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November 2, 2001

EPA approves
continued Bt corn use

Based on a comprehensive scientific review, the Environmental Protection Agency has announced that corn genetically modified with Bacillus thuringiensis (Bt) has been approved for an additional seven years.

"Bt corn has been evaluated thoroughly by EPA, and we are confident that it does not pose risks to human health or to the environment. Consumers should be assured that these corn varieties show no signs of any adverse effects to human health," said Stephen L. Johnson, assistant administrator of EPA's Office of Prevention, Pesticides, and Toxic Substances. "The safeguards incorporated into these registrations will ensure that farmers can continue to use an effective, low-risk pest control alternative, which helps to protect the environment by reducing the amount of conventional pesticides used."

According to EPA, the renewed registrations of the five Bt corn products continue to include specific requirements for companies to routinely monitor and collect data to ensure that the products' continued use does not lead to insect resistance or unexpected human health or environmental effects.

The companies holding registrations for Bt corn are Monsanto, Syngenta, Pioneer/DuPont and Myco-gen/Dow.

EPA has also mandated several provisions to strengthen insect resistance management, to increase research data on potential environmental effects, and to improve grower education and stewardship.

USDA forecasts higher income
The Agriculture Department says it expects 2001 farm net cash income to be 6 percent higher than last year, continuing the trend of annual increases since 1998. At $60.8 billion, the 2001 figure would surpass 1993's previous record. This cash-based measure of income indicates the availability of funds to cover cash operating costs, finance capital investments and savings, service debts, maintain living standards, and pay taxes.

U.S. net farm income for 2001 is forecast at $49.4 billion, up $3 billion from last year, as a result of greatly improved market conditions in the livestock sector, particularly for dairy operations. This income measure indicates the profit or loss associated with a given year's production.

Both forecasts—net farm income and net cash income—are slightly above the 1990-2000 average.

USDA said, however, that government payments will continue to be an important source of farm income. While down slightly from last year, supplemental appropriations this past summer will keep payments above $20 billion for the third consecutive year.

For this year, the forecast value of production for livestock and products has risen by $9.6 billion, while the forecast value of crop production has risen only $2 billion.

For the full report, see http://www.ers.usda.gov/publications/ais77.

Bipartisan group
urges TPA passage

An independent task force of the Council on Foreign Relations is recommending that Congress approve trade promotion authority (TPA) for President Bush. The group's study on TPA—the authority to negotiate trade agreements—drew on former government officials and trade policy experts from both parties to address ways of ending a seven-year impasse in Congress over the legislation.

Leading the effort were Robert Rubin, treasury secretary under Democratic President Bill Clinton, and Kenneth Duberstein, White House chief of staff under Republican President Ronald Reagan. The panel also included two former U.S. Trade Representatives—Carla Hills, who served under Republican President George Bush, and Charlene Bars-hefsky, who was a member of Clinton's cabinet.

According to the panel, trade agreements have been important to U.S. prosperity and growth. It pointed to increases in employment, wages andwage equality that occurred in the 1990s, when the United States pursued a trade agenda that included the North American Free Trade Agreement and the Uruguay Round world trade pact.

"It would be economically and socially irresponsible for the U.S. not to pursue further trade expansion," the panel said. "Specifically, the task force recommends that the Congress give Trade Promotion Authority to the president."

Meanwhile, the American Farm Bureau Federation has called upon the U.S. House to quickly approve trade authority as the World Trade Organization prepares to launch a new round of global trade talks.

"Granting trade promotion authority will send the signal to our trading partners that the United States is ready to assume a leadership role in these negotiations and has the backing of Congress to actively engage in the process," AFBF President Bob Stallman said in a letter to all House members.

Stallman cited the need for quick passage of H.R. 3005, the Bipartisan Trade Promotion Authority Act of 2001. The AFBF president emphasized that for every day that Congress delays consideration of trade negotiating authority for the president, "U.S. agricultural exports face trade-distorting subsidies that are four times greater than U.S. supports, tariffs that are on average five times greater than our own, and export subsidies that are 40 times what our producers receive. The net result is that our share of the world market continues to erode while import competition continues to increase."

Notable Quotables

"Our nation's crops and livestock are now at very high risk. We must move quickly to prevent attacks on grain and livestock production and we must begin a massive research effort to develop vaccines and antidotes to halt diseases that could damage our food supply in the future."

—Sen. Pat Roberts, upon introducing legislation designed to help agriculture protect itself against terrorism. His proposal calls for spending $1.1 billion next year and about $271 million in each of the next 10 years to pump up research, training and security at the nation's agriculture research facilities.