Farm lobbyists concerned about cuts
The National Farmers Union is concerned about proposed cuts in farm spending that could take place during the next decade.
The Washington-based agricultural lobbyist group said it was told there would be no mandatory farm-related spending cuts in the budget measure to be considered by the Senate and House of Representatives.
But there is the possibility of $4.87 billion in cuts to discretionary farm spending during the next 10 years.
"Farmers and ranchers have been in a deep price trough for the last decade," farmers union President Dave Frederickson said. "Cutting agriculture programs would further depress the agricultural economy."
Discretionary cuts account for 6.5 percent of new farm bill spending. They include research, food assistance programs, crop insurance and administrative costs.
Frederickson said congressional appropriations committees in the past have redistributed cuts from these programs to mandatory programs such as farm safety net provisions, nutrition and conservation.
The House and Senate had each approved their own versions of farm-related spending programs, and a conference committee was resolving differences between the two plans.
The House had approved a measure balancing the federal budget and providing tax benefits for wealthier residents by reducing farm spending by $18.6 billion.
Frederickson called that balancing the budget "on the backs of farmers and ranchers."
Frederickson said tax provisions are still not clear.
While the House approved a $550 billion tax package, the Senate approved a $350 billion tax proposal. Both fall short of the $726 billion tax proposal desired by President Bush.
"A balanced budget should include balanced tax reform and an economic stimulus for the poor and middle-class Americans, not just the privileged," Frederickson said.
U.S. wants back in Iraq for wheat
The U.S. Wheat Associates said it hopes that a 2 million-bushel shipment of U.S.-grown wheat to Iraq is the beginning of resumed relations between the two countries that would provide significant markets for U.S. farmers to sell their crop.
They note that prior to the Gulf War, U.S. wheat producers used to sell significant portions of their wheat crop to Iraq. "It is a wheat that their bread-loving culture had before and deserves to have again," group President Alan Tracy said.
Officials said they hope that political considerations do not interfere with the ability of U.S. wheat farmers to sell their crop, or for Iraqi officials to choose to buy it.
"Open markets work, when given the chance," Tracy said. "They work best when commercial buyers are free to choose their sources of supply and when suppliers compete fairly and transparently."
U.S., Uruguay create ag committee
The Agriculture Department is working with the Uruguay Livestock, Agriculture and Fisheries Ministry to create a consultative committee on farm-related issues.
U.S. and Uruguay farm officials signed an agreement during a visit to the University of California-Davis. "This consultative committee will help foster cooperation on global and regional issues," Agriculture Secretary Ann Veneman said.
The two countries are among those currently negotiating trade issues for the global Doha round of the World Trade Organization and the hemispheric Free Trade Area of the Americas.
Iowans to have windmill farm
The largest windmill farm in the world is going to be built in Iowa with 180-200 turbines on 200 acres generating 310 megawatts of electricity -- enough to supply the needs of 85,000 homes.
The project was announced by MidAmerican Energy Holdings Co.
Company officials said the first turbines of the project should be in operation by the end of 2004 and the entire project is to be completed by 2006.
Billionaire investor Warren Buffett's Berkshire Hathaway is reported to be the owner of most of MidAmerican Energy. Farmers in parts of Iowa where the turbines will be located will be paid about $4,000 per year for each turbine on their land.
(By E.W. Kieckhefer)
Crop progress continues
The National Agricultural Statistics Service reported Monday that 4 percent of the winter wheat crop is headed, compared to 4 percent at this time last year and 6 percent average for the past five years. Fifty-one percent of the crop is expected in excellent or good condition, with 33 percent fair and 16 percent poor or very poor.
For corn, 5 percent of the crop is planted, compared to 4 percent last year and 4 percent the past five years.
For cotton, 8 percent of the crop is planted, compared to 5 percent last week, 9 percent last year and 8 percent the past five years.
For sorghum, 15 percent of the crop is planted, compared to 12 percent last week, 15 percent last year and 14 percent the past five years.
For rice, 26 percent of the crop is planted, compared to 15 percent last week, 21 percent last year and 21 percent the past five years. Of that, 9 percent of the crop has emerged, compared to 4 percent last week, 12 percent last year and 11 percent the past five years.
For sugarbeets, 15 percent of the crop is planted, compared to 7 percent last week, 9 percent last year and 10 percent the past five years.
For spring wheat, 13 percent of the crop is planted, compared to 5 percent last week, 5 percent last year and 8 percent the past five years.
For barley, 13 percent of the crop was planted, compared to 7 percent last week, 9 percent last year and 11 percent the past five years.
For oats, 16 percent of the crop is planted, compared to 8 percent last week, 16 percent last year and 18 percent the past five years.
Grain mixed on CBOT
Grain futures were mixed at the close of activity Monday on the Chicago Board of Trade.
Soybean futures rose because of near-ideal planting conditions in the Midwestern U.S. and due to solid export inspection figures from the Agriculture Department.
Corn futures declined on weather forecasts for the next few days and due to technical selling by traders.
Wheat futures fell due to light trading activity and a lack of any new information that could have inspired prices to rise.
Oats futures increased.
The prices:
Soybeans: May 6.07 3/4 up 7 1/2, Jul 6.07 1/4 up 8 1/4, Aug 5.93 1/2 up 7, Nov 5.32 3/4 up 4.
Corn: May 2.39 1/4 unch, Jul 2.39 3/4 off 1/2, Sep 2.38 1/2 off 1, Dec 2.38 off 1 3/4.
Wheat: May 2.80 3/4 off 3 1/2, Jul 2.85 1/4 off 3 1/2, Sep 2.90 1/2 off 2, Dec 3.01 off 2 1/2.
Oats: May 1.81 up 1 1/2, Jul 1.54 1/2 up 1 1/4, Sep 1.46 up 1/2, Dec 1.45 3/4 up 3/4.
