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The Economics Behind The Headlines: May 2007

ERS Data and Analysis Can Shed More Light on Current Events

In the News

Consumers Facing Steeper Increases in Food Prices (Minneapolis Star-Tribune, June 2, 2007)

From ERS

Food Price Index, 2007. ERS examines changes in the Consumer Price Index (CPI) for food, and constructs monthly forecasts of changes in the CPI for the year.

In the News

Resistance Predicted for Food Aid Reform Plan (Chicago Tribune, May 28, 2007)

From ERS

Fifty Years of U.S. Food Aid and Its Role in Reducing World Hunger. Differing objectives in food aid programs, lack of consistency among donors' approaches to food aid, and types of food donated are just a few factors that limit the effectiveness of food aid. E.g., the share of higher priced, noncereal foods is growing, but these are unlikely to reach the poorest population segments.

In the News

Administration Presses China on Safety of Chinese Food Imports (New York Times, May 23, 2007; Reuters, May 22, 2007)

From ERS

Food Safety Improvements Underway in China. Facing growing demand abroad and at home for safer food, China is overhauling its food system to meet international food safety standards. Adverse publicity about contaminated food exports and growing domestic concerns has prompted China to improve overall food safety. Only a small portion of Chinese production for the domestic market meets the new government standards for safer food.

International Trade and Food Safety: Economic Theory and Case Studies. ERS examines the conceptual relationships between food safety and international trade and analyzes examples from the meat and poultry, produce, food and animal feed crop, and seafood sectors.

In the News

Lawmakers Split on Specialty Crop Restrictions in Farm Programs (Congressional Quarterly, May 22, 2007)

From ERS

Relaxing Fruit and Vegetable Planting Restrictions. A recent WTO challenge to U.S. commodity programs has created pressure to eliminate fruit and vegetable planting restrictions on farms that participate in commodity programs. ERS finds that market effects of eliminating these restrictions for commodity program participants would likely be limited and confined to specific regions and commodities.

In the News

Global Warming Threatens Wild Food Varieties (Reuters, May 22, 2007)

From ERS

Crop Genetic Resources. All agricultural commodities, even modern varieties, descend from an array of wild and improved genetic resources from around the world. Furthermore, agricultural production depends on continuing infusions of genetic resources for yield stability and growth. Keeping ahead of pests and disease depends on the quality of germplasm that is available in the wild, in public gene banks, or in private breeder collections.

In the News

Approaches to Safe Eating (U.S. News and World Report, May 20, 2007)

From ERS

Consumer Food Safety Behavior Briefing Room. ERS research provides guidance for developing and targeting food safety education. ERS also conducts research on the effect of consumer demand for food safety on incentives to produce safer food, through liability lawsuits, avoidance of foods perceived as unsafe, and purchase of foods considered especially safe.

In the News

U.S. Wheat Sales to India Are Topic of Talks. (Reuters, May 16, 2007)

From ERS

Indian Wheat and Rice Sector Policies and the Implications for Policy Reform. The pronounced market cycles and declines in per capita consumption of India’s major food staples are creating pressure for Indian policymakers to adjust longstanding wheat and rice policies.

In the News

China Plans to Purchases Millions in Cotton (Associated Press, May 14, 2007)

From ERS

Cotton and Wool Outlook. U.S. cotton exports are projected to rebound in 2007/08 to 17.5 million bales, nearly 4.3 million bales higher than 2006/07. Supporting the increase next season is the projected rise in foreign cotton mill use coupled with drawdown of foreign stocks this season. With the increase in exports, the U.S. share of global trade is expected to rise above 40 percent once again after 2006/07’s estimated share of 35 percent.

In the News

Farmers Responding to Surging Ethanol Demand (Associated Press, May 13, 2007)

From ERS

Feed Outlook. Forecast feed grain area planted in 2007, based on USDA’s Planting Intentions, is up 14 percent from 2006 as farmers responded to strong preseason prices. Acres to be planted in corn are expected to be up 15 percent. But record use of feed grains, boosted by a 58-percent rise in corn used to make ethanol, is expected to keep ending stocks relatively low, up just 1 percent from 2006/07.

In the News

Harkin See Biofuels As Big Part of Farm Bill (Reuters, May 9, 2007)

From ERS

Ethanol Reshapes the Corn Market. The expanding U.S. ethanol sector is stimulating demand for corn. To meet demand, some U.S. corn is likely to be diverted from exports. In the future, corn may cease to be the main feedstock for U.S. ethanol production if cellulosic biomass is successfully developed as an alternative.

In the News

Corn/Ethanol Demand Pushing Up Food Prices (Investors Business Daily, May 8, 2007)

From ERS

Food Price Outlook, 2007. "In 2007, the Consumer Price Index (CPI) for all food is projected to increase 2.5 to 3.5 percent, as retailers pass on higher commodity and energy costs to consumers in the form of slightly higher retail prices." ERS provides monthly analysis and forecasts of the CPI for food.

In the News

Wisconsin Editorial Calls for More Conservation Spending in Farm Bill (Wisconsin State Journal, May 3, 2007)

From ERS

Farm Bill Issues: ERS Research and Analysis. In the coming months, Congress will be crafting legislation that will eventually become the next farm law. ERS analysts examine the economic effects of current farm legislation on producers, consumers, taxpayers, and rural communities, and evaluate potential effects of alternative policies and programs. A “one-stop” web page presents a selection of ERS research and analysis on issues the farm bill debate will address. Revisit this site as new research and resources are added.

In the News

Congress Scrutinizing Rural Internet Funding (Washington Post, May 2, 2007)

From ERS

Rural Telecommunications. The Internet has quickly become a standard tool in the rural workplace, and farms have been in the vanguard in rural America. The most recent data indicate that 56 percent of farm operators used the Internet, and 31 percent of rural workers. Broadband Internet service is catching on in rural areas, but dial-up is still the most likely method to access the Internet. The increase in Internet use has occurred for all regions, income groups, and ethnic groups.

In the News

Exploring Animal and Human Vaccines to Combat E.Coli (New York Times, May 1, 2007)

From ERS

Food Safety Innovation in the United States: Evidence from the Meat Industry. Recent industry innovations improving the safety of the Nation's meat supply include new pathogen tests, high-tech equipment, supply chain management systems, and surveillance networks. The industry has also developed a number of mechanisms to stimulate investment in food safety innovations despite fairly weak market incentives.

In the News

FDA Enforcing Import Alert on Food Ingredients From China (USA Today, May 1, 2007)

From ERS

Food Safety Improvements Underway in China. Facing growing demand abroad and at home for safer food, China is overhauling its food system to meet international food safety standards. Adverse publicity about contaminated food exports and growing domestic concerns has prompted China to improve overall food safety. Producing safer food for export is challenging, expensive, and reduces China’s cost advantage.

In the News

Nature Conservancy Praises Farm Bills’ Conservation Achievements (Nature Conservancy magazine, Spring 2007)

From ERS

Conservation Policy Overview. Agricultural conservation programs are part of a larger Federal effort to protect and preserve natural resources. Land retirement programs generally remove land from agricultural production for a long time, while working-land programs provide technical and financial assistance to farmers who install or maintain conservation practices on land in production.

See previous economics behind the headlines

 

For more information, contact: Mary Reardon

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Updated date: July 13, 2007