. To view the report, click here.

NPPC: The Report Overlooks Producers' Progress

If the Pew Commission on Industrial Farm Animal Production's recommendations were implemented the cost of producing food animals would increase as would meat prices, points out the National Pork Producers Council. Among the recommendations is to phase out certain production practices, banning certain animal antibiotics and placing new restrictions on the use of manure.
     The commission overlooked the substantial progress made by the nation's pork producers in addressing all of those issues, say NPPC officials. "Pork producers have taken extensive steps during the last decade to meet various industry challenges," says Bryan Black, NPPC president and an Ohio producer. "We constantly are looking for better ways to raise our pigs, including protecting them from diseases, and we always have been good stewards of the land, air and water that we use." For more insight, go to www.porkmag.com.
     The Animal Agricultural Alliance also commented on the Pew Commission recommendations. To see those comments, click here.

USDA Agrees To Help U.S. Pork Producers

The Bush Administration will assist U.S. pork producers in weathering the current economic crisis. Last Thursday, the Administration announced that USDA will purchase up to $50 million of pork products, which will be donated to child nutrition and other domestic food assistance programs. This follows a meeting with the National Pork Producers Council and USDA Secretary Ed Schafer to urge him to take immediate action to address a crisis that during the past seven months has cost the pork industry more than $2.1 billion. Due mostly to a doubling of feed costs, producers have lost $30 to $50 on each hog marketed over the last 30 days.
     "The action by USDA to buy additional pork will benefit America’s pork producers, the U.S. economy and the people who rely on the government's various food programs," says Bryan Black, NPPC president and Ohio pork producer. In the meeting with Secretary Schafer, NPPC requested the purchase of an additional 50.5 million pounds of pork — in 2007 it bought 43 million pounds — for various federal food programs. The equivalent would be a reduction of the U.S. sow herd by nearly 163,600 animals. For more, go to www.porkmag.com.

What Pushed Hog Prices Higher?

Hog prices gained nearly 20 percent in recent weeks — more than the "normal seasonal increase" can justify. What's the cause? Good question, some are pointing to domestic demand. But the reason for the run up is confusing analysts, as not even strong export sales and strong domestic demand can explain why the sudden price jump.
     Hog supplies start to decline this time of year and into summer, market hog runs have been exceeding year-ago levels by about 14 percent. Pork exports have been solid, but a shortage of shipping containers has tempered those sales lately and could pose long-term challenges. "It's got to be domestic demand," says Steven Meyer, president Paragon Economics. He points to pork's retail price advantage to beef and chicken. He predicts that the price run up won't last. "I think there will be a slam on the brakes this week as packer margins fall out of bed," he says.

Russia Suspends 4 U.S. Pork Plants

USDA's Food Safety and Inspection Service officials report that Russia has banned pork imports from four U.S. processing plants. Russian officials say they have detected an antibiotic in the meat. The suspended plants involve Tyson Foods, Storm Lake, Iowa, and Logansport, Ind., and Farmland Foods, Crete, Neb., and Monmouth, Ill. Note that Smithfield Foods owns the Farmland plants.
     "They had a question about tetracycline," says USDA Press Secretary Keith Williams. Whether the drug is prohibited by Russia as it relates to pork imports is "part of what we're checking — seeing what their question is and the basis of what they're asking," he adds. The ban is effective May 5.

Corn Planting Behind

A cool, wet spring has delayed corn planting across the Corn Belt. According to last week's "Crop Progress" report, only 3 percent of the crop is in the ground in Iowa compared to the five-year average of 33 percent for the week ending April 27. Illinois is only 6 percent planted, down from an average of 55 percent. To read the full report, click here.

"No-match" Would be Costly

The government's proposed "no-match" rule on illegal workers could cost employers more than $1 billion per year, according to a U.S. Chamber of Commerce-commissioned study. Studies like this, which show a major economic impact, may require the Department of Homeland Security to reconsider its no-match rule. Under no-match, employers would have to fire workers who can't resolve discrepancies between their names and Social Security numbers. For more, click here.

Premium Standard Farms Founder Dies Unexpectedly

Premium Standard Farms' founder, Dennis Harms, 56, Hendersonville, Tenn., died unexpectedly on a recent business trip. Harms had a diverse pork industry career. It included positions at Cargill feed division and Central Soya before he founded Premium Standard Farms. He left PSF in 1998 in the purchase by Continental Grain Company and joined PIC as its North American president. In 2007 he formed Spectrum Agribusiness, a food and agriculture consulting practice. Born in Stanford, Ill., he grew up on a family farm. He is survived by his parents, his wife Kathi, a daughter and a son.

Economic Hearing Examines Corn, Food Prices

In the first hearing on the dramatic increase in farm prices for corn and soybeans and the implications of the ethanol mandate, Sen. Charles Schumer (D-N.Y.) and Rep. Carolyn Maloney (D-N.Y.) are listening to all sides. Among those testifying at a Joint Economic Committee hearing include Joseph Glauber, USDA chief economist who testified on the effect of escalating food prices on American consumers.
     The American Meat Institute, along with 18 other signatories, sent an open letter to Schumer and Maloney, calling on Congress to revisit renewable fuel mandates the groups say are leading to a global food crisis.
     President Bush proposed $770 million in global food aid to help alleviate the threat of widespread hunger due to rising food prices. Just two weeks ago he ordered the release of $200 million in emergency food aid. In addition, the government has approved the purchase of up to $50 million of pork products. Meanwhile, some domestic lawmakers have called for changes to the ethanol mandate. Sen. Kay Bailey Hutchison (R-Texas) is circulating a letter among her fellow senators questioning the Renewable Fuel Standard.

Swine Respiratory Disease Treatment Approved

The Food and Drug Administration has approved an injectable antimicrobial for treatment and control of swine respiratory disease. Baytril 100, (Bayer Animal Health) kills all four major SRD-causing bacteria: Actinobacillus pleuropneumoniae, Pasteurella multocida, Haemophilus parasuis and Streptococcus suis. The antimicrobial works via a single, subcutaneous injection behind the ear.
     Animals intended for human consumption must not be slaughtered within 5 days of receiving a single-injection dose. Federal law restricts this drug to use by or on the order of a licensed veterinarian.