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April 20, 2001

Study: Emissions trading
could cut treaty risk

Trading of carbon dioxide emission credits would lessen the economic risks associated with the implementation of the Kyoto Protocol global climate change treaty, according to a study by the Dutch government.

The Dutch study showed that reducing greenhouse gas emissions at the rate required by the Kyoto treaty would likely cause a 0.5 percent drop in the gross domestic product (GDP) of the developed countries participating. But countries that were allowed to trade emission credits would probably only show a 0.2 percent GDP drop in 2010. The agreement would require the United States to reduce emissions by 7 percent below 1990 levels by 2008-2012.

The United States supports a credit trading approach, which would allow countries that fail to meet their Kyoto targets to purchase credits from countries that are below their targets. The study found that the United States would suffer the most under a ban on emission credit trading, with a 0.9 percent GDP drop in 2010.

The United States has not ratified the treaty and President Bush said he will not pursue negotiations on the agreement because its implementation would damage the U.S. economy.

The head of the United Nations forum on global warming is expected on Thursday to outline a new plan allowing countries to meet greenhouse gas reduction targets by counting their forests as carbon "sinks." The proposal also would allow states to buy and sell emission credits amongst each other.

Fuston named as state
FSA executive director

The U.S. Department of Agriculture has named John T. Fuston as Texas State executive director for the Farm Service Agency State Office.

Said Chairman of the House Agriculture Committee Larry Combest of the appointment: "Having known Johnny since our days showing cattle at stock shows in high school, I can personally attest he has deep roots in agriculture. As director of FSA in Texas, I am sure he will be an integral force in maintaining a sound agricultural community. Agriculture is the backbone of the 19th district, and our farmers and ranchers will be well-served under his management."

Fuston has worked for FSA for 29 years. Prior to his appointment as SED, he was a supervisory agricultural district director since 1987. He is co-owner of a farming and ranching operation and has a Bachelor's degree in agriculture from West Texas State University.

Over the years, Fuston has received a number of honors, including being named Agricultural Man of the Year of Deaf Smith County. He is active in his county as a Chamber of Commerce and school board member.

"Johnny has dedicated his life to advancing agriculture in Texas, and I look forward to working with him to help make rural Texas not just a good place to live, but a good place to make a living," said U.S. Sen. Phil Gramm.

Tyson Foods calls off IBP deal

Tyson Foods Inc. called off its proposed merger with IBP Inc., saying the company relied on misleading financial information in determining to make a move on IBP. IBP restated its financial statements at the request of the Securities and Exchange Commission.

Tyson, in a letter to IBP, said Tyson "was inappropriately induced into the merger agreement" by the misleading information. Tyson chairman and CEO John Tyson said the decision to pull out of the agreement was in the best interest of his company and its shareholders.

IBP said it does not believe there is any basis to end the merger, and that Tyson was aware of the potential for "write-downs" of some IBP entities before the merger agreement was signed.

"We are shocked by Tyson's announcement," IBP said. "This comes as a complete surprise. As recently as this week, our sense was that Tyson had every intention of going through with this transaction."

AFBF, top farm groups
join ag advisory panel

Representatives from top farm groups met recently in St. Louis to kick off a collaborative advisory panel designed to advance the interests of U.S. growers.

Monsanto's 17-member Grower Advisory Council, chaired by former Rep. Tom Ewing (R-Ill.), is the first initiative under the New Monsanto Pledge. The pledge is a five-point declaration that governs how Monsanto will conduct itself as a company. Included in the "Dialogue" principle of the pledge is a commitment "to involving our customers to help us make decisions about the development, use and stewardship of new agricultural technologies."

The council is charged with identifying specific courses of action for Monsanto management to create new uses for commodity crops and add value for growers; provide a formal process for the company to hear and respond to grower feedback; and serve as a sounding board for reviewing Monsanto actions, positions and policies before they are finalized.

"I believe that Monsanto is setting an important precedent," Ewing said. "Opening a direct line between American producers and the senior management at Monsanto is a tremendous step toward a dialogue process that should benefit all parties."

Alan Foutz, president of the Colorado Farm Bureau, and Terry Francl, senior economist with the American Farm Bureau Federation, are on the panel.

Notable Quotables

"The reports of our death are erroneous. It just shows that farmers see the tremendous benefits of this technology."

Lisa Dry, spokesperson for the Biotechnology Industry Organization, commenting on the Agriculture Department's annual planting intentions survey that shows a significant increase in biotech soybean plantings.