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AgNews Summary for USDA Executives
Thursday, Feb. 5, 2009 
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FARM & FOREIGN AGRICULTURAL SERVICES
EU CRITICIZES FARM BILL AS TRADE DISTORTING (101 Reuters 2/4) European 
Commission agriculture experts criticized recent developments in U.S. agriculture policy 
in a new study published Wednesday, saying they appeared to move in the direction of 
further trade distortion.  The study, known as MAP (Monitoring Ag-Trade Policy), singled 
out a new scheme in last years farm bill knows as the Average Crop Protection scheme, 
or ACRE, and said it fails to take future international trade commitments into account.  
FOOD, NUTRITION AND CONSUMER SERVICES
SCHOOL DISTRICTS PUSH TO GET MORE KIDS INTO BREAKFAST PROGRAM (102 
AP 2/4) The article leads with a look a the school breakfast program at a high school near 
Cincinnati, Ohio, where the number of students eating breakfast has grown from 150 to 
900 since November.  The increase came after the school dropped its cafeteria-style 
breakfasts in favor of delivering bagged meals to classrooms.  School districts around the 
U.S. have been trying new ways to get more students to use the federally funded School 
Breakfast Program, especially as more children become eligible for free and reduced-
price meals due to the recession.  Schools in Ohio, Wisconsin and Florida are handing out 
bagged meals in or out of classrooms, offering breakfast free to all students and offering 
iPods and other incentives to get students to use the breakfast programs.  Nationally, 
about 8.5 million children participated in school breakfast programs on an average day in 
the 2007-2008 academic year.  While that was an increase of 4 percent, the program 
remained less popular than the National School Lunch Program, which reached 18.4 
million children.  
MARKETING & REGULATORY PROGRAMS
USDA SUSPENDS 19 FROM IOWA LAB FOR ILLEGAL DRUG PURCHASES (103 
wires, Iowa dailies 2/4) USDA has placed 19 employees at a laboratory campus in Iowa 
on paid leave after allegations that some used veterinary credentials to purchase low-
cost medications for human use.  Secretary Tom Vilsack called it a very serious situation 
that requires immediate and decisive action.  He said there is no evidence that the 
alleged activity interfered with the laboratories work or results.  But he said he wants to 
send a clear signal that such actions wont be tolerated.  Cindy Smith, acting deputy 
under secretary for marketing and regulatory programs, said the drugs were sold to 
other employees for their own and their familys use.  The drugs were primarily 
antibiotics, blood pressure medications and pain relievers, but none were narcotics.  
Vilsack said USDA has commissioned two outside reviews of laboratory processes and 
management at the facilities.  
VILSACK PRESSURED TO REVISE BUSH RULES ON MEAT LABELING (104 Congress 
Daily 2/5) Seven Democratic senators are urging Secretary Tom Vilsack to revise the 
Bush administrations country-of-origin labeling rule for red meat.  They said it contains a 
provision that allows meatpackers to put a multiple country-of-origin label on products 
that are exclusively U.S. products, as well as on products that are foreign.  The Bush 
administrations published rule does not take effect until March 16, and comes under the 
Obama administrations review of all Bush rules that had not gone into effect on Jan. 20.  
In a letter this week, the senators wrote that the 2008 farm bill provision establishing the 
country-of-origin labeling program said the multiple country labels should apply to meat 
from animals not exclusively born, raised and slaughtered in the U.S.  The Bush 
administration expanded the definition to use the multiple-country label for muscle cuts 
from U.S. animals that are processed by a facility on the same day as foreign products, 
and for ground meat if the facility had processed some meat from the U.S. within the 
past 60 days.  
BIRD FLU ON CANADIAN FARM POSES LOW RISK, AGENCY SAYS (105 Agence 
France Presse 2/4) The strain of bird flu detected late last month on a poultry farm in 
British Columbia has a low risk of spreading the virus, the  Canadian food Safety Agency 
said.  Preliminary tests indicate the strain of avian influenza is of low pathogenicity, but 
36 premises in the region remain under quarantine as the investigation continues, the 
agency said in a statement Tuesday.  
NATURAL RESOURCES & ENVIRONMENT
SALAZAR SCRAPS SALE OF OIL AND GAS LEASES IN UTAH (106 dailies 2/5, AP 2/4) 
In a high-profile reversal of the Bush administration, Interior Secretary Ken Salazar said 
Wednesday the government is scrapping the lease of 77 parcels of land for oil and gas 
drilling in Utahs redrock country.  Salazar said the Bush administration had rushed 
ahead in its final weeks to sell oil and gas leases near some of our nations most 
precious landscapes in Utah.  He ordered the Bureau of Land Management not to cash 
checks from winning bidders for parcels at issue in a lawsuit filed by environmental 
groups.  The sales were worth $6 million to the government, in addition to royalties on 
any oil or gas production.  We will take a fresh look at these 77 parcels to see if they are 
appropriate for oil and gas development, Salazar said.  
RESEARCH, EDUCATION & ECONOMICS
AG CENSUS SHOWS MORE, BUT SMALLER FARMS (107 Reuters 2/4) There are 
nearly 76,000 more farms in the U.S. than there were a few years ago, but new 
operations tend to be smaller, more diversified and have lower sales than the average 
farm, according to USDA data released Wednesday.  A USDA census taken every five 
years found 4 percent more farms in 2007 than in 2002.  There were fewer middle-size 
farms and markedly more farms that were small or very large.  Secretary Tom Vilsack 
said the increase is largely the result of efforts to encourage organic farming, boost land 
stewardship, improve productivity per acre and create opportunities in development of 
renewable energy.  Overall, there were 2,204,792 farms in the U.S., a net increase of 
75,810 since the 2002 census.  The number of smaller farms with sales less than $2,500 
rose by 73,769 to 900,327, while large farms with sales of more than $100,000 or  
higher increased by 45,771 to 357,159 from 2002 to 2007.  Vilsack said he is deeply 
concerned about the drop in middle-size operations.  Operations generating income 
between $2,500 and $99,000 all posted declines in the number of farms compared to 
2002.
WEATHER SERVICE EXPECTED OVERNIGHT FREEZE IN FLORIDA (108 Reuters 2/4) 
The National Weather Service said Wednesday a hard freeze would strike citrus areas in 
Florida Wednesday night into this morning, sparking a rally in orange juice futures.  
Citrus crops will suffer damage if temperatures fall to 28 degrees or below for four hours 
or more.  The NWS said it expected temperatures to drop below freezing before 
midnight, and that total duration of the freeze might exceed 12 hours in some places, 
with hard freezing temperatures lasting around six hours.  In a separate report, WSI 
Corp. said another shot of frigid weather should hit Florida on Friday as well.  
USDA -- MULTI-MISSION
VILSACK SAYS USDA MUST SERVE EATERS AS WELL AS FARMERS (109 
Washington Post 2/5) When Tom Vilsack was nominated as secretary of agriculture, 
many food policy activists, noting his reputation as a friend to corporate agriculture and 
ethanol producers, rendered a verdict that was swift and harsh: agribusiness as usual.  
But Vilsack is out to redefine himself and his vision.  In an interview this week, he called 
for a new day for USDAs sprawling bureaucracy, which he believes should champion 
not only farmers but also everyone who eats.  This is a department that intersect the 
lives of Americans two to three times a day.  Every single American, he said.  So I 
absolutely see the constituency of this department as broader than those who produce 
our food  it extends to those who consume it.  It is a significant departure from the 
traditional view of USDA, which historically has emphasized programs that support 
commercial farming, such as price guarantees and marketing promotions for exports.  
Hes definitely sounding a different note than his predecessors, said author Michael 
Pollan.  Whether theyll be reflected in policies remains to be seen.  
WHITE HOUSE REVIEWING UNDER SECRETARY PROSPECTS (110 Dow Jones 2/4) 
The White House is scrutinizing the background of six people that Secretary Tom Vilsack 
said he would like for his under secretaries.  There are seven under secretary positions at 
USDA, one for each of seven mission areas.  Vilsack did not release the six names under 
consideration, and did not say when he would make a seventh recommendation.  
VILSACK MAY MOVE TO PUT MORE DAIRY INTO NUTRITION PROGRAMS (111 
Watertown Daily Times, N.Y. 2/5) Secretary Tom Vilsack signaled Wednesday that he 
may take measures to put more dairy products into federal nutrition programs, possibly 
easing the blow of falling milk prices on dairy farmers.  Vilsack was less enthusiastic 
about boosting exports, which could lead to complaints from U.S. trade partners.  In a 
press conference, Vilsack said he would not comment about specific ideas he is 
contemplating, but he said the recent fall in milk prices is one of his top concerns, and 
can be addressed by reducing an oversupply of milk, particularly in the West.  His 
comments may satisfy some lawmakers who have urged more dairy products for food 
programs.  But they have also urged more exports, especially through a little-used 
federal subsidy called the Dairy Export Incentive program.  The government has 
narrowed that program considerably; it often raises free trade complaints from other 
countries.  
ENERGY SECRETARY WARNS CALIF. AGRICULTURE IN PERIL (112 L.A. Times 2/4) 
Californias farms and vineyards could vanish by the end of the century, and its major 
cities could be in jeopardy, if Americans do not act to slow the advance of global 
warming, Energy Secretary Steven Chu said Tuesday.  Chu offered some of the starkest 
comments yet on how seriously President Obamas Cabinet views the threat of climate 
change, along with a detailed assessment of the administrations plans to combat it.  Chu 
warned of water shortages plaguing the West and Upper Midwest, and particularly dire 
consequences for California, the nations leading agricultural producer.  In a worst case, 
Chu said, up to 90 percent of the Sierra Nevada snowpack could disappear, all but 
eliminating a natural storage system for water vital to agriculture.  Were looking at a 
scenario where theres no more agriculture in California, Chu said.  He added, I dont 
actually see how they can keep their cities going either.
DeLAURO INTRODUCES BILL TO SPLIT FDAS MEDICAL, FOOD DIVISIONS (113 
Congress Daily 2/5, wires 2/4) Rep. Rosa DeLauro on Wednesday introduced legislation 
that would separate the medical device and drug divisions of the Food and Drug 
Administration from the agencys food section.  FDAs handling of the recent salmonella 
outbreak is fanning calls for massive change in the federal governments food safety 
system.  DeLauros bill is the second piece of legislation in a week to provide a 
framework for revamping the countrys approach to food safety.  At a news conference, 
she cited the outbreak of illnesses linked to tainted peanut products as an example of 
the full-scale breakdown of a piecemeal food safety system.  She said a separate 
agency for food would result in more attention to food safety than is now provided by 
FDA.  
SENATE AGREES TO DILUTE BUY AMERICAN PROVISIONS IN STIMULUS (114 
N.Y. Times 2/5) The Senate, at the urging of White House officials, agreed Wednesday to 
water down some of the buy American provisions in its version of the $900 billion 
economic stimulus bill.  The vote gave President Obama a victory in the first test of how 
he will balance his campaign promises to toughen protections for American workers 
against a storm of protests by American trading partners who have threatened 
retaliation.  The White House had been seeking assurances that any requirements barring 
purchases from abroad did not significantly expand existing law or violate existing trade 
treaties.  The language approved by the Senate said such provisions should be applied 
in a manner consistent with United States obligations under international agreements.  
	OBAMA SAYS U.S. CANT SEND PROTECTIONIST MESSAGE (115 Reuters 
2/3) President Obama said Tuesday he did not want to send a protectionist message on 
world trade, and would look at altering buy American language in an economic stimulus 
bill coming out of Congress.  I think it would be a mistake...at a time when worldwide 
trade is declining, for us to start sending a message that somehow were just looking 
after ourselves and not concerned with world trade, Obama said.  
PEANUT CORP. SAYS GEORGIA PLANT WAS INSPECTED (116 N.Y. Times 2/5, 
Reuters 2/4) The peanut company at the center of a salmonella outbreak said federal and 
state regulators regularly visited a plant in Georgia that has been identified as the source 
of the contamination.  We want the public to know that there were regular visits and 
inspections of the Blakely plant by federal and state regulators in 2008, the Peanut 
Corp. of America said.  It added that independent audit and food safety firms also 
conducted customary unannounced inspections of the Blakely facility in 2008, and the 
plant was found to meet or exceed audit expectations.  
MINNESOTA STUDY SAYS CORN ETHANOL IS NO BETTER FUEL THAN GAS (117 
Dow Jones, Minnesota dailies 2/3-2/4) Corn ethanol is no better fuel than gasoline, and it 
may even be worse for air quality, according to a new study by the University of 
Minnesota.  The study, released Monday, is the first one to estimate the economic costs 
to human health and well-being from three different fuels  gasoline, corn-based ethanol 
and cellulosic ethanol  its authors say.  Scientists and economists looked at life-cycle 
emissions of growing, harvesting, producing and burning different fuels, and concluded 
that ethanol made from switchgrass and other plant materials is far better than either 
corn ethanol or gasoline.  The universitys study will be published in this weeks issue of 
the Proceedings of the National Academy of Sciences, and was posted on the PNAS Web 
site Monday.
COMPANY TO MOVE BIODIESEL BLEND VIA PIPELINE (118 Reuters 2/4) Kinder 
Morgan Energy Partners said Wednesday it expects to move fuels blended with 5 percent 
biodiesel across the South in the Plantation oil products pipeline this year.  The company, 
one of the largest pipeline companies in the U.S., recently moved 20,000 barrels of the 
blended fuel via a Mississippi to South Carolina segment of the line in a test, and called it 
a success.  Kinder said last year it is also moving batches of ethanol through a 105-mile 
products line in Florida.  
HOUSE PANELS WRESTLE OVER CFTC JURISDICTION (119 Reuters 2/3) The House 
Agriculture Committee rejected a proposal that would narrow its power to market 
regulation issues affecting only edible commodities, House financial Services Committee 
Chairman Barney Frank said Tuesday.  Frank said he proposed the change as part of 
broader reforms needed in financial markets regulation and to fill in regulatory gaps 
exposed by the role of credit default swaps in the financial crisis.  Currently, the House 
Agriculture Committee has jurisdiction over the Commodity Futures Trading Commission, 
which regulates futures and options contracts ranging from crude oil to pork bellies to 
Treasury notes.  The House Financial Services Committee oversees the Securities and 
Exchange Commission and banking regulators such as the Federal Deposit Insurance 
Corp.  Frank said he proposed to Agriculture Committee Chairman Collin Peterson that 
the ag committee and the CFTC retain jurisdiction over all edible commodities and the 
Financial Services Committee get all the others.  Peterson said no, Frank said.  Peterson 
maintains that the CFTC is doing a good job policing the markets.  
AGRICULTURE AND TRADE PRESS
FEEDSTUFFS 2/4
(120) USDA investigates allegations of impropriety
(121) Number of U.S. farms expanding; fewer mid-size operations exist 
(122) Robert Kennedy Jr. reaffirms quote comparing hog farmers to terrorists
BROWNFIELD 2/4
(123) Census shows more farms, but smaller
(124) Cotton Council among testimony at derivatives legislation hearing
(125) MGP exits ethanol business; U.S. production continues to slide
(126) Commentary: Whither USDA?
DTN 2/4
(127) Financial industry says regulation would push derivatives overseas
AGRI-PULSE 2/4
(128) Ag committee plans derivatives bill mark-up next week
(129) Heres how House and Senate energy provisions compare
AND ALSO
FRUGAL OHIO TEACHER LEAVES $2 MILLION TO ALMA MATER (130 AP 2/4) A 
penny-pinching math teacher from Ohio who never earned more than $40,000 per year 
in salary has left $2 million to her alma mater.  Laura Bickimer died in April at age 93 
after making plans to leave the bulk of her estate to Baldwin-Wallace College near 
Cleveland.  She graduated from the school in 1936.  Bickimer retired in 1972.  She never 
earned more than $40,000 in annual salary, but inherited wealth from her family.  The 
school will name a scholarship after her.  
USDA RELEASES
Wednesday, Feb. 4
0037	STATEMENT FROM AGRICULTURE SECRETARY TOM VILSACK REGARDING 
ALLEGATIONS OF IMPROPRIETY AT AMES, IOWA, FEDERAL LABORATORIES
0036	Census of Agriculture Shows Growing Diversity in U.S. Farming
To obtain a USDA release, access USDAs Home Page at  http://www.usda.gov 
To access AgNews on the USDA Intranet, go to http://agnews.usda.gov
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DISCLAIMER -- AgNews content is derived from major wires, news 
magazines and mass distribution press.  Inclusion of an item in AgNews does 
not imply USDA agreement; nor does USDA attest to the accuracy 
or completeness of the item.   
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