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

October 7, 2005

Ag spending cuts delayed

The deadline for the ag spending cuts required under the budget reconciliation has been postponed until mid-October. Ag committees need to reduce spending by just over $3 billion over the next five years. Major categories of spending include food and nutrition programs, crop subsidies, and conservation programs. Elimination of the cotton Step 2 program is also expected to be considered as part of the budget reconciliation process.
Source: Doane's Agricultural Report; Vol. 68, 37-1; Sept. 16, 2005

Biodiesel fuel burns cleaner
A study by the National Renewable Energy Laboratory shows that B20, a blend of 80 percent diesel and 20 percent treated vegetable oil, cuts emissions of four major air pollutants: nitrogen oxide by 5 percent, carbon monoxide by 32 percent, hydrocarbons by 40 percent, and particular matter by 24 percent to regular diesel.
Source: Doane's Agricultural Report; Vol. 68, No. 35-1; Sept. 2, 2005

New disaster aid proposed
Members of Congress have proposed legislation that would provide disaster aid to farmers hit by Hurricane Katrina, but also for producers affected by other natural disasters, including the drought in the central U.S. this summer. The bill would also help growers deal with the high energy prices.

Under the bill, farmers would receive compensation for 50 percent of losses that exceed 25 percent of the crop. Another $1 billion would be provided to offset the effects of high fuel prices.

The actual magnitude of losses from the hurricane and other problems won't be known for several months yet, so the actual amount of disaster aid is difficult to estimate. The hurricane has greatly increased the chances that Congress will approve disaster aid this year.
Source: Doane's Agricultural Report; Vol. 68, No. 37-1; Sept. 16, 2005

Canada investigates U.S. corn shipments
Canadian officials are investigating whether U.S. corn shipments to Canada are unfairly depressing Canadian grain prices to farmers.

The Canada Border Services Agency has the responsibility of issuing a preliminary ruling by Dec. 15 on whether U.S. corn imports are being dumped and subsidized . The Ontario Corn Producers' Association claims corn prices in the province are more than 40 percent below their members' cost of production because of the availability of cheap U.S. corn.

The U.S. Agriculture Department announced that it expects Canada's claims to be without foundation as claims in 1992 and 2001 were determined to be.
Source: AFBF; Executive Newswatch; Sept. 19, 2005

Number of FSA closings disputed
A Farm Service Agency document obtained by the Associated Press outlines the department's plans to close an estimated 665 of the 2,353 offices in the nation, but FSA spokespersons say the numbers are inaccurate.

State FSA directors were expected to hear the overall plan during briefings in Washington in September. Some FSA officials like to refer to the changes as consolidating functions while providing improved service.
Source: AFBF; Executive Newswatch; Sept. 19, 2005