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March 16, 2001

The movement of Mexican workers to U.S. farms largely reflects wage differentials between the U.S. and Mexico, as well as differences in employment prospects.

Taking into account seasonal fluctuations, U.S. agriculture employed an average of 890,300 hired farmworkers in 2000, with an average wage of $8.29 per hour compared with $13.69 for nonfarm jobs.

In contrast, Mexican agriculture employed about 2.3 million hired laborers over 12 years old in 1998, with an average 8-hour wage of about $3.60, although the wage differential is somewhat overstated because the cost of living is lower in Mexico.

Availability of hired farm labor in both countries is likely to influence production and trade of labor-intensive commodities such as greenhouse and nursery products and fruit and vegetables.
Source:Jan/Feb 2001 USDA Agriculture Outlook

Chances of death from 'mad cow' slim
Think "mad cow" disease is a threat? Washington Post writer Abigail Trafford offered this perspective on the odds of dying from "mad cow": In Britain, France, and Ireland, where less than 100 people have died, "statistically speaking—people are five times more likely to be killed by a bolt of lightning than by 'mad cow' disease."
Source: ProFarmer, Feb. 17, 2001

Baseline budget haunts farm bill
The federal budget baseline looms as a major hurdle in the path of the next farm law. About $9 billion annually is currently budgeted for direct payments to farmers.

Actual farm spending soared above $20 billion last year, thanks to the supplemental AMTA payments and disaster aid.

Farm groups are calling attention to the need for an approximate doubling in the budget baseline.
Source: Doane's Agricultural Report, Feb. 16, 2001


Results of 10-year GM crop study noted
A 10-year study of four kinds of genetically modified crops found the plants did not spread their genes to conventional crops or survive longer than other crops. The study, which took place in Britain, was published in the journal Nature.
Source: Doane's Agricultural Report, Feb. 9, 2001

Spring nitrogen fertilizer prices to remain high
Natural gas prices have declined sharply from the early-winter highs. Futures traded below $6 per million BTUs early this week, down from a peak of around $10. Nitrogen producers are bringing production back on stream, easing the threat of nitrogen shortages.

Despite the improving supply outlook, nitrogen prices will remain high through early spring.

Natural gas prices are still more than double the year-ago level, adding more than $100 per ton to the cash cost of production for anhydrous ammonia compared to last year.
Source: Doane's Agricultural Report, Feb. 9, 2001

'Fast track' authority all but guaranteed
One positive of the slowing general U.S. economy for agriculture is the dropping value of the U.S. dollar. But it will only be a positive if the U.S. takes off the gloves and gets aggressive in global markets. That should happen.

The 98-0 confirmation of Robert Zoellick as U.S. Trade Representative cements him as the top trade honcho. He now calls fast-track trade negotiating authority "trade promotion authority."

Democrats made no bones during Zoellick's confirmation that they were less than pleased with the Clinton trade team. They want enforcement now. So, fast track should be all but guaranteed.
Source: Pro Farmer, Feb. 10, 2001


Ethanol production records set in 2000
Domestic ethanol production set annual and monthly records in 2000, reports the Renewable Fuels Association.

Data from the Department of Energy's Energy Information Administration show 1.63 billion gallons of ethanol were produced in 2000, up from 1.47 billion gallons in 1999. A new monthly record of more than 113,000 barrels per day was also set in December.
Source: Doane's Agricultural Report, Feb 2, 2001


U.S. sheep and lamb inventory trending down
All sheep and lamb inventory in the United States on January 1, 2001, totaled 6.92 million head, down 2 percent from 2000 and 4 percent below two years ago. The inventory has trended down since 1942 when it reached a peak of 56.2 million head.

The number of operations with sheep during 2000 totaled 66,000, down 1 percent from 1999 and 4 percent from 1998.

All goat inventory in Texas on January 1, 2001 totaled 1.40 million head, up 8 percent from 2000 and 4 percent above two years ago.
Source: NASS:USDA, Sheep and Goats Jan. 26, 2001