Canada mad cow could benefit U.S.
The presence of mad cow disease in Canada could provide a significant boost for the beef industry in the United States.
Purdue University agricultural economist Chris Hurt said consumer reaction will ultimately determine whether mad cow disease on the continent helps or hurts U.S. beef interests.
"If (consumers) maintain faith in U.S. beef, this could turn out to be a good thing for our cattle producers," Hurt said, noting there would be less competition from cattle raised in Canada.
U.S. agriculture officials earlier this week banned the importation of any beef products from Canada while officials try to determine how severe the mad cow infestation is.
Hurt noted Canada was the largest U.S. live cattle supplier and its second-largest processed beef provider. Now, U.S. cattle and beef products will have to take the place of the Canadian products, which means more business for U.S. interests.
Nine percent of beef consumed in the United States comes from Canada, split equally between processed products and live cattle.
This also could benefit U.S. beef producers if Canadian exports to the rest of the world are shut off. Other countries would have to boost their orders for U.S. products.
It also would allow U.S. interests to boost prices, with live cattle prices likely to increase by about 10-12 percent.
Agriculture Secretary Ann Veneman downplayed the chances the disease would spread to the United States.
During an NBC "Today" show appearance Wednesday, Veneman said existing safety procedures worked in that they prevented the one infected cow in Alberta from getting into the human food chain and because any cows that came into contact with the infected cow will now be destroyed.
"We want to get to the bottom of this as quickly as possible," she said. "We do not believe the food supply is at risk at all."
Also, Organic Valley Cooperative founder George Siemon said he thinks organically developed meat product sales could increase if people see them as safer than beef produced through conventional means.
"Organic meat is made from animals that have been raised on a pure organic diet, nothing but organic feed and pasture," Siemon said. "This means they are never fed rendered animal by-products that could have been contaminated with mad cow disease."
World Trade Org. must address sugar deal
Sugar industry officials told a Senate subcommittee the World Trade Organization is the only group capable of achieving genuine global free trade for the industry.
American Sugar Alliance economics Director Jack Roney said including sugar in regional or bilateral trade agreements would "spell disaster for all sugar producers in the Western Hemisphere, except the subsidized producers of Brazil."
The Senate's foreign relations subcommittee is studying deals such as the Central America Free Trade Agreement and the Free Trade Area of the Americas, both of which may include sugar policies in their overall pacts.
"Unfortunately, the world sugar market is highly distorted by a vast array of government subsidies and practices, so distorting that the so-called world market price for sugar has averaged barely half the world average cost of producing sugar for the past two decades," Roney said.
Academics trying to predict atmosphere
University of Illinois researchers are trying to mimic the content of the atmosphere in 2050 to determine how changes in air quality will affect crops.
Carbon dioxide has been increasing at a rate of 0.4 percent per year, which has benefited many crops. But ozone has hurt crops. The 1 percent hike in gas per year has cost U.S. agriculture about $2 billion in lost production.
Officials are working on their global warming project at facilities south of the Urbana, Ill., campus. Their research focuses on atmospheric effects on soybeans and corn.
House to study crop insurance
A House agriculture subcommittee will spend the day Thursday reviewing the financial status of the crop insurance industry across the United States.
The subcommittee on general farm commodities and risk management will hold a hearing in Washington.
Agriculture Department economists will testify, along with officials of the Great American Insurance Co. of Cincinnati and Associates Inc. of Minneapolis.
Feds extend conservation program signup
The Agriculture Department will extend its sign-up period for the Conservation Reserve Program from May 30 through June 13 to give farmers more time to sign up for the environmental program.
The program is the largest private lands environmental improvement measure in the United States. It protects millions of acres of topsoil from erosion, and also protects wildlife habitat and streams and other bodies of water.
Grains mixed on CBOT
Grain futures were mixed at the close Wednesday on the Chicago Board of Trade.
Soybeans and corn both were hurt by word of mad cow disease turning up in Canada although declines were held in check by word that the disease was not widespread.
Wheat and oats fell on declining export demand.
The prices:
Soybeans: Jul 6.40 off 2 3/4, Aug 6.38 1/4 off 1 1/2, Sep 6.07 1/2 up 1 1/2, Nov 5.75 up 3 1/4.
Corn: Jul 2.45 1/2 off 1 1/4, Sep 2.43 3/4 off 3/4, Dec 2.45 up 1/4, Mar 2.50 3/4 up 3/4.
Wheat: Jul 3.32 1/4 off 2 3/4, Sep 3.36 3/4 off 2 1/4, Dec 3.46 3/4 off 1 1/4, Mar 3.51 1/2 off 1/2.
Oats: Jul 1.56 off 2, Sep 1.49 off 1/4, Dec 1.47 1/4, off 1/4, Mar 1.52 unch, May 1.55 unch.
