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February 16, 2001

The extension will not change participants' rental rates. All or a portion of the acreage under contract may be included in an extension, but no new acreage may be added. Obligations existing under an original contract will continue to apply to contracts that are modified and extended.

FSA tells us there are no plans for a general CRP sign-up in fiscal year 2001 (ending Sept. 30).
Source: Pro Farmer, Jan. 13, 2001

FDA: No GMO food labels
The Food and Drug Administration (FDA) will not require labeling of genetically modified foods. Rather than require labeling, FDA plans to publish food producers' own safety tests and data on the Internet to address consumers' concerns about the products.

In a key change, FDA wants to require companies to notify the government of any new bioengineered products 120 days in advance of product introduction. The new proposals are the first significant changes in FDA's 1992 biotechnology guidelines.
Source: Doane's Agricultural Report, Jan. 19, 2001

Payment cap increase prospects are bright
Representatives Jo Ann Emerson (R-Mo.) and Marion Berry (D-Ark.) introduced two bills to increase the combined payment limit on loan deficiency payments (LDPs) and marketing loan gains from the current $75,000 cap, to $150,000. These lawmakers were the push behind similar bills for the 1999- and 2000-crop years that easily passed through Congress.
Source: Pro Farmer, Feb. 3, 2001, Vol. 29, No. 5

Slowing econonic growth is good for agriculture
The downtrend in U.S. economic growth and interest rates has reapplied pressure to the U.S. dollar. Selling intensified when Europe refused to join the Fed in cutting rates—highlighting the divergent economic paths for the regions.

For agriculture, that's good news. Another 10 percent drop in the dollar value looks possible—making U.S. products more competitive on the export front.
Source: Pro Farmer, Feb. 3, 2001, Vol. 29, No. 5

Commission issues farm bill report
The Commission on 21st Century Production Agriculture recently released their findings on the 1996 Farm Act and concepts that should be included in the next farm bill.

Among its income-related recommendations, the commission is calling for continuation of regular farm program (AMTA) payments and the addition of a counter-cyclical income support program. The counter-cyclical program, which the commission calls Supplemental Income Support (SIS), would support farmers when gross income levels fall below a certain percentage of historical income. Under the program, no payments would be made if aggregate income is higher than the historical reference level. When made, payments would be decoupled from commodity prices and yields, and, the commission believes, would be allowed under terms of the World Trade Organization agreement.

Other areas include:

•Keep LDPs and marketing loans in place and re-balancing loan rates.

•Remove payment limitations.

•Monitor any trust violations and laws dealing with concentration in agriculture.

•Provide policies that enhance agriculture exports.

•Develop a sound crop insurance program.

The commission did not suggest returning to acreage reduction programs.

You may obtain a copy of the commission's report at the following website: www.agcommission.org/pressreleases (or) www.usda.gov/oce.

Sources: Pro Farmer, Feb. 3, 2001, Vol. 29, No. 5; AFBF Executive Newswatch, Jan. 30, 2001

World Trade Center finds home on the range
Montana isn't waiting for the world to come to them. They're taking their raw materials and packaging them with style. And it's bringing in the big bucks.

Businesses are banking on three strategies to build a more profitable local farming base, including:

•Adding value (like baking wheat into bread).

•Going global.

•Hiring the best marketing minds in the country.

Sophisticated minds are already working hard at the Montana World Trade Center. It's plunked down in the middle of the University of Montana at Missoula, and helps farmers and other business owners crash trade, tariff and language barriers world-wide. The Trade Center is also in demand in surrounding states.

Two MWTC staffers, one senator and 20 Montana business owners recently toured the Pacific Rim looking for markets in China, Vietnam, Taiwan and South Korea.

Pacific Rim countries are hungry for fresh products from the mountain states, where the perception is that food and water are just a little bit cleaner.

Kay Del Shelton is negotiating a deal in Taiwan for her Myrtle Leaf cosmetics. She uses Montana ingredients: safflower oil, calendula, herbs, mint and beeswax.

Says Shelton: "The Asian market is very hot on Montana products, specifically anything that's Montana grown and especially anything grown organic."

But Shelton is having a hard time finding farmers who will produce for her market. "It's like pulling teeth," she says. They still insist on "sending trainloads of raw products to the coast."

Montana farmer Dean Folkvold took a hard look at Montana's geography and its increasing glut of wheat. He notes that it costs 85 cents a bushel to ship wheat from Great Falls, 30 cents a bushel from Spokane.

The only option is to compete by using quality, he says. Folkvold suggests cleaning, even milling the wheat before selling it. He goes a step further and makes it into bread.

Now he's shipping it to Asia, with a deal clinched by the Trade Center. At home, he's busy doing the math: He bakes 10,000 loaves a day, and Montana consumes 100,000 loaves. He could grow ten-fold just to cover demand at home.

Other examples:

•See your own steer before it becomes steak on Montanabeef.com.

•Health-conscious Europeans pay trendy prices for Montana's Silver Springs bottled water.

•Best of all, Alpine Log Homes gets top prices for timber, a commodity not many Montana folks are able to sell these days.
Source: Landowner, Jan. 22, 2001