With high gasoline prices hitting drivers at the pump and farmers at the tractor, the race is on to determine why refinery capacity hasn't kept up with demand, and to point fingers. While the president's energy plan faults environmental regulations, the Associated Press reports on June 14 that recently-released internal documents from Texaco and Chevron indicate that the companies limited construction of new refineries in a deliberate attempt to boost profits. The documents, released to the public by Senator Ron Wyden (D-OR), include a 1995 statement by Chevron, "If the U.S. petroleum industry doesn't reduce its refining capacity, we will never see any substantial increase in refinery margins (profits)," and a 1996 comment by a Texaco official that excess refinery capacity was causing "very poor refining financial results." While some officials recommend loosening environmental regulations to increase supplies and lower prices, the latter memo shows that Texaco actually hoped to boost prices by getting government to lift Clean Air Act requirements that an oxygenate compound be added to the fuel --without the compound, each gallon of fuel would contain a higher percentage of gasoline, further diminishing supplies.

2. BUSH ASKING FARMERS TO BACK FREE TRADE AND FAST TRACK

President Bush recently asked a group of "farm-state lawmakers and industry representatives" to support "trade agreements that are free from codicils that prevent us from freely trading,"(Rueters, June 19). The "codicils" he wants to keep out of trade agreements are provisions stating that trade deals must contain standards to protect worker rights and the environment. Legislation introduced by Phil Crane (R-IL) to give Mr. Bush "fast track" trade authority (the authority to negotiate trade agreements that Congress must quickly approve or disapprove, but not modify) specifically excludes labor and the environment from being considered in trade bills. Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, has criticized Crane's bill and he adds that "some in the agriculture community have echoed the arguments . . .that these laws need to be weakened to negotiate new agreements on agriculture and that labor and environmental issues should not be on the agenda" (Inside US Trade, June 15). The Farm Bureau publicly supports Rep. Crane's bill, saying "We object to using trade agreements as a weapon to make our trading partners comply with certain labor and environmental standards, or to use sanctions and other trade-restrictive measures as enforcement tools" ( National Farmers Union, on the other hand, is supporting "trade agreements to include labor, environmental, health, and safety standards that are leveled up to U.S. standards"  

You can express your opinion on the importance of environmental and labor standards in trade agreements by calling Senator Baucus's office at (202) 224-2651.

To learn more about the American Farm Bureau Federation's ties to Archers Daniels Midland and other international agribusinesses, go to http://www.familyfarmer.org/sections/meet.html

What do you get when the world's largest poultry producer renews negotiations to purchase the world's largest beef producer after losing a court battle over its backing out of the original deal? "A shotgun wedding," says one analyst of the renewed talks to acquire IBP. "A Global powerhouse, a one-stop supplier," say others. A mega-agribusiness industry that will control over 30% of the beef market, 33% of the broiler chicken market and 18% of the pork market, say consumer and farm activists who are concerned over the increased concentration in the livestock sector. Tyson, the world's largest poultry producer, won a bidding war in January to acquire beef packing giant IBP, but backed out of the $3.2 billion deal, citing concerns about the financial management of one of IBP's subsidiaries. A judge ruled June 15 that Tyson had reneged illegally on the deal, and might have had to pay damages to IBP, whose stock dropped when the merger fell through. If the deal now goes forward, it will further decrease competition in meat packing, an industry where the top four firms control 49%of the broiler market and 80% of the cattle slaughter.

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If you don't buy organically grown chicken at the grocery, it's likely that chicken was raised using antibiotics as a growth stimulator. While this practice is widespread, medical doctors are becoming increasingly concerned such indiscriminate use may be instrumental in causing the rapid rate of evolving antibiotic resistance. Feedstuffs magazine is reporting that the American Medical Association (AMA) has gone "on record in opposition to non-therapeutic uses of antibiotics in agriculture."

According to Feedstuff's the AMA is worried enough to bankroll the effort with a "three-pronged attack on (antibiotic) resistance in a measure that included a $2 million fiscal note." This move by the nations most powerful medical association came last week in Chicago during their annual convention. The AMA resolution states (We are...) "opposed to the use of antimicrobials (antibiotics) at non-therapeutic levels in agriculture or as pesticides or growth promoters and urges that non-therapeutic use in animals of antimicrobials (that are also used in humans) should be terminated or phased out based on scientifically sound risk assessments."