U.S., Mexico to work together on farm trade
Agriculture officials from both the United States and Mexico have approved an agreement that could boost agriculture-related trade between the two countries.
Agriculture Secretary Ann Veneman and Mexico Agriculture, Livestock, Rural Development, Fisheries and Food Secretary Javier Usabiaga signed a memorandum of understanding that creates a new committee to address trade issues and resolve disputes.
The memorandum came following a two-day meeting last week between the two leaders and their aides in Mexico City.
"These meetings have been very productive and there is a real sense that we can move forward on a number of important issues," Veneman said.
As a preliminary gesture of good will, the two agriculture secretaries approved a deal allowing California stone fruit exports to Mexico during this year's shipping season.
They also will work together on NAFTA implementation, sanitary and phytosanitary issues, cross-border partnerships on animal health and food safety, and biotechnology and research cooperation.
Under the stone fruit agreement, field tests will be conducted for plant pests under an established systems approach. A new penalty structure will be created to allow for product movement.
The new systems approach would not be terminated for pest detections, and the work plan will not penalize a grower's production.
The two agriculture leaders plan to meet again in May to discuss various food-related issues. "We are working together and are looking at ways to further strengthen areas of cooperation and examine ways to continue expanding trade between our two countries," Usabiaga said.
Veneman said her negotiations are part of a continuing policy by President Bush to have closer dealings with Mexico. "An open dialogue will help both our countries continue to expand trade opportunities that will benefit farmers and ranchers on both sides of the border," she said.
FARM BILL: Senate and House of Representatives officials who are working toward approving a new federal farm bill are scheduled to resume their work on Tuesday.
Members of the congressional conference committee will meet on that day in Washington in hopes of putting the finishing touches on a single bill that could then be voted on by the full Congress, before being sent to President Bush for final approval.
The two legislative chambers have each approved their own version of what a farm bill should look like. The two sides reached a tentative agreement prior to their spring break, but certain details concerning agriculture aid programs have yet to be resolved.
The National Farmers Organization is hopeful the sides can resolve the issue next week, and it praised Sens. Charles Grassley, R-Iowa, and Tim Johnson, D-S.D., for putting agricultural issues ahead of partisan politics during the negotiations.
MAD COW: The development of mad cow disease in Japan has cost the government at least $2.76 billion.
Agriculture Ministry officials said that farm revenues have dropped at least $990 million since the disease was first discovered. Lost meat sales and compensation from the government to farmers for their losses make up the bulk of the rest of the cost estimate.
The estimate came as the upper house of the Japanese parliament voted Friday against a censure motion of Agriculture Minister Tsutomu Takebe.
EXPORT TAX: Officials in Argentina will raise their tax on exports of agriculture products such as grains, oilseeds, vegetable oils and vegetable meals.
The tax will go to 20 percent on the goods. It previously was 10 percent, except for vegetable oils and meals, which had a 5 percent tax. Government officials say they expect the increased taxes to raise about $3.1 billion more per year for the country.
Officials justify the tax, saying that exporters have benefited from the peso's devaluation because goods sell on international markets for dollars, while costs are paid in devalued pesos.
ETHANOL: The company that operates California's only common carrier pipeline system says it is not doing anything that would interfere with the introduction of ethanol to the state.
Kinder Morgan Energy Partners said it is willing to help move a supply of ethanol into California, despite the belief of the Renewable Fuels Association, which thinks that the pipeline system is hostile toward the motor fuel made from corn byproducts.
"We are simply a service provider, and our sole objective is to meet our customer needs," Kinder Morgan marketing vice president Mary Morgan said. "We will not be an impediment to the conversion from MTBE to ethanol." Kinder Morgan owns a pipeline that transports gasoline, jet fuel and diesel fuel throughout California.
CBOT: Grains futures were mixed at the close of activity Friday on the Chicago Board of Trade.
Soybean futures were higher because China has allocated much of its tariff-rate import quotas for soybeans set aside for private companies.
Corn futures were both higher and lower. Export sales figures were respectable, but inclement weather threatened the quality of some of the crop.
Wheat futures were lower because of weather forecasts that show heavy rainfall in the Plains states. That would increase the size of the hard red winter wheat crop, thereby making it worth less. Many traders also were waiting for the crop ratings report to be released Monday before committing themselves.
Oats futures also were mixed, with momentum from Thursday's price gains helping some futures while others were hurt by weather reports.
The prices:
Soybeans: May 4.65 1/2 up 6 1/2, Jul 4.69 up 5 3/4, Aug 4.66 3/4 up 4 1/2, Sep 4.62 up 3 3/4.
Corn: May 2.00 1/2 off 1, Jul 2.07 off 3/4, Sep 2.13 3/4 off 1/4, Dec 2.22 1/4 unch.
Wheat: May 2.77 1/4 off 3 1/4, Jul 2.83 1/2 off 2 1/2, Sep 2.89 off 2 1/2, Dec 3.00 off 2 1/4.
Oats: May 2.16 3/4 up 1 3/4, Jul 1.69 1/2 up 3/4, Sep 1.43 off 1, Dec 1.41 3/4 off 1/4.
