Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

September 6, 2002

This information, required by the 2002 Farm Law, must be correct in order to receive accurate direct and counter-cyclical payments in the near future.

As part of its provisions, the new farm law provides for direct and counter-cyclical payments to be made to eligible producers of covered commodity crops for the 2002 through 2006 crops.

Covered commodities include wheat, corn, sorghum, barley, oats, upland cotton, rice soybeans, sunflower seeds, canola, flaxseed, mustard, safflower, and rapeseed.

Letters from FSA are being mailed to producers across the country asking for their updates.

The letter will include a "summary acreage history report" showing the acreage of covered commodities reported to FSA.

Included will be planted acres and/or acres prevented from being planted for 1998 through 2001.

If the information is correct, producers do not need to take any action. If the information is wrong, producers will need to provide verifiable documentation of acreage and yields to their local FSA office by August 31, 2002.
Source: Doane's Washington Report , July 26, 2002

Farm Bureau questions Mexican trade practices
The American Farm Bureau Federation expressed concern in a letter to U.S. Trade Representative Robert Zoellick regarding the Mexican government's recent actions of placing antidumping duties on U.S. apples, hogs and corn syrup, and imposing an illegal tax on soft drinks produced with sweetener from U.S. corn. In addition new import restrictions on U.S. rice, pork and poultry also may be considered.

"American farmers justifiably question the value of trade agreements when the additional exports those agreements are meant to generate simply trigger an import barrier," AFBF wrote. "The U.S. government must work to ensure not only that trade agreements are fully implemented in accordance with their terms and prescribed timetables, but that such implementation is not rendered meaningless by the imposition of equally restrictive and unjustified import relief measures."

AFBF believes that the passage of international trade agreements designed to reduce trade barriers and create fairer trade sets the stage to move American agriculture forward in the world marketplace.
Source: AFBF Executive Newswatch; Aug. 22, 2002

Red meat, poultry prices pressured
Rising domestic production and imports, along with declining exports, are increasing the amount of red meat and poultry on the domestic market this year. As a result, livestock and poultry markets are under pressure with market weakness across the board.

U.S. exports of red meat and poultry in 2002 are projected down about 7 percent from a year ago, which would be the first decline since 1985. The hardest hit are broilers with an anticipated drop of about 12 percent. The sharp drop in broiler exports is due to disruption of exports to Russia, export bans by other countries, and a slowdown in direct and indirect shipments to China.
Source: USDA; ERS: Livestock, Dairy, and Poultry Outlook

Peanut Quota Buyout Program signup begins
USDA has announced that the signup period for the Peanut Quota Buyout Program (QBOP) will be Sept. 3 through Nov. 22, 2002. Payments will be made after all program regulations have been issued.

Generally, to be eligible for the QBOP, a person must have owned 2001 basic peanut quota as of May 13, 2002. Eligible persons will receive a QBOP payment of $0.11 per quota pound owned in five equal installments or a lump sum payment of $0.55 per pound. Eligible quota holders have the option to elect to receive either a lump sum payment or in five equal installments.
Source: PPB: Peanuts; Aug. 20, 2002

U.S. ethanol industry sets production record
With more than 128,000 barrels of ethanol produced per day in July, the U.S. ethanol industry set another monthly production record, according to U.S. Energy Information Administration. July's record was 14 percent higher than the previous July record of 112,000 barrels per day set in 2001.

The ethanol industry is expected to produce an annual record of more than 2 billion gallons in 2002. Currently, 66 existing plants can produce more than 2.55 billion gallons per year. An additional 11 plants are currently under construction.
Source: AFBF Executive Newswatch, Aug. 26, 2002

Major crops production down in USDA forecast
Corn production is forecast at 8.89 billion bushels, down 7 percent from last year and down 10 percent from 2000. If realized, this would be the lowest production since 1995. Based on conditions as of Aug. 1, yields are expected to average 125.2 bushels per acre, down 13.0 bushels from last year.

Soybean production is forecast at 2.63 billion bushels, down 9 percent from 2001 and 5 percent below 2000. Based on Aug. 1 conditions, yields are expected to average 36.5 bushels per acre, down 3.1 bushels from 2001. If realized, this would be the lowest production since 1996.

All cotton production is forecast at 18.4 million 480-pound bales, down 9 percent from last year's record high production. The yield is expected to average 675 pounds per harvested acre, down 30 pounds from 2001.

All wheat production is placed at 1.69 billion bushels, down 4 percent from the July forecast and down 14 percent from 2001. This is the lowest production since 1972. Based on Aug. 1 conditions, the U.S. yield is forecast at 35.4 bushels per acre, down 1.3 bushels from last month.
Source: NASS, USDA; Crop Production, Aug. 12, 2002

ExxonMobil chooses ethanol in California
ExxonMobil has announced it will switch from MTBE to ethanol in its California gasoline by early next year, according to the Renewable Fuels Association.

With ExxonMobil's decision, four of California's five major refiners will be using ethanol next year.
Source: Doane's Ag Report, Washington Report, July 19, 2002