UPI Farming Today

Argentina soybean farmers have edge over U.S.

Soybean farmers from Argentina pay less for Roundup Ready seed and a University of Illinois agribusiness management specialist says that gives them an unfair advantage over their U.S. counterparts.

"We are in the midst of a structural change in agriculture," said Peter Goldsmith, an assistant professor at the university's agricultural college.

"The change is not only dramatic on the demand side but also the inputs side as well," Goldsmith said. "It will have major repercussions for producers vis-à-vis their relations with large international supply firms."

A General Accounting Office study has found that soybean seed was cheaper in Argentina than in the United States, while corn seed was priced the same.

"Multinational corporations like Pioneer have no real ability to control the price on some of its products, notably soybeans," Goldsmith said. "That is because seed can be saved by farmers and used again.

"Distributors also 'brown-bag' seed, that is sell it in plain bags without the company logo," Goldsmith said. "In Argentina, 80 percent of the soybean seed market is either farmer-saved or brown-bagged."

During 2000, there was a 1 million-hectare increase in soybean planting in Argentina; almost all of it from brown-bagged or farmer-saved seed.

Also complicating the situation is the condition of the Argentine economy, which is near bankruptcy.

Any attempt to enforce intellectual property rights would be seen as inflicting short-term harm on those who currently sell seed.

"A country in the midst of crisis simply doesn't have the incentive to address a problem like this," Goldsmith said.

Brits blunder on brain study

What's the difference between a cow's brain and a sheep's brain? Not much, once it's all mushed up into a paste.

That was the problem in Britain, where Food Standards Agency officials now say they erroneously determined that "mad cow" disease did not exist in sheep.

The brain matter that was studied at the Institute of Animal Health turned out to come from cattle. The agency insists, however, that British lamb is still safe for people to eat.

Peter Smith, a professor with the Spongiform Encephalopathy Advisory Committee told the British Broadcasting Co. the mix-up is not serious.

"Once it's a paste, a cow brain looks very like a sheep brain. That's no excuse, however. The samples should have been properly labeled but you can't tell them apart just from their appearance."

Japanese 'mad cow' could harm U.S.

The U.S. Meat Export Federation is increasing its efforts to promote the safety of U.S. beef to would-be consumers in Japan.

People there have been rejecting beef since it was determined that a cow had contracted mad cow disease, and that a second cow may also have the disease.

A recent poll showed 89 percent of Japanese were "very or somewhat concerned" about the issue, that 34 percent were eating beef less often and that 25 percent had stopped eating beef altogether during the past month.

Phil Seng, president of the federation, said that is bad because Japan is the leading export customer for U.S.-raised beef -- purchasing nearly $1.8 billion worth of beef during 2000. "We simply cannot afford to stand by and do nothing," Seng said.

Ag wants $45.2 million for bio-security

The Agriculture Department is asking for $45.2 million for emergency funding to improve programs and services related to bio-security issues.

Agriculture Secretary Ann Veneman said the funding is part of President Bush's $20 billion emergency funding proposal for all of the federal government.

"We have taken the appropriate steps to date to ensure the critical needs for (the Agriculture Department) are met," Veneman said. "However, we must remain vigilant in protecting our nation's food and agriculture."

Money will be used to pay for improved security for Agriculture Department facilities, construction of an addition to laboratories in Ames, Iowa for research, and technical assistance to state and local governments.

Coming of 'war' won't result in rationing

When a nation goes to war, it is said it must choose between guns and butter.

But President Bush has declared a new kind of war and this time the nation hasn't decided it doesn't want butter.

Or cheese.

The bottom fell out of the market for those dairy products almost immediately after the terrorists knocked down the World Trade Center in New York.

Why? Because a large part of the nation's dairy foods are sold in restaurants and hotel dining rooms. The terrorist attacks crippled the tourist and business travel industries and restaurants and hotel dining rooms were going empty.

By the second week of October, prices on cheese markets were at the lowest level since April and it looked as though they would fall still lower. The butter market fell for at least 13 straight sessions.

Cheese production was down 2.9 percent in August, compared to one year earlier. But for the year as a whole, it was down only about 2 percent.

Butter production was down 8.5 percent in August compared to a year earlier, and down 7.8 percent for the year to date. But butter supplies were being supplemented by imported butterfat.

So unlike World War II, when food was rationed in the home market, the nation this time will eat well while the bombs and missiles fall in the Middle East.

(by E.W. Kieckhefer)

Grains mixed on CBOT

Soybean futures were down while corn and wheat were up at the close Friday on the Chicago Board of Trade.

Soybean futures were down due to seasonal pressures with clear harvesting conditions throughout the Midwest.

Corn futures were up slightly due to slow farmer selling and firm cash bases that provided mild support.

Wheat futures were up due to talk of export demand and strong cash prices.

Oats futures were down as the market consolidated from contract highs.

The prices:

Soybeans: Nov 4.24 3/4 off 6 1/4, Jan 4.29 1/2 off 5 1/4, Mar 4.34 3/4 off 4, May 4.38 3/4 off 4 3/4.

Corn: Dec 2.05 1/2 up 1/4, Mar 2.18 unch, May 2.26 unch, Jul 2.31 1/4 up 1/4.

Wheat: Dec 2.87 up 4, Mar 2.93 3/4 up 3 3/4, May 2.93 1/4 up 3 1/2, Jul 2.94 1/2 up 3 1/2.

Oats: Dec 1.80 1/4 off 3 1/2, Mar 1.70 off 2, May 1.61 1/4 off 2 1/4, Jul 1.48 1/2 off 2 1/2.